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Oxyglobin Vs

The document discusses two blood substitute products - Oxyglobin for veterinary use and Hemopure for human hospitals. It recommends releasing Oxyglobin now at $200/unit to gain revenue, test production and distribution, and experience any issues in a less visible market. When Hemopure is approved in two years, it should be priced at $500/unit. Releasing Oxyglobin first would help increase production capacity for both products and hedge against delays to Hemopure. An alternative is to not release Hemopure and focus only on the veterinary market, but that would forgo helping humans and gaining goodwill.

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siddus1
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513 views5 pages

Oxyglobin Vs

The document discusses two blood substitute products - Oxyglobin for veterinary use and Hemopure for human hospitals. It recommends releasing Oxyglobin now at $200/unit to gain revenue, test production and distribution, and experience any issues in a less visible market. When Hemopure is approved in two years, it should be priced at $500/unit. Releasing Oxyglobin first would help increase production capacity for both products and hedge against delays to Hemopure. An alternative is to not release Hemopure and focus only on the veterinary market, but that would forgo helping humans and gaining goodwill.

Uploaded by

siddus1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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1

Oxyglobin vs. Hemopure


Oxyglobin threats to Hemopure:
Pricing deferential
Negative public perception of injecting dog blood
Perception of Oxyglobin and Hemopure as
essentially the same product.

How Oxyglobin is an asset to Hemopure:
Revenue to asset production
Provides test run for production/sales/distribution
Growing pains experienced in less visible market
2
Market Strategy
Biopure should release Oxyglobin now at
$200/unit to Vets
We set the price for Oxyglobin at the high side because
of the release of Hemopure in 2 years after FDA
approval.
Hemopure at $500/unit to hospitals
justify the markup because production for Hemopure
runs at half the capacity of Oxyglobin.
The profits from Oxyglobin should be put towards
increasing production capacity
when Hemopure is released, we do not have to ramp
down on the production of Oxyglobin when both
products are on the market.
3
Brining Oxyglobin to Market
Should the Oxyglobin release be done now?
Yes:
Revenue for asset production
Provides test run for production/sales/distribution
Growing pains experienced in less visible market
Market diversification when Hemopure is released
Hedges against Hemopure delays/failure
Oxyglobin Price:
$200 to Vets (~$400 to consumers). Reasons:
60% of vets willing to use in critical cases (Target Market)
65% of dog owners willing to use in critical cases (Target Market)
Vets may accept less than 100% mark-up ($50 is typical markup)
Decrease difference between Oxyglobin and Hemopure price.
4
Alternative Market Strategy 1
Dont Release Hemopure at all

Pluses
If sufficiently penetrated, the demand for Oxyglobin will
consume the majority of the production capacity. We
will maximize revenue earlier.
Minuses
Not releasing Hemopure would be disregarding a
proven market.
Hemopure has the potential to revolutionize critical care
situations, not releasing Hemopure would be holding
back a helpful product from the people.
Not releasing Hemopure would potentially forfeit a
bountiful gain in goodwill.
5
Alternative Market Strategy 2
Release Oxyglobin with Hemopure

Pluses
We would be able to sell both products for a
very high price and make a more profit per unit
on both products. Minuses
Minuses
Biopure would not be making any revenue to
increase production capacity.
We do not want to have another two years of
zero revenue.
Although we would be making more profit per
unit, we would not have as many units to sell.

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