Glenview Capital Issues Statement on CVS Health

1. Board Refreshment – The Board welcomed four new Directors including Larry Robbins, Glenview's CEO, and recently appointed a strong Lead Independent Director.  The entire Board is operating cooperatively and cohesively;
   
   
2. Strengthening Culture and Leadership – CVS's leadership has undergone significant transformation under new CEO David Joyner's leadership, combining internal promotion with external recruitment while strengthening a customer-centric, accountable culture;
   
   
3. Operational Intensity – CVS exceeded consensus earnings expectations over the past two quarters and has seen operating strength and early signs of recovery across its businesses;
   
   
4. Risk Management – The Company has suspended material acquisitions, committed to deleveraging, strengthened its insurance reserve levels and established a clear path to sustainable returns on capital that will fuel future customer service and benefit stability;
   
   
5. Portfolio Enhancement and Innovation – CVS has exited or transitioned certain lines of business where economics prevent a sustainable commitment to customers while leading the industry with transparent and value-added solutions to reduce cost and complexity; and
   
   
6. Opportunistic Capital Deployment – In combination, CVS has marched closer to the time in which share repurchase can be both a responsible consideration and a creator of long-term shareholder value. 

Following healthy Q1 results and increased annual guidance, Glenview reduced its overall holdings by 3.75 million shares consistent with our fund's diversification parameters and to create buying power for further unique opportunities in this volatile macro environment. With this rebalancing, CVS Health remains our largest position, and we have no plans for additional adjustments to our CVS holdings.  Our confidence in the near, medium, and long-term outlook for CVS remains strong. 

We are grateful for the engagement and enthusiasm of the entire CVS Health team in the revitalization efforts well underway and are fully committed to making continued contributions to the vitality and long-term success of this iconic institution that strengthens the health of 185 million people.