Mark Cuban Disrupts Healthcare Industry
Earlier in 2022 Mark Cuban launched an official online pharmacy as part of a new initiative to help consumers identify low priced drug options and alternatives. Cuban claims his company will offer pharmaceutical options that provide significant savings, with several prescription drugs reportedly costing half the regular price. The pharmacy’s initial inventory launch has consisted of 100 generic drugs.
Mark Cuban said the company's mission statement will prioritize making pharmaceuticals affordable to all patients. He went on to state that the markup of potentially lifesaving drugs that people depend on is becoming a problem that can no longer be ignored.
Disrupting the Industry
Mark Cuban believes the healthcare industry needs to be disrupted. Mark went on to note that people are dying because they are unable to get the medication they need. He believes drugs are marked up by as much as 1000% which continues to make it harder for regular people to get the care they need.
With Mark Cuban’s new business, he’s implemented a direct-to-consumer model where the company negotiates directly with manufacturers. Additionally, Cuban’s pharmacy focuses on transparency, while highlighting the true price for all drugs sold on the site, compared to what it costs to buy the medicine against other retail prices.
While mostly positive, Cuban’s new venture has received some criticism. Namely regarding its current offerings and its overemphasis on generic drugs over brand-name drugs. Brand name drugs are marketed heavily by pharmaceutical companies that own the patent to the drug. These drugs are provided regulatory exclusivity from the FDA on a 20-year patent. However, when the exclusivity ends, other companies can produce generic versions that contain the same active ingredients as the brand name.
Mark Cuban went on to note the challenge’s he’s faced when dealing with drug manufacturers. “The problem is getting manufacturers to sell to us”. Drug patents give companies exclusive selling rights, the manufacturers can sell these drugs at whatever price they want.
What it Means: The healthcare sector has seen significant shake ups since Covid. And now Mark Cuban is looking to disrupt the industry further by improving costs for acquiring prescription drugs. If Mark’s company is able to expand their offerings, this could be a significant improvement to healthcare.
Disney Brings Back Bob Iger
Bob Iger is returning to Disney as their new CEO less than one year after he retired. The move comes as Disney has put a new focus on renewing investor confidence after the stock has plummeted over the last 12 months.
Iger, currently 71 years old, served as chief executive for 15 years and retired last year. Iger has now agreed to return for a two year stint as CEO, effective immediately. He replaces Bob Chapek who took over for Disney CEO in February 2020, right as the global pandemic led to park closures and visitor restrictions.
The stock has dropped over 40% this year and lags the DOW by another 7%. Disney has disappointed its investors amid mounting losses, and slowing membership of its streaming platform Disney+.
Iger has stated Disney may implement a hiring freeze, as another measure to control costs. While some terminations are expected, he stated he does not plan to execute major layoffs.
Binance Allocates $1B for Crypto Recovery
Crypto exchange Binance has allocated another $1 billion for its industry recovery fund, effectively bringing the total size of the fund to over $2 billion. The recovery fund has been set up to buy distressed crypto assets and to help support the entire industry.
With crypto falling out of favor this year due to economic instability and rising interest rates, several players in the crypto space have gone out of business. This fund will be used to help support the industry during this prolonged bear market.