CASE ANALYSIS-

BIOPURE CORPORATION
PROBLEM STATEMENT
Should Carl Rausch postpone the launch of
Oxyglobin until after Hemopure had established
itself in the marketplace?
Or should he immediately launch Oxyglobin and
reap the near-term benefits?
COMPETITION ANALYSIS
BAXTER INTERNATIONAL
Acknowledged leader in
the field of
biopharmaceuticals
Source their raw materials
from discarded human
blood
Anticipated product
pricing: $600-$800 per
unit
Anticipated production
cost: $50 mn per year
NORTHFIELD
LABORATORIES
Invested $70 mn in R&D
and production facility of
10000 units per year
Looking forward to
construct $45 mn facility
with capacity of 0.3 mn
units per year
Product and anticipated
pricing similar to that of
Baxter International
Anticipated production
cost: $30 mn per year
OPTION 1-
IMMEDIATE LAUNCH OF OXYGLOBIN
Generate Biopures first revenues ever, which can be
further used to increase production capacity
Capture entire market of animal blood substitutes
Establish credibility among customers for an efficient
product
Ensure steady revenues in case of delays in launch of
Hemopure
Provide test-run for marketing strategies of Hemopure


OPTION 2-
LAUNCH OXYGLOBIN ALONG WITH HEMOPURE

Pros:
Good price realization potential for Hemopure

Cons:
No revenues for another 2 years
Demand-supply gap
Further delay in launch of Hemopure in case of
non-approval by FDA
FINANCIAL ANALYSIS

RECOMMENDATIONS
Launch Oxyglobin

Develop strong differentiation between Oxyglobin &
Hemopure to charge a premium on latter

Postpone the IPO till the launch of Hemopure

Thank You