Biopure

Biopure Case Intro This case is on Biopure Corporation, a privately owned biopharmaceutical firm, competing in emerging field of blood substitutes with two new products: Hemopure for the human market and Oxyglobin for the animal market. The United States Food and Drug Administration approved Oxyglobin on February 5, 1998. The approval of Hemopure is not expected until late 1999 or early 2000. The company must decide whether to release Oxyglobin immediately or to wait until Hemopure has established

Biopure  Case  Analysis                     Group  1,  Section  B     The  analysis  deals  with  the  Target  Markets  and  their  different  segments  for  the  two  products  of   Biopure  Corporation,  namely  Oxyglobin  and  Hemopure.     Oxyglobin   -­‐ Used  as  a  substitute  for  blood  transfusion  in  dogs.   -­‐ Target   market   is  30%   of   all   the

Introduction Biopure is privately owned a pharmaceutical company founded in 1984 by Carl Rausch and David Judelson. This company has two new products that are Oxygloblin and Hemopure. They are both blood substitutes, derived from bovine blood. Oxyglobin is a blood substitute meant for the veterinary market while Hemopure is meant for the human market. Although the company’s main focus is Hemopure, which is more profitable, there is still a market for animal blood substitutes. Carl Rausch, the CEO

Biopure Corporation: Case Write-Up Problem Definition In February 1998 Biopure Corporation faced a difficult decision regarding the launch of its newly developed “blood substitute” products. Biopure had developed “Hemopure”, a blood substitute for humans, and an ancillary product “Oxyglobin” for the veterinary market1. Hemopure was still in the process of gaining Federal Drug Administration (FDA) approval , while Oxyglobin had already been approved and was ready to be launched1. FDA approval was

Table 1). Further, with Hemopure 2 years away, it leaves Biopure with 1.5 years of revenue from Oxyglobin that can be used for marketing of Hemopure. With the human blood substitutes, the first mover will have a big advantage. Biopure has a big advantage over its competitors with regards to the cost of basic constitutent( $8 & $26 vis a vis $1.5 for Biopure). Further, the products of both the competitors needs to be frozen whereas Biopure is stable at room temperature. Going forward it is expected

Biopure Corporation Case Study Richard Addington PHD Table of Contents 1. Executive Summary 2. Situation Analysis a. Human Blood Demand b. Human Blood Pricing c. RBC limitations 3. Internal Environment d. Strengths and weaknesses of Oxyglobin e. Strengths and weaknesses of Hemopure 4. External/Competitive Environment f. Baxter g. Northfield h. Biopure 5. Animal Blood Market 6. Marketing Plan i. Positioning j. Pricing

Estimated Market Demand for Oxyglobin 13 Exhibit 3: Estimation of veterinary Market and per year 14 Exhibit 4: Financial Projections – Sensitivity Analysis 15 Executive Summary In 1998, Biopure Corporation is one of the three legitimate contenders in the emerging field of “blood substitutes”. Biopure has invested $200M on the R&D on blood substitutes in the past with its primary goal being the development of a human blood substitute ( Hemopure) but Its entry into animal market (Oxyglobin) had

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)

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

To: Carl Rausch From: Sukhada Kulkarni RE: Release of Oxyglobin Date: October 30, 2013 The intent of this document is to provide suggestion for the timeline to release Oxyglobin. I would recommend releasing Oxyglobin to the market as soon as possible. Situation Analysis: There has been a debate if Oxyglobin release should be delayed by two years as it might jeopardize the sales of Hemopure. The concern here is that the estimated price of Oxyglobin ($150 per unit) might not allow Hemopure