Biopure Case Study
1. a) Potential market for Humans
To accurately calculate the number of units that would be required per year in the human market, we first estimated the total number of patients that would require RBC transfusions divided in three main groups:
Elective and emergency surgeries: The current market is of 7.9 million units, but there is also an unserved market of borderline transfusions that would require an additional 1.5 million units (1 million surgeries with requirements of 1-2 units / surgery).
Trauma: Out of the 0.5 million trauma cases / year, currently only 10% received the blood on-time, while the remaining 90% had to wait until the victim arrived to the ER. We consider that this 90%, equivalent to 0.45 million cases would be the potential market for the product. The average units/patient for this cases is 3.2, thus the potential market in units is of 1.46 million units / year.
Chronic anemia: the total current market of 3.2 million units is currently served with donated blood, according to estimates this represents the 15% of the population, but in 2030 it will represent 25%. Assuming that in the short term, this will …show more content…
This would give the company annual revenues of around $60 million/year that could be used to finance the expansion of the production capacity and all the costs while Hemopure is approved by the FDA. Besides the financial benefit of having stable revenues during the approval process, the company would start to build a brand awareness and reputation that will later benefit the marketing and sales of Hemopure. Additionally, launching Oxyglobin will protect the veterinary market from entrants like Baxter or Northfield that could decide to sell veterinary products while waiting for the FDA
To accurately calculate the number of units that would be required per year in the human market, we first estimated the total number of patients that would require RBC transfusions divided in three main groups:
Elective and emergency surgeries: The current market is of 7.9 million units, but there is also an unserved market of borderline transfusions that would require an additional 1.5 million units (1 million surgeries with requirements of 1-2 units / surgery).
Trauma: Out of the 0.5 million trauma cases / year, currently only 10% received the blood on-time, while the remaining 90% had to wait until the victim arrived to the ER. We consider that this 90%, equivalent to 0.45 million cases would be the potential market for the product. The average units/patient for this cases is 3.2, thus the potential market in units is of 1.46 million units / year.
Chronic anemia: the total current market of 3.2 million units is currently served with donated blood, according to estimates this represents the 15% of the population, but in 2030 it will represent 25%. Assuming that in the short term, this will …show more content…
This would give the company annual revenues of around $60 million/year that could be used to finance the expansion of the production capacity and all the costs while Hemopure is approved by the FDA. Besides the financial benefit of having stable revenues during the approval process, the company would start to build a brand awareness and reputation that will later benefit the marketing and sales of Hemopure. Additionally, launching Oxyglobin will protect the veterinary market from entrants like Baxter or Northfield that could decide to sell veterinary products while waiting for the FDA