Is Dallas Mavericks owner Mark Cuban really capable of disrupting the US prescription drug market?

Aside from being one of the most well-known owners in the NBA, Mark Cuban is also an extremely successful businessman. One of his latest ventures could completely change the medical world.

Last year, Cuban launched the "Mark Cuban Cost Plus Drug Company" (MCCPDC). The company itself is essentially an online pharmacy. It initially only had a handful of prescriptions, but now has over 100 different generic medicines.

Since the MCCPDC obtains the medication directly from wholesalers, it allows them to be sold at a lower price. With the launch of this new company, many are beginning to wonder if Mark Cuban is going to completely disrupt the market for prescription drugs.

From the beginning, Cuban has made his company's goals clear. He wants to cut out the middlemen and help the average person get the medications they need at an affordable price.

"Cuban’s firm lets all stakeholders know what it costs to manufacture, distribute, and market its drugs. According to the company website, there will be no hidden costs, no middlemen, and no rebates that are only available to health insurers or pharmacy benefit managers. 'Everybody gets the same low price for every drug we make.'"

Is Mark Cuban's new company going to completely change the market?

While what the Dallas Mavericks owner is doing is amazing, some believe it is not going to have a catastrophic impact.

One of the main reasons why Mark Cuban is not going to completely disrupt the market is because his company only deals generic drugs. Most of the problems that come with the price of medication have to do with brand names. While the MCCPDC will be a more affordable option, it isn't going to solve the major issue at hand.

Another important factor in this company is that they do not accept prescription insurance. Meaning their main target consumers are those who do not have health insurance.

Since the MCCPDC doesn't deal with the insured, there is no sense in those who have health coverage to buy from them. Instead, they will still have to pay out-of-pocket for products that are under their coverage.

The final issue at hand is the volume of prescriptions sold by the MCCPDC. Having 100 options is good, but there are still countless others out there. Meaning, there will still be instances where people will have to shop elsewhere for their prescriptions.

What Mark Cuban is doing with his company is great, it is far too soon to determine whether it will completely disrupt the market or not.