CVS Health to split into two publicly traded companies, separating pharmacy and insurance units

CVS Health announced a plan to divide the company into two separate publicly listed entities.

One entity will keep the CVS Health name and encompass the pharmacy retail and pharmacy benefit management businesses.

The second entity will contain the insurance operations, including Aetna and related health plans.

The split is presented as a response to rising costs, stronger retail competition, and heightened regulatory scrutiny.

Analysts say the separation could give each business clearer focus, though it also introduces execution risk.