CVS has reportedly backed out of talks to buy Cano Health
Humana, which has also reportedly shown interest, has the right of first refusal in a sale.
Photo: Thomas Barwick/Getty Images
Both Humana and CVS reportedly expressed interest in buying primary care provider Cano Health, but on the news that CVS is no longer interested, Cano's stock plunged by more than 42% by the closing bell on Monday.
CVS wouldn't comment on the report that it's abandoning the purchase, according to Barron's.
Cano did not return a request for comment.
Humana has the right of first refusal in a sale, as part of a 2019 agreement, The Wall Street Journal reported.
Cano Health is a medical provider based in Miami that serves members in Florida, Texas, Nevada, California, Illinois, New Mexico and Puerto Rico. It specializes in primary care for seniors.
Humana has a strong presence in the Medicare Advantage market.
WHY THIS MATTERS
Many companies are making moves into primary care and senior care.
Amazon agreed to purchase primary-care clinic operator One Medical for about $3.9 billion in July. CVS Health Corp. won the competition to buy Signify Health for $8 billion earlier this month.
THE LARGER TREND
Cano went public two years ago through a special-purpose acquisition vehicle backed by real-estate investor Barry Sternlicht, who was on its board, The Wall Street Journal reported in 2020. The deal was reportedly valued at $4.4 billion.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
