Hemopure and Oxyglobin

After analyzing the survey data on Hemopure and Oxyglobin for protentional opportunities and risk of entry into the blood substituents market, I can report on the initial findings.  

With FDA approval, I recommend we introduction Oxyglobin into the blood substitute market for veterinarians immediately.  It is it not possible to guarantee that the price of Heropure will not be influenced by the price of Oxyglobin, but if we hesitate to introduce Oxyglobin into the market, the opportunity costs outweigh the perceived risk as I am confident Biopure can meet its sales target.

After analyzing pricing options, our optimal price for the market size is $200 to reach profitability and maximize our profits (see exhibit A). With production set at 300,000, a minimum of 121,457 units would need to be sold to recoup R&D investment. The projected market can absorb the initial annual production run with still room for growth (see exhibit B). Of the 15,000 veterinary clinics willing to sell Oxyglobin, we can sale an estimated 180,000 units to clinics for non-critical situations and 2,160 million for critical situations. The current market exclusivity and protentional of Oxyglobin growth could offset any potential losses on Hemopure pricing and delaying Oxyglobin to market is estimated at 44 million in opportunity cost over the 2 years.  

Exhibit A

[pic 1]

Exhibit B

[pic 2]

After analyzing the survey data on Hemopure and Oxyglobin for protentional opportunities and risk of entry into the blood substituents market, initial conclusions are now available.  

With FDA approval, it is recommended Biopure introduces Oxyglobin into the blood substitute market.  It is it not possible to guarantee that the price of Heropure will not be influenced by the price of Oxyglobin, but hesitation to go to market could lead to opportunity costs that outweigh the perceived risk as revenue estimates suggest Biopure can meet its sales target.