Billionaire investor Mark Cuban is funding a new company focused on selling generic drugs at a transparent fixed interest rate markup.
What happened: According to the Wall Street Journal, Mark Cuban Cost Plus Drug Company is launching a new Pharmacy Revenue Management (PBM) service that will integrate manufacturing, pharmacy services, and wholesale distribution under the operation of a single company.
The company's manufacturing plant will be located in Dallas and is expected to open in September 2022. In addition, an online pharmacy will sell the 100 most commonly used generic drugs.
Cuban CEO Alex Oshmyansky said that the pharmacy purchases drugs directly from generic drug manufacturers including Amneal Pharmaceuticals Inc. (NYSE: AMRX) and will charge customers a 15% markup and 3 USD dispensing fee.
Oshmyansky added that in terms of wholesale, Cuban’s PBM will start bidding for its PBM services from customers next year, and plans to start operations in 2023, noting that the company will share details of its operating costs with customers and will share with them 100% rebate. Obtained from the drug manufacturer.
"The supply chain for distributing medicines to patients is so cumbersome and fragmented," Oshmyansky said. "The only way we decided to get our drugs into the hands of people who needed them was to establish a parallel supply chain, where we could control all middlemen and ensure the same level of transparency at every level."
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What happened: After a long time criticizing the high cost of health care, Cuban established his pharmaceutical company in January, with the initial focus on the production of the antiparasitic drug albendazole. Three years ago, Oshmyansky was appointed by Kuban as the head of PBM after writing an unsolicited sales letter to the "Shark Tank" star.
"Our goal is that everyone should be able to afford their drugs," the Cuban company's website says. "Everyone should know how much it costs to make their drugs. Everyone should feel that the price they pay for the drugs is fair."
Photo: Gage Skidmore/Flickr Creative Commons.
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Posted-In: Generic Drug Mark Cuban Pharmacy Benefit Management The Mark Cuban Cost Plus Drug CompanyNews Health Care Small Cap General Best of Benzinga
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