CVS Health (NYSE: CVS) is exploring a range of strategic alternatives for long-term care pharmacy Omnicare that could include a sale, according to the company’s top leader.
The retail and pharmacy giant recorded a pre-tax loss on assets held for sale of $2.5 billion to write down Omnicare.
As such, CVS Health President and CEO Karen Lynch said the company was “in the process of exploring strategic alternatives” for the long-term care pharmacy during a call with investors and analysts Wednesday.
“[We] are actively exploring strategic alternatives for Omnicare,” Lynch said during Wednesday’s call. “As we divest assets, we will continue to invest in areas aligned with our strategy with a disciplined approach to capital allocation.”
CVS noted in its latest Securities and Exchange Commission (SEC) filing it is “determined that its LTC business was no longer a strategic asset, and during the third quarter of 2022 committed to a plan to sell.”
CVS acquired Omnicare in 2015 in an approximately $12.3 billion deal.
This year, CVS also agreed to buy Signify Health for more than $8 billion last month.
That sale eclipsed the $5.4 billion eclipsed the $5.4 billion paid by by UnitedHealth Group (NYSE: UNH) for home health and hospice firm LHC Group (Nasdaq: LHCG) in March, and is roughly double the amount that retail and tech giant Amazon (NYSE: AMZN) paid for tech-enabled primary care provider One Medical in July.
The company’s stock price rose 2.3% to rest at $96.80 per share at market close on Wednesday.
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