CVS to split into two companies, no impact on local stores or prescriptions

CVS Health announced it will split into two separate companies, unwinding a strategy that began with its 2007 merger with Caremark and its 2018 acquisition of Aetna, according to WTOP.

The company said the split will not affect how customers shop at CVS stores or the prices they pay for prescriptions. The pharmacy benefit management business operates behind the scenes negotiating drug costs, while CVS drugstores and Caremark insurance function separately.

CVS has about 9,000 locations nationwide, including stores in the Washington DC area, and employs 30,000 pharmacists and 200,000 store employees. The company did not announce any store closures as part of the breakup.

Shareholders will receive shares in both companies through a tax-free transaction expected to close in early 2028. CVS also reported higher third-quarter earnings and raised its earnings guidance for the rest of the year, driven by its Health Care Benefits segment.