The CVS Pharmacy logo can be seen in Washington, DC, USA on July 9, 2024.
Jakub Porzycki | Nurphoto | getty images
CVS HealthWith the company struggling under pressure from potential activists and a severely depressed share price, the board has hired advisers to carry out a strategic review of the business, according to people familiar with the matter.
The review has been in the works for some time, but it’s unclear what action the company will take, the people said.
CVS executives, including CEO Karen Lynch, met with majority shareholder Glenview Capital on Monday to discuss the company’s poor outlook and Glenview’s stock revival plan, CNBC previously reported.
But Lynch must contend with an insurance business struggling due to high health care costs.
CVS spokesperson David Whitrap told CNBC in a statement: “CVS Health’s management and board of directors continually seek ways to create shareholder value. We remain focused on driving performance and delivering high-quality healthcare products and services through our exceptional scale and integration model. .”
The company also struggled with leadership turnover. Lynch assumed direct leadership of CVS’ insurance division earlier this year, replacing then-president Brian Kane.
CVS shares rose about 2.5% in after-hours trading on Monday on the news, first reported by Reuters.
— CNBC’s Bertha Coombs contributed to this article.
