Mark Cuban Weighs in on Trump’s Enterprise to Make Medicine Extra Reasonably priced

Mark Cuban is giving President Donald Trump’s new direct-to-consumer on-line drug retailer enterprise a “B” — for now.

Trump introduced on Tuesday that he plans to launch a government-run web site, referred to as TrumpRx.gov, for shoppers to purchase prescribed drugs immediately from producers on the location with out the involvement of Pharmacy Profit Managers as intermediaries. In response to NPR, the administration expects to launch the web site in 2026.

Cuban, the billionaire enterprise capitalist, commented on X that this could be good for sufferers and will truly enhance enterprise for his Value Plus Medicine, which runs on the same mannequin. He mentioned that the administration has “some nice individuals engaged on this mission,” however he would “give this system, and what we all know, as of in the present day, a grade of B.”

“Why not an A? The inventory costs of PBMs did not get crushed,” wrote Cuban. “Which suggests, to this point, nobody expects a lot change for them. Which they count on they’ll make up misplaced revenues from sufferers, firms, and different payers elsewhere.”

“It is nonetheless rigged to learn the massive PBMs,” Cuban added in response to a submit asking if Trump’s operation may run truthfully with out favor. “That mentioned, it has an opportunity in the event that they power PBMs to alter. If that occurs, Trump will get all of the credit score and it is going to be deserved.”

In an e-mail to Enterprise Insider, Cuban mentioned of TrumpRx.gov, “it is only a itemizing website.. And so long as they embody Value Plus Medicine, given we usually have the bottom costs for greater than 90% of prescriptions, I am all for it!”

As a part of the announcement, the White Home mentioned that Pfizer plans to supply a few of its medication on TrumpRx.gov and all of its medication for Medicaid at a lowered charge. The deal grants the pharmaceutical producer a three-year exemption from tariffs.

” The massive majority of the Firm’s main care remedies and a few choose specialty manufacturers might be supplied at financial savings that may vary as excessive as 85% and on common 50%,” the corporate mentioned in a press launch.

Cuban’s on-line pharmacy, which he based alongside radiologist Alex Oshmyansky in 2022, Value Plus Medicine, additionally eliminates intermediaries and presents medication at a 15% markup above the producer’s wholesale value.

In response to Information from the Commonwealth Fund, round 80% of entry to medication within the US is managed by three giant PBMs, particularly the UnitedHealth Group-owned Optum Rx, CVS Well being’s Caremark, and Cigna’s Specific Scripts. Inventory costs for all three guardian firms didn’t considerably change all through Tuesday.

PBMs obtain rebates from drug producers in change for giving medication favorable placement on formularies. Rebates are sometimes tied to the checklist value, subsequently, higher-priced medication can generate bigger rebates. That creates an incentive for PBMs to favor sure brand-name medication over cheaper generics or biosimilars if the producer presents a much bigger rebate. Insurers say these rebates assist decrease general prices. Critics argue the system inflates costs and contributes to larger insurance coverage premiums for sufferers.

The White Home didn’t instantly reply to a request for feedback.