Biopure Corporation is a pharmaceutical firm that has invested $200 million developing two blood substitute products - Oxyglobin for the veterinary market and Hemopure for human use. While Hemopure is still in Phase 3 trials, Oxyglobin has received all necessary approvals. The company currently has no revenue but $50 million in financing. It is recommended that Biopure launch Oxyglobin now to generate revenue and build distribution networks to support the future launch of Hemopure, once it gains FDA approval.

2. • Biopure Corporation, founded in 1984, privately owned
pharmaceutical firm.
• Two new products (blood substitutes): oxyglobin, hemopure
• Only company actively engaged in development of blood
substitutes for small-animal vet market
• Invested $200 mn in the development of blood substitutes
• Currently has no revenues with very little debt and
financing of $50 mn to support operations for another 2 yrs.
• Stakeholders are anxious to make the company public
Company Overview

3. Market Overview
1. Human blood market
 Around 14 mn units of RBCs are available from donation
 RBCs: Low rate of donation and short shelf life, thus periodic
shortages
 Demand of RBCs is expected to rise by 2030
 Donated RBCs has a lot of limitations:
 need of exact blood type matching
 reduced O2 carrying efficiency
 limited shelf life
 need of refrigeration
 risk of disease transmission

4. Market Overview (contd.)
2.Veterinary blood market
 Blood transfusions were infrequent
 About 30% of cases would have benefitted significantly from
transfusions, only 2.5% actually received it
 There was inadequate blood supply and few animal blood banks
 Primary care practices blood requirement cost $80 to $120
/unit, emergency ones cost $130-170 /unit
 Lack of time and resource to type the donor and blood recipient.
 84% of veterinary doctors expressed dissatisfaction with the
currently available blood transfusion alternatives

5. Competitors for blood substitutes
• Baxter International is the leader in
development and sales in blood related medical
products.“HemAssist” Baxter’s patented blood
substitute
• NorthField Laboratories is another competitor in
this blood substitute market.”Polyheme” very
similar to Baxter’s HemAssist in its production
and usage.

6. Competitors
Factor Biopure Corporation Northfield
Laboratories
Baxter
International
Product name Oxyglobin & Hemopure PolyHeme HemAssist
Source of
hemoglobin
Bovine blood Outdated RBC of Human Blood
Cost of production $15 million $70 million $50million
Raw Material cost $1.5 per unit $26 per unit $8 per unit
Storage Stable at room temp Need to be frozen <4 0c until used
Clinical Trial Phase Oxyglobin- all cleared
Hemopure- Phase 3
Clinical Trials in 1998
Phase 3 Clinical
trail
In 1998
Phase 3 Clinical trail
in 1996
Expected Launch Oxyglobin- ready
Hemopure- late1999
Late 1999 or early 2000
Pricing Oxyglobin-Upto $200
Hemopure-$600-$800
$600-$800 $600-$800

7. Problem Statement
Whether Oxyglobin should be launched right
now or wait till Hemopure gets FDA approval.
AND
If Oxyglobin is Launched then How.
?

8. SWOT ANALYSIS
 Strengths :
A. First blood substitute which has received full
governments approval. (Oxyglobin)
B. Technological expertise which enables it to produce
blood substitute with bovine RBC.
C. Products are “Universal” blood substitutes.

9.  Weakness:
A. No prior expertise in launching the product and
marketing.
B. No self generated revenues as on date.
C. No distribution network in place.

10. HIGH LOW
HIGH 1. No developed product, which
can be delivered on spot of accidents
2. Increase in the age of
particular segment of population
(Hemopure)
3. High Demand for blood
substitutes
LOW 1. No competitors in the
veterinary market substitutes
Success Probability
AttractivenessOpportunity Matrix

11. HIGH LOW
HIGH Competition from
Hem-Assist and
Poly-Heme to
Hemopure
Delay in FDA
approval
LOW
Probability of occurrence
SeriousnessThreat Matrix

12. Future Course of Action
Option 1 :
Go ahead with launch
of Oxyglobin
immediately.
Option 2:
Delaying the launch of
Oxyglobin till
hemopure is launched.

13. Comparative Analysis
Option 1 Option 2
 Builds up Market reputation
before the launch of Hemopure.
 Brings in revenues through sales
and IPO which can be used in
promotion of Hemopure.
 Feedback on public acceptance
of blood substitutes.
 Distribution network will
already be in place before launch
of Hemopure.
 Hemopure is the first ever
product launched without any
prior market reputation.
 No revenue generation before
launch of Hemopure
 No feedback before launch of
Hemopure.
 Distribution network will have
to be developed from start for
Hemopure.

14. Recommended Course of Action
• It is proposed to launch Oxyglobin now and
then go for Hemopure as and when its
ready for market launch.
• Marketing strategy should be so devised
that Oxyglobin and Hemopure are properly
differentiated.

15. PRODUCT PLACE
PRICE PROMOTION
THE FOUR P’S OF MARKETING

16. PRODUCT
•Short Shelf Life
•No Refrigeration Required
•Universal Blood substitute
•New brand of its own
•250 ml/unit of RBC
The 4P’s of marketing of oxyglobin

17. PLACE
•channels
•Local and regional distribution
Network
•Locations
•Animal Blood bank, Veterinery care
practices and pharmaceutical vendors.

18.  Less initial price
1) Product is new
2) $80-120/unit at primary care centre and $200-
$1000 at emergency
 High initial price
1) Many advantages of new product
2) Very difficult to increase later
3) May not generate expected revenues
 So Price should be between $130-170
PRICE

19.  Promotions targeting hospitals and doctors
 Differentiating Hemopure and Oxyglobin
 Awareness sessions for doctors
 Training sessions for sales representatives
 Trade publications and trade shows
PROMOTION

20. Today.....
 The company developed two products: Hemopure for
human use, and Oxyglobin for veterinary use. As of
April 2001, Hemopure was approved for commercial
sale in South Africa for treatment of acute anemia in
general surgery.
 However, Hemopure has not been able to gain
approval in the U.K. or the U.S.
 Biopure ceased operations in 2009 and its assets were
purchased by OPK Biotech LLC in September of 2009.

21. THANK YOU