4 ms·

- Mark Cuban's CostPlus [0] to help with crazy drug prices. [0] https://www.markcubancostplusdrugcompany.com/ https://www.markcubancostplusdrugcompany.com/

lotsofpulp 4y ago
The only difference between costplus and walmart/cvs/Kroger/Costco/walgreens generic options is costplus did a viral marketing campaign spamming Reddit, Instagram, tiktok, and news websites. Costplus is not going to make a dent because they are not willing or able to invest the billions needed for R&D and clinical testing of medicines, and then release the IP/patents to the public. Nor are they going to build and develop the factories needed to make the medicines. Hence costplus is just an increase in the supply of middlemen, not an increase in supply of medicine. When they develop a new medicine to treat hemophilia and give it away for cheap, then they can be said to have walked the walk rather than just talk the talk.
- toomuchtodo 4y ago
  They manufacture and sell generics with a small markup. What R&D? You just wait for the patents to expire, and the consumer excess is the cost avoided by someone willing to make and sell these drugs with a compressed margin. https://dallasinnovates.com/mark-cuban-cost-plus-drug-co-tops-out-its-deep-ellum-facility/ https://dallasinnovates.com/mark-cuban-cost-plus-drug-co-top... > In one example of the savings the startup delivers, the leukemia treatment Imatinib typically retails at $9,657 per month. But through MCCPDC, the price is offered at only $47 per month.
  - lotsofpulp 4y ago
    That article reads like an advertisement. Imatinib generic sells for $120 to $150 according to goodrx. $47 sounds like they are eating the cost to gain customers, because if Costco cannot get it at a lower price, I doubt some new business can magically get it at a lower price. https://www.goodrx.com/imatinib https://www.goodrx.com/imatinib It will be interesting if they deliver on manufacturing genetics at lower prices, but I do not think they have yet accomplished that. But given Cuban’s history, I would not hold my breath.
    - conductr 4y ago
      Tend to agree. It could very well be a loss leader. They will likely do this for drugs that serve a tiny patient population like this one. They get the goodwill of helping cancer patients save money as well.
- skyyler 4y ago
  I just picked one of the drugs I take. Finasteride 5mg 30 count at safeway pharmacy: $57 Finasteride 5mg 30 count at safeway pharmacy with GoodRx: $7.32 Finasteride 5mg 30 count at mark cuban's thing: $4.50 When all the other middlemen are basically an overpriced cartel, a new middleman can be very groundbreaking.
  - bigmattystyles 4y ago
    Isn’t this why cartel only work with tough enforcement; otherwise, the incentive to cheat is too high
  - lotsofpulp 4y ago
    I will believe it is groundbreaking after they prove it from operating for a few years. They might just be temporarily eating the cost for some medicines. All I know is Costco has a far better reputation than Cost Plus or Cuban, so when someone claims they can get margins lower than Costco, I am skeptical. Cost plus is not even a pharmacy, they outsource all the hard and expensive parts like liability to Truepill. And adding middlemen to get prices lower makes no sense. https://www.reddit.com/r/pharmacy/comments/wvd964/comment/ilf1ccy/ https://www.reddit.com/r/pharmacy/comments/wvd964/comment/il... https://www.reddit.com/r/pharmacy/comments/wfsyif/costplustdrugscom_is_getting_a_lot_of/ https://www.reddit.com/r/pharmacy/comments/wfsyif/costplustd... Now if CostPlus had built factories for medicine and were selling it at a lower price because they developed a novel way to manufacture or have amazing management that figured out how to reduce COGS, I would be interested to learn. But given the nature of Cuban and the fact that they went with a viral marketing stunt with no substance, I am going to guess there is another angle to play here.
    - throwayyy479087 4y ago
      Costco doesn’t really have “margins” - everything is more or less expected to cover its cost and MAYBE a bit more to offset loss leaders like the rotisserie chickens. Costco makes all of its profit from memberships. If they have higher prices than Costplus, that’s not a good sign. They’re a top tier company for logistics and price controls. Sounds like Cuban’s just eating the difference

