CVS Health announced Wednesday it will split into two separate publicly traded companies by the first half of 2028, spinning off its retail pharmacy business while retaining its insurance and pharmacy benefits operations under the CVS Health name.

The move reverses years of vertical integration that began with the 2007 merger with Caremark and the $69 billion acquisition of Aetna in 2018. The new CVS Pharmacy entity will include approximately 9,000 retail stores, mail-order pharmacies, MinuteClinics, and the Health100 technology platform. The remaining CVS Health company will house Aetna insurance, Caremark pharmacy benefit manager, CVS Specialty, Oak Street Health, and Signify Health.

CEO David Joyner will lead the healthcare solutions company, while Group President Prem Shah will become CEO of CVS Pharmacy. Shareholders will receive shares in both entities through a tax-free transaction.

The announcement follows a comprehensive strategic review and comes after operational improvements, including cost cuts and store closures that helped restore growth in the pharmacy segment. Shares of CVS fell more than 10 percent in early trading following the news.

The separation is expected to allow each business to pursue more focused strategies amid ongoing challenges in healthcare, including regulatory scrutiny of large integrated players. No immediate store closures or changes to customer prescription pricing were announced.