The CVS Pharmacy logo is seen in Washington DC, United States on July 9, 2024.
Jakub Porzycki Nurphoto Getty Images
CVS HealthThe board has engaged advisers to conduct a review of its business, according to people familiar with the matter, as the company faces potential activist pressure and a deeply depressed share price.
The review has been ongoing for some time, the people said, but there is no certainty as to what steps, if any, the company will take.
CVS executives, including CEO Karen Lynch, met with major shareholder Glenview Capital on Monday to discuss remaining opportunities at the company and Glenview’s plans to recapitalize the stock, CNBC previously reported.
But Lynch has to deal with the insurance business associated with high medical costs.
In a statement, CVS spokesman David Whitrap told CNBC: “CVS Health’s management team and Board of Directors continue to explore ways to create shareholder value. model.”
The company also experienced a change in leadership. Lynch took direct leadership of CVS’ insurance division earlier this year, ousting then-president Brian Kane.
Shares of CVS rose about 2.5% in after-hours trading Monday on the news, which was first reported by Reuters.
– CNBC’s Bertha Coombs contributed to this story