Biopure Case Study

Blood subtitle is a big market since the rise aging population in the United States, automobile accidents, gunshot wounds, etc. Biopure Corporation should enter the market as soon as possible, otherwise, there will be a new competitor and it will be difficult to enter as a second company because most of the companies already applied the patent for purification and modification, and it will be little chance to pass FDA approval. Biopure should launch Oxyglobin immediately in order to get the feedback and build the reputation for Hemopre. Biopure shouldn’t waste the two-year waiting for final government approval of Hempore. Doing something is better than doing nothing.

Moreover, one of the views disagree with launching Oxyglobin immediately is price sensitive. Biopure sets the Oxyglobin price at 150 per units and Hemopure at $800. People can’t accept Hemopure at $800 when they already know the Oxyglobin price. However, both of prices make no sense. $150 per Oxyglobin unit is too low for a new product. Biopure should increase the price because it will be hard if they want to increase the price in the future. Increasingly, they are pioneer in a blood subtitle for small-animal vet market, they can decide higher standard price in that market. Oxyglobin should set the price up to $200 per unit because people visit an emergency care practice may cost from $200 to over $1,000, and 90% of pet owners are willing to pay higher price to treat their pets. Moreover, they paid 200 million for R&D, and they should consider deal with the massive cost. On the other hand, the Hemopure ‘s price at $800 is too high since they are only one difference with Oxyglobin, the size of the hemoglobin “clusters.” Biopure shouldn’t copy the price strategy with two competitors, Baxter International and Northfield Laboratories, because they already entered the market earlier. They should cut down the price to $600. Therefore, they can decrease the price gap between Oxyglobin and Hemopure in order to make people accept it.