During a White House roundtable discussion on reducing healthcare costs, Dr. Alex Oshmyansky, cofounder and CEO of the Mark Cuban Cost Plus Drug Company, declared on Monday that the company will commence manufacturing its own medications in Texas this week.
“Cost Plus Drugs is dedicated to revitalizing pharmaceutical manufacturing in the U.S. through advanced robotic and AI computer vision technology,” Oshmyansky stated. “This capability enables us to swiftly transition between different types of drugs—in theory, within four hours.
“This approach ensures that we can promptly address shortages by producing the needed products.”
The company, founded by Oshmyansky in January 2022 alongside billionaire entrepreneur Mark Cuban, will initially produce commercial batches of epinephrine, used in EpiPens, and norepinephrine, utilized to raise and sustain blood pressure, for intensive care hospital patients. While Oshmyansky did not specify exact dates, he indicated that production of these two medications would commence “this week,” with pediatric oncology drugs to follow shortly after.
Oshmyansky emphasized the criticality of ensuring access to essential medications, stating, “No parent should face the news that their child’s chemotherapy is unavailable. No individual should be deprived of life-saving ICU medications or have to delay surgery due to the absence of commonly available, inexpensive medications in the United States in the year 2024.”
Cost Plus Drugs’ 22,000-square-foot pharmaceutical facility in Dallas’ Deep Ellum neighborhood originally had been slated for completion in late 2022. Just as important as the drugs themselves is the way in which they’re produced, Oshmyansky said: without middlemen.
White House roundtable talks pharmaceutical middlemen
During the White House roundtable on Monday afternoon, the discussion was heavily focused on intermediary pharmacy benefit managers (PBMs). Mark Cuban, along with other public and private leaders such as Democratic Kentucky Gov. Andy Beshear and Sandra Clarke, COO of Blue Shield of California, were also present.
Cuban criticized PBMs for their detrimental impact on independent pharmacies and their prioritization of stock prices over patient health, among other exploitative tactics.
Cuban emphasized that Cost Plus Drugs operates on the principle of straightforward drug procurement and direct sales to consumers at transparent, affordable prices. The online retailer currently offers 2,500 medications and plans to expand its offerings as much as legally permissible.
Explaining further, Alex Oshmyansky highlighted that PBMs collaborate with pharmaceutical wholesalers to establish source programs, which control 90% of drug purchasing in the U.S. Oshmyansky noted that Cost Plus Drugs will maintain transparency about its manufacturing costs, ensuring profitability without resorting to extortionate practices.
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