Mark Cuban, billionaire entrepreneur well known for his role in Shark Tank and as owner of the Dallas Mavericks, has taken on another financial enterprise: the pharmaceutical industry. Cuban started Cost Plus Drugs in January of 2022 with a goal of lowering prescription drug prices.
Although only months old, the business already claims about one million customers and is growing at an estimated 10% every single week. At this rate, Cuban expects the business to start turning a profit by 2023.
What is his key to success?
According to the billionaire himself, these three steps have contributed to the strong start and projected success of Cost Plus Drugs:
- Get rid of excess. Cuban states he can offer lower prices because he cuts out all the middlemen that are often part of the pharma business.
- Provide transparency. Cuban also believes that clients will appreciate the clear calculation used to price their products. His pharma company claims to sell medications at a markup of 15% plus an additional $8 to cover shipping and any other associated fees.
- Look behind the curtain. It is important to note that things are not always as they appear. Although Cuban’s Cost Plus Drugs is only months old, the idea behind it goes back for years. It began with a radiologist in Colorado who started a business focused on providing medications at manufacturer’s prices.
Fast forward a couple of years and pitches for support later and the physician is getting Cuban’s support … the rest is likely history.
What else should entrepreneurs know before diving into the healthcare industry?
Cuban’s success is the result of more than just good business acumen. He saw that the market needed this type of offering and is pushing to deliver. There are many opportunities like this within the healthcare industry but those who are looking to take advantage of these opportunities are wise to get an idea of how federal regulations impact business operations. These vary depending on the target acquisition or idea but are especially complex when it comes to the healthcare industry.
Attorney John Rivas is responsible for this communication
