Biopure

OEM Team #1: Mike Alcantara William Buckley Michelle Dennis Max Weiss

Product Definition

Blood substitute
Derived from bovine hemoglobin Transports oxygen to tissue Oxyglobin - animal (dog) Hemopure human

Human

version more refined Clinical trials anticipated

Market Summary Animal blood substitute (Oxyglobin)

Available 5,400,000 units

15,000 clinics * 800 cases per clinic * 1.5 units per dog (on average) * 30% of patients who would benefit from a transfusion. Set price at $100, lower prices would result in a loss to Biopure Percentage of Vets willing to use * Percentage of Owners willing to use * number of dogs that would benefit * 1.5 units per dog Set price at $200

Potential 1,749,375 units

Target 249,750 units

Maximize profit Stay high, for release of Hemopure

Percentage of Vets willing to use * Percentage of Owners willing to use * number of dogs that would benefit * 1.5 units per dog

Market Summary Animal blood substitute (Oxyglobin)

Market Summary Animal blood substitute (Oxyglobin)

Obstacles to success in the animal market: Proclivity of vets to not perform blood transfusions Price of Oxyglobin (due to future release of Hemopure) When Hemopure is introduced, production capacity of Oxyglobin will be constrained Use profits from Oxyglobin in first two years to increase production capacity

Market Summary Human blood substitute (Hemopure)

Available Demand Acute Blood Loss Elective Surgery (Anonymous) 5800 Elective Surgery (Autologous) 1100 Emergency Surgery (hosp) 1000 Trauma (in field) 200 Chronic Anemia 3200 Not Transfused Rejected 1200 Expired 1500 Transfusions not done Borderline 1000 Trauma 1800 Therefore, the total available human market is 16.8 million units per year.

Market Summary Human blood substitute (Hemopure)

Low Potential Elective Surgery (Autologous) Chronic Anemia High Potential Elective Surgery (Anonymous) Emergency Surgery (hosp) Target Trauma (in field) Rejected Expired Borderline (not done) Trauma (not done) 1100 3200

5800 1000

200 1200 1500 1000 1800

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Market Summary Human blood substitute (Hemopure)

Market Summary Human blood substitute (Hemopure)

Obstacles to success in the human market: FDA final approval Acceptance of use by medical professionals Competitor(s) garnering market share (Baxter & Northfield) Negative Public perception of injecting cow blood The current price of donated blood (125-225) Recommend Hemopure price at $500
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Oxyglobin vs. Hemopure

Oxyglobin threats to Hemopure: Pricing deferential Negative public perception of injecting dog blood

Perception of Oxyglobin and Hemopure as essentially the same product.

How Oxyglobin is an asset to Hemopure: Revenue to asset production Provides test run for production/sales/distribution Growing pains experienced in less visible market
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Biopure SWOT Analysis

Strengths - Larger of Supply of production material - Stored at room temperature - Disease Free - Longer shelf life - Immediately 100% effective Weaknesses - Short Half Life - 5-10 units max dosage - Not FDA approved yet

Internal Environment

External Environment

Threats - Negative public perception of source (cow vs human) - Competitors - Historical lack of Vet transfusion usage

Opportunities - Supply blood substitute during times of shortages. - Time to market on Animal Blood Substitute. - Get the Biopure name on the Market with Oxyglobin 11

Market Strategy

Biopure should release Oxyglobin now at $200/unit to Vets

We set the price for Oxyglobin at the high side because of the release of Hemopure in 2 years after FDA approval. justify the markup because production for Hemopure runs at half the capacity of Oxyglobin.

Hemopure at $500/unit to hospitals

The profits from Oxyglobin should be put towards increasing production capacity

when Hemopure is released, we do not have to ramp down on the production of Oxyglobin when both products are on the market.
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Brining Oxyglobin to Market

Should the Oxyglobin release be done now? Yes:

Revenue for asset production Provides test run for production/sales/distribution Growing pains experienced in less visible market Market diversification when Hemopure is released Hedges against Hemopure delays/failure $200 to Vets (~$400 to consumers). Reasons: 60% of vets willing to use in critical cases (Target Market) 65% of dog owners willing to use in critical cases (Target Market) Vets may accept less than 100% mark-up ($50 is typical markup) Decrease difference between Oxyglobin and Hemopure price.
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Oxyglobin Price:

Alternative Market Strategy 1 Dont Release Hemopure at all

Pluses

If sufficiently penetrated, the demand for Oxyglobin will consume the majority of the production capacity. We will maximize revenue earlier. Not releasing Hemopure would be disregarding a proven market. Hemopure has the potential to revolutionize critical care situations, not releasing Hemopure would be holding back a helpful product from the people. Not releasing Hemopure would potentially forfeit a bountiful gain in goodwill.
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Minuses

Alternative Market Strategy 2 Release Oxyglobin with Hemopure

Pluses

We would be able to sell both products for a very high price and make a more profit per unit on both products. Minuses

Minuses
Biopure would not be making any revenue to increase production capacity. We do not want to have another two years of zero revenue. Although we would be making more profit per unit, we would not have as many units to sell. 15

Competition

The competitive landscape animal market

Lack

of blood supply constricting transfusions 78-93% supply from donor animals residing on premises 7-22% from few blood banks Incompatible blood types lengthen recovery time $50-100 wholesale cost 84% vets dissatisfied

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Positioning Statement for Physicians

For physicians who want to save lives. Hemopure uses cutting edge technology to deliver a safe universal blood substitute than can be given to ANY blood type, because we use disease free hemoglobin that is more effective at delivering oxygen than the standard red blood cells.

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Positioning Statement Physicians

For physicians who demand the latest in medical advancements. Hemopure can be easily administered and deliver more oxygen to the patients organs without the risk of disease, because hemopure is pure, effective and convenient.

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Positioning Statement Public

For people who want a safer substitute when receiving blood. Hemopure is free of any contamination, disease, and safe for any blood type because we use break thru technology to produce hemoglobin that will transfer oxygen throughout our body more effectively than the processes used today, ask your physician about Hemopure.
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Positioning for Vets

For vets who want to save a mans best friend. Oxyglobin is an easy alternative to producing and maintaining your own supply, because Oxyglobin can be shelved for up to two years and allow you easy access to vital hemoglobin to save a mans best friend.

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Positioning for Vets

For vets who want an easy and reliable alternative to producing and or maintaining blood for transfusions. Oxyglobin is a blood substitute than can be stored up to two years because we use the latest in technology to produce hemoglobin that has a long shelf life and will allow you to always have access to it whenever it is needed.
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Advertisement

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Hemopure
Reduce the risk of blood rejection Eliminate probability of transferring disease Hemopure is an easy to maintain, universal blood substitute that outperforms conventional blood transfusions by supplying more oxygen throughout the body.

Hemopure
Product of Biopure

Hemopure offers the latest in medical advances though the development of Oxygen carrying hemoglobin that delivers more oxygen to vital organs than standard blood transfusions without the risk of disease.
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Oxyglobin
An alternative to producing your own blood . Oxyglobin will give you easy access to Oxygen carrying hemoglobin to save someones best friend.
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Biopure
When you want the latest in medical technology Biopure is a blood substitute that can deliver more Oxygen to your organs than red blood cells. Udderly the best.

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8 out of 10 Experts rate Hemopure as the blood substitute of choice.

Hemopure is a safe and effective alternative for any blood type

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