Biopure Corporation is now facing a hard decision of whether it should release one of its products or not. The product is named Oxyglobin, and it is designed as a blood substitute for small animals. The key issue here is whether to release or not; and if release, what price to charge and how to distribute. After research and analyze carefully about the market, the market of animals shows a really high potential. This leads to the final decision, which is the company should release the product right now to capture the market opportunities and gain experiences, together with get some revenue to cover the development fee of the product. On the basis of the cost to production and the market situation, the price should charge at a relative low range which is about $100 per unit.
The major political environment here is that all blood substitutes have to pass the 3 step FDA approval. In addition, the law protects the patent of the product that the company develops.
The most important social issue is the health consideration, and that is why a FDA approval is required to release the product. In addition, a rise in auto accident causes more traumas recently, and that increase a demand of blood. In 1995, there are 50000 trauma occur, among those, 20000 bled to death. Another social background is the protection for animals.
The technology growth allows people develop blood substitutes, which is designed to replicate the oxygen-carrying function of actual blood, while eliminating the shortcomings associated with the transfusion of donated blood. No blood substitute product available in the market now.
Biopure Corporation was founded in 1984. It specialized in the ultra purification of proteins for human and veterinary use. The company developed two products for the blood substitute, Oxyglobin for animal and Hemopure for human. The company’s greatest strength is that it can... [continues]
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