How this startup is lowering prescription drug costs

Ninety percent savings on generic drug costs? It sounds too good to be true — but that's what brothers Geoffrey and Matthew Chaiken are promising with their new technology company Blink Health.

The startup, launched in February, includes a free app and website that offers savings on prescription drug costs, reported CNBC.

Users type in the name of their medication, see a discounted price, pay in advance online and pick up the prescription at any pharmacy in the country.

According to the website, 30 tablets of the best-selling cholesterol-lowering drug Lipitor would cost $163.24 without insurance. Blink Health sells the drug for $9.94 — cheaper than most insurance co-pays.

Over half of the medications available through the startup cost less than $10, says COO Matthew Chaiken.

"It's primarily about power in numbers," said Geoffrey Chaiken, CEO of Blink Health. "So we're able to group our Americans together with a whole host of others, about 25 million and that gives us the negotiating power to get much lower prices for all of our users."

Much of the Blink Health's negotiating power stems from its partnership with pharmacy benefit manager MedImpact and access to its 25 million members and pharmacy network.

While the brothers have not received backlash from traditional drug providers since launching the startup, they did say most major insurance companies have reached out to them.

"They know the future in healthcare is consumerism, and we're trying to figure out ways of collaborating," Geoffrey said.

More articles on the drug market:

Mylan expands over-the-counter business with Meda acquisition
Bristol-Myers stock dips 18% following failed trial
Merck's blockbuster drug Keytruda approved to treat head and neck cancer

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