Mark Cuban Cost Plus Drug Company might be a major game changer in the independent pharmacy industry. This new drug manufacturer/distributor is working towards drug price transparency and affordability. In a recent webinar hosted by RxSafe and the Pharmacy Podcast Network, the panel discusses the new business model expected to disrupt the independent pharmacy industry with the goal of improving drug affordability.
How are they reaching this goal?
The new company promises to reveal the cost of each drug, and only add a 15% markup to remain profitable. “We will disclose publicly what our input costs are, or what our machinery costs are, what our distribution costs are, what our salaries are, and then put a flat 15% margin on all of the drugs we produce,” says Dr. Alex Oshmyansky, MD, PhD, CEO and Founder at Mark Cuban Cost Plus Drug.
Click above to watch the full video.
Keeping Prices Low
The mission of Cost Plus Drug is to ensure that all patients are able to afford their medications. Dr. Oshmyansky is passionate about improving affordability to get more medications out to patients who need them. “Our goal is to introduce transparency and help patients, while saving independent pharmacies money along the way,” says Dr. Oshmyansky.
The current drug supply chain model involves several layers of payors and middlemen, which have consistently changed drug prices and even implemented gag clauses, preventing independent pharmacy owners from providing affordable medications to patients.
“Actual generic manufacturers are working on razor thin margins, barely profitable if at all, but the PBMs and wholesalers are all Fortune 20 companies, and that's even before they all merged together,” says Dr. Oshmyansky.
“Clearly there's something wrong with the system when patients can't afford their medicines and pharmaceutical companies can't break even,” says Dr. Oshmyansky.
By removing the middlemen and selling medications directly to pharmacies, Mark Cuban Cost Plus Drug promises to ensure profitability and viability - for all parties.
The Impact on Independent Pharmacy
Today, Cost Plus Drug only offers Albendazole, a medicine designed to treat parasitic infections, but the company is planning on adding more medications to its drug base.
“We're planning to make low-cost versions of high-cost drugs, and hope to drive business to independent pharmacies from there,” says Dr. Oshmyansky.
Independent pharmacies will have the opportunity to purchase medications directly from the company, removing the middlemen. "Working directly with drug manufacturers will help decrease the price for patients and for independent pharmacies struggling to stay profitable," Dr. Oshmyansky says.
Learn more about the impact that Mark Cuban Cost Plus Drug will have on independent pharmacy. Watch the webinar here, and let us know how you feel about this new business model in the comments section below.