At WIRED’s “The Massive Interview” occasion earlier this month, Value Plus Medicine founder and “Shark Tank” star Mark Cuban was requested why he would not make extra revenue at his low-price drug firm.
“You are fairly clear that you’re not doing this for altruistic causes — you are operating a enterprise,” famous the occasion moderator.
“Properly, I may make more cash,” Cuban mentioned, to laughs within the crowd. “We’re a public profit company. However how a lot f—ing cash do I would like?”
“I am not attempting to go to Mars,” he added, with an apparent dig at his billionaire rival Elon Musk.
Associated: Mark Cuban’s Startup Is Sending Its First Batch of Important Meds to Hospitals Dealing with Shortages
What Is Value Plus Medicine?
Mark Cuban Value Plus Drug Co. is a web based pharmacy co-founded by Cuban and radiologist Alex Oshmyansky to disrupt the pharmaceutical business and decrease drug prices. It launched in January 2022 and affords greater than 2,300 prescription drugs and supply.
How Does Value Plus Medicine Value Its Medicines?
On the corporate web site, Cuban outlines how the worth construction works: Value Plus marks the bottom worth up by 15%, after which provides on the precise price that the pharmacy costs them to organize the medicine.
So a drug like Albendazole, for instance, which treats ringworm and prices round $113 elsewhere, in keeping with Medicine.com, is $35, as per the letter. (Cuban wrote that the corporate paid $26.08.)
“Many individuals are spending loopy quantities of cash every month simply to remain wholesome,” Cuban wrote. “No American ought to must endure or worse – as a result of they cannot afford fundamental prescription drugs.”
Associated: How Mark Cuban Compelled the Greatest U.S. Pharmacy to Upend Its Enterprise
What Is a Public Profit Company?
A profit company—often known as a B Company—has shareholders who personal the corporate, not like a non-profit. So being profitable is the purpose, simply not the entire level.
Whereas non-profits (or not-for-profits) serve a public profit and do not make any earnings, profit firms wish to make cash whereas nonetheless serving a better goal than itself “and a want for the company to assist make the world a greater place,” in keeping with Rick Bell of Harvard Enterprise Providers.
