The CVS Pharmacy logo is seen in Washington DC, USA on July 9, 2024.
Jakub Porzycki | Photo only | Getty Images
CVS HealthThe board has hired consultants to conduct a strategic review of its business, according to people familiar with the matter, as the company grapples with potential activist pressure and a sharply depressed stock price.
The review has been underway for some time, the people said, but there is no certainty about what action, if any, the company will take.
CVS management, including CEO Karen Lynch, met with major shareholder Glenview Capital on Monday to discuss the company's declining outlook and Glenview's plans to revive the stock, CNBC previously reported.
But Lynch must contend with an insurance business that is suffering from increased medical costs.
In a statement, CVS spokesman David Whitrap told CNBC: “CVS Health's management team and Board of Directors continually seek opportunities to create shareholder value. We remain focused on driving performance and delivering high-quality healthcare products and services enabled by our unmatched scale and integrated model.”
The company also struggled with executive turnover. Lynch took direct control of CVS's 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 story
Comments are closed, but trackbacks and pingbacks are open.