At WIRED's “The Big Interview” event earlier this month, Cost Plus Drugs founder and “Shark Tank” star Mark Cuban was asked why he wasn't making more profits from his low-cost pharmaceutical company.
“You make it pretty clear that you're not doing this for altruistic reasons – you're running a business,” the event's moderator noted.
“Well, I could make more money,” Cuban said to laughter from the crowd. “We are a non-profit company. But how much damn money do I need?”
“I’m not trying to go to Mars,” he added, in an apparent dig at his billionaire rival Elon Musk.
Related: Mark Cuban's startup sends its first shipment of vital medicines to hospitals facing shortages
What are “Cost Plus Drugs”?
Mark Cuban Cost Plus Drug Co. is an online pharmacy co-founded by Cuban and radiologist Alex Oshmyansky to revolutionize the pharmaceutical industry and reduce drug costs. Launched in January 2022, it offers more than 2,300 prescription medications and their delivery.
How does Cost Plus Drugs price its medications?
On the company's website, Cuban describes how the pricing structure works: Cost Plus adds 15% to the base price and then adds the actual cost the pharmacy charges you to prepare the medication.
For example, a drug like albendazole, which treats ringworm and costs about $113 elsewhere according to Drugs.com, costs $35, according to the letter. (Cuban wrote that the company paid $26.08.)
“Many people spend incredible amounts of money every month just to stay healthy,” Cuban wrote. “No American should have to suffer or suffer worse because they cannot afford basic prescription medications.”
Related: How Mark Cuban forced the largest U.S. pharmacy to turn its business around
What is a non-profit corporation?
A benefit corporation – also known as a B corporation – unlike a nonprofit organization, has shareholders who own the company. So it's about making money, but not about that.
While non-profit organizations (or not-for-profit organizations) serve a public benefit and do not make a profit, charities want to make money while serving a purpose greater than themselves “and have a desire for the company to help “To make the world a better place,” said Rick Bell of Harvard Business Services.