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00:02CVS Health plans to split its $117 billion business into two publicly traded companies,
00:09according to Reuters. One company will retain the CVS Health name and include Aetna Insurance,
00:15Caremark Pharmacy Benefit Management, and other healthcare services. The second company,
00:20CVS Pharmacy, will operate retail drugstores, mail-order pharmacies, and Minute Clinic locations.
00:26CEO David Joyner said the businesses would perform better separately.
00:31The breakup comes amid growing regulatory scrutiny of healthcare consolidation and rising medical
00:37costs. CVS faces competition from Amazon as more customers choose prescription delivery over store
00:43visits. Analysts say the separation could increase shareholder value and ease regulatory concerns over
00:50CVS's ownership of both pharmacies and a pharmacy benefit manager.
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