Sometimes it seems like all the big tech giants are talking about disrupting healthcare. Apple (AAPL) – Get the Apple Inc. wants to do it, Amazon (AMZN) – Get the report from Amazon.com, Inc. bought an online pharmacy, and even Haven a partnership, between Berkshire Hathaway’s (BRK.A) – Get the Berkshire Hathaway Inc. Class A report. Warren Buffett, JPMorgan’s (JPM) – Get the JPMorgan Chase & Co. report.and Amazon, have tried (and failed) this gargantuan task.
Perhaps the problem is that all of these approaches have been huge swings – massive attempts to disrupt a deeply entrenched industry.
Enter Mark Cuban.
The outspoken billionaire owner of the Dallas Mavericks has decided to take a very basic business approach to disrupting healthcare and drug prices. He got rid of the middleman. His company, the humbly named “Mark Cuban Cost Plus Drug Company” had very clear goals and a very simple approach.
“We started Mark Cuban Cost Plus Drug Company because every American should have access to safe and affordable drugs. If you don’t have insurance or have a high deductible plan, you know that even the most basics can cost a fortune. Many people spend crazy amounts of money every month just to stay healthy. No American should have to suffer or worse – because they can’t afford basic medicines. prescription,” the company shared on its website.
How Mark Cuban’s Pharmaceutical Company Works
Cuban wants to offer drugs at low prices, but he also wants transparency so customers can see what they’re paying for. The company started by looking at one drug, Albendazole, a drug used to treat hookworm, which may be a problem “for disadvantaged populations,” according to Cost Plus.
“Normally, the prescribed drug for hookworm, albendazole, can cost up to $500 per treatment, making the drug out of reach for many people in need,” the company explained.
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In reality, it only costs $26.08 per course.
“We are marking up this price by 15% so that we can continue to run the business and invest to disrupt the price of as many drugs as possible,” Cost Plus added.
“Our goal is to dramatically reduce the cost of drugs like Albendazole, but we also believe it is equally important to introduce transparency into drug pricing so patients know they are getting a fair price” , explained the company. basic drug price $30. Then we add the actual cost, $3, that our pharmaceutical partners charge us to compound and deliver your prescription to you.
This makes the final price to consumers $33.
“Every product we sell is priced the same as our cost plus 15% plus pharmacy fees,” the company added.
Mark Cuban Cost Plus offers hundreds of medications and shares full price transparency on its website. The company has also just launched an online community on Twitter where people can share their drug pricing experiences.
Twitter reacts to Mark Cuban Cost Plus Drug Company
Instead of finding a bold new way to disrupt all health care, Cuban tackled a real part of the problem. Twitter (TWTR) – Get the report from Twitter, Inc.as you can imagine, love what Cuba does.
Cuban also shared the link to join the Cost Plus Drugs online community.