CVS is reportedly reviewing its options - including a possible breakup

By Bill Peters

Drugstore chain says it is 'continually exploring ways to create shareholder value'

Drugstore chain CVS Health Corp. in recent weeks has been reviewing its options as a company - among them a potential breakup - the Wall Street Journal reported on Monday.

The Journal said that CVS's (CVS) board had tapped bankers in connection with the evaluation process, but that no decision had been made, and that the review could end without any significant modifications to the company.

"CVS Health's management team and board of directors are continually exploring ways to create shareholder value," a company representative said when reached for comment.

"We remain focused on driving performance and delivering high-quality healthcare products and services enabled by our unmatched scale and integrated model," the statement continued.

The Journal reported the news as CVS tries to rethink its physical pharmacies, cutting its staff and store count and pivoting more toward health services, as drugstore profitability wanes.

Earlier Monday, the Journal reported that Glenview Capital Management, a hedge fund and big investor in the chain, planned to meet CVS executives to discuss ways to revive the company's financials.

Shares of CVS were up 2.9% after hours on Monday, after finishing 2.4% higher during regular trading. As of the close of Monday's trading, the stock was down 9.8% over the past 12 months.

-Bill Peters

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09-30-24 1943ET

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