THE THREE MUSKETEERS

Biopure Corporation
SUBMITTED BY:-
BHISE SUVIDH DEEPAK PGP/38/228
ANUJ SONI ABM/19/026
SIDDHESH PANDHARE PGP/38/246 SUBMITTED TO:-
AMAN VERMA ABM/19/030 PROF ANUBHAV MISHRA
AKSHAY BARRE PGP/38/501
Problem Statement
● Biopure corporation a biotech company with no sales and revenue has
developed two new products Oxyglobin and Hemopure.
● ‘Oxyglobin’ is a blood substitute for veterinary market and is ready for
commercial launch whereas ‘Hemopure’ is for human market and still in FDA
phase 3 clinical trial.
● Ted Jacobs, VP of human trials, is concerned for release of Oxyglobin because
it will create unrealistic price expectations for Hemopure, but Andy Wright,
VP veterinary product, is in favour of launch of Oxyglobin as it has its own
advantages including revenue generation and learning the market behaviour.
● Carl Rausch, CEO and President, Biopure Corporation has to make a decision
whether to launch Oxyglobin without jeopardizing Hemopure’s potential.
Options Available
• Go according to Andy Wright’s opinion of launching Oxyglobin
immediately and go for Hemopure whenever it is ready for market
launch.
• Wait for Hemopure to get final FDA approval and then release both,
Hemopure and Oxyglobin simultaneously such that price of
Hemopure can be justified and both the products can be distinctively
differentiated.
Analysis

• If Oxyglobin is released immediately.

Pros Cons

First mover advantage in the veterinary Might hamper the pricing strategy for
market and establish as a disruptive brand. hemopure.

It will create a steady stream of revenue Not very effective for taking company public.
stream will generate.

• Wait for Hempure to get FDA approval

Pros Cons

Both the products can be priced according to Biopure will lose on potential revenue that
decided strategy could have been generated by releasing
Oxyglobin early.

Can be effective for taking company public Chances of competition entering the market.
Recommendations
• The immediate launch of Oxyglobin is recommended as it will have several short-
term and long-term benefits.
• The only concern of Ted Jacobs is the price sensitivity of Hemopure after the
launch of Oxyglobin at $150-$200.
• Although the content and the overall production process are similar for both
blood substitutes, the products are targeted at different markets.
• No proper research suggests the price correlation of the blood substitutes in both
markets.
• Having the first-mover advantage, albeit in the small veterinary market, will give
the company a positive reputation that will boost the future launch of Hemopure.
• Hemopure is still in its phase 3 clinical trial and does not guarantee any sure shot
approval in the future.
• The risk associated with the competitors entering the human blood substitute
market simultaneously makes it riskier for the company.