Hedge fund Glenview Capital intends to meet with the executives of pharmacy company CVS Health and seek changes that would improve the company’s struggling business, according to a recent report by The Wall Street Journal.
Glenview, which is predominantly focused on the healthcare industry, has reportedly amassed a significant stake in CVS and is taking an activist investor role in order to improve the performance of the company’s stock. It is estimated that Glenview owns 1% of CVS’ outstanding shares, with the pharma giant amounting to $700 million out of the hedge fund’s $2.5 billion in assets.
When reached for comment, a CVS spokesperson said in a statement that the company “maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program” but declined to provide specifics.
CVS Health shared its second-quarter results in August, reporting a 9% decline in net income and missing the estimates with $91.2 billion in total revenue. At the same time, the company slashed its annual profit forecast while announcing a leadership shakeup in its insurance division.
The shares of CVS jumped by 3.5% on Friday to close at $61.38 per share. The company’s stock is currently down 24% year-to-date.