Biopure case memo
INTEROFFICE MEMORANDUM
TO:
CARL RAUSCH, CEO, BIOPURE
FROM:
XXXXXXXXXX, MARKETING ANALYST, BIOPURE
SUBJECT:
OXYGLOBIN LAUNCH
DATE:
50
4/22/2010
This memorandum is to propose that Biopure prepare to launch Oxyglobin as quickly as possible. The product should be priced at approximately $150 per unit and be advertised and distributed to emergency care veterinarians for use in dogs. Significant efforts need to be made in trade publications to educate veterinarians in this revolutionary new product so that it will gain acceptance.
At Biopure we now have the opportunity to stand out as the leading producer of animal blood substitutes because of investments in technology and our commitment to regulatory approvals. This opportunity to be first to market cannot be squandered. As the sole entrant to the market we have the opportunity to have the first synthetic product on the market and obtain all of the premiums associated with it. The stability and ease of use of Oxyglobin cannot be overstated, and it will quickly gain acceptance with appropriate marketing and education in trade journals.
Some members of this company desire to delay the launch of Oxyglobin, claiming it may erode the margin on our human product, Hemopure. However, the future of Hemopure is still uncertain as it has not received final approval for sale and may not for some time, if at all. Oxyglobin thus represents an opportunity to generate revenues immediately that can be used to fund the company while Hemopure finishes the approval process. Further, lessons learned in the launch of Oxyglobin can be leveraged in the launch of Hemopure. We also feel that animal and human markets are sufficiently removed from one another due to sites of service (emergency rooms vs. animal hospitals), insurance coverage and regulatory structure that the price of Hemopure will not be adversely affected by Oxyglobin.
Our competitors Baxter and Northfield have developed human blood
TO:
CARL RAUSCH, CEO, BIOPURE
FROM:
XXXXXXXXXX, MARKETING ANALYST, BIOPURE
SUBJECT:
OXYGLOBIN LAUNCH
DATE:
50
4/22/2010
This memorandum is to propose that Biopure prepare to launch Oxyglobin as quickly as possible. The product should be priced at approximately $150 per unit and be advertised and distributed to emergency care veterinarians for use in dogs. Significant efforts need to be made in trade publications to educate veterinarians in this revolutionary new product so that it will gain acceptance.
At Biopure we now have the opportunity to stand out as the leading producer of animal blood substitutes because of investments in technology and our commitment to regulatory approvals. This opportunity to be first to market cannot be squandered. As the sole entrant to the market we have the opportunity to have the first synthetic product on the market and obtain all of the premiums associated with it. The stability and ease of use of Oxyglobin cannot be overstated, and it will quickly gain acceptance with appropriate marketing and education in trade journals.
Some members of this company desire to delay the launch of Oxyglobin, claiming it may erode the margin on our human product, Hemopure. However, the future of Hemopure is still uncertain as it has not received final approval for sale and may not for some time, if at all. Oxyglobin thus represents an opportunity to generate revenues immediately that can be used to fund the company while Hemopure finishes the approval process. Further, lessons learned in the launch of Oxyglobin can be leveraged in the launch of Hemopure. We also feel that animal and human markets are sufficiently removed from one another due to sites of service (emergency rooms vs. animal hospitals), insurance coverage and regulatory structure that the price of Hemopure will not be adversely affected by Oxyglobin.
Our competitors Baxter and Northfield have developed human blood