--- type: entity entity_type: company name: Mark Cuban Cost Plus Drug Company founded: 2022 headquarters: Dallas, TX founders: Mark Cuban, Alex Oshmyansky status: active website: costplusdrugs.com domain: health tags: [pharmacy, drug-pricing, PBM-alternative, generics, biosimilars] --- # Mark Cuban Cost Plus Drug Company ## Overview Cost Plus Drug Company is a direct-to-consumer pharmacy founded in 2022 by Mark Cuban and Alex Oshmyansky. The company operates on a transparent pricing model: acquisition cost + 15% markup + $3 pharmacy fee + $5 shipping, offering over 2,300 medications (primarily generics). ## Business Model **Pricing Structure:** - Acquisition cost + 15% fixed fee - No insurance intermediation for direct-to-consumer sales - Transparent pricing published online **Product Portfolio:** - 2,300+ medications (mostly generics) - Expanding into biosimilar portfolio - Pursuing US manufacturing expansion with generic drug fee waivers **Distribution Strategy:** - Partnership with Humana CenterWell Pharmacy for employer prescription solutions (2025) - Combines Cost Plus pass-through pricing with CenterWell distribution infrastructure - Dependent on incumbent partnerships rather than independent distribution ## Market Position **Competitive Context:** - Big Three PBMs (CVS Caremark, OptumRx, Express Scripts) control ~80% of US prescription claims - Cost Plus operates as challenger model coexisting with incumbents - Growing market share but partnering with incumbents (Humana) rather than displacing PBMs **Political Role:** - Mark Cuban testified at congressional hearings on PBM practices - Supported FTC investigations into PBM business practices - Functions as political/narrative pressure vehicle even with small market share ## Limitations - Primarily generic drugs — does not address branded/biologic drugs where margins are highest - No owned distribution infrastructure — dependent on partnerships - No clinical services layer — drug pricing tool, not care delivery model - Has not achieved meaningful market share in specialty drugs where margin extraction is concentrated ## Timeline - **2022** — Company founded by Mark Cuban and Alex Oshmyansky - **2025-11** — Partnership announced with Humana CenterWell Pharmacy for employer prescription solutions - **2026** — Expanding biosimilar portfolio and pursuing US manufacturing expansion