Author Topic: Mark Cuban's Cost Plus Drug Company  (Read 7500 times)

Brad

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Mark Cuban's Cost Plus Drug Company
« on: January 14, 2021, 02:45:17 AM »
Focusing on high cost generic drugs.  Charging cost + 15% wholesale.

Will be building their own mfg plant.  Over 100 drugs targeted.

https://costplusdrugs.com

ergophobe

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #1 on: January 14, 2021, 02:55:12 AM »
I heard an interview with him about this. In some cases, the prices will be on the order of 10% of current prices

rcjordan

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #2 on: January 14, 2021, 03:04:13 AM »
Bezos is going to be hard to beat, imo.

Amazon Pharmacy delivers discount prescriptions to Prime members

http://th3core.com/talk/marketplaces-amazon-ebay-etsy-newegg-etc/amazon-pharmacy-delivers-discount-prescriptions-to-prime-members/msg70861/#msg70861

Brad

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #3 on: January 14, 2021, 12:13:47 PM »
> Amazon

Cuban's Pill Factory will get the cheap stuff to Walgreen's, CVS, Osco, Walmart, Rite Aid and independents (which often operate in poorer areas like West Virginia).  Amazon may have a price advantage but it is a closed system.

The other thing I like is he's going to manufacture in the US, not outsource to China, India or Mexico.  This takes care of some supply train problems.

Disruptive: This puts some competition in the generic drug market. Puts pressure on other generic pill slingers that are charging high prices because they are the only game in town.

rcjordan

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #4 on: January 14, 2021, 04:02:30 PM »
Cuban has a *tough* uphill battle coming if his group is mostly competing on price. Bezos got a 2 year jump on the market by buying PillPack.

Amazon buys PillPack, an online pharmacy, for just under $1B
http://th3core.com/talk/water-coolerextra/amazon-buys-pillpack-an-online-pharmacy-for-just-under-$1b/

>Walgreen's, CVS, Osco, Walmart, Rite Aid and independents

We used an local independent and CVS, and -at first- likely would not have switched to Amz if the prices had been close.  But once signed up, the convenience of 2-day delivery from a familiar/trusted vendor just sucks you in.  I later moved a couple of cheap drugs even though the out-of-pocket costs were inconsequential but mostly for the convenience of *not* having to deal with physical pharmacies.

I've also seen several positive reviews about using Amz's multiple shipping addresses in checkout to redirect their drug deliveries while traveling. I hadn't thought of that but that's a nice bonus convenience.

Finally, I still like the idea of silo-ing my credit card info with a limited number of vendors.

Cuban's got a lot to overcome. 
 

ergophobe

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #5 on: January 14, 2021, 05:07:52 PM »
But Cuban is not trying to be a pharmacy. He's trying to be a drug manufacturer. And based on what he said, he's trying to compete in areas where he thinks drugs are wildly overpriced.

Though he didn't come right out and say it, I had the impression that he imagines this roughly as a non-profit. I had the feeling that if this business went broke because everyone had to lower prices to match him, he would consider that a success (as long as they stayed low).

rcjordan

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #6 on: January 14, 2021, 05:30:17 PM »
IMO, a wholesaler -even a very transparent one- won't alter the end consumer prices all that much.  The middlemen tend to fold the extra margins into their business.

>15%

In my wholesaler experience, generic commodity items (ex: wire, water heaters) tend to trade at or near cost --sort of 'near-loss leaders.'  You're lucky to get a mark-up of 4%.

rcjordan

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #7 on: January 21, 2022, 02:47:03 PM »
"The company aims to complete the construction of an $11 million pharmaceutical factory in Dallas that spans roughly 22,000 square feet by the end of this year."

Billionaire Mark Cuban Opens Online Pharmacy To Provide Affordable Generic Drugs
https://www.forbes.com/sites/lisakim/2022/01/20/billionaire-mark-cuban-opens-online-pharmacy-to-provide-affordable-generic-drugs/

rcjordan

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #8 on: January 23, 2022, 01:37:58 AM »
https://costplusdrugs.com/

I comared 1 or 2 drugs to Amazon Pharm. Same price.

littleman

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #9 on: January 25, 2022, 12:24:34 AM »
Apparently everything is a flat 15% profit fee and no insurance needed.

Brad

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #10 on: January 25, 2022, 02:11:44 AM »
The wholesale biz is just the first step.  He's building a factory so they can produce more themselves like injectables.  Back when he started this he was talking about insulin prices going through the roof so that is one of his targets. 


ergophobe

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #11 on: January 25, 2022, 04:28:12 PM »
I think that's promising rather than disheartening. If thy didn't have transparent pricing, I might be skeptical they were selling at cost or even a loss just to match Amazon, but I would suspect the opposite to be more likely.

If he can just make enough to keep the doors open, it keeps all the other players honest. Doesn't help with drugs still under patent though.

rcjordan

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #12 on: February 22, 2022, 02:02:29 PM »
Cost Plus offers life-changing prescription drug prices, but not if you're in NC
https://www.wral.com/cost-plus-offers-life-changing-prescription-drug-prices-but-not-if-you-re-in-nc/20152120/

ergophobe

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Re: Mark Cuban's Cost Plus Drug Company
« Reply #13 on: March 04, 2022, 03:48:04 PM »
Related: CivicRX is targeting insulin. $30 per vial instead of $300.
https://www.cnn.com/2022/03/03/politics/civica-insulin-affordable-drug/index.html