Biopure

We are recommending going ahead with the product launch of Oxyglobin immediately as it will give Biopure a first mover advantage, and a solid revenue stream, thereby attracting future investment.

By going with the recommendation, Biopure can build a brand identity which will help the launch of Hemopure. The revenues from Oxyglobin can be used to realize immediate profits which will help us attract investors.

Biopure has significant potential in both the Human and the Animal market. We estimate that our annual revenues can be as high as 200 million considering a very optimistic analysis, but in reality, on doing a conservative analysis we think we should generate 24 million USD in revenue. In the human market, once Biopure attains the FDA approval, we estimate Hemopure to generate 4 billion USD (calculations in Appendix).

We foresee some obstacles for Biopure’s success when it enters the human market. The FDA approval for Hemopure should be obtained before other competitors. Moreover, Biopure currently has only one manufacturing facility, which can produce only one product at a time. Though for now, this facility is fine to operate, once we launch Hemopure, scaling our manufacturing facility should be our top priority. Additionally, the raw materials used for producing the human blood substitute can create a negative brand image for Biopure and hence we must develop an effective marketing strategy to ensure market benefit and effectiveness.

In the animal market, considering we are immediately going to market, and do not have a distribution network in place, distributors need to be trained and educated on the benefits of the new product. Moreover, since Oxyglobin has a relatively high price, convincing both the veterinarian and pet owners on the benefits of the product will be crucial.

Oxyglobin can create a great platform to launch Hemopure in many ways. Depending on how the new product performs we can gain vital feedback