American billionaire entrepreneur Mark Cuban launched an online pharmacy Thursday, which offers more than 100 generic drugs at an affordable price, according to Forbes.
The online pharmacy aims to be “radically transparent” in its price negotiations with pharma companies.
The Mark Cuban Cost Plus Drugs Company (MCCPDC) is a regulated online pharmacy that provides access to quality generic drugs at an affordable price. Its mission is to offer safe medicines at the lowest possible price.
More importantly, MCCPDC provides complete transparency on the generic drug cost so that patients know they are getting a fair price.
The company said in a statement, “MCCPDC is a registered pharmaceutical wholesaler and purchases drugs directly from manufacturers, bypassing middlemen to lower the price of more than 100 medications.”
For instance, the Cuban’s online pharmacy sells generic leukemia drug imatinib at $47 a month compared to its brand-name version, which costs $9,657.
The company said, “The online pharmacy’s prices for generics factor in a 15% margin on top of actual manufacturer prices and a $3 pharmacist fee.”
“The markup on generics average ‘at least’ 100%, while the Wall Street Journal reports in some cases it exceeds 1,000%,” it added.
MCCPDC does not process insurance claims and requires customers to pay for their generic medicines out of pocket. It said its generic drugs cost less than most insurance plans’ deductible and copay requirements.
Customers should provide a new prescription from their doctor to place an order for generic medications on the MCCPDC website.
Alex Oshmyansky, CEO of MCCPDC, reached out to Cuban with an idea for a low-cost generic drug company in a cold email.
They were motivated in part by “Pharma Bro” Martin Shrkeli’s outrage-producing price hike of the lifesaving drug Daraprim from $13.50 to $750 per tablet while Shrkeli was CEO of Turing Pharmaceuticals,” according to Forbes.
In 2021, Cuban told Forbes the pricing for generic drugs was “ridiculous,” adding that he decided to put his name on the company to “show capitalism can be compassionate and to send the message I am all in.”
However, it is unclear how much Cuban had invested in the company.
MCCPDC aims to complete the construction of an $11 million pharmaceutical factory in Dallas.
Cuban, who is also a media proprietor, is estimated to have a net worth of $4.5 billion, according to Forbes. He ranked #177 on the 2020 Forbes 400 list.
He is also the owner of the Dallas Mavericks professional basketball team of the National Basketball Association (NBA). He is the co-owner of 2929 Entertainment. The businessman is also one of the main “shark” investors on the ABC reality television series Shark Tank.