BioPure case :: essays research papers

BioPure Corporation, which was founded in 1984 by entrepreneurs Carl Rausch and David Judelson, is a privately owned biopharmaceutical unshakable specializing in the ultra purification of proteins for human and ex-serviceman use. In 1998 Biopure pioneered the ripening of oxygen therapeutics using Hemoglobin, a new class of pharmaceuticals that atomic number 18 intravenously administered to deliver oxygen to the bodys tissues. Biopures two intersection points, Hemopure for human use, and Oxyglobin for animal veterinary use, both represented a new Oxygen based discussion approach for managing patients oxygen requirements in a broad range of potential medical applications. The factor distinguishing Biopures two products from other split turn products being developed by two possible rivals, Baxter International and Northfeild Laboratories, is that its haemoglobin based source is bovine rather than human and was derived from the production line cells of cattle. both of Biopure s course substitute products were in the final stages of the approval serve up of the Food and Drug Administration (FDA) in 1998. Oxyglobin had just received the FDAs approval for commercial cease declaring it safe and effective for medical use. Hemopure was entranceway final Phase 3 clinical trials and was optimistically expected to gather final FDA approval for release in 1999. The FDA approval of Oxyglobin and its possible consequent release into the veterinary market caused concern over whether the early release of Hemoglobin would impinge BioPures ability to price Hemopure when the product at long last received approval. Given that the two products were almost identical in properties and function, it was purpose 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 mount is limited, Oxyglobin has the potential to become a lucrativ e investment for Biopure. Based on the approximate 355,000 blood transfusions (please see peril 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 number of blood transfusions conducted in 1995 represented on average merely 2.5% of animals suffering from acute blood loss, increased availability of animal blood could possibly 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 deal out its full capacity of 300,000 units per year. As can be seen in Exhibit 1, the results of such an aggressive marketing strategy would yield a positivistic gross margin of between 49% and 66%, assuming the product was sold at a price of $100 to $150 per unit.