BioPure Case

Oxyglobin launch

Do not launch:

Oxyglobin prices($80-150) may drive down prices for Hemopure($600-800).

Human blood market is larger than animal blood mkt.
Since no competition in animal market, it can wait till hemopure launch.
Presence of animal blood product in market may adversely impact launch of
human blood product later.
Biopure has an image of human blood products company.
Limited production capacity.

For launch:

Hemopures FDA approval uncertain

Delaying Oxyglobin will lead to opportunity loss for 2-3 yrs
Diff products for diff segments
First mover advantage in animal market.
Experience in animal market will increase experience for human market

Market potential

Oxyglobin market:
15,000 practices x 800 dogs/yr/practice x 2.5%(dogs needing transfusion)=
300,000 units/yr; at $ 100 prices=$3mn.
15,000 practices x 95%(primary care)x 17 units/yr/practise + 15,000 x 5%
(emergency care)x 150 units/yr= 354,750 units/yr. At $ 100/unit=$35.4 mn
84% vet dissatisfaction.
Inadequate blood supplies
Since 30% dogs suffer from acute blood loss, the market can expand by 30%2.5% or 12 times= 3.6 mn units or $360 mn.
Pricing spectrum: $ 50(COGS)-$ 100(donated)-$150(oxyglobin).

Hemopure market:
8.1 mn (acute blood loss)+ 3.2 chronic anemia= 11.3 mn units/yr.x $
700/unit=$7.9 bn/yr. (or 22 times larger than animal market)
Trauma market-500,000x4 units/casex$700=$1.4 bn.
Autologuos segment?
Cost of impact on human life will impact pricing for hemopure (so oxyglobin
prices will have little impact)
Pricing spectrum: $ 100(COGS)-$ 250(donated)-$ 400(Autologous)$800(Hemopure)