Lowering Patient Costs Through Drug Industry Disruption: Mark Cuban, Serial Entrepreneur and Co-Founder of CostPlus Drugs
“I'm in a part of my life where I like to have an impact that disrupts an industry,” says famed entrepreneur Mark Cuban, and his new online pharmacy CostPlus Drugs is already showing signs of creating a major disruption, indeed. Here’s just one example of what his no-frills operation is making possible: a 30-day supply of the cancer-fighting drug Gleevec is usually $2,500, but on CostPlusDrugs.com the same medication is $17.10 for a month’s supply. You probably have the same question as host Shiv Gaglani: how is this possible? Cuban says CostPlus Drugs sidesteps insurance companies and Pharmacy Benefit Managers to deal directly with manufacturers. There’s a standard 15% markup to cover operational costs, a $3 pharmacy fee and a $5 shipping fee. “That's it, period, end of the story.” Word of mouth over the last two months has pushed sales to levels not expected for two years. Cuban is quick to credit co-founder Alex Oshmyansky and his team, but obviously the business acumen he’s displayed for years on the TV show Shark Tank plays a big role, as does his motivation to do something about a bedeviling problem. “The fact that people are having to choose between rent, food, or medication in this country is wrong in every which way.” Check out this fascinating analysis of the healthcare industry spiced with valuable advice for budding healthcare entrepreneurs, and find out what Cuban thinks the healthcare industry can learn from the NBA.
Raise the Line · Mark Cuban, Shiv Gaglani
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Show Notes
“I'm in a part of my life where I like to have an impact that disrupts an industry,” says famed entrepreneur Mark Cuban, and his new online pharmacy CostPlus Drugs is already showing signs of creating a major disruption, indeed. Here’s just one example of what his no-frills operation is making possible: a 30-day supply of the cancer-fighting drug Gleevec is usually $2,500, but on CostPlusDrugs.com the same medication is $17.10 for a month’s supply. You probably have the same question as host Shiv Gaglani: how is this possible? Cuban says CostPlus Drugs sidesteps insurance companies and Pharmacy Benefit Managers to deal directly with manufacturers. There’s a standard 15% markup to cover operational costs, a $3 pharmacy fee and a $5 shipping fee. “That's it, period, end of the story.” Word of mouth over the last two months has pushed sales to levels not expected for two years. Cuban is quick to credit co-founder Alex Oshmyansky and his team, but obviously the business acumen he’s displayed for years on the TV show Shark Tank plays a big role, as does his motivation to do something about a bedeviling problem. “The fact that people are having to choose between rent, food, or medication in this country is wrong in every which way.” Check out this fascinating analysis of the healthcare industry spiced with valuable advice for budding healthcare entrepreneurs, and find out what Cuban thinks the healthcare industry can learn from the NBA.
Mentioned in this episode: https://costplusdrugs.com/
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