How Mark Cuban is Turning the Prescription Drug Industry Upside Down

When Mark Cuban enters an industry, he typically disrupts it in one way or another. And that’s precisely what it appears he has done once again, though this time in the healthcare space. His Cost Plus Drug Company has turned the industry on its head and introduced transparency to the previously opaque area of prescription drug prices.

“We started [Mark Cuban Cost Plus Drug Company] with the goal of being the low-cost provider for generic drugs,” Cuban told MarketScale. 

The company’s website features a chart displaying the stark difference in the retail price of these drugs versus what consumers pay through their platform. But perhaps the most striking thing about the Cost Plus Drug Company is the clarity of the pricing structure. Leadership has been vocal, on the site and on social media, about how Cost Plus Drugs gets to its final prices in an effort to set a new standard for patient-focused transparency.

For example, every drug is priced with the same markups: a 15% markup supports operations, a $3 charge covers pharmacy labor, and then the usual fixed and variable costs of shipping round out the total. Some savings are minimal; a 60-count of 20mg Fluoxetine, the generic alternative for depression and OCD treatment drug Prozac, costs $4.80 for a Cost Plus Drugs customer, compared to the retail price of $43.80.

Some savings are so stark that they warrant a double take. For a 30-count of 400mg Imatinib, the generic version of leukemia-treatment drug Gleevec, Cost Plus Drugs customers pay $47.50, compared to the retail price of $9,657.40, an enormous difference in cost.

“We will do whatever it takes to get affordable pharmaceuticals to patients,” said Alex Oshmyansky, CEO of Mark Cuban Cost Plus Drug. “The markup on potentially lifesaving drugs that people depend on is a problem that can’t be ignored. It is imperative that we take action and help expand access to these medications for those who need them most.”

With this cost savings business model, underinsured or uninsured patients who’d be paying close to or full price would see the most immediate benefits. Even insured patients though, according to the company’s site, would pay “less than what you would pay when using your insurance at a typical pharmacy.”

The cost of drugs in the United States has been a problem for some time, garnering attention from President Biden and putting a financial strain on many Americans. According to Kevin Stevenson, Director of Strategic Operations at Providence Healthcare Network in Waco, TX, affecting positive change in this side of the industry is critical, as for patients, it’s truly a life or death situation.

“People who don’t have insurance that are paying out of pocket, oftentimes they skip medications because they take food out of their family’s mouth,” Stevenson said.

The high-profile attention that Cuban’s company, as well as the issue at-large, is getting could be a sign of things to come for healthcare in the United States.

“I think we’re seeing people in healthcare now that are having that more entrepreneurial mindset, that are looking at problems and saying how can we look at it from a different viewpoint to try to solve this,” he said.

Stevenson admitted that change in healthcare can come slowly, but with sharks like Mark Cuban in the water, change could be coming sooner rather than later. 

Follow us on social media for the latest updates in B2B!

Image

Latest

Women's empowerment
Seizing the Narrative: The Transformative Impact of Storytelling on Women’s Empowerment
April 19, 2024

With gender equality becoming a significant global agenda, the narrative around women’s empowerment is more relevant than ever. Amid rising awareness and shifting societal norms, women are increasingly seeking avenues for self-expression and empowerment. A recent study by the Global Gender Gap Report highlights that while progress is being made, substantial efforts are still […]

Read More
V2G technology
Plug into the Future: Decoding V2G for Utility Applications
April 19, 2024

Brian Rudy from Verizon IoT and Melissa Chan of Fermata Energy explore the cutting-edge potential of vehicle-to-grid (V2G) technology at DISTRIBUTECH 2024. Their discussion highlights how this innovation transforms electric vehicles into dynamic energy storage units, capable of stabilizing the grid by storing and discharging power as needed. This technology represents a significant shift […]

Read More
zero trust architecture
Secure Grid Modernization with Zero Trust Architecture
April 19, 2024

Ray Bauer of Verizon Business engages with Del Rodriguez from Palo Alto Networks at DISTRIBUTECH 2024. Rodriguez shares insights into the significance of cybersecurity within the utility sector, particularly in light of increasing cyber threats and the convergence of IT and operational technology (OT). Bauer and Rodriguez discuss Palo Alto Networks’ initiatives to enhance […]

Read More
private wireless networks
Private Wireless Networks
April 19, 2024

Verizon host Wayne Weeks discusses the evolving utility industry with John Gaster, CEO of KSI Data Sciences at DISTRIBUTECH 2024. Together, they explore how KSI focuses on harnessing data from remote sensing devices to enhance the safety, efficiency, and cost-effectiveness of utility operations. Gaster emphasizes the significant role of AI and machine learning in […]

Read More