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CVS Pharmacy brand is seen in Washington DC, United States on July 9, 2024.
Jakub Porzycki | Nurphoto | Getty Photos
CVS Well being‘s board has engaged advisors to conduct a strategic assessment of its enterprise, in line with folks conversant in the matter, as the corporate contends with potential activist strain and a severely depressed inventory value.
The assessment has been ongoing for a while, stated the folks, however there is no such thing as a certainty on what actions, if any, the corporate will take.
CVS administration, together with CEO Karen Lynch, met with main shareholder Glenview Capital Monday to debate the corporate’s lagging prospects and Glenview’s plans to revive the inventory, CNBC beforehand reported.
However Lynch has to cope with an insurance coverage enterprise hammered by heightened medical prices.
In a press release, CVS spokesman David Whitrap instructed CNBC: “CVS Well being’s administration group and Board of Administrators are regularly exploring methods to create shareholder worth. We stay centered on driving efficiency and delivering top quality healthcare services and products enabled by our unmatched scale and built-in mannequin.”
The corporate has additionally grappled with management turnover. Lynch assumed direct management of CVS’s insurance coverage unit earlier this 12 months, displacing then-president Brian Kane.
CVS shares rose round 2.5% in after-hours buying and selling Monday on the information, which was first reported by Reuters.
— CNBC’s Bertha Coombs contributed to this story
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