Essay About Biopure Corporation And Initial Price

Biopure Corporation Executive Summary
ToWilliam QuallsFromIndira SharmaSubjectBiopure Corporation Executive SummaryBackgroundBiopure Corporation has two new entries, Oxyglobin and Hemophure, which are blood substitutes designed to perform the function of carrying oxygen to different parts of the body as usually done by the blood. Oxyglobin, intended for animal use was FDA approved and was ready for commercial use whereas Hemopure, intended for human blood transfusion was two years away from FDA approval.Problem StatementThe CEO of Biopure Corporation, Carl Rausch must make a decision on whether to launch the FDA approved Oxyglobin prior to Hemophure or wait until Hemophure gets a FDA approval which is estimated to take two years.SolutionIt is suggested that Biopure Corporation do not wait for Hemophure to get FDA approval and go with launching Oxyglobin as the company will have many benefits by launching Oxyglobin upfront.FrameworkSWOT Analysis:StrengthImprove Biopure’s financial statusGain market experienceWeaknessAcceptance for human blood substitute Market launch of Hemophure depends on FDA approvalOpportunityMarket share generation and positive brand equitySet market dominanceGood distribution networkThreatsBoth the products have same production processCompetitors with better production facility may establish distribution channelThe Company can implement the following to achieve huge benefits out of the launch of Oxyglobin.Business Strategy: The Company can start selling Oxyglobin at an initial price of $150 per unit to the intensive care practice at the veterinary blood market and have its own distribution network.Later, Biopure can increase the price per unit for Oxyglobin which will raise the profits. The steadfast income coming out of this sales will escalate Biopure’s financial and enhance the competitiveness of Hemophure. Although the veterinary market is small and its product sales are greatly influenced by price, being the initiator in any market will make a huge difference and impact the company’s reputation in the most positive way if the product succeed in satisfying the needs and requirements of the consumers.