Biopure Corporation Case Summary
Executive Summary
Biopure Corporation was established in 1984 and is a privately owned pharmaceutical firm. They are trying to launch two new products: Hemopure (human market) and Oxyglobin (veterinary market). They are the only company aggressively engaged in the development of blood substitutes for the vet market. Biopure has invested $200M in the development of said blood substitutes. They currently don’t have any revenues with little to no debt and financing of $50M to support these operations for another two years. The company’s shareholders are very anxious to make the company public. Biopure needs to decide whether or not to introduce Oxyglobin into the market now or delay its release until after Hemopure has established itself in the market.
Consumer Behavior
Competition Analysis
Direct Competitors
• Baxter International has an anticipated product cost of $50M per year and an anticipated product pricing of $600-$800 per unit. The raw materials used are obtained from discarded human blood. They are also the recognized leader in biopharmaceuticals.
• Northfield Laboratories has an anticipated production cost of $30M per year and an anticipated product pricing similar to Baxter International. They have a future construction plan of a $45M facility with capacity of .3M units per year. Northfield has invested …show more content…
It would generate Biopure’s first revenues ever, furthering the increase in production capacity. They would also have the first mover advantage. Launching this product would allow Biopure to distinguish their marketing imperfections and would be a learning experience for their company. It would also create an interest of potential investors when the company goes public. Oxyglobin is the first government approved blood substitute in the vet market. Launching immediately would better support the launch of Hemopure and create brand
Biopure Corporation was established in 1984 and is a privately owned pharmaceutical firm. They are trying to launch two new products: Hemopure (human market) and Oxyglobin (veterinary market). They are the only company aggressively engaged in the development of blood substitutes for the vet market. Biopure has invested $200M in the development of said blood substitutes. They currently don’t have any revenues with little to no debt and financing of $50M to support these operations for another two years. The company’s shareholders are very anxious to make the company public. Biopure needs to decide whether or not to introduce Oxyglobin into the market now or delay its release until after Hemopure has established itself in the market.
Consumer Behavior
Competition Analysis
Direct Competitors
• Baxter International has an anticipated product cost of $50M per year and an anticipated product pricing of $600-$800 per unit. The raw materials used are obtained from discarded human blood. They are also the recognized leader in biopharmaceuticals.
• Northfield Laboratories has an anticipated production cost of $30M per year and an anticipated product pricing similar to Baxter International. They have a future construction plan of a $45M facility with capacity of .3M units per year. Northfield has invested …show more content…
It would generate Biopure’s first revenues ever, furthering the increase in production capacity. They would also have the first mover advantage. Launching this product would allow Biopure to distinguish their marketing imperfections and would be a learning experience for their company. It would also create an interest of potential investors when the company goes public. Oxyglobin is the first government approved blood substitute in the vet market. Launching immediately would better support the launch of Hemopure and create brand