WASHINGTON — Mark Cuban’s Cost Plus Drugs will begin manufacturing its own medications from its pilot facility in Dallas’ Deep Ellum neighborhood this week, co-founder and CEO Dr. Alex Oshmyansky announced Monday at a White House roundtable about healthcare costs.
Oshmyansky said the company will start with epinephrine, an emergency treatment for allergic reactions and norepinephrine, a blood pressure medication, for hospital patients in intensive care, followed “shortly after” by pediatric oncology medications. No specific dates were given.
“Cost Plus Drugs is proudly bringing pharmaceutical manufacturing back to the U.S. with advanced robotic and AI computer vision technology. That allows us to pivot from making one drug type to another very rapidly, in principle, within four hours. That way, whatever product is in shortage, we can start making that product,” Oshmyansky said. “Our pilot facility near downtown Dallas just finished construction, qualification and validation, and I’m very proud to announce will start making its first commercial batches of product this week.”
Epinephrine has been in unsteady supply since at least 2012, according to Beckers Hospital Review.
“These shortages are driven by the [pharmacy benefit managers] and the wholesalers and our dysfunctional model of drug distribution. Together, we can put an end to it,” Oshmyansky said.
Cost Plus Drugs’ 22,000-square-foot facility in Deep Ellum was originally slated for completion in late 2022.
Now, about two years after its launch, Cost Plus Drugs offers thousands of generic medications and about 20 name-brand medications, according to Beckers, via its website.
Oshmyansky also addressed the company’s business model during the roundtable.
“Just as important as the technology we are introducing bypassing the PBMs and the source programs allows us to directly sell our products in times of need without being blocked by middlemen,” he said. “We are pledging to be transparent in our pricing, publishing our true manufacturing cost of operating and adding a flat markup. That way, we are profitable and sustainable, but never extortionate.”
Cuban attended the roundtable along with others from across state government and the private sector, including Department of Health and Human Services Secretary Xavier Becerra, Federal Trade Commission Chair Lina Khan, Blue Shield of California COO Sandra Clarke, and more.