Biopure Case Study Essay

925 Words Feb 13th, 2013 4 Pages
The key issue is to determine when Oxyglobin should be introduced to the market without jeopardizing Hemopure’s potential and how it should be marketed.

In addressing the issue, the following were considered: a sensitivity analysis for potential consumption of different price series, associated revenues and costs, and gross profit from different distribution methods.

It is recommended that Biopure: 1. Introduce Oxyglobin immediately at a price of $100 to veterinarians. 2. Have an independent sales force distribute the product to maximize profits. 3. Advertise Oxyglobin in both veterinarian journals and trade shows. 4. Establish a successful brand to launch Hemopure in the future. 5. Oxyglobin should be
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Only because Oxyglobin and Hemopure are almost identical in physical properties and appearance, it does not mean that they cannot be priced differently. There are currently different medical products and services for humans and animals that are differently priced. Exhibit 8 from the case shows that very few veterinarian procedures are priced over $100. In contrast, a human blood transfusion is priced above $1500 without insurance according to the Houston Memorial Hospital.

Hemopure’s market consists of people who lose blood in large quantities like in accidents, gunshots. And and aging population (double of what it is today by 2030) in need of Red Blood Cells to treat certain conditions like chronic anemia and acute blood loss. Launching Oxyglobin at a low price would not necessarily create an unrealistic price expectation for Hemopure because human health care is far more expensive than animal care. Additionally, the emerging and growing necessity for blood substitutes will yield great demand in the following years which will translate to higher selling prices for Biopure, all things equal.

Despite the fact that Baxter International launched the first human blood substitute, HemAssist (presumably priced between $600 and $800), Baxter International’s and Northfield Laboratories’ blood substitutes rely on outdated human blood as a source of hemoglobin which is more

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