In Wired magazine “big interview“Events earlier this month, cost-plus drugs Founder and star of “Shark Tank” Mark Cuban He was asked why he wasn’t making more profits from his low-price pharmaceutical company.
“You know very well that you’re not doing this for altruistic reasons – you’re running a business,” the event host noted.
“Well, I can make more money,” Cuban said, drawing laughter from the crowd. “We’re a public benefit corporation. But how much do I need?”
“I don’t want to go to Mars,” he added, an obvious dig at his remarks. billionaire rival Elon Musk.
Related: Mark Cuban’s startup is sending first shipments of essential drugs to hospitals facing shortages
What are cost-plus drugs?
Mark Cuban Cost Plus Drug Co. is an online pharmacy co-founded by Cuban and radiologist Alex Oshmyansky that aims to disrupt the pharmaceutical industry and reduce drug costs. it was launched in January 2022 and offers more than 2,300 prescription drugs and delivery services.
How do cost-plus drugs price their drugs?
On the company website, cuba silhouette How the price structure works: Cost-plus increases the base price by 15%, then adds the actual cost that pharmacies charge them to prepare the medication.
For example, a ringworm drug like albendazole costs about $113 elsewhere. Drug Networkaccording to the letter, is $35. (Cuban wrote that the company paid $26.08.)
“Many people spend significant amounts of money every month just to stay healthy,” Cuban wrote. “No American should have to suffer—or worse—because they can’t afford basic prescription drugs.”
Related: How Mark Cuban forced America’s largest pharmacies to change their operations
What is a public benefit corporation?
one welfare company—Also known as Company B—Unlike a nonprofit, shareholders own the company. So making money is the focus, but not everything.
While nonprofits (or not-for-profit organizations) serve the public good and make no profit, benefit corporations want to make money while still serving a purpose greater than themselves “as well as the corporation’s desire to help create a better world.” place,” According to Rick Bell Harvard Business Services.
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