Richard Addington
PHD
Table of Contents 1. Executive Summary 2. Situation Analysis a. Human Blood Demand b. Human Blood Pricing c. RBC limitations 3. Internal Environment d. Strengths and weaknesses of Oxyglobin e. Strengths and weaknesses of Hemopure 4. External/Competitive Environment f. Baxter g. Northfield h. Biopure 5. Animal Blood Market 6. Marketing Plan i. Positioning j. Pricing k. Communication 7. Way Forward for Hemopure
Executive Summary
In 1998, Biopure Corporation is one of the three legitimate contenders in the emerging field of “blood substitutes” along with Baxter International and Northfield Laboratories. Many opportunities are available in the human blood market due to several disadvantages of the currently available alternatives. Biopure has invested $200M on the R&D of blood substitutes with its primary goal being the development of a human blood substitute, Hemopure. It has recently received FDA approval for Oxyglobin, a blood substitute for the veterinary market, whereas Hemopure will enter phase 3 clinical trials and is expected to get FDA approval by late 1999. Biopure is now faced with the big decision on whether to launch Oxyglobin now and reap the near-term benefits or wait till Hemopure is approved and established in the market. The following analysis examines the current market demand for the human and veterinary blood substitutes, the competitive environment, the pricing strategy for Oxyglobin and how it will impact the future launch of Hemopure.
Situation Analysis
Human blood supply
8 million people donated blood in 1995. Although 75% of adults qualify as a donor, fewer than 5% actually donate blood in a given year. Given the low rate of donation and short shelf life of RBCs several medical facilities suffered a shortage in RBCs
Human blood demand
2.5 million patients suffered from acute blood loss from