While the announcement that CVS Health is spinning off its pharmacy and mail-order businesses is potentially encouraging, it’s “way too early to celebrate until the details of the transaction and its implementation in the marketplace are clear,” said NCPA CEO Douglas Hoey in a statement yesterday, calling for lawmakers and regulators at the state and federal levels to carefully scrutinize the reorganization.
Hoey said it’s unclear whether CVS Health and the new CVS Pharmacy will work with or against community pharmacies. Shareholders in the original CVS Health will also receive shares in the new company, potentially incentivizing the firms to continue acting in anticompetitive ways.
Read the full statement here. You can find news coverage of the split here.
