Mark Cuban New On-line Pharmacy: How It Works

Mark Cuban, the business owner best known for "Shark Tank"Share on Pinterest
Entrepreneur Mark Cuban has launched a web based pharmacy. Picture courtesy of Value Plus Drug Firm.
  • Entrepreneur Mark Cuban has launched a brand new on-line pharmacy that provides greater than 100 generic drugs.
  • Cuban’s Value Plus Drug Firm presents the merchandise at what firm officers say is a fraction of prices that buyers at present pay.
  • The net pharmacy doesn’t settle for insurance coverage, so it’s a cash-payment enterprise.
  • A shopper advocate factors out, nonetheless, that the brand new on-line pharmacy up to now has no restricted choices and doesn’t provide model identify medicine.

Mark Cuban is feeling disruptive. Once more.

This time, he’s obtained his sights set on the price of prescribed drugs.

Cuban, the billionaire investor, proprietor of the NBA’s Dallas Mavericks, and panelist on the tv present “Shark Tank,” has launched a web based pharmacy for generic drugs.

The Mark Cuban Cost Plus Drug Company will give shoppers substantial reductions on varied medicines, in line with the corporate’s web site.

“Not everybody units the purpose of being the bottom value producer and supplier,” Cuban told Axios.

“My purpose,” Cuban added, “is to make a revenue whereas maximizing impression.”

Cuban says Value Plus Drug, which can compete with such pharmacy giants as Ceremony Support, Walgreens Boots Alliance Inc., and CVS Well being Corp., is organized to remove pharmacy profit managers from the equation.

These are the individuals who handle prescription drug advantages on behalf of huge employers, well being insurers, and others. These center managers are thought-about the quiet, lesser-known associate within the pharmaceutical mannequin.

They’ve been criticized for what critics say is an absence of transparency concerning the rebates they obtain and for holding a big portion of value financial savings from shoppers.

Cuban’s firm’s refusal to pay unfold costs to third-party pharmacy profit managers prohibits it from processing insurance coverage claims. So, the net pharmacy is a cash-payment venture.

Customers may have entry to greater than 100 generic drugs at costs Value Plus Drug officers say are sometimes lower than what insurance coverage’ deductible and copay necessities would complete.

Cuban says he needs to deliver transparency to the generic drug pricing course of and cross on a better share of the financial savings to the purchasers.

The corporate will purchase straight from third-party suppliers and, quickly, manufacture its personal merchandise.

An $11 million, 22,000-square-foot manufacturing unit in Dallas is expected to be able to roll by the top of the 12 months.

The corporate will sell at a reduction with a 15 p.c markup plus a $3 pharmacist charge.

Lucia Mueller is vice chairman of operations and communications at PharmacyChecker, an organization that helps individuals discover the bottom costs on prescription medicine amongst licensed U.S. and worldwide pharmacies.

They describe themselves as the one unbiased firm monitoring and verifying the credentials of worldwide on-line pharmacies and evaluating costs of the prescribed drugs obtainable from these licensed pharmacies.

Mueller works to advertise on-line entry to protected and inexpensive drugs and educate and warn shoppers concerning the dangers of rogue on-line pharmacy web sites.

“Cuban’s supposed intention to chop out middlemen and decrease medicine prices is a worthy pursuit given the very dire penalties of excessive healthcare prices on this nation,” Mueller instructed Healthline. “Individuals are fully forgoing their drug therapies resulting from excessive prices.

“Sadly,” she added, “Cuban’s new enterprise at present solely provides worth reduction for sure generic medicine, so sufferers are nonetheless locked exterior within the chilly in relation to model medicine.”

Mueller famous that customers of the PharmacyChecker web site are primarily scrambling to seek out inexpensive model identify medicines that don’t but have a generic counterpart obtainable in the USA.

“The value differential of Januvia 100 milligrams ordered internationally versus purchased within the U.S. is placing,” she mentioned.

“The extremely in style GoodRx coupon will get you 30 tablets for round $530. And the U.S. coupon will get you a similar for round $496,” Mueller defined.

“However the worth for a similar quantity from Turkey is simply $40.70, from Canada, $150,” she famous. “Model medicine which are the best burden on affected person’s funds, like Januvia and Eliquis, are nowhere to be discovered on Cuban’s website.”

