A Cure for What Ails Us
Photo Source: costplusdrugs.com
I’ve always been a Mark Cuban fan. His imagination and fearlessness are admirable, especially in light of his latest venture.
Sky-high drug costs have long been a problem in the U.S. In fact, 18 million Americans reported being unable to afford at least one doctor-prescribed medication in the last three months. Last December, President Biden said that the U.S. had to do something about "outrageously expensive" prescription drugs.
Dr. Alex Oshmyansky was incensed by the skyrocketing costs of generic drugs for his patients and, in a cold email, reached out to entrepreneur Mark Cuban with an idea for a low-cost generic drug company. Cuban was intrigued by the idea and decided to make an investment in it. In fact, he put his name on the company to “show capitalism can be compassionate and to send the message I am all in.”
From Basketball the Healthcare
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The Mark Cuban Cost-Plus Drug Company (MCCPDC) was launched in January last year, motivated in part by Martin Shrkeli’s outrage-producing price hike of the anti-parasitic drug Daraprim from $13.50 to $750 per tablet while he was CEO of Turing Pharmaceuticals. And that is but one case. Cuban told Forbes last year that the pricing for generic drugs was “ridiculous.”
"The markup on potentially lifesaving drugs that people depend on is a problem that can't be ignored," Alex Oshmyansky, CEO of Cuban's online pharmacy, said in a statement. "It is imperative that we take action and help expand access to these medications for those who need them most." The markup on generics average “at least” 100%, the MCCPDC said, while the Wall Street Journal reports in some cases it exceeds 1,000%!
“Everyone should have safe, affordable medicines with transparent prices.”
How it Works
Cuban's pharmacy says it will negotiate drug prices directly with manufacturers to lower costs for consumers. The pharmacy doesn't accept health insurance but says prices will still be lower than what people would typically pay at a pharmacy. The MCCPDC’s prices for generics factor in a 15% margin on top of actual manufacturer prices and a $3 pharmacist fee.
MCCPDC offers hundreds of common, and often life-saving, medications at the lowest possible prices. One drug for diabetes patients, metformin, sells for $3.90 for a 30-day supply, compared to a retail price of $20, the pharmacy said. A 30-count of imatinib, which is used to treat leukemia and other cancers, goes for as low as $17.10 at Cuban's pharmacy compared with $2,502.60 at other pharmacies. The leukemia drug imatinib is priced at $47 a month on MCCPDC compared to the $9,657 retail price.
MCCPDC is a registered pharmaceutical wholesaler and purchases drugs directly from manufacturers, bypassing middlemen to lower the price of more than 100 medications. The website currently offers 100 generic drugs to treat a variety of illnesses, including diabetes, asthma, heart conditions, mental health, high blood pressure, cancer and gastrointestinal conditions.
No Middlemen
The company's goal is to bring transparency to the drug pricing market and show consumers the wholesale price behind a drug. More specifically, MCCPDC eliminates the fee paid to pharmacists, pharmacies and pharmacy benefit managers that negotiate contracts with different stakeholders in the healthcare arena.
The company will buy directly from third-party suppliers and, soon, manufacture its own products. Along with the opening of its online pharmacy, the company aims to complete the construction of an $11 million pharmaceutical factory in Dallas that spans roughly 22,000 square feet by the end of this year.
This is great news for anyone taking prescription medications, and for all of us as we age. To check out the availability and prices for your specific meds, go to costplusdrugs.com. And stay healthy!
For more information, visit: www.costplusdrugs.com