Biopure Case Study Analysis DRAFT 3
I: Analysis
Oxyglobin’s Immediate Launch
It is our recommendation that Biopure should immediately launch Oxyglobin. The reasons for this decision are as followed:
Obtaining the Monopoly on blood substitutes - If Biopure waits to launch Oxyglobin they will miss a prime opportunity to control the blood substitute market, especially the animal market. As mentioned in the case, Biopure’s competitors have yet to launch their products. Furthermore, Baxter International and Northfield Laboratories do not have an animal substitute for Biopure to compete with1. This allows Oxyglobin to set the stage for Biopure to introduce their company as a leading producer of a successful blood substitute. This can form a level a trust and reliability among medical professionals, which can be significant once Hemopure is released.
Revenue built up for Hemopure - Immediately releasing Oxyglobin would benefit Hemopure’s launch and both products production in the coming years. Both Hemopure and Oxyglobin are in need of their separate manufacturing facilities. As of now, they are produced in the same manufacturing facility and only one substitute can be made at a time due to the limited supplies Biopure owns.2 The revenue from Oxyglobin can help Biopure procure a site solely for Hemopure’s production, which will increase the amount of each product made every year. If both products were to launch at the same time and were equally successful, Biopure would lack the capacity to make enough volume of each substitute in a timely manner. This issue could eventually affect our sales and market share.
The income from Oxyglobin can also benefit in the advertising, promotion and the sales force needed to sell Hemopure once it is ready to be released. Since Hemopure’s blood substitute will be targeting a much larger market, the advertising and education of the product will be more extensive and more expensive. In terms of the sales force, Biopure will need highly educated and skilled people to
Oxyglobin’s Immediate Launch
It is our recommendation that Biopure should immediately launch Oxyglobin. The reasons for this decision are as followed:
Obtaining the Monopoly on blood substitutes - If Biopure waits to launch Oxyglobin they will miss a prime opportunity to control the blood substitute market, especially the animal market. As mentioned in the case, Biopure’s competitors have yet to launch their products. Furthermore, Baxter International and Northfield Laboratories do not have an animal substitute for Biopure to compete with1. This allows Oxyglobin to set the stage for Biopure to introduce their company as a leading producer of a successful blood substitute. This can form a level a trust and reliability among medical professionals, which can be significant once Hemopure is released.
Revenue built up for Hemopure - Immediately releasing Oxyglobin would benefit Hemopure’s launch and both products production in the coming years. Both Hemopure and Oxyglobin are in need of their separate manufacturing facilities. As of now, they are produced in the same manufacturing facility and only one substitute can be made at a time due to the limited supplies Biopure owns.2 The revenue from Oxyglobin can help Biopure procure a site solely for Hemopure’s production, which will increase the amount of each product made every year. If both products were to launch at the same time and were equally successful, Biopure would lack the capacity to make enough volume of each substitute in a timely manner. This issue could eventually affect our sales and market share.
The income from Oxyglobin can also benefit in the advertising, promotion and the sales force needed to sell Hemopure once it is ready to be released. Since Hemopure’s blood substitute will be targeting a much larger market, the advertising and education of the product will be more extensive and more expensive. In terms of the sales force, Biopure will need highly educated and skilled people to