BioPure Analysis
I will examine the challenges faced by Biopure in sequencing the release of 2 drugs. One ,Oxyglobin, is ready for the Veterinary Market, and the other, Hemopure, whose success could rely on the brand management of the former. I will look at issues related to the success of the company and make the recommendation to launch Oxyglobin now.
Currently Biopure creates blood products for two markets, human and veterinary. While Oxyglobin is ready to release for the veterinary market, Hemopure is 2 years behind. The company understands that releasing Oxyglobin at a lower price point of $150 would impact its ability to sell Hemopure at $800. Ted Jacobs is concerned that releasing a cheaper version of Hemopure will adversely affect their ability to price it.Andy Wright, VP of Veterinary products, feels that releasing now could help in understanding go to market strategies and improve the adoption of Hemopure through Oxyglobin’s launch. CEO Carl Rausch considers the effects Oxyglobin could have on the company’s IPO launch.
While human blood demand is crucial and high, the traditional format of screening from donors has inefficiencies that prolong the shelf time of donated blood. The majority of RBC’s goes to 2.5million patients suffering from acute blood loss. Comparatively, veterinary blood demand does not have these kinds of numbers due to the lack of blood banks. According to the Humane Society, dog blood has only a 30-35 day shelf life. Dogs and cats also need less blood than humans. The benefit of hemoglobin based substitutes is their 2 year shelf life. No pet owner would want to lose a family member due to a lack of blood, but the pricing of Oxyglobin is highly sensitive looking at Table A.
The problem that hinders both of these products is that there is no sense of urgency for blood substitutes in the market. Biopure has no revenue generating ability, an is reliant on venture funding. This along with the lack of a distribution network would certainly lead to a flop
Currently Biopure creates blood products for two markets, human and veterinary. While Oxyglobin is ready to release for the veterinary market, Hemopure is 2 years behind. The company understands that releasing Oxyglobin at a lower price point of $150 would impact its ability to sell Hemopure at $800. Ted Jacobs is concerned that releasing a cheaper version of Hemopure will adversely affect their ability to price it.Andy Wright, VP of Veterinary products, feels that releasing now could help in understanding go to market strategies and improve the adoption of Hemopure through Oxyglobin’s launch. CEO Carl Rausch considers the effects Oxyglobin could have on the company’s IPO launch.
While human blood demand is crucial and high, the traditional format of screening from donors has inefficiencies that prolong the shelf time of donated blood. The majority of RBC’s goes to 2.5million patients suffering from acute blood loss. Comparatively, veterinary blood demand does not have these kinds of numbers due to the lack of blood banks. According to the Humane Society, dog blood has only a 30-35 day shelf life. Dogs and cats also need less blood than humans. The benefit of hemoglobin based substitutes is their 2 year shelf life. No pet owner would want to lose a family member due to a lack of blood, but the pricing of Oxyglobin is highly sensitive looking at Table A.
The problem that hinders both of these products is that there is no sense of urgency for blood substitutes in the market. Biopure has no revenue generating ability, an is reliant on venture funding. This along with the lack of a distribution network would certainly lead to a flop