BUZZ-CVS Health plans to split into two companies, share price drops

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November 4 - ** The share price of health insurance company CVS Health (CVS.N) fell 2.2% in pre-market trading, quoted at $89.42

** The company plans to split (link) into two independent publicly listed companies, with the separation expected to be completed in the first half of 2028

** CVS Health CEO David Joyner will lead the insurance and health services company, while Group President Prem Shah will become CEO of CVS Pharmacy; shareholders will own shares in both companies

** Leerink Partners stated that if the share price falls due to transaction-related factors and overall market volatility after the U.S. midterm elections, they “would not be surprised”

** JPMorgan expects that after the Democratic Party gains control of Congress, hearings and investigations targeting healthcare costs and companies that own insurance, pharmacy, and pharmacy benefit management businesses will increase

** TD Cowen expects that the affordability of healthcare and industry accountability will become key topics on Congress’s agenda, which will bring higher “headline risk” to many areas within the healthcare sector

** Additionally, CVS reported adjusted earnings per share of $2.09 for the third quarter, higher than analysts’ expectations of $1.65 — data compiled by LSEG

** The forecast for adjusted earnings per share in 2026 was raised from $7.90–8.10 to at least $8.20

** As of the previous trading day’s close, CVS shares had risen 15.2% so far this year

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