Should Biopure Launch Oxyglobin?
DATE: March 16, 2013
TO: Carl Rausch President and CEO of Biopure Corporation
FROM: Hoang, Ann and Mishra, Ravi
RE: Whether and When to Launch Oxyglobin
Biopure needs to determine the best course of action to launch two new products, Oxyglobin a blood substitute for the veterinary market and Hemopure a blood substitute for the human market. Oxyglobin has been approved for commercial use and is ready for launch while Hemopure is expected to be FDA approved within two years. Biopure needs to decide whether and when to launch Oxyglobin. If decided to launch, the ability to price Oxyglobin appropriately is critical to minimize the impact of prospective launch for Hemopure. We believe Oxyglobin should be launched immediately because …show more content…
As indicated on the survey, veterinarians may not recommend the use of it because it is an expensive product; however, pet owners showed interest and preferred to be informed of alternative treatments for their pets. Therefore, Oxyglobin should be launched with a starting price of $200 per unit. Biopure should use in-house sales force to distribute Oxyglobin to save approximately 30% of the fees charged by the third party distributors. By launching Oxyglobin, Biopure will create revenues to continue with research and development for Hemopure. When Hemopure is launched, the marketing and distribution issues encountered during Oxyglobin launch can be …show more content…
If launched together, Biopure may be able to sell at a high price, and make more profit with per unit cost for both products. The overall profit would be minimal because there would not be as many units of each product to sell since Biopure has to share the same facility to manufacture Oxyglobin and Hemopure. Biopure would also lose out on the potential revenues it will generate to increase production capacity for Hemopure. There would be zero profit for two years which will not bode well with the
TO: Carl Rausch President and CEO of Biopure Corporation
FROM: Hoang, Ann and Mishra, Ravi
RE: Whether and When to Launch Oxyglobin
Biopure needs to determine the best course of action to launch two new products, Oxyglobin a blood substitute for the veterinary market and Hemopure a blood substitute for the human market. Oxyglobin has been approved for commercial use and is ready for launch while Hemopure is expected to be FDA approved within two years. Biopure needs to decide whether and when to launch Oxyglobin. If decided to launch, the ability to price Oxyglobin appropriately is critical to minimize the impact of prospective launch for Hemopure. We believe Oxyglobin should be launched immediately because …show more content…
As indicated on the survey, veterinarians may not recommend the use of it because it is an expensive product; however, pet owners showed interest and preferred to be informed of alternative treatments for their pets. Therefore, Oxyglobin should be launched with a starting price of $200 per unit. Biopure should use in-house sales force to distribute Oxyglobin to save approximately 30% of the fees charged by the third party distributors. By launching Oxyglobin, Biopure will create revenues to continue with research and development for Hemopure. When Hemopure is launched, the marketing and distribution issues encountered during Oxyglobin launch can be …show more content…
If launched together, Biopure may be able to sell at a high price, and make more profit with per unit cost for both products. The overall profit would be minimal because there would not be as many units of each product to sell since Biopure has to share the same facility to manufacture Oxyglobin and Hemopure. Biopure would also lose out on the potential revenues it will generate to increase production capacity for Hemopure. There would be zero profit for two years which will not bode well with the