Glenview Meeting with Top CVS Executives to Propose Operational Improvements, According to WSJ Reports by Reuters

Healthcare-focused Glenview Capital Management has acquired a significant stake in CVS Health and plans to meet with top executives from the struggling healthcare company to discuss potential operational improvements, according to a recent report.

Larry Robbins, the founder of the hedge fund, has positioned approximately $700 million of his $2.5 billion fund in CVS, signaling a possible activist approach regarding the company’s strategy and management. This move reflects Robbins’s conviction in CVS’s potential and his belief that he can influence executives to adopt a new course of action.

There is growing speculation among fund managers that an activist investor might push CVS to implement changes aimed at enhancing its stock price. Recently, Sachem Head Capital Management also established a new 0.2% stake in CVS during the second quarter, as highlighted in a regulatory filing.

In August, CVS revised its annual profit forecast downwards to between $6.40 and $6.65 per share, a decrease from the earlier expectation of at least $7.00. This marks the fourth revision made by the company for the year. Additionally, CVS announced a multi-year initiative aimed at reducing costs by $2 billion through operational streamlining and the adoption of artificial intelligence and automation in its business processes.