Value Plus Drug represents the evolution of Osh Inexpensive Prescription drugs, based by Dr. Alex Oshmyansky, a radiologist, who instructed Cuban about his idea.

“I met Mark in a chilly e-mail that I despatched to him on a whim,” Oshmyanksy instructed Healthline. “He’s a genuinely good dude who likes individuals.”

Oshmyansky began that first firm as a nonprofit to assist individuals who couldn’t afford their prescribed drugs.

“I had seen sufficient sufferers have unhealthy well being outcomes and couldn’t afford their medicines,” he mentioned.

Cuban was impressed with Oshmyanksy’s pitch and agreed to help him. He modified the corporate identify and employed Oshmyanski because the CEO.

Value Plus Drug, as a public profit company, is required to provide a number of public advantages and to function responsibly and sustainably.

“We are going to do no matter it takes to get inexpensive prescribed drugs to sufferers,” Oshmyansky mentioned in a press statement.

“The markup on doubtlessly lifesaving medicine that individuals rely on is an issue that may’t be ignored. It’s crucial that we take motion and assist increase entry to those drugs for many who want them most,” he added.

Value Plus Drug is already in enterprise as a web based pharmacy promoting greater than 100 drugs, together with for bronchial asthma, coronary heart failure, and Parkinson’s illness to psychological well being, allergic reactions, and most cancers.

Though insurance coverage is just not accepted, Oshmyanksy says the worth of the medicine continues to be lower than what individuals pay even with insurance coverage.

For instance, the corporate sells imatinib, the generic most cancers drug for Gleevec, for $17.10. The patron saves $2,485.40, Oshmyansky says.

Cuban can also be bringing the digital healthcare firm Truepill on board to make the method seamless and guarantee a safe e-commerce expertise as clients navigate the pharmacy’s web site.

Since Value Plus Drug offers solely with generic medicine, that would restrict its affect to a point.

In the USA, 9 out of 10 prescriptions crammed are for generic medicine, in line with the Meals and Drug Administration (FDA).

Nonetheless, a generic drug might be marketed solely after the brand-name drug’s patent has expired, taking as much as 20 years after the patent holder’s drug is first filed with the FDA.

Earlier than the COVID-19 pandemic, about 32 percent of the U.S. public had a optimistic opinion of the pharmaceutical {industry}.

That quantity has risen to 50 to 60 p.c because the COVID-19 vaccines have been launched.

Nonetheless, drug prices stay a problem for a lot of U.S. shoppers.

A Gallup poll in September reported that 18 million individuals in the USA couldn’t afford no less than one doctor-prescribed medicine within the earlier 3 months.

President Joe Biden in December urged Congress to approve his Build Back Better plan, which features a proposal to decrease drug costs.

The president, who has additionally praised pharmaceutical firms for his or her work on the COVID-19 vaccines, bemoaned the worth of prescribed drugs.

He singled out the worth of insulin to deal with kind 1 diabetes, which he mentioned prices shoppers $375 to $1,000 a month.

Biden’s measure, handed by the Home of Representatives however not the Senate, would cap insulin costs at $35 a month.

“I believe it’s protected to say that every one of us, all of us, no matter our age, wherever we dwell, we will agree that prescribed drugs are outrageously costly on this nation,” Biden mentioned.

Nonetheless, Oshmyanski says the pharmaceutical firms aren’t the most important drawback.

It’s the pharmacy profit managers.

“The candid reality is that pharma hates the [managers] too as a result of they value the drug firms cash,” he instructed Healthline.

“What we’re doing is a win-win-win. We lower the executive burden so pharma has extra money for analysis and improvement, individuals save capital, sufferers get the medicine, and the well being system saves on the entire,” he added.

Cuban summed it up on his firm web site by saying, “Everybody ought to have protected, inexpensive medicines with clear costs.”

Next Post

Monetary providers business has key function to play in ESG sustainability

Tristan Dennis, Gross sales Account Supervisor, Mint Group. If there was one factor the latest floods in KwaZulu-Natal and the Jap Cape, in addition to final yr’s riots in KZN, made clear, it’s that the time for paying lip-service to sustainability, notably with regards to environmental, social and governance (ESG) […]
Monetary providers business has key function to play in ESG sustainability