The CVS Pharmacy logo is seen in Washington DC, the United States, on July 9, 2024.
Jakub Porzycki | Nurfoto | fake images
CVS HealthThe board of directors has hired advisers to conduct a strategic review of its business, according to people familiar with the matter, as the company faces possible activist pressure and a severely depressed share price.
The review has been ongoing for some time, the people said, but there is no certainty about what actions, 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 lagging prospects and Glenview's plans to revive the stock, CNBC previously reported.
But Lynch has to deal with an insurance business hit by high medical costs.
In a statement, CVS spokesperson David Whitrap told CNBC: “CVS Health's management team and board of directors are continually exploring ways to create value for shareholders. We remain focused on driving performance and delivering healthcare products and services. of high quality thanks to our unmatched scale and our model integration.”
The company has also had to deal with management turnover. Lynch assumed direct leadership of CVS's insurance unit earlier this year, displacing then-president Brian Kane.
CVS shares rose about 2.5% in after-hours trading Monday following the news, which was first reported by Reuters.
— CNBC's Bertha Coombs contributed to this story.
