CVS to Spin Off Retail Pharmacies From Aetna by 2028
News originally published by
MENAFNThe company aims to finish the separation in the first half of 2028, pending final board approval and other conditions. Under the plan, CVS Health shareholders would hold stock in both companies, the company said in a statement.
The health care solutions company, which would keep the CVS Health name during the transition, would house insurer Aetna, pharmacy benefit manager CVS Caremark and specialty pharmacy unit CVS Specialty. Oak Street Health and Signify Health would also stay within it.
The second company, to be called CVS Pharmacy, would run 9,000 retail pharmacies. It would also take over the mail-order pharmacy operation, MinuteClinic and the Health100 technology services business.
David Joyner, CVS Health’s chairman and chief executive, would keep both titles at the health care solutions company. Prem Shah, currently group president, would take over as chief executive of CVS Pharmacy.
CVS Health said it expects both companies to carry investment-grade credit ratings and produce strong free cash flow. The company plans to structure the split to be tax-free for itself and its shareholders for US federal income tax purposes.
Patients and customers would keep receiving medicines, care and benefits without interruption during the transition, the company said.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
