CVS Health (CVS) plans to separate its retail pharmacy and insurance businesses into two companies. Brian Tanquilut, managing director of healthcare research at Jefferies, says the move could help CVS adapt to expected regulatory changes. That said, Wednesday’s 12% stock decline following their earnings announcement may reflect concerns about higher administrative costs. Despite the stock selloff, Brian sees potential in the retail business following CVS’s market share gains as Walgreens (WBA) consolidates stores.
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