Cutting Drug Costs: Alex Oshmyansky's Mission

Opening: Vertical integration can enable startups to fill gaps left by traditional market players, especially in overlooked areas. Quote: "

So we have our manufacturing operation and there we're very focused on drug shortage products... I like to say that our manufacturing makes the drugs that nobody else wants to make.

" Takeaway:

• Alex Oshmyansky uses vertical integration to produce drugs in shortage.
• Controlling manufacturing allows addressing unmet needs in the market.
• Startups can solve problems neglected by incumbents through vertical integration.

Opening: Navigating bureaucracy in regulated industries requires patience, a vital trait for startup founders in such sectors. Quote: "

I'd say a lot more of it is about patience. You know, medicine specifically and healthcare broadly is a lot of entrenched bureaucracy... So a lot of it is just putting up with like we have to file form 15 B and subsection C in order to get approval.

" Takeaway:

• Alex Oshmyansky highlights the importance of patience in dealing with regulations.
• Understanding and complying with bureaucracy is key for startups in regulated fields.
• Patience enables founders to persist through long and complex processes.

Opening: Pivoting from a non-profit to a for-profit model can unlock funding while still pursuing a social mission. Quote: "

I originally started the company actually as a 501(c)(3) nonprofit... Eventually, I applied to Y Combinator... They said... if you reincorporate as a public benefit corporation... we'll invest in you like we would in any other company.

" Takeaway:

• Alex Oshmyansky transitioned to a public benefit corporation to secure funding.
• Changing business structure can open new opportunities for investment.
• Founders can align profit motives with social missions to achieve impact.

Opening: Automation and AI can significantly reduce costs and increase scalability in manufacturing processes. Quote: "

We actually just got a grant from DARPA to take that technology, augment it with AI, miniaturize it and kind of put it in a pod, so we can actually rapidly scale our manufacturing abilities around the world.

" Takeaway:

• Alex Oshmyansky uses AI and robotics to enhance drug manufacturing.
• Embracing advanced technology can improve efficiency and scalability.
• Startups can leverage grants and partnerships to innovate in their field.

Opening: Early life challenges can influence and motivate future entrepreneurial achievements. Quote: "

I grew up speaking only Russian. So when I went to school, I was put in a second language English class which was taught in Spanish... Eventually I had one of these life changing teachers in the fourth grade who was like, um, maybe he's not slow, maybe he's just Russian.

" Takeaway:

• Alex Oshmyansky overcame language barriers and educational misplacement.
• Early challenges can fuel determination and resilience in founders.
• Mentorship and support can change someone's trajectory.

Opening: Balancing a startup's demands with another professional role can provide unique perspectives and benefits. Quote: "

I still do that for a shift every, every week... I find it grounds you because you know, as an emergency radiologist, you're making snap life and death decisions on a rapid pace and I find it breeds discipline in decision making.

" Takeaway:

• Alex Oshmyansky continues to practice medicine while leading his startup.
• Dual roles can enhance decision-making skills and provide grounding.
• Founders can draw valuable lessons from other professional experiences.

Opening: Startups often face resistance from entrenched industry players; overcoming these obstacles is key to disrupting an industry. Quote: "

I've been told over and over again... one of our initial big challenges was just getting the pharmaceutical companies to work with us because the big cartel basically says, don't do business with Cost Plus Drugs or we won't buy your product anymore.

" Takeaway:

• Alex Oshmyansky faced pushback from powerful incumbents in the pharmaceutical industry.
• By finding forward-thinking partners, his company overcame initial resistance.
• Startups must be prepared to navigate and challenge industry pressures from established players.

Opening: Scaling a startup rapidly without investing in marketing seems challenging, but harnessing word-of-mouth can drive exponential growth. Quote: "

$0.00 dollar marketing spend, you know, of course, we have Mark and his platform, but honestly, what drives our growth is just word of mouth... We see that pattern happening again and again and again. So it really is all just driven by word of mouth.

" Takeaway:

• Alex Oshmyansky's company grew exponentially through customer word-of-mouth.
• Exceptional value and service can turn customers into advocates.
• Startups can achieve growth without traditional marketing by focusing on customer satisfaction.

Opening: Sometimes a simple cold email can open doors that dramatically change a startup's path. Quote: "

And yeah, just totally on a whim. A couple of months after that, I saw Mark Cuban had a public gmail and I was like, I can't hurt and I shot him a line and surprise, surprise, Mark is manic... He got back in like five minutes and we had a brief dialogue and he invested a small amount of money to start with.

" Takeaway:

• Alex Oshmyansky reached out directly to Mark Cuban and received a response within minutes.
• Direct outreach to influential people can lead to unexpected opportunities.
• Founders should not hesitate to contact potential investors or partners directly.

Opening: Transparency is crucial for startups aiming to disrupt industries plagued by opaque pricing and hidden fees. Quote: "

So we do our true cost and that's the big, you know, innovation. If you want to call it out about our company, we reveal what we purchase all the drugs for, we add a 15 1 5% margin for ourselves, $5 fee to pay our pharmacist, $5 shipping and handling and then that's the total cost of the drug.

" Takeaway:

• Alex Oshmyansky uses transparent pricing to expose inflated costs in the pharmaceutical industry.
• Revealing true costs builds trust with customers and disrupts established models.
• Founders can leverage transparency as a competitive advantage against incumbents.