CVS Health, the largest US healthcare conglomerate valued at $117bn, has announced its plans split off its pharmacy chain from its health insurance and benefits businesses, ending an era in which healthcare companies grew into vast conglomerates.

In their announcement on Wednesday, CVS Health said they will split off its 9,000 pharmacies, in-store clinics and mail order prescription business into a business named CVS Pharmacy.

A second company will keep the name CVS Health and house the major insurer Aetna and the giant pharmacy benefits manager Caremark, along with other businesses that provide home visits and primary care to older people.

The company has come under pressure from lawmakers and regulators over concerns that the healthcare giants, including CVS Health, UnitedHealth Group and Cigna, have become too dominant, leading to higher medical costs. The three companies control roughly 80% of the market. CVS Health in particular generated over $400bn in revenue last year.