Mark Cuban explains challenges pharmacy distributors face with generics
@mcuban: Mark Cuban on pharmacy issues
Mark Cuban, entrepreneur and owner of the Dallas Mavericks, has shed light on an issue faced by pharmacy distributors regarding generic medications.
In a tweet, Cuban elaborated on the practice known as 'GCR', in which distributors require pharmacies to purchase over 70% of their generic medications from them. This strategy results from the constraints placed by Pharmacy Benefit Managers (PBMs), which prevent distributors from buying at the same net prices that PBMs obtain post fees and rebates. Cuban's insight highlights the complex relationships within the pharmaceutical supply chain and the impact of PBM practices on pricing and procurement strategies.
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Cuban's latest remarks further underscore longstanding tensions within the pharmaceutical industry, particularly concerning PBM influence over pricing structures—an issue he has emphasized in prior discussions urging states and employers to audit PBM contracts. His critique of established healthcare intermediaries also parallels broader concerns voiced around how insurance firms have impacted Medicare Advantage costs.
