BioPure case :: essays research papers

BioPure Corporation, which was founded in 1984 by entrepreneurs Carl Rausch and David Judelson, is a privately owned biopharmaceutical firm specializing in the ultra purification of proteins for human and veterinary use. In 1998 Biopure pioneered the development of type O therapeutics using haemoglobin, a new class of pharmaceuticals that are intravenously administered to deliver oxygen to the bodys tissues. Biopures two products, Hemopure for human use, and Oxyglobin for animal veterinary use, twain represented a new Oxygen base treatment advent for managing patients oxygen requirements in a broad range of possible medical examination applications. The factor distinguishing Biopures two products from other blood substitute products being developed by two possible rivals, Baxter International and Northfeild Laboratories, is that its hemoglobin based source is bovine rather than human and was derived from the blood cells of cattle. Both of Biopures blood substitute products we re in the last stages of the citation process of the intellectual nourishment and Drug Administration (FDA) in 1998. Oxyglobin had just stock the FDAs approval for commercial justify declaring it safe and effective for medical use. Hemopure was entering final Phase 3 clinical trials and was optimistically expected to see final FDA approval for release in 1999. The FDA approval of Oxyglobin and its possible subsequent release into the veterinary market caused concern over whether the earliest release of Hemoglobin would impinge BioPures ability to price Hemopure when the product finally received approval. Given that the two products were almost identical in properties and function, it was thought that the early release of Oxyglobin would create an unrealistic price expectation for Hemopure if released first.Although blood transfusions in the veterinary market are infrequent and the market scope is limited, Oxyglobin has the potential to become a lucrative investment for Biopure . Based on the imagine 355,000 blood transfusions (please see Exhibit 1 for the calculations behind this estimate) performed on animals in 1995, a definite opportunity exists for Oxyglobin within the veterinary blood market. Since the flake of blood transfusions conducted in 1995 represented on average only 2.5% of animals miserable from acute blood loss, increased availability of animal blood could maybe stimulate the market.In order to estimate the possible impacts of introducing Oxyglobin as a major product, it was assumed that Biopure would be able to produce and sell its replete(p) capacity of 300,000 units per year. As can be seen in Exhibit 1, the results of much(prenominal) an aggressive marketing strategy would yield a positive arrant(a) margin of between 49% and 66%, assuming the product was exchange at a price of $100 to $150 per unit.