The news: A new Brigham and Women’s Hospital in Boston study revealed Medicare could have saved billions in 2020 by purchasing generic drugs from the Mark Cuban Cost Plus Drug Company (MCCPDC).
Zooming out: Medicare drug prices are increasing more rapidly than inflation.
The problem: US patients can’t keep up.
A 2021 GoodRx survey shows US patients are doing the following as a result of drug price hikes:
Where do all those MCCPDC drug savings come from? It negotiates prices directly with manufacturers to get lower drug prices. That means it will be cheaper than what consumers spend at their local pharmacies.
MCCPDC’s drug prices are already low, but it goes a step further to provide transparent pricing and show how it landed on a certain price tag.
The cost of patient acquisition: MCCPDC relies on word of mouth alone. That puts it at an even higher competitive advantage, as its peers swim in consumer acquisition costs like high marketing spending.
D2C healthcare companies’ marketing costs are becoming more and more expensive, making it difficult to curb their customer acquisition costs.