lotsofpulp 4y ago

The only difference between costplus and walmart/cvs/Kroger/Costco/walgreens generic options is costplus did a viral marketing campaign spamming Reddit, Instagram, tiktok, and news websites. Costplus is not going to make a dent because they are not willing or able to invest the billions needed for R&D and clinical testing of medicines, and then release the IP/patents to the public. Nor are they going to build and develop the factories needed to make the medicines. Hence costplus is just an increase in the supply of middlemen, not an increase in supply of medicine. When they develop a new medicine to treat hemophilia and give it away for cheap, then they can be said to have walked the walk rather than just talk the talk.

toomuchtodo 4y ago
They manufacture and sell generics with a small markup. What R&D? You just wait for the patents to expire, and the consumer excess is the cost avoided by someone willing to make and sell these drugs with a compressed margin. https://dallasinnovates.com/mark-cuban-cost-plus-drug-co-tops-out-its-deep-ellum-facility/ https://dallasinnovates.com/mark-cuban-cost-plus-drug-co-top... > In one example of the savings the startup delivers, the leukemia treatment Imatinib typically retails at $9,657 per month. But through MCCPDC, the price is offered at only $47 per month.
- lotsofpulp 4y ago
  That article reads like an advertisement. Imatinib generic sells for $120 to $150 according to goodrx. $47 sounds like they are eating the cost to gain customers, because if Costco cannot get it at a lower price, I doubt some new business can magically get it at a lower price. https://www.goodrx.com/imatinib https://www.goodrx.com/imatinib It will be interesting if they deliver on manufacturing genetics at lower prices, but I do not think they have yet accomplished that. But given Cuban’s history, I would not hold my breath.
  - conductr 4y ago
    Tend to agree. It could very well be a loss leader. They will likely do this for drugs that serve a tiny patient population like this one. They get the goodwill of helping cancer patients save money as well.
skyyler 4y ago
I just picked one of the drugs I take. Finasteride 5mg 30 count at safeway pharmacy: $57 Finasteride 5mg 30 count at safeway pharmacy with GoodRx: $7.32 Finasteride 5mg 30 count at mark cuban's thing: $4.50 When all the other middlemen are basically an overpriced cartel, a new middleman can be very groundbreaking.
- bigmattystyles 4y ago
  Isn’t this why cartel only work with tough enforcement; otherwise, the incentive to cheat is too high
- lotsofpulp 4y ago
  I will believe it is groundbreaking after they prove it from operating for a few years. They might just be temporarily eating the cost for some medicines. All I know is Costco has a far better reputation than Cost Plus or Cuban, so when someone claims they can get margins lower than Costco, I am skeptical. Cost plus is not even a pharmacy, they outsource all the hard and expensive parts like liability to Truepill. And adding middlemen to get prices lower makes no sense. https://www.reddit.com/r/pharmacy/comments/wvd964/comment/ilf1ccy/ https://www.reddit.com/r/pharmacy/comments/wvd964/comment/il... https://www.reddit.com/r/pharmacy/comments/wfsyif/costplustdrugscom_is_getting_a_lot_of/ https://www.reddit.com/r/pharmacy/comments/wfsyif/costplustd... Now if CostPlus had built factories for medicine and were selling it at a lower price because they developed a novel way to manufacture or have amazing management that figured out how to reduce COGS, I would be interested to learn. But given the nature of Cuban and the fact that they went with a viral marketing stunt with no substance, I am going to guess there is another angle to play here.
  - throwayyy479087 4y ago
    Costco doesn’t really have “margins” - everything is more or less expected to cover its cost and MAYBE a bit more to offset loss leaders like the rotisserie chickens. Costco makes all of its profit from memberships. If they have higher prices than Costplus, that’s not a good sign. They’re a top tier company for logistics and price controls. Sounds like Cuban’s just eating the difference