Major Investor Set to Meet with CVS Health Leadership to Address Struggling Business
A prominent hedge fund, Glenview Capital, is scheduled to meet with CVS Health’s top executives on Monday to present a series of proposed solutions to the company’s ongoing struggles. This meeting comes as CVS Health’s stock price has plummeted 22% so far this year, sparking concerns among investors.
Glenview Capital, which has established a significant stake in the company, is expected to push for changes to address the declining performance of CVS Health’s insurance segment, which has been battered by rising medical costs. The company’s bottom line has taken a hit, with three consecutive quarters of reduced full-year guidance.
CVS Health’s insurance unit, which includes Aetna, has faced significant challenges, including higher medical costs and increased competition in the healthcare industry. The company has responded by announcing a leadership shakeup and unveiling a plan to cut $2 billion in expenses over several years.
This meeting marks the latest development in CVS Health’s struggles with activist investors. Earlier this year, Sachem Head Capital Management disclosed a stake in the company, while Starboard Value built a stake in 2019 and engaged in discussions with the company’s leadership.
The pressure is on for CVS Health to turn its business around, with investors growing increasingly frustrated with the company’s performance. The meeting with Glenview Capital may mark a turning point in the company’s efforts to address its struggles and restore investor confidence.
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