Biopure Marketing Analysis Essay

1414 Words Dec 1st, 2014 6 Pages
BIZ2120: Marketing
Case analysis #1: Biopure Corporation

Submitted by MARCO TARANTA ID: 2013843468 SEMESTER: Fall 2013 1. What is the potential market size for each of Oxyglobin and Hemopure? The veterinary market is valued at $638,550,000. Since the expected market share for Biopure is 100% and assuming that the total U.S. veterinary practices (15,000) remains the same, we can state that the potential market size for Oxyglobin is $638.550.000. The main segments in the veterinary market are “Primary Care” and “Emergency Care”. The veterinary practices are approximately 15,000, 95% of which
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The market of human blood transfusions is broken down into different uses: Elective Surgery, Emergency Surgery and Trauma. However, Hemopure seems to be suitable only for trauma cases due to its characteristics and, again, high price. To understand the reason, it is important to notice that, actually, only 10% of the 500,000 trauma victims receives RBCs “in the field” or at the site of accident, and the remaining 95% of these people does not receive transfusions until they arrive at the hospital. This delay was often cited as a major factor to the 20,000 trauma deaths. Therefore, since the expected market share for Biopure is 25% and assuming that the total blood transfusions remain stable, the potential market size for Hemopure is approximately $350,000,000. This size is based on an average price of $700 multiplied by 2,000,000 units (around 4 blood units are needed for each Trauma case). Comparing these potential market size, we can easily observe that Oxyglobin is roughly two times as profitable as Hemopure. Accordingly, Biopure should take these data into account to evaluate whether or not to launch Oxyglobin immediately. On the other hand, this revenue expectation is not so realistic. In fact, it is almost impossible that the company will capture the whole potential markets because of its small production capacity. This latter represents the main obstacle to a potential success of Biopure in both animal and human

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