What is Cost Plus Drugs stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Cost Plus Drugs because they’re a private company. However, One Medical is a pharmaceutical company that traders can invest in. They are owned by Amazon (NASDAQ: AMZN).
Unsurprisingly, the pharmaceutical industry is very profitable in the US. We heard numerous news releases of pharmaceutical companies raising the prices of much-needed drugs to make a profit.
One of the most famous cases was Martin Shkreli. Now, to the other side of the spectrum. Last year, billionaire Mark Cuban announced he wanted to provide prescription drugs and medicine to Americans at a more affordable price.
He backed up his talk and put his money where his mouth was. He created the Cost Plus Drug Company (MCCPDC). Its mission is to provide Americans with generic prescription medicine at the most transparent prices possible. Below, we’ll explain how.
According to a 2021 poll, 18M Americans couldn’t afford their prescription medications, and another 1 in 10 had to skip their doses due to rising prices. The problem with public companies is that they have to satisfy their shareholders and constantly beat their previous earnings.
For pharmaceutical companies, this translates to increasing prices for necessary prescriptions for millions of people. What about Cost Plus Drugs stock? Since it isn’t a public company, satisfying shareholders and markets isn’t an issue, and the company’s pricing model proves it.
Earlier, I wrote that Cuban is very transparent with his prices. Here is the breakdown: Wholesale price + 15% markup + \$3 pharmacy handling fee + \$5 shipping.
MCCPDC Business Model
Mark Cuban registered MCCPDC as a pharmaceutical wholesaler. The company can effectively negotiate the wholesale price of generic medicine and bypass all the intermediaries and the price markup.
Furthermore, MCCPDC works with digital healthcare company Truepill to deliver prescription medicine to consumers around the US. Consumers must pay out of pocket since their insurance won’t cover the costs.
MCCPDC currently offers dozens of medications directly on its website. Consumers can even compare the retail prices to MCCPDC’s prices.
Almost every medication is cheaper on the platform—some by thousands of dollars. You can find out for yourselves here.
According to another study that compared the price Medicare and MCCPDC paid for certain drugs, 77 out of 89 were cheaper under the latter. It doesn’t seem right that a private company buys essential medicine cheaper than a government program such as Medicare.
Mark Cuban’s company may not be able to get brand names yet, but the generic version is a very good start. Will there ever be a Cost Plus Drugs stock?
Cuban’s company isn’t the only one in the business. In the last few years, a few other companies went public to offer the same services to Americans. Let’s take a look at them.
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Cost Plus Drugs Stock Competitors
That day, stock prices of major pharmaceutical and distribution companies got rocked. Billions got wiped out from that industry due to fears Amazon would impact their profits.
In November 2020, Amazon Pharmacy was launched. However, that wasn’t the end of it. A few weeks ago, Amazon made another acquisition. This time, it was One Medical (NASDAQ: ONEM), a chain of primary health care clinics offering services online and through their application.
Thanks to Amazon Prime, consumers can order their prescription medicine online and have it delivered to their door within two days. However, the same issues will remain.
They will be mostly generic drugs instead of brand names, and insurance won’t cover the costs. Amazon claims that generic drugs will be 80% cheaper and that brand names will be 40% cheaper. That remains to be seen.
Capsule is an online pharmacy that delivers prescription medicine to its clients. It recently raised $300M, which puts its valuation at over $1B. Capsule’s clients can order medicine and consult mental health specialists via their application.
It is designed to save time for consumers. The company began in New York in 2015 and quickly moved to 12 other markets, including Austin, Chicago, LA, and Minneapolis. I couldn’t find any details about its pricing, but there are partnerships with Medicare Part D and insurance companies and copays.
Capsule faces much competition, especially with the rise of Amazon and MCCPDC. They are a good acquisition target.
Alto works similarly to Capsule, but I found more information on their website. In 2020, the company also underwent a round of funding, raising $250M.
Alto’s team is constantly looking for the cheapest plans for their clients. Their copay stays the same, and Alto also accepts major insurance plans. Furthermore, they offer same-day free delivery.
Alto is another prime acquisition target for major companies in this sector. Alto and Capsule aren’t public, but accredited investors can invest in them. You can find out if you’re eligible here.
Pharmaceutical stocks may seem attractive but aren’t always a clear home run. Many issues, such as patent expiration, clinical trial failure, and litigation risks, can arise.
More efficient drugs can enter the market and disrupt the big players, just like Cost Plus Drugs and Amazon do. The entire industry needs a shakedown, which might cost billions of dollars.
I wouldn’t be surprised to see more companies, such as Cost Plus Drugs, pop up and potentially get acquired by the big boys. As long as the costs for consumers remain reasonable, everyone is a winner.
Final Thoughts: Cost Plus Drugs Stock
To conclude, Cost Plus Drugs stock isn’t available to trade. Billionaire and Dallas Mavericks owner Mark Cuban owns it. He offers a much-needed service for Americans by offering them generic prescription drugs at a reasonable price.
However, they must pay out of pocket as insurance doesn’t cover the costs. As this industry develops, more companies will follow his tracks. They may not be public, but accredited investors may find a way to invest in them.
The only public company mentioned in this article is Amazon, thanks to its virtual health store and its acquisition of PillPack and OneMedical.
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Frequently Asked Questions
There is no Cost Plus Drugs stock to trade. It isn't a publicly traded company but is privately owned by Mark Cuban.
GoodRx offers their customers many coupons to lower drug prices significantly. Even with that, Cost Plus Drugs is competitive in drug pricing.
Cost Plus Drugs doesn't sell name-brand drugs. They do, however, make their brand of drug. They don't market their company, so they save money that way, too.