AP Photo/Rogelio V. Solis
- Kroger is working with Mark Cuban's Cost Plus Drugs to offer some prescriptions at its pharmacies.
- Cost Plus customers can now pick up their drugs at one of 2,000 Kroger pharmacies.
- It's Kroger's latest push into healthcare and related offerings.
Mark Cuban's effort to curb some prescription drug prices has a new partner: The largest supermarket chain in the US.
Patients who get their drugs through Cost Plus Drugs can now pick them up at one of 2,000 stores operated by Kroger, Cost Plus tweeted on Wednesday. Kroger operates supermarkets under multiple names, including Ralph's and City Market.
—Mark Cuban Cost Plus Drug Company (@costplusdrugs) July 19, 2023
Cuban is a billionaire known for owning the Dallas Mavericks NBA team as well as his appearances on "Shark Tank." He started Cost Plus in 2022.
The venture started out offering cheaper versions of generic drugs, a strategy similar to what Costco does with its own pharmacy. Since then, it has started offering "biosimilar" versions of other prescription drugs. One recent addition to its offerings, for instance, is a biosimilar version of Humira, which treats arthritis.
Cost Plus Drugs buys drugs directly from the manufacturer and ships them to patients at a 15% markup plus pharmacy fees. By acting as a go-between for manufacturers and patients, the company avoids middlemen, called pharmacy benefit managers, who often end up tacking additional costs onto drugs for patients. The company already has over 1 million accounts.
Kroger is the largest pure-play grocery chain in the US. It has been beefing up its health-related offerings over the last few years. In January, for example, the grocer said that some of its pharmacies would host clinical trials. It's also trying to tie in its grocery offerings with health, such as offering dietitians who can advise patients, including those with chronic diseases, on what to eat.
And it's not the only one. Other giants, like Walmart and Amazon, have made similar moves to venture into the healthcare space. Amazon offers a virtual clinic and online pharmacy and just last year acquired a giant telehealth company called One Medical. Walmart has said it plans to open 4,000 clinics by 2029.
Kroger has also proposed a $24.6 billion acquisition of rival grocery chain Albertsons. If the deal earns federal approval, it could add up to 1,700 pharmacies from Albertsons' network to Kroger's, according to Insider Intelligence.