Glenview Capital Issues Statement on CVS Health

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Oct 18, 2024, 09:20 ET

NEW YORK, Oct. 18, 2024 /PRNewswire/ -- Earlier, Glenview and CVS executed a Non-Disclosure Agreement to facilitate the good faith exchange of information and perspectives and discussions commenced. We remain under NDA.

We believe the Company's culture, governance and leadership should be strengthened by those with both appropriate industry experience as well as fresh perspectives and that the Company would be best served through prompt Board evolution. The decision by Karen Lynch and the Board to offer and accept her resignation is one we respect and support. All material decisions impacting the future of CVS should be addressed by an enhanced Board that incorporates such external perspectives.

We thank Ms. Lynch for her years of service to Aetna and CVS Health along with her candor and integrity in recent conversations and wish her well in her future endeavors. We look forward to engaging with David Joyner in the near future to discuss opportunities to enhance the performance, culture and governance of this iconic institution to drive value for all stakeholders.

Concurrent with today's CEO announcement, CVS Health confirmed that three quarters of its businesses, led by Caremark and CVS stores, continue to perform at or above expectations, reflective of the hard work, skill and acumen of the people of CVS. Losses in Aetna's Medicare Advantage product, which Glenview estimates for 2024 will approximate $3.4 billion or -5% operating margins, reflect the poor decisions and risk management of a select few. We believe these issues are quite fixable with strong leadership and appropriate Board oversight and risk management.

Shareholders need to play an active role in demanding immediate Board refreshment to both support and challenge Management and to recruit and fortify a world class leadership team. This will best serve the long-term interests of the 300,000 employees and 120 million customers of CVS who deserve better now.

Together we climb.

About Glenview Capital
In its 24^th year of operations, Glenview Capital is a long-term investment partnership focused on fundamental investing.

CONTACT:
Emma Tomas
[email protected]

SOURCE Glenview Capital