Mark Cuban With Another Game Changer in the Drug Industry

Mark Cuban’s drug company, Cost Plus Drug, has been busy disrupting the pharmaceutical industry since its launch in January 2022.

In its most recent act, the company has announced plans to sell medication directly to hospitals and clinics. Doing so will help address shortages, while also allowing providers to save money on medications. 

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The Inner Workings Of Selling Directly To Hospitals

A critical milestone has been reached for a pharmaceutical manufacturing plant based in Deep Ellum, valued at $11 million and spanning 22,000 square feet. The Texas Board of Pharmacy issued the facility its indispensable manufacturing license, paving the way for the medical products produced there to be sold to healthcare providers.

The site is in its final stages of preparation. From there, it will be in a position to forge agreements with healthcare providers to dispatch vital medicines to hospitals and clinics.

CEO Dr. Alex Oshmyansky foresees a timeline of a few months to iron out supply chain and acquisition details with local hospitals, in addition to completing the remaining testing with the FDA that Cost Plus is yet to undertake. He optimistically predicts the preliminary deliveries to hospitals to kick off around September or October.

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The Focus Of The New Plant

The core mission of the company is to produce medications that are currently in scarcity. This is made easier since the FDA maintains a real-time record of about 180 drugs in its drug shortage database. However, there’s still the question of deciding which medications to manufacture. 

Determining the specific medications to manufacture presents the biggest challenge, Oshmyansky admits. To address this, he's engaging with hospital networks across the country, striving to comprehend their needs and gauge the potential impact his company could deliver in terms of enhancing patient outcomes and curbing costs. 

A significant proportion of these shortages stem from the fact that these are low-profit products, thereby rendering them unappealing for manufacturers. 

Nonetheless, Oshmyansky affirms that Cost Plus will zero in on such product categories. “We make the products no one else wants to make,” he says. “Starting out, we will talk with hospitals that will tell us what they need and partner with us.”

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