How Does Cost Plus Drugs Make Generics Cheaper Than India?

Mark Cuban says Cost Plus Drugs can make tableted generic drugs in Dallas, Texas for less than it pays partner manufacturers in India, using manufacturing pods that sell for $20 million each. The mission is to disrupt healthcare so it is affordable again. He supports universal healthcare, but correct data has to come first so people can decide from real numbers. Trust is the primary product. Cost Plus Drugs spends nothing on marketing or advertising, keeps a set markup of 15%, and stays fully transparent so people tell others how much money they saved, even if a rival offers cost plus 1%.

Within two years he expects sales of a couple hundred pods a year, and within five years a couple thousand a year. A thousand pods at $20 million each is the volume he uses for how large the business could get, and the pods can be daisy-chained. Cost Plus Drugs does not chase the cheapest manufacturer. It pays a little more for the best one and still expects to make the drugs for less. Each generic needs an ANDA, another new drug application, at $365,000 plus other fees. One thousand applications come to $365 million, plus the cost of the pods. On costplusdrugs.com, an American flag will mark a drug manufactured in the U.S. Work with the FDA puts the flag about two years out. Selling $20 billion worth of pods a year is the scale he names, and daisy-chaining the pods completely changes healthcare.