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
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Q1. Should Biopure launch Oxyglobin? Why? Support your arguments with quantitative analysis (ie. calc. of market potential). We believe that Biopure should launch Oxyglobin now. First of all‚ the potential market demand is huge. While current annual demand is 354‚750 units (95% primary care practices x 17 units canine blood/primary care practice + 5% specialty care practices x 150 units canine blood/specialty care practice)i accounting for only 2.5% of the cases‚ potential market demand including
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How best to exploit the opportunity presented by Oxyglobin without jeopardizing the potential of Hemopure is a tough problem for Biopure’s executive. According to the financial analysis‚ it is suggested that Biopure begin to sell Oxyglobin at $150 per unit to emergency care practice at the Veterinary Blood Market and have its own distribution network. This will make a profit of $5 million at first year and $17 million thereafter. The steadfast income will consolidate Biopure’s financial structure
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1. What are the reasons for and against launching Oxyglobin? Reasons FOR launching Oxyglobin | Reason AGAINST launching Oxyglobin | Setting the preferences for the customer‚ framing their perceptions of later entrants‚ becoming the standard | Risk of justifying price premium in human market vs. vet | Conduct pre-emptive positioning to raise the barriers to entry in to this market | Human market much larger and more lucrative than vet market | Develop relationships with customers and build
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Brief Overview: Biopure has two new products namely Oxyglobin and Hemopure. Oxyglobin is a first of its kind‚ new blood substitute for the veterinary market and has passed all the tests and is ready for consumer use. Hemopure is another such blood substitute for the human market and it will take a minimum of two years to launch the product from now. There is a concern about creating an unrealistic price expectation for Hemopure by marketing Oxyglobin before Hemopure. Whereas another point of view
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Biopure Overview: * Biopure Corporation is a privately owned biopharmaceutical firm specializing in the ultrapurification of proteins for human and veterinary use. * It is one of the three legitimate contenders in the emerging field of “blood substitutes”. * Their products Oxyglobin and Hemopure are blood substitutes for the animal and the human market respectively. * Oxyglobin has just received final FDA approval for commercial release and is ready for launch. Hemopure would soon
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Marketing Plan for launching Oxyglobin Push and Pull strategy will be implemented to enhance the marketing plan of launching Oxyglobin. One of the most important aspect in medical is communication‚ we will have sales representation frequently visit practices and doctor in order to align the understanding and needs between Oxyglobin and Doctors. This is to ensure their understanding of the product benefits‚ why the product is selling at premium and why people should choose this option which in turn
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marketing plan of the recommended one. The study shows that Biopure should immediately launch Oxyglobin rather than wait for Hemopure’s FDA Approval then launch both products simultaneously. The proposed price for Oxyglobin is $300 per unit with promotion campaign from time to time. With this set price of immediate launch‚ Biopure will reach breakeven point for Oxyglobin in year 2000 with the amount of 2.13 million USD. Targeting market for Oxyglobin is emergency care practices as a higher price of blood
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What price and Why? To assess what price Oxyglobin should be set at‚ we must analyze the 4 C’s. Firstly‚ in evaluating the company‚ we determine that the cost of production is $15 Million per year independent of volume‚ plus $1.50 per unit variable cost. The current capacity for Oxyglobin is 300‚000 units. In exhibits 4 and 5 we determine their break-even cost. Next‚ we must determine who the customer is and what their potential is. To do this‚ we begin by looking at the number of veterinary practices
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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
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