Mark Cuban Launches Low-Cost Prescription Drug Store
Entrepreneur Mark Cuban's Cost Plus Drug Company is said to cut out middlemen in the drug distribution business, and offers affordable prices through direct negotiations with makers and pharmacies. Also: Bristol Myers Squibb, PrEP, UCB and Zogenix, a new RNA drug startup, and more.
Dallas Morning News:
Mark Cuban’s Online Pharmacy Is Now Open With Low-Cost Prescription Drugs
Mark Cuban’s online pharmacy promising affordable prices on prescription medications is up and running. The Mark Cuban Cost Plus Drug Company cuts out middlemen and negotiates directly with drug manufacturers and pharmacies for rebates and discounts on behalf of employers, health insurers and government health programs. It says it’s offering the lowest direct-to-consumer prices on more than 100 medications, including those commonly prescribed for high cholesterol and blood pressure. (Skores, 1/19)
In other pharmaceutical industry news —
Stat:
Senate Finance Chair Investigates Bristol Myers Overseas Tax Shelter
The head of the U.S. Senate Finance Committee is seeking details from Bristol Myers Squibb about a decade-old deal in which the company used offshore subsidiaries in Ireland allegedly to avoid paying as much as $1.4 billion in U.S. taxes on prescription drug sales. The query is part of an ongoing investigation into tax practices by multi-national pharmaceutical companies and how tax loopholes allow these drug makers to avoid paying U.S. taxes. Last June, Sen. Ron Wyden (D-Ore.), who chairs the committee, accused AbbVie of shifting profits offshore and registering patents in low-tax jurisdictions to consistently avoid paying U.S. corporate income taxes. (Silverman, 1/19)
Axios:
PrEP Patients Shouldn't Be Paying For Certain Doctor Visits
Patients who take pre-exposure prophylaxis (PrEP), a medication that prevents HIV, should not be paying anything out of pocket for the drug — or for any blood work or doctor visits associated with getting PrEP. The federal government specifically reminded health insurers last year to make sure those types of ancillary services for PrEP were free at the point of care, but some patients are getting hit with bills anyway. (Herman, 1/20)
Stat:
UCB To Buy Zogenix, Maker Of Rare Epilepsy Treatment, For $1.9 Billion
Belgian drug maker UCB said Wednesday that it is expanding its portfolio of epilepsy treatments by acquiring Zogenix, a U.S.-based biotech with an approved drug for rare childhood seizures, for as much as $1.9 billion. Under the terms of the deal, Zogenix will be purchased for $26 per share, or 66% higher than Tuesday’s closing price. UCB has also agreed to pay Zogenix shareholders an added payment equal to $2 per share, contingent on the company’s drug, called Fintepla, winning European approval by the end of 2023. (Feuerstein, 1/19)
Stat:
A New RNA-Based Drug Startup Launches With Rutgers Science
A Philadelphia-based biotech startup — by way of Rutgers University in New Jersey — has raised an early round of cash to fund the development of RNA-based drugs that leverage a novel scientific discovery to shut down disease-causing genes. Ceptur Therapeutics launched Wednesday with a $75 million Series A round of financing collected from venture capital firms, health care hedge funds, and Bristol Myers Squibb. (Feuerstein, 1/19)
Bloomberg:
Psychedelics Firm Eleusis To Merge With Silver Spike SPAC
Eleusis, a health-care company focused on using psychedelic drugs as medicines, is going public through a merger with a blank-check firm, according to people with knowledge of the matter. The U.K.-based company will combine with Silver Spike Acquisition Corp. II in a deal that values Eleusis at about $450 million, the people said, asking not to be identified discussing private information. They said the deal will provide Eleusis with gross proceeds of as much as $288 million, the amount raised by the special purpose acquisition company, or SPAC, in its initial public offering in March. (Lipschultz, 1/20)
