Biopure Case Analysis

In: Business and Management

Submitted By tforman
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To: Carl Rausch, President and CEO, Biopure
From: Team 1

Subject: Launch Strategies for Oxyglobin

Team 1 strongly recommends the launch of Oxyglobin in the veterinary market as soon as possible. In order to make this launch as successful as possible, Team 1 recommends: * Launching Oxyglobin from a fully-owned subsidiary of Biopure * Establishing an initial launch price of $xxx * Focus the supply chain on Critical Care Veterinary services * Establish a direct to consumer advertising campaign

The team feels that this launch strategy will provide substantial value to Biopure and set up for a strong introduction of Hemopure once approved by regulatory authorities. The successful launch of Oxyglobin will: * Create a path to get income for initial public offering to reduce risk associated with Hemopure * Give opportunity to learn how to position Hemopure within the human market * Define Biopure as a socially acceptable blood substitute company * Provide 5 year exclusivity in the veterinary market * Respond to the market demand

While every launch presents risk, Team 1 feels that we are setting up Biopure for the best possible launch position. The move to a fully-owned subsidiary will allow the launch of Oxyglobin into the veterinary market while minimizing risk to the human market. Customers will be less likely to feel that they are being prescribed an “animal drug” once Hemopure is approved. Establish a price of $200 to veterinary practices allowing for a charge as much as $400 to the consumer. At this price point, it will allow for the introduction of Hemopure at a premium in the human market. Focusing on the critical care veterinary practice will provide the highest probability of success for the pricing strategy. Market research data suggests that pet-owners are willing to pay higher prices for critical care,…...

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