This Week in Startups Solving prescription drug pricing in the US with Cost Plus Drugs & Capital RX CEOs | E1518
Jul 26, 2022
In this engaging conversation, Alex Oshmyansky, the CEO of Mark Cuban Cost Plus Drug Company and a practicing radiologist, discusses his mission to create a parallel supply chain to lower drug costs. He delves into the 'financial engineering' of the industry and the importance of transparency. Later, AJ Loiacono, CEO of CapitalRx, highlights the opaque nature of pharmacy benefit managers (PBMs) and their effect on pricing. Both guests passionately advocate for innovative solutions to revolutionize prescription drug accessibility and transparency.
AI Snips
Chapters
Transcript
Episode notes
Parallel Supply Chain
- Cost Plus Drugs aims to create a "parallel supply chain" to combat the current system's intermediaries.
- They will be a manufacturer, wholesaler, pharmacy, and benefits provider, offering transparency in pricing.
Transparency in Drug Pricing
- PBMs profit from opaque drug pricing, acting as information brokers like in dark pool trading.
- Transparency in drug costs is crucial to disrupting the current system.
Inspiration for Cost Plus Drugs
- Alex Oshmyansky, CEO of Mark Cuban Cost Plus Drug Company, was inspired to start the company after witnessing patients die due to the high cost of generic drugs.
- Martin Shkreli's price gouging was the final straw.