CVS Pharmacy logo is seen in Washington DC, United States on July 9, 2024.
Jakub Porzycki | Nurphoto | Getty Images
CVS Health‘s board has engaged advisors to conduct a strategic review of its business, in line with people acquainted with the matter, as the corporate contends with potential activist pressure and a severely depressed stock price.
The review has been ongoing for a while, said the people, but there is no such thing as a certainty on what actions, if any, the corporate will take.
CVS management, including CEO Karen Lynch, met with major shareholder Glenview Capital Monday to debate the corporate’s lagging prospects and Glenview’s plans to revive the stock, CNBC previously reported.
But Lynch has to contend with an insurance business hammered by heightened medical costs.
In an announcement, CVS spokesman David Whitrap told CNBC: “CVS Health’s management team and Board of Directors are continually exploring ways to create shareholder value. We remain focused on driving performance and delivering prime quality healthcare services enabled by our unmatched scale and integrated model.”
The corporate has also grappled with leadership turnover. Lynch assumed direct leadership of CVS’s insurance unit earlier this 12 months, displacing then-president Brian Kane.
CVS shares rose around 2.5% in after-hours trading Monday on the news, which was first reported by Reuters.
— CNBC’s Bertha Coombs contributed to this story
