It is reported that CVS Health (CVS.US) will spin off its retail pharmacy and insurance business, marking a major reversal in its integration strategy.

According to reports cited by Zhihu Finance APP, CVS Health (CVS.US) will split into two companies, separating its retail pharmacy business from its insurance and pharmacy benefit management operations. One company will retain the CVS Health name and will be led by current CEO David Joyner. CVS Health is scheduled to announce its quarterly results on Wednesday, and the company has not commented immediately.

This split will mark a significant reversal of CVS Health's strategy of building an integrated healthcare business through acquisitions, including its approximately $78 billion purchase of the health insurer Aetna in 2018.

Reports indicate that CVS Health is considering spinning off its retail pharmacy business, which operates around 9,000 pharmacies, into a separately listed company, while Aetna and its pharmacy benefit manager Caremark will remain together.

Following this news, CVS Health’s share price rose 1.2% in after-hours trading.

This potential restructuring comes at a time when pharmacy benefit managers (PBMs) are facing increased political and regulatory scrutiny over their role in the U.S. pharmaceutical supply chain, which is also putting a spotlight on healthcare companies that operate insurance, pharmacy benefit management, and pharmacy businesses simultaneously.

Data shows that in 2025, CVS Health's revenue reached a record $402.1 billion, an increase of 7.8% year-on-year.

Reports state that CVS Health explored options including a potential split in 2024, as the healthcare giant was managing challenges across its businesses. After Joyner took over in October 2024, CVS Health’s share price rebounded, helping the company’s market capitalization rise to about $117 billion.