Mark Cuban Cost Plus Drug Company (MCCPDC), doing business as Cost Plus Drugs, is a

public benefit corporation Public-benefit corporation may refer to several types of corporate entity: United Kingdom * public benefit corporation, the legal form of NHS foundation trusts United States * Benefit corporation or public-benefit corporation, for profit but with ...

(PBC) with its main headquarters located in

Dallas, Texas Dallas () is the third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the fourth-largest metropolitan area in the United States at 7.5 million people. It is the largest city in and seat of Dallas County wi ...

. The company is focused on the pharmacy distribution of drugs with a stated goal to lower the prices for generic drugs by removing middlemen and by moving to a

cost-plus pricing Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular ...

strategy.

Origins and concept

The company was launched in January 2022. It was co-founded by

radiologist Radiology ( ) is the medical discipline that uses medical imaging to diagnose diseases and guide their treatment, within the bodies of humans and other animals. It began with radiography (which is why its name has a root referring to radiati ...

Alexander Oshmyansky Alexander Oshmyansky (born in November 1984) is an American radiologist who is co-founder and CEO of Mark Cuban Cost Plus Drug Company.Cesaric, CoriHow Mark Cuban's online pharmacy plans to make medications affordable ''NBCChicago.com'' April 1 ...

and

Mark Cuban Mark Cuban (born July 31, 1958) is an American billionaire entrepreneur, television personality, and media proprietor whose net worth is an estimated $4.8 billion, according to '' Forbes'', and ranked No. 177 on the 2020 ''Forbes'' 400 lis ...

. According to Cuban, in 2018, Oshmyansky contacted Cuban with an email entitled "cold pitch" in which he asked Cuban to invest in a pharmacy he envisioned to manufacture generic drugs and skip the middleman wholesalers. The company claims that the intermediary layer of the

pharmacy benefit managers In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, ...

is typically responsible for the heavy markup that drugs see between the manufacturers and the customers. The company uses Truepill Pharmacy's accredited pharmacists to fill prescriptions. Prices are direct to consumer, without any need or role for insurance.

Operations

As of February 2022, the company is in the process of constructing a factory in

Deep Ellum Deep Ellum is an American neighborhood composed largely of arts and entertainment venues near downtown in East Dallas, Texas. The name is based on a corruption of the area's principal thoroughfare, Elm Street. Older alternative uses include De ...

Dallas Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...

, for the purpose of manufacturing drugs in-house, which is scheduled to open in the 4th Quarter of 2022. As of June 2022, the company had a selection of over 100 generic drugs, and by March 2023, over 350 drugs were available. The drugs are sold for a price equivalent to the company's cost plus 15% markup and a $3 pharmacy service fee. The company currently ships to all 50 US States. Oshmyansky is currently serving as the CEO.

References

External links

* {{official Generic drug manufacturers Social problems in medicine 2022 establishments in Texas Companies based in Dallas