Mark Cuban, the famous billionaire shark on Shark Tank, and owner of the Dallas Mavericks is building the Mark Cuban Cost Plus Drug Company that will manufacture and distribute its drugs with a flat transparent 15% margin.
Mark is not new to healthcare investments--in fact he has at least 14 different healthcare investments in his portfolio.
The Mark Cuban Cost Plus Drug Company or MCCPDC for short is taking on the challenge of bringing trust back into generic drugs. Generic drugs are generally very affordable but there are suspicions on quality that brought on all sorts of concerns in 2018 eventually prompting the FDA to issue a statement in 2019 that generic drugs are equally as safe as their branded competitors. They also mention that while inspections of India's manufacturing facilities has increased, the inspections in China have decreased which doesn't comfort worried patients.
While the FDA might confirm to the public that generic drugs undergo a thorough evaluation for safety and efficacy, the FDA is not able to control price gouging which is another concern. In 2015, the infamous Martin Shkreli of Turing Pharmaceuticals purchased the HIV drug Daraprim and raised its price from $13.5 to a $750 charge per pill. He did the same thing in a previous company called Retrophin raising the price per pill of Tiopronin used to treat cystinuria from $1.5 to $30.
The crazy part of the story is that what he did was completely legal. He was convicted and sentenced to 7 years in prison for securities fraud UNRELATED to Daraprim. In his sentencing, he tried to show remorse and said "I was never motivated by money."
Having public concerns about safety, efficacy, and recently price sets the stage for a new kind of company that can rebuild the public's trust. The first drug by the Mark Cuban CPDC is albendazole, an antiparasitic pill. By the end of 2021, the company hopes to manufacture 100 low cost drugs. It is unknown if the name 'Mark Cuban' will continue to be needed to engender Trust but time will tell.
By 2022 the company hopes to manufacture the generic drugs in Dallas, Texas--Made in America!
Now although he is not as famous as Mark, the co-founder and CEO of the Mark Cuban CPDC is Alex Oshmyansky, a fellow Hopkins trained physician, and a brilliant serial entrepreneur who had graduated college at 18 years old!