Mkt Case Analysis Biopure Modified 
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Biopure
Corporation
Case Analysis
Back Bay
Xue Yang
+
Agenda
1.
Current Situation
2.
SWOT Analysis
3.
Quantitative Analysis
4.
Recommendations
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Current SituationBiopure Corporation
The main objectives of Biopure Corporation is blood substitutes development
There are 2 products: Oxyglobin and Hemopure. Oxyglobin is targeting at veterinary market and Hemopure is targeting at human market
The company has spent $200 million on R&D of Hemopure
Oxyglobin has already approved by FDA, Hemopure is in
Phase 3 clinical trials
The prices of Oxyglobin and Hemopure have corelationship.
If the price of Oxyglobin is too high, it maybe result in an unacceptable price of Hemopure
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ProductOxyglobin
Oxyglobin is a universal blood substitutes
Stable at room temperature, no need to refrigerate
2 years storable period
High professional clinical products, the target clients are doctors.
FDA approved
Up to $200 per unit
Fixed cost: $15 million
Capacity: 300,000
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Current SituationCompetitor- Baxter International
HemAssist needed to be frozen or Refigerated
$5.4 billion in sales, $670 million net income in 1996
Fixed cost : $100 million
Capacity:1,000,000 units per year
Anticipated price between $600 and $800.
Raw material: outdated RBC of human blood
Cost of raw material per unit: $8
Phase 3 clinical trail in 1996
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Current SituationCompetitor-Northfield
PolyHeme need to be frozen and refrigeration
Fixed cost: 70 million
Capacity :10,000 units per year
Raw material: outdated RBC of human blood
Phase 3 clinical trail in 1998
Anticipated price between $600 and $800.
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S
W
O
T
SWOT
Analysis
• Oxyglobin has already been approved by FDA
• The funds can cover 2 years for Oxyglobin launching • It is a market blank now. If Biopure launch now, the company can race to control the blood substitutes market
• The product is stable under a wide range temperature S
W
Biopure
Corporation
Case Analysis
Back Bay
Xue Yang
+
Agenda
1.
Current Situation
2.
SWOT Analysis
3.
Quantitative Analysis
4.
Recommendations
+
Current SituationBiopure Corporation
The main objectives of Biopure Corporation is blood substitutes development
There are 2 products: Oxyglobin and Hemopure. Oxyglobin is targeting at veterinary market and Hemopure is targeting at human market
The company has spent $200 million on R&D of Hemopure
Oxyglobin has already approved by FDA, Hemopure is in
Phase 3 clinical trials
The prices of Oxyglobin and Hemopure have corelationship.
If the price of Oxyglobin is too high, it maybe result in an unacceptable price of Hemopure
+
ProductOxyglobin
Oxyglobin is a universal blood substitutes
Stable at room temperature, no need to refrigerate
2 years storable period
High professional clinical products, the target clients are doctors.
FDA approved
Up to $200 per unit
Fixed cost: $15 million
Capacity: 300,000
+
Current SituationCompetitor- Baxter International
HemAssist needed to be frozen or Refigerated
$5.4 billion in sales, $670 million net income in 1996
Fixed cost : $100 million
Capacity:1,000,000 units per year
Anticipated price between $600 and $800.
Raw material: outdated RBC of human blood
Cost of raw material per unit: $8
Phase 3 clinical trail in 1996
+
Current SituationCompetitor-Northfield
PolyHeme need to be frozen and refrigeration
Fixed cost: 70 million
Capacity :10,000 units per year
Raw material: outdated RBC of human blood
Phase 3 clinical trail in 1998
Anticipated price between $600 and $800.
+
S
W
O
T
SWOT
Analysis
• Oxyglobin has already been approved by FDA
• The funds can cover 2 years for Oxyglobin launching • It is a market blank now. If Biopure launch now, the company can race to control the blood substitutes market
• The product is stable under a wide range temperature S
W