In January, Mark Cuban Cost Plus Drug Company (MCCPDC) started an online pharmacy. After two years of establishing Pharmacy Benefits Manager (PBM), an online pharmacy was launched.
For more than a year, MCCPDC has been a registered pharmaceutical wholesaler. However, in its beginning, only a handful of drugs were available. It purchases more than 100 generic medications from the manufacturers now and then sells them to the customers at a lower price. It is a 503(b) compounding pharmacy that mainly focuses on the drugs that are on the shortage list of the Food and Drug Administration. The company announced price drops on four medicines on 15th February.
The impact of the company on the drug market will only be affected or limited by the number and type of drugs they offer as it is a cash-only system.
Billionaire entrepreneur Mark Cuban’s innovative idea caught the attention of Americans as his venture cuts out the middlemen and offers price transparency to its buyers. Middlemen include insurance companies, PBMs, and many more. He is providing the medication to the patients at lower prices and making money in this process.
According to him, he wants to maximize the impact along with making a profit. His website offers various discounts to the customers. The most common problem from which people are suffering is Diabetes. Every other person has diabetes nowadays. Insulin medications also have a high price. However, cost-plus drugs insulin is the new solution to the high-priced drugs. To know the working of the company, read further. In this article, we will discuss its working process and online stock.
Mechanism Of Its Working
According to Mark Cuban, the Cost-plus drugs insulin has the intention to eliminate pharmacy benefit managers from the equation and will compete with large pharmacy companies like Rite Aid, Walgreens Boots Alliance Inc., and CVS Health Corporation. Pharmacy benefit managers are the ones who manage prescription drug benefits in the place of large employers, health insurers, and many others.
These middle managers are the lesser-known partner in the pharmaceutical companies. They receive the rebates and keep a large portion of the cost savings that customers give after the purchase. They receive criticism from the public in the name of lack of transparency. Talking of the Cuban company, the online pharmacy is a cash-payment setting. This method will prohibit the payments to the third-party pharmacy benefit managers and prevent them from processing insurance claims.
The Consumers will have easy access to more than 100 generic medications at lower prices than the total price of the insurance plan’s deducible and copay requirements. Mark Cuban wants to pass the greater percentage of the savings to the customers and wants to bring transparency to the pricing process.
They are buying the product from the manufacturers and will soon manufacture their products. By the end of the year, a 22000-square-foot factory along with $11 million is expected to roll in Dallas. They will sell the drugs at a discount of 15% and a $3 pharmacist fee.
A Rise In The Cost Of The Drugs Like Insulin
After three years of investigation, a report was prepared with 269 pages. It has reviewed more than 1.5 million pages of internal drug company documents and five congressional hearings. According to Carolyn B. Maloney, the report contained a rare glimpse of many of the decisions made by the profitable drug companies. Three of those drugs were insulin based. The high costs of insulin-based drugs made the medication unaffordable for many diabetic patients.
The report found a 1219 percent increase in Humalog (Eli Lilly), 715 percent increase in Lantus (Sanofi), and 627 percent increase in NovoLog (Novo Nordisk) after their launch. These three companies control 90% of the insulin market. Medicare is the government health insurance program for 65 and older Americans, and it is also not negotiating the prices of the drugs with the drug companies. However, if they would have negotiated, then they could have saved around $16.7 billion on insulin products.
Overall, the companies have increased the price of 12 drugs more than 250 times since their manufacture.
However, the cost plus drugs insulin will also have a lower price than theirs, so it will be made available for diabetic patients.
The most common example is cost plus drugs insulin. Humalog is the most prescribed brand of insulin in the US, and it also gets first wholesaled to the retailer and then is made available to the customer. A pharmacy benefits manager is also involved in between. The major problem is in our system that itself inflates the charges for the prescriptions by about 30-60%. Another problem is the pharmacies take their payments through insurance. Therefore, he is helping the patients suffering from Diabetes by launching cost plus drugs insulin.
Mark Cuban Online Pharmacy Stock
Cost-plus drugs insulin has started its business in an online pharmacy recently. The online platform sells more than 100 medications that include medications for asthma, heart failure, Parkinson’s disease, mental health conditions, allergies, and cancer. However, the cost of the medications is still less than what people pay with insurance. Let us take the example of Imatinib. It is the generic cancer drug for Gleevec, which is sold for $17.10. According to Oshmyansky, the consumer saves around $2,485.40 on it.
The cost plus drugs insulin will not include any of the middlemen, like PBMs and insurers. Cost Plus drugs insulin will provide full transparency to the customers.
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