"The impact has been insane" - Shark Tank mentor Mark Cuban reflects on his investment's success in the pharmaceutical industry

In a conversation with the WIRED podcast in December 2024, entrepreneur and Shark Tank mentor Mark Cuban discussed his efforts to change the pharmaceutical industry. Cuban, known for his successful businesses, spoke about why he started Cost Plus Drugs.

Cuban explained that the healthcare system had issues, especially with the transparency and affordability of medications. Cost Plus Drugs aims to fix these problems by clearly showing drug prices and marking them up only 15%. Cuban highlighted the success of his approach,

"Just by showing our price, our cost, and only marking up 15%, we were able to take down the price of drugs like imatinib, chemotherapy drugs, MS drugs, from like 2,000 plus dollars a month to $21 a month, $35 a month. So, the impact has been insane," Cuban shared.

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Why did Shark Tank mentor Mark Cuban enter pharmaceuticals?

Shark Tank mentor Mark Cuban explained his entry into the pharmaceutical industry during the conversation with WIRED,

"I literally got a cold email from a Dr. Alex Oshmayansky, who wanted to start up a compounding pharmacy, which actually makes drugs that are on short supply."

This inspired Cuban to create Cost Plus Drugs, intending to provide clear drug prices and affordable medication options. Cuban pointed out the lack of upfront price information.

"If you get a prescription from your doctor, what's the first thing they ask you? Not, 'Can you afford it?' It's, 'What pharmacy do you use?'" he stated.

When asked about common drugs people might recognize that his company manufactured or sold, he mentioned imatinib as probably the most notable example. Shark Tank mentor Mark Cuban added that he wasn't a "pharmacist" and couldn't recall all the complicated names, but stated drugs for conditions like multiple sclerosis (MS).

To explain more clearly, he described an instance involving someone named Landon, who needed medication costing approximately $10,000 every three months. Upon hearing this, Mark Cuban assured Landon he would look into it.

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Transparency and impact of Cost Plus Drugs

Shark Tank mentor Cuban shared an example involving droxidopa, a medication for a friend who had been quoted $10,000 every three months after losing insurance. Cuban stated:

"Turns out, we carried it, and when we carried it, back then, it was $64 a month. From $10,000 to $64 times three, and now it's in the $20s."

By openly publishing the entire pricing list, researchers could analyze and demonstrate potential savings.

"Researchers from Vanderbilt, Harvard, all these different places say, if Medicare bought these nine drugs from Cost Plus Drugs, just nine drugs would save $3.6 billion a year," Cuban shared.

This transparency allowed for broader discussions on drug pricing and highlighted ways for organizations and individuals to cut their pharmaceutical costs.

Mark Cuban explained that they had previously purchased 16 drugs shipped from China but were shifting to a different manufacturer to avoid being impacted by Chinese tariffs. He also mentioned that they sourced drugs from India, noting they'd have to monitor developments there. He clarified that if tariffs were introduced on imports from India, their costs would be affected accordingly.

Shark Tank star Mark Cuban also spoke about AI, recalling a conversation where he had discussed trust in technology. He had asked whether someone would feel safer relying on a self-driving car or a seeing-eye dog if they couldn't see. While Cuban had chosen to trust the dog, the other person preferred a Waymo.

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Shark Tank episodes are available to stream on ABC.