CVS Health to split into two publicly traded companies by 2028, FT reports

CVS Health Corp (NYSE:CVS) is planning to split its retail pharmacy business from its insurance operations, potentially unwinding one of the U.S. healthcare industry's largest vertical integration deals, the Financial Times reported on Tuesday, citing people familiar with the matter.

Under plans being discussed, CVS would spin off its roughly 9,000 drugstores into a separate publicly traded company, while insurer Aetna and pharmacy-benefit manager Caremark would remain together, the report said.

The retail pharmacy division is projected to generate about a third of CVS's $417 billion in revenue this year, the FT reported. 

The proposed restructuring would reverse CVS's $78 billion acquisition of Aetna in 2018, amid mounting political pressure to separate pharmacy-benefit managers from pharmacies and insurers.

The company could announce the move alongside its third-quarter results, although the structure and timeline remain subject to change, the report said.