CVS Health (NYSE: CVS) is eyeing the potential sale of its long-term pharmacy Omnicare, among other strategic alternatives, according to the company’s top executive.
The retail and pharmacy giant recorded a pre-tax loss on assets held for sale of $2.5 billion to write down Omnicare.
CVS Health President and CEO Karen Lynch said the company was “in the process of exploring strategic alternatives” for Omnicare during the company’s third financial quarter earnings call on Wednesday.
“As we divest assets, we will continue to invest in areas aligned with our strategy with a disciplined approach to capital allocation,” Lynch said during the call.
CVS noted in its latest Securities and Exchange Commission (SEC) filing it had “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 had acquired Omnicare back in 2015 in a $12.7 billion deal.
The company’s stock price rose 2.3% to rest at $96.80 per share at market close on Wednesday.
The news comes just a few months after former president Jim Love stepped down at the end of April. Love had served as Omnicare president since April 2020.
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