Essay Exectuive Summary
CARL RAUSH, CEO, BIOPURE CORPORATION
NAVEEN KUMAR RAPAKA
LAUNCH OF OXYGLOBIN IN THE VETERINARY MARKET.
SEPTEMBER 2, 2015
Biopure Corporation, has two game changing blood substitute products, Hemopure and Oxyglobin. Oxyglobin is the
first ever blood substitute for the small animal veterinary market and already has the FDA clearance for commercial
use. Hemopure, which is mostly similar to Oxyglobin is intended for human use and currently undergoing phase-3
trials and it would take at least 2 years for the approval of FDA for public use. The Vice-President of veterinary
products, Andy Wright, avers that starting the sales of Oxyglobin will start revenue …show more content…
might impact the price strategy of Hemopure. Although the properties of both the drugs are similar, they are targeting
different markets and the demand for a human blood substitute would be very high when compared to Oxyglobin. He
says that Hemopure could be priced between $600- $800, but it also depends a lot on the market condition in around
2 years as it is still needs the FDA approval.
If the company waits till the approval of Hemopure to launch Oxyglobin it puts the company at risk as competition
may crop up in the veterinary market and entering into it with a competitor would flare up price wars. Also the success
of Oxyglobin in the veterinary market will help Biopure Corporation with the marketing and market expectation as
they will have the evidence and support of the veterinary market. Also one important factor that Biopure has to consider
is that the phase 3 trials are still in progress and as in the case of Baxter the approval could be delayed or rejected
which will have a negative impact on the share value given that Biopure is looking to go for an IPO.
I think that Biopure Corporation should go ahead with the commercial sales of Oxyglobin at a price of…