Mark Cuban Says Cost Plus Drugs Faces Price Hike Threat—'Tariffs Would Force Us To Pass Costs Directly To Consumers'

Imagine finally finding a pharmacy that doesn't drain your bank account—only for prices to suddenly spike. That's the situation Mark Cuban's Cost Plus Drugs might face, thanks to new tariff policies that could force the low-cost drug company to raise prices.

In a recent episode of the "Somebody's Gotta Win with Tara Palmeri" podcast, Cuban didn't hold back. 

He warned that looming tariffs on pharmaceutical imports, particularly from India, could leave his company no choice but to increase medication costs. "If we have a high tariff on drugs coming from India, we won’t have a choice but to pass those costs on to consumers,” Cuban said.

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Cost Plus Drugs: The Disruptor Facing a New Challenge

Launched in 2022, Cost Plus Drugs aimed to shake up the pharmaceutical industry by selling medications at a fraction of traditional retail prices. The company's pricing model is simple: charge the wholesale cost of the drug, add a 15% markup, a $5 labor fee per medication, and $5 for shipping. 

That's how a 30-day supply of generic imatinib, a chemotherapy drug, could cost just $34.70—while traditional pharmacies might charge $9,657.30. But now, the affordability that made Cost Plus Drugs a game-changer could be at risk.

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New Tariffs Are a Big Deal for Prescription Drugs

In April, President Donald Trump announced sweeping new tariffs affecting imports from 185 countries. The baseline tariff? 10%. While some industries saw exemptions, the pharmaceutical sector wasn't as lucky. 

Drugmakers are still scrambling to understand the impact, with concerns that both branded and generic medications from India could be affected. If these tariffs take effect, analysts predict that the cost of certain cancer treatments could skyrocket by up to $10,000 for a 24-week course. 

Even generic medications, which many Americans rely on, could see price hikes—potentially increasing the average pill price from 82 cents to 94 cents. That may not sound like much, but over time, the added costs could be significant, especially for people with chronic conditions.

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Cuban's Bigger Concern: The Impact on Everyday Americans

Cuban's warning goes beyond just his own company. He's concerned about how tariffs function as a hidden tax on consumers—especially lower-income families who can't afford rising costs on essentials like medication, food, and clothing. 

Commerce Secretary Howard Lutnick compares tariffs to a sales tax, not inflation. Critics, including former Labor Secretary Robert Reich, argue tariffs burden lower-income Americans more, functioning like a regressive consumption tax.

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