Name: Can Mark Cuban’s Low-Cost Drug Company Disrupt the Pharma Industry? | WSJ
Uploaded: 2022-05-16T14:12:55.000Z
Duration: 7 min 9 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

- [Narrator] In January, billionaire investor Mark Cuban

- The goal is to (beep) up the pharmacy industry,

- [Narrator] The company sells over 200 generic drugs

who pay among the highest prices in the world.

So more private market players are stepping in.

goes for about $2,000 at many pharmacies.

Cuban's company sells it for as lot as $17.10.

these vertically integrated companies are providing.

They may say so but that's not what's happening.

- [Narrator] Still, the Mark Cuban CostPlus Drug Company,

or CostPlus, faces challenges in a consolidated drug market.

It also remains limited in the medications it can offer.

like his actually disrupt the healthcare industry?

between the list price a drug maker charges

and the price patients pay at the pharmacy counter.

The drug supply chain can be complicated,

Cuban's business model works in large part

by circumventing this drug pricing model.

doesn't really give the government a role

in negotiating prices on behalf of its citizens.

So you have all of these individual players trying

to negotiate prices on behalf of other employers,

to lower the price of prescription medication

known as pharmacy benefit managers or PBMs.

Nearly 80% of US prescriptions are managed

on behalf of health insurers and large employers.

to negotiate rebates and discounts from drug manufacturers

but they don't always pass along the savings to consumers.

- And so what they'll do is they'll go to say a Pfizer

and say you charge X amount of dollars for this drug

as a discount and which we will then pass along

One of the criticisms that they've received

is that PBMs also tend to keep a percentage

of the rebates that they negotiate from manufacturers.

the larger the rebates that they'll receive

and hence, the more money that they'll get to keep

- [Narrator] The Pharmaceutical Care Management Association

"PBMs pass the vast amount of rebates negotiated

from drug manufacturers along to employers,

health plans and others sponsoring health insurance."

meaning no health insurance plans are allowed.

like the leukemia pill we showed you earlier,

at Cuban's pharmacy than going through an insurance plan.

So their logic is look, if you want access

that have tried to do the same thing we're doing have faced.

- [Narrator] So how exactly are CostPlus drugs priced?

The company sets it rates by negotiating directly

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Can Mark Cuban’s Low-Cost Drug Company Disrupt the Pharma Industry? | WSJ

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