(Benzinga) - Throughout his career, billionaire investor Mark Cuban has either founded or made early investments in numerous startups. However, only one of these ventures, established in January 2022, carries his name.
The Mark Cuban Cost Plus Drug Co. aims to revolutionize the $365 billion U.S. prescription drug market, which is plagued by pricing disparities. A single tablet of the Type 2 diabetes medication Metformin, for example, can cost over $500 at retail prices. However, through Cuban's company, that same tablet is priced at just $46.20.
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The company provides 350 prescription drugs at cost, adding a fixed 15% margin that still results in significantly lower prices for certain medications compared to their retail counterparts. These savings are partially achieved by cutting out the middleman in the prescription drug sector: Cuban's company negotiates directly with drug manufacturers, bypassing health insurance providers.
In 2020 alone, Cuban’s startup could have saved Medicare an estimated $3.6 billion, as reported by a Harvard Medical School study.
Healthcare has been a hot topic as of late, especially in the startups realm. Healthcare is a massive, multi-billion dollar industry. The American Psychological Association estimates that stress costs the U.S. economy up to $300 billion annually. A major contributor to this burden is healthcare expenses, with 65% of households experiencing high-stress levels or distress regarding treatment costs. If Cuban's company can successfully reduce prescription drug prices across the board, it could provide significant relief in this area.
Other startups like Aura health have found significant traction in this area. Aura is founded by brothers Steve and Daniel Lee, both of which are Forbes 30 under 30 recipients for their work. The startup already has over 7 million users and claims to be the world’s leading marketplace for mental wellness, a global $4.8 trillion industry.
This article Mark Cuban's Game-Changing Startup: How He Plans To Take-On a $365 Billion Industry originally appeared on Benzinga.com
By Caleb Naysmith
