CVS Health plans to separate its roughly 9,000 retail pharmacies and related services from its insurance and pharmacy-benefit operations in the first half of 2028. The transaction would create two publicly traded companies, and current shareholders would receive shares in both. Aetna, CVS Caremark, Oak Street Health, Signify Health and specialty pharmaceutical operations are expected to remain together in CVS Health, while the retail business would form the other company. The plan would unwind the vertically integrated strategy behind CVS’s approximately $78 billion acquisition of Aetna in 2018. CEO David Joyner is expected to continue leading CVS Health. The proposed breakup comes as Aetna faces higher medical costs, retail pharmacies contend with online competition and weaker store traffic, and lawmakers scrutinize the influence of combined pharmacies, insurers and pharmacy-benefit managers. CVS shares rose about 3.3% in Tuesday’s regular session and gained further after hours after the initial report, although analysts warned that separating the businesses could reduce efficiencies and increase corporate costs.