Tag Archives: Innovation

Inside Mark Cuban’s Plan to “F— Up the Drug Industry”

“I could make a fortune from this,” Cuban said. “But I won’t. I’ve got enough money. I’d rather f— up the drug industry in every way possible.”

Mark Cuban, Texas Monthly

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When you deliver something people need for less money than if they schlepped to the store, you win. See: Amazon.

That’s what Mark Cuban of Shark Tank fame is doing with his new startup. Cost Plus Drugs, which just launched two weeks ago, sells a wide variety of generic medications for less than anyone else.

Let’s see how much cheaper Cost Plus Drugs is for some common meds:

Albuterol (Proair) inhaler for asthma: $30 on Cost Plus vs. $86 on GoodRx (for pharmacies near me)

Prednisone (Deltasone) for asthma: about the same on Cost Plus vs. GoodRx

Norgestimate / Ethinyl Estradiol (Ortho Tri-Cyclen (28)) for birth control: $7 on Cost Plus vs. $13 on GoodRx

Atorvastatin (Lipitor) for high cholesterol: $4 on Cost Plus vs. $8 on GoodRx

Imatinib (Gleevec) for leukemia: $17 on Cost Plus vs $120 on GoodRx. Wow.

You don’t need me to tell you that medical care in the United States is ridiculous. Massive bills and no transparency make even me, an unusually fortunate person, hesitant to go to the doctor.

Cost Plus Drugs changes that. You know exactly what you’re paying, every time.

Even better, you know where that money is going. The website clearly breaks down the costs for manufacturing, shipping and labor.

Cost Plus also builds in a 15% profit margin. This may seem greedy, but it’s a lot less than competitors, and they have to make some margin to stay in business and expand.

You can’t disrupt the medical system if you go bankrupt!

Cost Plus has another big advantage: strong word of mouth. From Mark Cuban:

“When people save a lot of money on their medications, they often will tell others they know that have the same challenges. That word of mouth impacts our growth the most.”

This is critical for a consumer company. Consumer companies have to acquire tons of customers that may not spend very much each.

So, the cost of customer acquisition can make or break a company. Cost Plus has a great strategy here to grow organically at zero cost.

Cost Plus plans to begin manufacturing its own drugs and building distribution centers across the country. They’re going to control the whole stack, which is the best way to control prices.

As a startup investor, I’m itching to get in. A huge problem, a brilliant entrepeneur, an innovative solution….what’s not to like?

And as a consumer, you can bet I’ll be getting any meds I need from Cost Plus from now on!

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More on tech:

3D Printing a Human Ear

Why I Just Invested in Deft, the Best Way to Shop Online

Male Contraception With an Ultrasound Device?

Photo: “Mark Cuban” by Gage Skidmore is licensed under CC BY-SA 2.0

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Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

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Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been great so far.

More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me.

Every fruit and vegetable is super fresh and packed with flavor.

I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy!

I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

Murphy’s Innovation Agenda

If you’re a fellow New Jerseyan, you know a big election is coming up. We have the constant barrage of commercials and junk mail to prove it.

Doing some research on the races today, I came across an interesting initiative Governor Phil Murphy recently passed. It’s called the NJ Innovation Evergreen Fund.

This fund provides tens of millions of dollars to venture firms to invest in New Jersey-based companies. I’d love to see our state dominate this field, especially since we’re the original home of the transistor!

I invest in tech startups and I can tell you this much: every one of them is hiring. They’re a great source of high quality jobs.

Murphy also passed free community college and a $1 billion school funding increase. This means our population will have better skills.

The transformative inventions and great companies of tomorrow will be created by those with the best skills. And I want New Jersey to be a big part of that.

One change I’d suggest to the fund would be to have it directly invest in companies. Its current structure is complicated and hard to understand.

If the fund simply hired people knowledgeable about tech and venture capital and came in as a co-investor on great New Jersey-based companies, it could help them scale much faster.

And if the fund did well, the state could make a huge profit.

I’m excited to see this novel approach by the Murphy administration. Let’s make the Menlo Park that matters most Menlo Park, NJ!

More on tech:

Why I Just Invested in Kippo, Where Gamers Find Love

What if Everyone on Earth Had Super Fast Internet for $1?

Why I Just Invested in Capbase, The Startup in a Box

Photo: “Governor Murphy, Lieutenant Governor Oliver, Senate President Sweeney and Speaker Coughlin hold a press conference on budget agreement in Trenton on June 30, 2019.Edwin J. Torres/NJ Governor’s Office.” by GovPhilMurphy is licensed under CC BY-NC 2.0

If you found this post interesting, please share it on Twitter/Reddit/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order.