Biopure Case Study
Table of Contents
Executive Summary 3
Analysis of Internal and External Environment 3
Alternatives - Evaluation 5
Recommendation: 6
Decision Criterion Grid 7
Appendix 9
Exhibit 1: Exhaustive SWOT Analysis 9
Exhibit 2 : 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 been some somewhat opportunistic. Oxyglobin got FDA approval recently, whereas the Hemopure will enter phase 3 clinical trials and is expected to get FDA approval by 1999. Now Biopure has to decide whether it has to launch the Oxyglobin or should it wait till the Hemopure is approved. The following analysis examines the current market demand for both the blood substitutes, the pricing strategy for Oxyglobin and how it will impact the future pricing of Hemopure and proposed IPO, the contingency plan if Hemopure is not approved and the treats by the competitors (Baxter International and Northfield Laboratories).
Analysis of Internal and External Environment
An exhaustive analysis of the strengths, weakness, opportunities and threats were analyzed based on the internal and external environment (Exhibit 1) of the long-simmering debate with Biopure on whether to launch Oxyglobin or wait until Hemopure is approved. The Five most weighted prime outcomes of the analysis are represented below.
[pic]
Alternatives - Evaluation
On analyzing the current situation the following alternatives has been considered as possible
1. Launch Oxyglobin
a. Pricing at $150 using “manufacturing direct”
b. Pricing at $200 using
Executive Summary 3
Analysis of Internal and External Environment 3
Alternatives - Evaluation 5
Recommendation: 6
Decision Criterion Grid 7
Appendix 9
Exhibit 1: Exhaustive SWOT Analysis 9
Exhibit 2 : 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 been some somewhat opportunistic. Oxyglobin got FDA approval recently, whereas the Hemopure will enter phase 3 clinical trials and is expected to get FDA approval by 1999. Now Biopure has to decide whether it has to launch the Oxyglobin or should it wait till the Hemopure is approved. The following analysis examines the current market demand for both the blood substitutes, the pricing strategy for Oxyglobin and how it will impact the future pricing of Hemopure and proposed IPO, the contingency plan if Hemopure is not approved and the treats by the competitors (Baxter International and Northfield Laboratories).
Analysis of Internal and External Environment
An exhaustive analysis of the strengths, weakness, opportunities and threats were analyzed based on the internal and external environment (Exhibit 1) of the long-simmering debate with Biopure on whether to launch Oxyglobin or wait until Hemopure is approved. The Five most weighted prime outcomes of the analysis are represented below.
[pic]
Alternatives - Evaluation
On analyzing the current situation the following alternatives has been considered as possible
1. Launch Oxyglobin
a. Pricing at $150 using “manufacturing direct”
b. Pricing at $200 using