Biopure is a small biopharmaceutical company with $200 invested with the goal of creating a blood substitute designed to replace donated blood. The company’s goal was to create and sell a bovine based blood substitute to the human market. Along the way they also discovered that their product could also work in the veterinarian market with little or no production changes. Oxyglobin, the veterinarian product recently received FDA approval to go to market immediately, while Hemopure, the human product, is at least two years away from approval.
One tension in this case is what to do with Oxyglobin. The veterinarian market appears smaller and more price sensitive than the human market. And, if Oxyglobin is introduced to the market now at lower prices will it hamper the pricing strategy and perception of Hemopure when and if it is introduced to a potentially much larger dollar volume market.
In the veterinarian market there is no completion other than current practices that are not well liked by that market so there could be a first mover advantage and an opportunity to expand the market substantially. In the human blood substitute market there are two other well established companies that are also in the development stage.
Questions for the assignment –
1. On one page show your calculation for determining the size of the current veterinarian market in $ sales potential by evaluating number of practices, current usage, pricing acceptance. (You can use an average price between high and low pricing estimates)
2. On a separate page, show your calculations for the potential expanded veterinarian market in $ sales if Oxyglobin is accepted by the market and its usage becomes more common in both regular and emergency practices
3. Calculate the $ sales potential for Hemopure in the human blood substitute market with an average price of Biopure’s range of $600-$800 per unit.
4. Finally, write a one page memo form recommendation to the CEO Carl Rausch as to what action you would recommend based on facts from the case. (facts, not opinions). Build your case and support it with facts and put a page number from the case by each fact you are quoting to justify your recommendation. Succinct writing featuring short paragraphs and bullet points with active verbs is common and accepted.
5. Then attach your calculation pages (steps 1-3) to the back of your one page memo as supporting documents and be sure to put your name on the upper left hand top of your attachment.
A memo, or memorandum, is one of the most common forms of business communication. … The format of a memo is simple. You write “Memo” or “Memorandum” at the top, followed by a To line, a From line, a Date line, a Subject line, and then the actual body of the message.
On the last page, then answer these questions –
1 – What are reasons for and against immediately launching Oxyglobin?
1- a) Detailed questions in homework assignment
2 – Compare the market potential of Oxyglobin and Hemopure
3 -What are some of the challenges of going to market with Oxyglobin?
4 – What needs to happen? What skills and capabilities does Biopure need to build?
In addition to the above, I have also provided you with additional reading – Segmentation and Targeting Reading
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Biopure is a small biopharmaceutical company with $200 invested with th appeared first on Skilled Papers.