Biopure Corp. Case Assignment

Biopure Corporation

Questions & Answers

1. How do you assess Biopure’s potential in the human market? The animal market?

Market Potential Analysis for Human Market (Hemopure)

As shown in the table there were 14 million units blood donated in 1995.

* 8.1 units used within surgeries

* 3.2 million units were used on chronic anemia patients

* 2.7 million were not transfused

Human Market - Donated units in 1995 |

Acute Blood Loss | 8.100.000 |

Elective Surgery (Anonymous) | 5.800.000 |

Elective Surgery (Autologous) | 1.100.000 |

Emergency Surgery (hosp) | 1.000.000 |

Trauma (in field) | 200.000 |

Chronic Anemia | 3.200.000 |

Not Transfused | 2.700.000 |

Rejected | 1.200.000 |

Expired | 1.500.000 |

TOTAL | 14.000.000 |

Therefore, the total available human market potential is 14 million units per year. There are 2 other competitors, called Baxter International and Northfield Laboratories in Blood Substitutes market.

Market Potential Analysis for Animal Market (Oxyglobin)

* There are 15.000 Veterinary in the market.

* Average basic care per veterinary is 817 for all pets with different percentage of price approvals for different prices

* Average emergency care per veterinary is 770 for all pet with different percentage of price approvals for different prices

Animal Market Demand |

Number of Veterinary practices | 15.000 |

Primary Care (95%) | 14.250 |

Emergency Care (5%) | 750 |

Number of average transfused unit |   |

Per Primary Care | 17 |

Per Emergency Care | 150 |

Total Units for Primary Cares | 242.250 |

Total Units for Emergency Cares | 112.500 |

Total Number of Units Needed for Animal Market | 354.750 |

Therefore there is a market potential of 350.000 units for Oxyglobin per year and there will no competition in animal market for the next 2 to 5 years which is required FDA Approvals for new rivals.

2. How might Oxyglobin be a threat to Hemopure? How might be an asset?...