CVS Health to retain biosimilar subsidiary Cordavis after planned corporate split
The proposed restructuring will create two publicly traded companies, allowing each business to operate independently.
USA—CVS Health will retain its biosimilar subsidiary Cordavis within its healthcare business following plans announced on 4 November 2026 to separate its pharmacy operations from its healthcare services.
The proposed restructuring will create two publicly traded companies, allowing each business to operate independently.
Before the announcement, CVS Health had a market capitalisation of about US$ 117 billion.
However, a subsequent decline in its share price erased nearly US$15bn from its market value.
Two businesses under separate structures
The first entity, provisionally retaining the CVS Health name, will comprise the company’s healthcare solutions operations.
These include health insurance provider Aetna, pharmacy benefits manager CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.
The second company, to be called CVS Pharmacy, will house approximately 9,000 retail pharmacies, its mail-order pharmacy operations, MinuteClinic and healthcare technology services business Health100.
CVS expects to complete the separation in the first half of 2028.
Although the initial announcement did not specify where Cordavis would sit within the new structure, a CVS spokesperson confirmed to Pharmaceutical Technology that the subsidiary would remain part of CVS Health’s healthcare business.
Cordavis targets the biosimilar market
CVS established Cordavis in August 2023 to expand access to biosimilars as pharmaceutical companies faced growing competition from lower-cost alternatives following the expiry of patents on biologic medicines.
Under its business model, Cordavis partners with biosimilar manufacturers in the US, leveraging CVS’s extensive pharmacy and healthcare distribution network to improve market access.
At its launch, CVS described biosimilars as a significant opportunity to reduce prescription medicine costs for employers and consumers.
Although Cordavis has made relatively few public announcements since its establishment, its website lists five marketed biosimilars.
One of its key products is Hyrimoz (adalimumab-adaz), a biosimilar to AbbVie’s Humira, which is used to treat several inflammatory conditions.
In January 2024, CVS Caremark removed Humira from its list of covered medicines and shifted coverage towards biosimilar alternatives, including Hyrimoz.
The decision demonstrated how the company’s pharmacy benefits management operations could support the adoption of lower-cost biologic medicines.
Regulatory scrutiny drives restructuring
The corporate separation comes amid growing scrutiny of CVS Health’s influence across the US healthcare system.
Lawmakers and policymakers have questioned whether its ownership of both a major retail pharmacy network and a pharmacy benefits manager creates conflicts of interest and contributes to higher prescription medicine costs.
The restructuring will separate the retail pharmacy business from the healthcare services and insurance operations, although CVS has not indicated that it will abandon its integrated approach to healthcare delivery.
Since opening its first store in 1963, CVS has expanded through acquisitions and strategic partnerships.
A major milestone was its US$69 billion acquisition of health insurer Aetna in 2018, which strengthened its position in insurance, pharmacy services, and healthcare delivery.
Other major healthcare companies, including UnitedHealth Group, have also pursued vertically integrated business models.
CVS Health CEO David Joyner told investors during an earnings call that the restructuring was driven by the financial strength of the individual businesses, opportunities for capital allocation and their respective growth prospects.
He expressed confidence in the timing of the decision and the management team’s ability to implement the separation.
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