The CVS Pharmacy logo is seen in Washington, DC, USA on July 9, 2024.
Jakub Bolzycki | Noor Photos | Getty Images
CVS HealthThe company’s board has hired consultants to conduct a strategic review of its business as the company faces potential activist pressure and a severely depressed stock price, people familiar with the matter said.
People familiar with the matter said the review has been ongoing for some time, but it is unclear what action, if any, the company will take.
CVS management, including Chief Executive Karen Lynch, met with majority 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 must contend with an insurance business that has been hit by rising medical costs.
“CVS Health’s management team and board of directors are continually exploring ways to create shareholder value,” CVS spokesman David Whitrap told CNBC in a statement. “We will continue to focus on driving performance and delivering high-quality health care products and services, which are driven by Benefit from our unparalleled scale and integration capabilities.
The company is also facing leadership turnover. Lynch took direct leadership of CVS Insurance earlier this year, replacing then-president Brian Kane.
Reuters first reported the news, and CVS shares rose about 2.5% in after-hours trading on Monday.
— CNBC’s Bertha Coombs contributed to this article
