5 ms·

Well, there's some technical measures we've taken and some practical ones to ensure we work to be profitable but remain focused primarily on improving public he

Well, there's some technical measures we've taken and some practical ones to ensure we work to be profitable but remain focused primarily on improving public health and helping patients. On the technical level, we incorporated as a public benefit corporation, so we are judged not only on how profitable we are for shareholders, but how well be maintain our social mission. That is actually in our charter documents and is a legal requirement. On a practical level, Mark Cuban is our lead investor and his interest is very much focused on helping people and fixing system issues in healthcare. We also did some screening to ensure our other investors are socially minded and prioritize social benefit as well as profits. My mindset is that we need to be profitable to be sustainable and grow enough to help the overall system, but we won't be extortionate.

peteretep 6y ago
> On a practical level, Mark Cuban is our lead investor and his interest is very much focused on helping people and fixing system issues in healthcare. Also he got to write his name on it
- bsimpson 6y ago
  I wonder how much credibility his name adds in the short term. People might take it more seriously if it's backed by someone with a reputation. In the longer term, success in the health space could add prestige to his name, ala the Nobel prize.
  - peteretep 6y ago
    Yes, I agree with both. Seems win/win, and a much better claim to fame than putting radio on the internet! ;-)
  - po 6y ago
    The only reason I clicked and am reading these threads right now is because I was curious why he put his name on a drug company.
- fuzzfactor 6y ago
  Even more importantly, the company got to put his name on it.
- nojvek 6y ago
  Nice! We had Obamacare, now we get MCubanocare?
  - DevKoala 6y ago
    Obamacare actually increases the cost of drugs. Here is a study showing the comparison adjusted for inflation. https://pubmed.ncbi.nlm.nih.gov/28224469/ https://pubmed.ncbi.nlm.nih.gov/28224469/
    - simonh 6y ago
      For some single source drugs the suppliers absorbed some of the subsidies, while others and generics were cheaper for consumers. It is unfortunate that sometimes customer facing subsidies get abused by single source suppliers.
    - bildung 6y ago
      This study is not about drugs per se, but only some oncology drugs that were popular in 2006. It even states "however, generic oncology drug prices showed no significant changes" in the abstract.
      - DevKoala 6y ago
        That’s selective quoting. The study states in the abstract the top selling drugs saw price increases. Here is the full abstract. > The results show that the average annual price of top-selling cancer drugs in 2006, adjusted for inflation and secular changes in drug prices, have increased by US$154 and US$235 for branded and competitive brand drugs, respectively, following the 2010 ACA; however, generic oncology drug prices showed no significant changes.
        gowld 6y ago
        The top-selling branded drugs price increased. Generic drug prices (the relevant comparison to Cuban's Cost Plus) showed no significant changes.
- Tuna-Fish 6y ago
  Probably more "the company begged someone of high visibility to write their name on it". Cost of advertising is a serious problem for generic drug makers. There are a lot of drugs where there exists an identical, cheaper, generic version, but the more expensive one gets sold because neither the doctors nor the patients have any idea that it exists. Hence all the "ask your doctor for x" ads, but the problem is that advertising on that scale, especially for low-incidence conditions, is very expensive compared to the amount of money you make, an so will result in just another expensive drug. A celebrity putting their name on a drug company and then maybe mentioning it a few times publicly in places where normal people hear about it may make people who are facing very expensive drug bills look up the site and see if they make something useful for them.
  - coredog64 6y ago
    If there’s an actual generic (e.g. Naproxen Sodium :: Alleve), then your doctor just has to ensure that the Rx isn’t “fill as written”. The pharmacist can then offer you options (Namebrand at X times 5 or generic at X) If it’s the case where there’s an older generic and a newer product still under patent, that’s a discussion with your doctor: Is the newer product worth the money, or should I stick with the older thing?
tonyhb 6y ago
Can you put your email in your profile please? Reaching out from working at a healthcare company now.
- m3at 6y ago
  You can find it at the top of the thread: alex@costplusdrugs.com

peteretep 6y ago

> On a practical level, Mark Cuban is our lead investor and his interest is very much focused on helping people and fixing system issues in healthcare. Also he got to write his name on it

bsimpson 6y ago
I wonder how much credibility his name adds in the short term. People might take it more seriously if it's backed by someone with a reputation. In the longer term, success in the health space could add prestige to his name, ala the Nobel prize.
- peteretep 6y ago
  Yes, I agree with both. Seems win/win, and a much better claim to fame than putting radio on the internet! ;-)
- po 6y ago
  The only reason I clicked and am reading these threads right now is because I was curious why he put his name on a drug company.
fuzzfactor 6y ago
Even more importantly, the company got to put his name on it.
nojvek 6y ago
Nice! We had Obamacare, now we get MCubanocare?
- DevKoala 6y ago
  Obamacare actually increases the cost of drugs. Here is a study showing the comparison adjusted for inflation. https://pubmed.ncbi.nlm.nih.gov/28224469/ https://pubmed.ncbi.nlm.nih.gov/28224469/
  - simonh 6y ago
    For some single source drugs the suppliers absorbed some of the subsidies, while others and generics were cheaper for consumers. It is unfortunate that sometimes customer facing subsidies get abused by single source suppliers.
  - bildung 6y ago
    This study is not about drugs per se, but only some oncology drugs that were popular in 2006. It even states "however, generic oncology drug prices showed no significant changes" in the abstract.
    - DevKoala 6y ago
      That’s selective quoting. The study states in the abstract the top selling drugs saw price increases. Here is the full abstract. > The results show that the average annual price of top-selling cancer drugs in 2006, adjusted for inflation and secular changes in drug prices, have increased by US$154 and US$235 for branded and competitive brand drugs, respectively, following the 2010 ACA; however, generic oncology drug prices showed no significant changes.
      - gowld 6y ago
        The top-selling branded drugs price increased. Generic drug prices (the relevant comparison to Cuban's Cost Plus) showed no significant changes.
Tuna-Fish 6y ago
Probably more "the company begged someone of high visibility to write their name on it". Cost of advertising is a serious problem for generic drug makers. There are a lot of drugs where there exists an identical, cheaper, generic version, but the more expensive one gets sold because neither the doctors nor the patients have any idea that it exists. Hence all the "ask your doctor for x" ads, but the problem is that advertising on that scale, especially for low-incidence conditions, is very expensive compared to the amount of money you make, an so will result in just another expensive drug. A celebrity putting their name on a drug company and then maybe mentioning it a few times publicly in places where normal people hear about it may make people who are facing very expensive drug bills look up the site and see if they make something useful for them.
- coredog64 6y ago
  If there’s an actual generic (e.g. Naproxen Sodium :: Alleve), then your doctor just has to ensure that the Rx isn’t “fill as written”. The pharmacist can then offer you options (Namebrand at X times 5 or generic at X) If it’s the case where there’s an older generic and a newer product still under patent, that’s a discussion with your doctor: Is the newer product worth the money, or should I stick with the older thing?

tonyhb 6y ago

Can you put your email in your profile please? Reaching out from working at a healthcare company now.

m3at 6y ago
You can find it at the top of the thread: alex@costplusdrugs.com