Mark Cuban talks about the 'messed up' pharmaceutical industry in Penn's Fireside Chat

Businessman Mark Cuban spoke Nov. 25 at a fireside chat hosted by the Penn Leonard Davis Institute for Health Economics.

The co-founder of Cost Plus Drugs and “Shark Tank” investor discusses his mission to reshape health care by increasing drug affordability and improving transparency. Ta. Hundreds of attendees gathered at Clare Fagin Hall for the event, with some arriving an hour early to secure a spot as the venue quickly reached maximum capacity.

The fireside chat, titled “The Failure of Drug Pricing in America,” was co-hosted by PennLDI and Wistar Institute Executive Vice President David Weiner. Perelman School of Medicine and Wharton Professor Ezekiel Emanuel moderated the conversation. Emanuel's health care management course, “American Health Care and the Future of America's Health Care System,” served as a “co-host” for the fireside chat, during which students in the course asked pre-approved questions to the Cuban side.

Cuban spoke about his journey into the pharmaceutical side of the health care industry, saying it was “a long way from efficiency, and a long way from transparency.” He was motivated to found Cost Plus Drugs, a public benefit corporation dedicated to making medicines more affordable through transparent pricing models, to address systemic issues in drug affordability and access. Listed some failures. Unlike traditional businesses, they sell directly to consumers and employers.

“We quote our rates accurately. We give them a 15% markup. We (publish) our price list,” Cuban said. “The industry is (crazy) in turmoil. That's what appealed to me. It created a huge opportunity.”

Mr. Cuban said he was motivated by the company's social impact because he was “rich as fuck” and “didn't need any more money.” University graduate student Merjan Ozysik, Emanuel's research assistant who helped organize the event, said Cubans are in a unique position to enter the health care industry thanks to their wealth, and that “it's hard to make that much profit.” I have no interest in it.”

Cuban, who is advising Penn's blockchain accelerator, said what it takes to disrupt an industry when you're just starting out is a passion for learning. He told the audience that focusing on learning can give you a “competitive advantage” no matter where you start.

“People say, 'Follow your passion,' and I think that's bullshit. You have to follow your effort,” Cuban said. “Where do you want to spend your time? Because when you're willing to spend time, you realize that things get better. You have knowledge, and you always need small pieces of information to gain an edge. ”

Wharton MBA candidate Yusuf Malik said he was impressed by Cuban's deep knowledge of “the different avenues of the pharmaceutical industry.” Malick also said he found Cuban's honesty an inspiration.

“I'm used to seeing him in the media, so it was a little surreal to see him in person,” Malick said. “He's a man of integrity no matter the situation. That's the mark of a truly special person.”