Biopure Corporation

Group B:
Tarun, Ankita, Shubhra, Yash, Prachi


CASE ANALYSIS
Major Competitors
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
SWOT Analysis of Biopure Corp.
Strength: Weakness:
Cheaper supply of raw material
Products do not need refrigeration
Free from contamination
Increased shelf life
Universal Blood Substitute
Only player in animal blood
substitute market

No FDA approval yet for Hemopure
Short half life after transfusion
Potential for higher toxicity
Opportunity: Threat:
Huge market potential
Willingness of pet owners to pay
higher price
Concentrated market -> efficient
targeting and promotion
Scarce supply of animal blood from
donors

Lack of distribution channels
Strong brand image of Baxter Intl.
Failure of FDA approval at any
stage
Protest from religious groups

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?
Target Market
Veterinary primary and
emergency care practices
Pharmaceutical agencies
Animal blood banks
Dog shows
Veterinary trade shows
Journals
Suggested selling price
range of $100 to $150 for
Oxyglobin to veterinerary
doctor
Universal blood substitute
Free of infectious agents
and contaminations
Increased shelf-life
Immediately 100% efficient
Product Price
Place Promotion
Separation between Producers and
Consumers:

Spatial Separation:
Distributor's margin - upto one-third for a non
established product
Perceptual Separation:
Producer will have to identify the market potential
Consumers may lack information about the product
Value Separation:
Customer's perceived price of Oxyglobin
Jeopardizing the price realization potential of
Hemopure



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
Release 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
How best to leverage the opportunity offered
by Oxyglobin without jeopardizing the potential
of Hemopure?

Solution:

1. Focusing the entire marketing strategy and
advertisements on the product and not on the
company.
2. Postpone the IPO for another two years so
that the company does not lose the suport of
the stakeholders.



Thank You