The CVS Pharmacy logo is seen in Washington, D.C., USA on July 9, 2024.
Jakub Purzycki | norphoto | Getty Images
CVS HealthThe company's board has appointed advisers to conduct a strategic review of its business, according to people familiar with the matter, as the company faces potential pressure from activists and a sharp decline in share prices.
The review has been ongoing for some time, but there is no certainty about what, if any, actions the company will take, the people said.
CVS management, including CEO Karen Lynch, met with major shareholder Glenview Capital on Monday to discuss the company's late prospects and Glenview's plans to revive the stock, CNBC previously reported.
But Lynch has to deal with an insurance company struggling with rising medical costs.
In a statement, CVS spokesman David Whittrap told CNBC: “CVS Health's management team and board are constantly exploring ways to create shareholder value. We remain focused on driving performance and delivering the highest quality healthcare products and services possible through our unparalleled integrated scale.” . model.”
The company also faced the problem of leadership turnover. Lynch took direct leadership of CVS's insurance unit earlier this year, ousting then-President Brian Kane.
CVS shares rose about 2.5% in after-hours trading Monday on the news, first reported by Reuters.
— CNBC's Bertha Combs contributed to this story
