No Plans To Split Up CVS Caremark

I’m glad to see Larry Merlo come out in the CVS Caremark earnings call and talk about them not splitting up the company (see Adam Fein’s post).  I’ve been talking about this for a while (see old post).  I think that they have the right combination of assets to do something really significant. 

They followed that up with a press release this morning:

Speaking at the Annual Meeting of Stockholders for the first time as CVS Caremark CEO, Merlo said, “The fact is no one else can match our combination of assets — a leading PBM, one of the largest retail pharmacy chains, a leading specialty pharmacy, a growing Medicare Part D business, and the largest and fastest-growing network of retail health clinics. CVS Caremark is using these combined assets to develop and implement innovative programs and offerings, such as Pharmacy Advisor and Maintenance Choice, which should drive long term value for shareholders.”

The rumors and stories of increased value of splitting the company up were getting to be too much noise.  Employees, clients, customers, investors, and everyone else needed them to come out and set the record straight.  Of course, anything can be debated and changed over time, but you need a clear direction.  I’m glad to see them stand up and reiterate their strategy and vision around creating a unique set of assets to derive unique value. 

[Disclosure: As I’ve shared before, CVS Caremark stock is one of a few individual stocks that I own.]