CVS Health announced on Wednesday that it plans to sell Omnicare, its long-term care pharmacy business. The Woonsocket, R.I. company reported a $2.5 billion loss related to Omnicare in the third quarter.
Omnicare serves senior living communities, skilled nursing facilities and Programs of All-Inclusive Care for the Elderly.
“We continue to evaluate our portfolio strategically and are making decisions around assets that don’t fit into our portfolio strategically. Omnicare is a good example of that,” Karen Lynch, president and CEO, said Wednesday morning during the Q&A with analysts on the company’s third-quarter earnings call.
[Read more: CVS reports strong Q3, raises full-year guidance]
In a Securities and Exchange Commission filing on Wednesday CVS said that 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.”
What's next for CVS?
During the Q&A with investors, Lynch also said, "We will continue to evaluate our options on primary care. And as I said, we believe that we need to do M&A, and we continue to evaluate those options in the marketplace."
CVS acquired Omnicare in 2015 in an approximately $12.3 billion deal.