Cost Plus Drugs
 | |
| Industry | Pharmaceuticals |
|---|---|
| Founders | Alex Oshmyansky and Mark Cuban |
| Headquarters | Dallas, Texas , US |
Key people | Alex Oshmyansky and Mark Cuban |
| Website | costplusdrugs |
Mark Cuban Cost Plus Drug Company (MCCPDC), doing business as Cost Plus Drugs, is an American public benefit corporation[1] with its main headquarters located in Dallas, Texas. The company is focused on the pharmacy distribution of drugs with a stated goal to lower the prices for generic drugs by removing middlemen and by moving to a cost-plus pricing strategy.[2]
Origins and concept
[edit]The company was launched in January 2022.[3] It was co-founded by radiologist Alexander Oshmyansky and Mark Cuban. According to Cuban, in 2018, Oshmyansky contacted Cuban with an email titled "cold pitch" in which he asked Cuban to invest in a pharmacy he envisioned to manufacture generic drugs and skip the middleman wholesalers.[4] The company claims that the intermediary layer of the pharmacy benefit managers is typically responsible for the heavy markup that drugs see between the manufacturers and the customers.[5][6] The company uses Truepill Pharmacy's accredited pharmacists to fill prescriptions. Prices are direct to consumer, without any need or role for insurance.
Operations
[edit]As of February 2022, the company is in the process of constructing a 22,000-square-foot (2,000 m2) factory in Deep Ellum, Dallas, for the purpose of manufacturing drugs in-house, which is scheduled to open in the 4th Quarter of 2022.[7]
As of June 2022, the company had a selection of over 100 generic drugs,[8] and by March 2023, over 350 drugs were available.[9] In December 2023, the company has over 2200 drugs available. The drugs are sold for a price equivalent to the company's cost plus 15% markup, a $5 pharmacy service fee, and a $5 shipping fee (an unusually transparent move).[5][10] The company currently ships to all 50 US States.[11]
Oshmyansky is currently serving as the CEO.[4]
References
[edit]- ^ "Everyone deserves safe and affordable medications". Mark Cuban Cost Plus Drug Company. Retrieved June 19, 2022.
- ^ "Mission of Mark Cuban Cost Plus Drugs". costplusdrugs.com. Retrieved June 26, 2022.
- ^ Hernandez, Joe (January 24, 2022). "Billionaire Mark Cuban launches online pharmacy aimed at lowering generic drug prices". NPR. Retrieved June 19, 2022.
- ^ a b Cesaric, Corin (April 14, 2022). "How Mark Cuban's online pharmacy plans to make medications affordable". NBC Chicago. Retrieved February 1, 2023.
- ^ a b Foster, Tom (May 2022). "Mark Cuban's audacious cure for high-priced drugs". Inc.com.
- ^ "Mark Cuban Cost Plus Drug Company's online pharmacy launches with lowest prices on 100 lifesaving prescriptions". Mark Cuban Cost Plus Drug Company (Press release). January 19, 2022 – via PRNewswire.com.
- ^ Innovates, Dallas (February 2, 2022). "Mark Cuban Cost Plus Drug Co. Tops Out Its Deep Ellum Facility". Dallas Innovates. Retrieved June 19, 2022.
- ^ Nolan, Emma (June 7, 2022). "New Mark Cuban company slashes high drug prices: "Life changing"". Newsweek. Retrieved June 19, 2022.
- ^ Dahl, William Benzinga.com Mark Cuban Aims To Disrupt A $365 Billion Industry – With The Only Startup That Bears His Name, March 31, 2023
- ^ Murphy, Heather Tal; Slate.com The Truth About Amazon’s Really Cheap Generic Drugs, January 8, 2023
- ^ "Frequently Asked Questions". Mark Cuban Cost Plus Drugs Company. Retrieved February 1, 2023.