Submitted by: Submitted by aka7887
Views: 1909
Words: 2247
Pages: 9
Category: Business and Industry
Date Submitted: 04/28/2010 09:47 AM
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I/ Summarize the pros and cons for the decision of whether or not to launch Oxyglobin.
Oxyglobin is the first of two new “blood substitutes”, produced by Biopure.
PROS:
Launching this product will generate first revenues for the company, which can be then used for the launch of Hemopure.
The animal market, even if it’s small, is attractive. Moreover, the emergency care practice generates significant revenues for the veterinarians, so the product could benefit from a good demand.
Biopure should see this launch as a “test” or “trial”, so the mistakes won’t be done during the further launch of Hemopure for the human market. It is obvious that a bad launch for human use would have more consequences than for the animal use: bad communication.
As Oxyglobin is a breakthrough development, safe and effective for medical use, and fully approved by the government (FDA), it provides the perfect solution to a previous lack of an adequate blood supply (few animal blood banks), and most of all of the overall dissatisfaction of veterinary doctors with the blood transfusion alternatives currently available in the market place.
Investors would be more convinced of Biopure’s attractiveness with small but steady sales of a veterinary product than with a human product, which is still under development.
CONS:
Oxyglobin and Hemopure are almost identical, so it will imply price expectations biases for the consumers.
Biopure has to find a way to justify a 500% price difference between these two products.
The demand for animal blood substitutes is not really noticeable, and emergency care practices are far from being frequent (5%), so it may be better to wait so Biopure could provide a proper “education” to the veterinarians concerning the potential benefits of Oxyglobin.
2/ Based on case data, what is the potential...