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Mark Cuban is well-known as a successful tech entrepreneur, Shark Tank investor, and as the owner of the Dallas Mavericks. Now, the self-made billionaire has launched an online pharmacy called Cost Plus Drugs. His pharmacy claims to offer lower prescription drug prices. How low? According to a recent report from the Annals of Internal Medicine, researchers state that Medicare could save $3.6 billion per year if it purchased drugs through Cuban’s pharmacy.
How Mark Cuban’s pharmacy offers low prices
According to its website, every drug sold “is priced exactly the same way: our cost plus 15%, plus the pharmacy fee, if any.” As an example, the site compares its costs to the hookworm drug Albendazole, which can cost as much as $500 per course. Cost Plus Drugs’ cost for Albendazole is $26.08 per course. After marking that price up by 15% and adding the $3 pharmacy fee, the same drug is $33, almost 93% less than its competitors.
Cuban said on Twitter that his company does not spend “a nickel on advertising” and is “completely relying on word of mouth.” This is what allows them to offer low prices on over 100 prescription drugs. In a press release, the company said its direct-to-consumer model and pharmaceutical wholesaler status allows it to offer lower rates.
“As a registered pharmaceutical wholesaler, Mark Cuban Cost Plus Drug Company (MCCPDC) can bypass middlemen and outrageous markups,” the press release states. “Because the company refuses to pay spread prices to third-party pharmacy benefit managers (PBMs) … patients can immediately purchase a broad array of medications at prices often less than what most insurance plans’ deductible and copay requirements would total.” While the federal government could be saving billions through Cuban’s pharmacy, regular consumers can see thousands of dollars of savings per year.
Mark Cuban reacts to people raving over his pharmacy
Since launching his online pharmacy in January, customers have commented how much they saved. Kim Kardashian tweeted that Cuban’s pharmacy “… is probably the most amazing thing ever!!” One user tweeted “i just paid $17.00 for a 90 day supply of an rx that would have cost me $360 for a 30 day supply with a national chain. When I told the Doc about @costplusdrugs she was blown away! She said this would be life changing for many patients.”
Another added “Thank you mark cuban for bringing my prescriptions down to $30 from almost $400.” In response to dozens of tweets like these thanking Cuban for the pharmacy, he responded, “Glad costplusdrugs.com can help! We are just getting started and have a long way to go!” Cuban in another tweet said, “And for those looking to save money on their meds, even if you have a co-pay, please sign up at costplusdrugs.com. If we don’t carry what you need, we are working hard to add it at.”
Chief Executive and Founder Alex Oshmyansky said in an interview that more than 400,000 people have created accounts with Mark Cuban’s Cost Plus Drugs pharmacy. Half of them have bought prescriptions through the company’s online mail-order pharmacy. With inflation at a 40-year high and the stock market officially in a bear market, consumers can benefit from lower-cost prescription meds.
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