BIOPURE CASE STUDY

NPD - Group 9
Laxmi Prabhu (H2019023), Neha Singh (H2019028), Tanya Kohli (H2019054), Ujwala Pande
(H2019055)

Question 1- How would you assess Biopure’s potential in the human market and animal
market? 
Human blood market: According to Exhibit 5, 11,300,000 units of blood is lost just by acute
cases and chronic anaemia. And from Exhibit 6, cost to patient of other expenses to receive the
donated blood (blood cannot be charged) can range from $125 to $225 (depending on the
hospital and facility) in case of anonymous donor, and $275 to $425 in case of autologous
donations made.
Around 14 million units of RBCs are available from the donations made. But RBCs have lesser
donation rate, out of 75% qualifying people to donate, only 5% do and even the shelf life is
short, which creates the shortage of RBCs time to time. Of the total annual donated blood, 2.7
million units get discarded because of shelf life or chance of risk. 3.2 million is transfused to
chronic cases, 8.1 are used by acute cases. Still there are 1 million cases who do not receive due
to supply shortages.
The demand of RBC is expected to rise by 2030, as the over 65 years population might get
doubled by then. And RBCs have lot of limitations such as exact blood type matching,
transfusion also reduces O2 carrying efficiency, it has limited shelf life, needs refrigeration and
has high risk of disease transmission.

Veterinary blood market: About 30% of cases would have gained benefit if the transfusion was
done, out of which only 2.5% actually receive it. Blood transfusion was not very frequent. Lack
of inadequate blood supply and a few animal blood banks were available.
The cost of primary care practices of blood requirement ranged from $80 to $120 per unit and in
case of emergency, it costed around $130 to $170 per unit. There was lack of time and adequate
resources to classify the donor and the blood recipient. One of the major factor was that 84% of
the veterinary doctors mentioned that they were not satisfied with the currently available blood
transfusion alternatives.
The target market volume of Oxyglobin can be around 5,50,000(estimated). Number of
veterinary practices were 15,000. Number of animals in each practice will be 800 out of 85%, as
dogs take up 50% and cats 35% of the total patient volume.
Assuming those willing to try will be, considering case of dogs out of the 30% of them getting
benefitted, 2.5% might be critical and 27.5% non-critical. Weighted willingness of trial can be
calculated of veterinary doctors and pet owners. And then, each pet might need 1 unit. Taking
the given values and as per assumptions of willingness we can say it can come up to 5.5 million
market need. And this can increase in future, as values are considered from the year 1995.
Question 2-How might Oxyglobulin be a threat to Hemopure? How might it be an asset? 
The motive of Biopure company is to penetrate into human market with is to enter the human
market with far-reaching substitute for blood. Oxyglobin has been already approved by FDA.
However, in case of Hemopure the company has to wait for FDA approval which is an essential
and primary requirement to launch the product.
Oxyglobin as Threat
Post launch of Oxyglobin, automatically price of hemopure needs to be altered and reduced.
Price change in both the products will be due to limitations in production specialties
Oxyglobin may create impression of hemopure belonging to similar range and also source may
be cattle/dog. Therefore, this may bring on negative impression as well as perception among
consumers that preparations might be on similar lines
If Oxyglobin fails it might have detrimental effects on Hemopure as it may weaken its position in
market
Oxyglobin as an Asset?
Oxyglobin can be termed as asset to hemopure as it will help in test marketing phase of product
development also in terms of production, distribution and sales. It could be good source of
impression and it may set platform for hemopure with ease in turn efforts could be minimized in
order to establish hemopure as a brand.

Question-3- Should Biopure release Oxyglobilin? If so at what price? How should it be

distributed?
Should Biopure release Oxyglobin?
Yes, Biopure should release Oxyglobulin immediately. Launching Oxyglobin before Hemopure
would generate very first revenue for Biopure which they can use to launch Hemopure
successfully. If Oxyglobin creates enough brand awareness among physicians and healthcare
providers, Biopure could utilize this brand image for its Hemopure launch. It will help
understand the market strategy for Hemopure by starting with a smaller market of veterinary
blood market.
If something goes wrong with the approval of Hemopure and the launch is delayed (or not
approved at all), Biopure would in an extremely difficult financial situation and it would be very
difficult to launch Oxyglobin then.

Price and Distribution (also attached in the excel sheet)

National Distributor Raw material 1.5/unit
Regional
Distrbutors
Capacity of oxy $ 3,00,000.00
Production cost $ 15,00,00,000.00 blood bank 50-100
Total raw material cost $ 1,38,00,00,000.00 Cattle house Primary care charges
80-120
$ 1,53,00,00,000.00 Emergency 130-170
Total revenue at $150 $ 1,08,30,00,00,000.00 1995 Tranfused Blood Bank
Subtract all other cost $ 1,06,77,00,00,000.00 primary 17 15.81 1.19
Sales rep 30% $ 13,800.00 Emergency 150 117 33
$ 1,06,76,99,86,200.00
Physical distribution $ 7,50,00,00,000.00

Final $ 99,26,99,86,200.00

Owners
Total 200 Non critical critical Total
546 $ 100.00 120 180 300
462 $ 200.00 80 170 250
294 $ 300.00 70 150 220
182 $ 400.00 60 130 190

Revenue (also attached in the excel sheet)

Sale Price 100 150 200
Capacity Veterinary per year 3,00,000 3,00,000 3,00,000
Non- Market Size units 2,42,250 2,42,250 2,42,250
Critical
Market
Oxyglobin Adoption 70% 25% 5%
Sales Potential 1,69,575 60,563 12,113
Oxyglobin Revenue Potential 1,69,57,5 90,84,37 24,22,500
00 5
Critical Market Size in units 1,12,500 1,12,500 1,12,500
Market
Oxyglobin Adoption 95% 80% 60%
Sales Potential 1,06,875 90,000
Oxyglobin Revenue Potential 1,06,87,5 1,35,00,0 13500000
00 00
Total Total Sales Potential 2,76,450 1,50,563 79,613
Total Oxyglobin Revenue 2,76,45,0 2,25,84,3 15922500
Potential 00 75
Revenue 3,00,00,0 4,50,00,0 60000000
00 00