Mark Cuban challenges Amazon, Walmart with low cost on-line pharmacy – Chain Retailer Age

A billionaire “Shark Tank” investor is swimming in low cost pharmacy waters.
Mark Cuban, billionaire entrepreneur, proprietor of the Dallas Mavericks and co-star of the TV present “Shark Tank,’ is launching a web based pharmacy with an preliminary stock of greater than 100 generic medication. The launch of the Mark Cuban Price Plus Drug Firm comes just some weeks after the corporate’s pharmacy profit supervisor (PBM) operation was established.
MCCPDC is a registered pharmaceutical wholesaler, which permits it to bypass middlemen and their related markups. The pharmacy’s costs mirror precise producer costs plus a flat 15% margin and a $3 pharmacist payment, the corporate mentioned. The aim of the brand new enterprise is to be “radically clear” relating to worth negotiations with drug corporations, based on a report.
“We’ll do no matter it takes to get reasonably priced prescription drugs to sufferers,” mentioned Alex Oshmyansky, CEO of Mark Cuban Price Plus Drug. “The markup on doubtlessly lifesaving medication that folks rely upon is an issue that may’t be ignored. It’s crucial that we take motion and assist develop entry to those drugs for individuals who want them most. There are quite a few unhealthy actors within the pharmaceutical provide chain stopping sufferers from getting reasonably priced medicines. The one manner to make sure reasonably priced costs get via is to vertically combine.”
As a result of MCCPDC is not going to pay unfold costs to third-party pharmacy profit suppliers to be able to be allowed to course of insurance coverage claims, the web pharmacy might be a money pay enterprise and never settle for insurance coverage. In November 2021 MCCPDC entered the PBM business to serve corporations offering prescription protection of their worker profit plans.
MCCPDC mentioned will probably be “radically clear” in its personal negotiations with drug corporations as a PBM, revealing the true prices it pays for medication. MCCPDC anticipates its PBM might save corporations tens of millions of {dollars} with no adjustments to its advantages, relying on the dimensions of the employer, as a result of it would eradicate the normal PBM mannequin. The corporate plans to combine its pharmacy and wholesaler with its PBM, so any firm that makes use of its PBM may have entry to wholesale pricing via its on-line pharmacy.
MCCPDC is partnering with digital healthcare firm Truepill in an effort to offer clients a seamless, safe e-commerce expertise as they navigate the pharmacy’s web site, constructed and powered by Truepill’s digital well being platform. Sufferers will even obtain prescription success and supply via Truepill’s nationwide pharmacy footprint.
Taking up Amazon and Walmart
MCCPDC is competing with some main gamers in its effort to offer a low-cost different to conventional pharmacies. Amazon launched Amazon Pharmacy, which permits U.S. clients to order prescription drugs for dwelling supply, with free supply for Amazon Prime members, in November 2020. Amazon Pharmacy is a definite providing from PillPack, the web pharmacy startup Amazon acquired in 2018. Now referred to as PillPack by Amazon, it focuses on delivering presorted dose packaging for managing a number of every day drugs for persistent circumstances.

And in June 2021, Amazon and Walmart launched dueling packages designed to take away insurance coverage corporations from prescription drug funds, leading to financial savings to the buyer. Walmart launched a prescription financial savings program completely for members of its Walmart+ paid subscription service. The brand new Walmart+ Rx for much less program is designed to ship further financial savings on essentially the most generally prescribed drugs throughout quite a lot of well being circumstances, together with coronary heart well being, psychological well being, antibiotics, allergy symptoms and diabetes administration.
On the identical time, Amazon started offering members of its Prime paid loyalty program six-month prescriptions beginning at $6 for a number of often prescribed drugs. June 2021 additionally noticed Walmart is diving deeper into well being care with the launch of an unique private-label model of analog insulin beneath its ReliOn personal model of diabetes merchandise.
With the launch of its on-line pharmacy’s first stock of 100 generic medication in January 2022, Mark Cuban Price Plus Drug Firm is a vertically built-in pharmacy advantages supervisor. Development of a pharmaceutical manufacturing facility in Dallas slated for completion by the tip of 2022.