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OEM Team #1: Mike Alcantara William Buckley Michelle Dennis Max Weiss
Derived from bovine hemoglobin Transports oxygen to tissue Oxyglobin - animal (dog) Hemopure – human
version more refined Clinical trials anticipated
for release of Hemopure Percentage of Vets willing to use * Percentage of Owners willing to use * number of dogs that would benefit * 1.000 units 15.5 units per dog Set price at $200 Potential – 1.000 clinics * 800 cases per clinic * 1. Set price at $100.Market Summary Animal blood substitute (Oxyglobin) Available – 5.5 units per dog (on average) * 30% of patients who would benefit from a transfusion. lower prices would result in a loss to Biopure Percentage of Vets willing to use * Percentage of Owners willing to use * number of dogs that would benefit * 1.375 units Target – 249.749.750 units Maximize profit Stay high.5 units per dog 3 .400.
Market Summary Animal blood substitute (Oxyglobin) 4 .
Market Summary Animal blood substitute (Oxyglobin) Obstacles to success in the animal market: Proclivity of vets to not perform blood transfusions Price of Oxyglobin (due to future release of Hemopure) When Hemopure is introduced. production capacity of Oxyglobin will be constrained Use profits from Oxyglobin in first two years to increase production capacity 5 .
Market Summary Human blood substitute (Hemopure) Available Demand Acute Blood Loss Elective Surgery (Anonymous) 5800 Elective Surgery (Autologous) 1100 Emergency Surgery (hosp) 1000 Trauma (in field) 200 Chronic Anemia 3200 Not Transfused Rejected 1200 Expired 1500 Transfusions not done Borderline 1000 Trauma 1800 Therefore.8 million units per year. the total available human market is 16. 6 .
Market Summary Human blood substitute (Hemopure) Low Potential Elective Surgery (Autologous) Chronic Anemia High Potential Elective Surgery (Anonymous) Emergency Surgery (hosp) Target Trauma (in field) Rejected Expired Borderline (not done) Trauma (not done) 1100 3200 5800 1000 200 1200 1500 1000 1800 7 .
Market Summary Human blood substitute (Hemopure) 8 .
Market Summary Human blood substitute (Hemopure) Obstacles to success in the human market: FDA final approval Acceptance of use by medical professionals Competitor(s) garnering market share (Baxter & Northfield) Negative Public perception of injecting “cow blood” The current price of donated blood (125-225) Recommend Hemopure price at $500 9 .
Oxyglobin vs. 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 10 . Hemopure Oxyglobin threats to Hemopure: Pricing deferential Negative public perception of injecting “dog blood” Perception of Oxyglobin and Hemopure as essentially the same product.
Not FDA approved yet Internal Environment External Environment Threats .5-10 units max dosage .Supply blood substitute during times of shortages.Stored at room temperature .Get the Biopure name on the Market with Oxyglobin 11 .Immediately 100% effective Weaknesses .Historical lack of Vet transfusion usage Opportunities .Biopure SWOT Analysis Strengths .Time to market on Animal Blood Substitute.Disease Free .Competitors .Short Half Life .Larger of Supply of production material .Longer shelf life . . .Negative public perception of source (cow vs human) .
we do not have to ramp down on the production of Oxyglobin when both products are on the market. Hemopure at $500/unit to hospitals The profits from Oxyglobin should be put towards increasing production capacity when Hemopure is released. justify the markup because production for Hemopure runs at half the capacity of Oxyglobin. 12 .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.
Reasons: 60% of vets willing to use in critical cases (Target Market) 65% of dog owners willing to use in critical cases (Target Market) Vet’s may accept less than 100% mark-up ($50 is typical markup) Decrease difference between Oxyglobin and Hemopure price. 13 Oxyglobin Price: .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 $200 to Vets (~$400 to consumers).
the demand for Oxyglobin will consume the majority of the production capacity. 14 Minuses . Hemopure has the potential to revolutionize critical care situations.Alternative Market Strategy 1 Don’t Release Hemopure at all Pluses If sufficiently penetrated. not releasing Hemopure would be holding back a helpful product from the people. Not releasing Hemopure would be disregarding a proven market. We will maximize revenue earlier. Not releasing Hemopure would potentially forfeit a bountiful gain in goodwill.
15 . We do not want to have another two years of zero revenue.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. Although we would be making more profit per unit. we would not have as many units to sell.
Competition The competitive landscape – animal market Lack of blood supply constricting transfusions 78-93% supply from donor animals residing on premises 7-22% from few blood banks Incompatible blood types lengthen recovery time $50-100 wholesale cost 84% vets dissatisfied 16 .
because we use disease free hemoglobin that is more effective at delivering oxygen than the standard red blood cells. Hemopure uses cutting edge technology to deliver a safe universal blood substitute than can be given to ANY blood type. 17 .Positioning Statement for Physicians For physicians who want to save lives.
Hemopure can be easily administered and deliver more oxygen to the patients organs without the risk of disease.Positioning Statement Physicians For physicians who demand the latest in medical advancements. effective and convenient. because hemopure is pure. 18 .
ask your physician about Hemopure. Hemopure is free of any contamination. 19 . disease. and safe for any blood type because we use break thru technology to produce hemoglobin that will transfer oxygen throughout our body more effectively than the processes used today.Positioning Statement Public For people who want a safer substitute when receiving blood.
Oxyglobin is an easy alternative to producing and maintaining your own supply. 20 .Positioning for Vets For vets who want to save a mans best friend. because Oxyglobin can be shelved for up to two years and allow you easy access to vital hemoglobin to save a mans best friend.
Positioning for Vets For vets who want an easy and reliable alternative to producing and or maintaining blood for transfusions. 21 . Oxyglobin is a blood substitute than can be stored up to two years because we use the latest in technology to produce hemoglobin that has a long shelf life and will allow you to always have access to it whenever it is needed.
Advertisement 22 .
Hemopure Reduce the risk of blood rejection Eliminate probability of transferring disease Hemopure is an easy to maintain. . universal blood substitute that outperforms conventional blood transfusions by supplying more oxygen throughout the body.
24 .Hemopure Product of Biopure Hemopure offers the latest in medical advances though the development of Oxygen carrying hemoglobin that delivers more oxygen to vital organs than standard blood transfusions without the risk of disease.
Oxyglobin will give you easy access to Oxygen carrying hemoglobin to save someone’s best friend.Oxyglobin An alternative to producing your own blood . 25 .
Biopure When you want the latest in medical technology Biopure is a blood substitute that can deliver more Oxygen to your organs than red blood cells. 26 . Udderly the best.
8 out of 10 Experts rate Hemopure as the blood substitute of choice. Hemopure is a safe and effective alternative for any blood type 27 .
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