BioPure Case Write Up
Background Analysis
Company
Biopure Corporation (“Biopure”) was founded in 1984 with the primary goal of developing a human blood substitute, a product with the oxygen-carrying property of blood but without many of the limitations of donated blood. No blood substitute has received approval for any use anywhere in the world, but Biopure is one of three promising competitors in the field. After many years of research and development, Biopure just received FDA approval for the commercial launch of Oxyglobin, a veterinary blood substitute for use in dogs, which is an ancillary product to Hemopure, Biopure’s human blood substitute. Hemopure, however, is still about 2 years away from final government approval and commercial launch. As a result, Biopure must decide whether to immediately launch Oxyglob in into the veterinary blood market or delay the release until after the approval and establishment of Hemopure in the human blood market.
Customer
The market for Hemopure consist of 1) customers (patients) with acute blood loss resulting from trauma (e.g. car accidents, gunshots) / surgery and needs immediate blood transfusion, of which 40% individuals aged over 65. As thus, the demand for RBCs to treat acute blood loss was expected to rise with the aging US population; 2) chronic anemia patients with an estimated population of 1.5 million for year 1995.
Oxyglobin customers are mainly cats and dogs. 800 dogs were brought to emergency treatment due to acute blood loss in 1995. There are approximately 15,000 veterinary clinics, 5% of which perform emergency care. 150 units of blood transfused per emergency care and 17 per primary care center. Further, the survey of 285 Veterinarians conducted by Biopure in 1997 revealed that with increasing the criticality of the case, the customers were willing to try the product at higher price, and 84% of veterinary doctors expressed dissatisfaction with the currently available blood transfusion alternatives.
Competitor
As of 1998,
Company
Biopure Corporation (“Biopure”) was founded in 1984 with the primary goal of developing a human blood substitute, a product with the oxygen-carrying property of blood but without many of the limitations of donated blood. No blood substitute has received approval for any use anywhere in the world, but Biopure is one of three promising competitors in the field. After many years of research and development, Biopure just received FDA approval for the commercial launch of Oxyglobin, a veterinary blood substitute for use in dogs, which is an ancillary product to Hemopure, Biopure’s human blood substitute. Hemopure, however, is still about 2 years away from final government approval and commercial launch. As a result, Biopure must decide whether to immediately launch Oxyglob in into the veterinary blood market or delay the release until after the approval and establishment of Hemopure in the human blood market.
Customer
The market for Hemopure consist of 1) customers (patients) with acute blood loss resulting from trauma (e.g. car accidents, gunshots) / surgery and needs immediate blood transfusion, of which 40% individuals aged over 65. As thus, the demand for RBCs to treat acute blood loss was expected to rise with the aging US population; 2) chronic anemia patients with an estimated population of 1.5 million for year 1995.
Oxyglobin customers are mainly cats and dogs. 800 dogs were brought to emergency treatment due to acute blood loss in 1995. There are approximately 15,000 veterinary clinics, 5% of which perform emergency care. 150 units of blood transfused per emergency care and 17 per primary care center. Further, the survey of 285 Veterinarians conducted by Biopure in 1997 revealed that with increasing the criticality of the case, the customers were willing to try the product at higher price, and 84% of veterinary doctors expressed dissatisfaction with the currently available blood transfusion alternatives.
Competitor
As of 1998,