CVS Health Inc CVS may restructure, separating its retail and insurance businesses. The move aims to address investor pressure and financial challenges.
With CVS Health trading at a lower EBITDA multiple than competitors like UnitedHealth Inc UNH and Cigna Inc CI, the company is under pressure to adapt to competition and investor concerns.
Rumors suggest discussions on a potential breakup, including the unwinding of CVS Health’s acquisition of Aetna, expanding the company’s insurance capabilities.
The decision to split into two publicly traded companies awaits board approval, with questions remaining on the integration of the pharmacy benefits manager.
CVS Health faces renewed pressure as hedge fund Glenview Capital Management plans to meet top executives to discuss operational improvements.
Recent adjustments in EPS guidance and leadership changes reflect CVS Health’s efforts to address performance and outlook challenges.
Amid these developments, CVS stock rose 2.21% to $64.27 during premarket trading.
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