Billionaire entrepreneur and “Shark Tank” host Mark Cuban has offered his services to Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency (DOGE) in a bid to cut federal healthcare costs.
What Happened: On Wednesday, Cuban responded to a user on X, formerly Twitter, who asked if his company, Cost Plus Drugs, could be integrated into government healthcare programs to help cut costs.
In response to the user, Cuban said "Both know how to reach me," referring to Musk and Ramaswamy.
The user's request was about DOGE, an agency led by Musk and Ramaswamy, which aims to drive cost-saving reforms within the federal bureaucracy.
Musk and Ramaswamy, through DOGE, are focused on achieving large-scale reforms within government agencies
See Also: Mark Cuban Shared $600 A Month Dallas Apartment With 5 Guys And Slept On The Living Room Floor
Why It Matters: With healthcare costs continuing to rise, especially prescription drug prices, there is growing interest in alternatives to the traditional pharmaceutical distribution system.
Cuban's pharma company, launched in 2022, was founded to reduce the cost of prescription drugs by cutting out intermediaries in the pharmaceutical supply chain.
The company's transparent pricing model provides consumers with generic medications at a much lower cost than traditional methods.
If DOGE partners with Cuban's company, it could potentially bring these cost-saving measures to federal healthcare programs, such as Medicare and Medicaid.
Last year in June, a social media user questioned Cuban why his company, Cost Plus Drugs, doesn't offer Ivermectin, citing a stark price disparity between Africa and the U.S.
At the time, Musk chimed in saying, "Good question," to which Cuban responded, explaining that his company couldn't secure a competitive price for Ivermectin but offered Hydroxychloroquine as an alternative.
He also suggested Musk explore Cost Plus Drugs to save his employees and companies significant money.
Six months later, Cuban updated Musk, announcing that Ivermectin was now available on Cost Plus Drugs, reiterating the potential savings for Tesla Inc., SpaceX, and X employees, and inviting Musk's team to reach out for collaboration.
For anyone hoping to invest in a future IPO of Cost Plus Drug Company, Cuban earlier this year stated that it's “Not going to happen. Maximizing profits is not our goal.”
According to Fortune Business Insights, in 2023, the global prescription drug market’s value reached approximately $1,162.61 billion, with North America contributing a significant share, estimated at $576.35 billion.
The iShares U.S. Healthcare Providers ETF (NYSE:IHF) ended Wednesday’s session up by 0.24% at $54.40. Year-to-date, it has gained 1.8%, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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