Biopure Corporation Current Situation: Biopure is planning to launch two blood substitutes , namely Oxyglobin: FDA has already

passed Oxyglobin for commercial launch, it is a blood substitute for animals. Hemopure: it is in third phase of testing and is expected to be approved by 1999, it is a blood substitute for humans. Decisions to be taken:  Whether to launch oxyglobin now or wait till hemopure  If launched, what will be the price of oxyglobin Criteria: Effect of launching of Oxyglobin on launch of hemopure(oxyglobin would be sold for around $150 where as hemopure can be sold for $600 to $800 / unit, if oxyglobin is sold now($150) would not be easy to sell hemopure for the big amount of $800/ unit).  Recovering of costs of oxyglobin. Evaluation: Pros of launching Oxyglobin:  Will establish the company name in the market before the launching of the major product, ie hemopure.  Revenues generated can be used to launch hemopure.  Can take the first mover advantage with adequate market size available  Will boost IPO offer Cons of launching oxyglobin:  The price of oxyglobin may affect the pricing of hemopure Decision : Launch Oxyglobin Pricing: Hence , it is recommended that biopure should launch oxyglobin at 180$ using its own distribution force Salient features of Hemopure  Universal Blood substitute  Free of infectious agents and contamination  Increased shelf life  Immediately 100% effivient at transporting oxygen  Short life : 2 to 7 days  Potential for high toxicity