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Biopure

In: Business and Management

Submitted By nikki31
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Biopure Corporation has two new entries, Oxyglobin and Hemophure, which are blood substitutes designed to perform the function of carrying oxygen to different parts of the body as usually done by the blood. Oxyglobin, intended for animal use was FDA approved and was ready for commercial use whereas Hemopure, intended for human blood transfusion was two years away from FDA approval.
Problem Statement
The CEO of Biopure Corporation, Carl Rausch must make a decision on whether to launch the FDA approved Oxyglobin prior to Hemophure or wait until Hemophure gets a FDA approval which is estimated to take two years.
Solution
It is suggested that Biopure Corporation do not wait for Hemophure to get FDA approval and go with launching Oxyglobin as the company will have many benefits by launching Oxyglobin upfront.
Framework
SWOT Analysis:
Strength
• Improve Biopure’s financial status
• Gain market experience Weakness
• Acceptance for human blood substitute
• Market launch of Hemophure depends on FDA approval
Opportunity
• Market share generation and positive brand equity
• Set market dominance
• Good distribution network Threats
• Both the products have same production process
• Competitors with better production facility may establish distribution channel

The Company can implement the following to achieve huge benefits out of the launch of Oxyglobin.
Business Strategy: The Company can start selling Oxyglobin at an initial price of $150 per unit to the intensive care practice at the veterinary blood market and have its own distribution network.Later, Biopure can increase the price per unit for Oxyglobin which will raise the profits. The steadfast income coming out of this sales will escalate Biopure’s financial and enhance the competitiveness of Hemophure. Although the veterinary market is small and its product sales are greatly influenced by price,

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