Biopure Corporation: Oxyglobin

Case Summary:
Carl Rausch, CEO of Biopure Corporation needed to decide whether and when to launch one of his company products for animal blood substitute called Oxyglobin. Biopure planned on going public and while the second product Hemopure (for human) was still in the trial process by the FDA, so the release of Oxyglobin in the market would strengthen Biopure financial. However, if Oxyglobin would not do well in the market then it would threaten the success of Hemopure.

Analysis of the Problem:
Carl Rausch needs to consider the following conditions before making any decision how best to leverage his company opportunity with Oxyglobin without threatening the outcome of Hemopure:
Biopure did not have any revenue and very little debt, plus …show more content…
Recommendation:
The immediate release of Oxyglobin in the market at the price of $200 for both emergency and non-emergency care because it has been approved for sale and there is a demand for it with 60% of veterinarians willing to try it in the critical cases, and 40% to 85% of per owner would use it. Please see my appendices for the reason $200 is the break even price with the most profit. Advertised through animal magazines and animal shows to maximize the customer reach due to the veterinary market being quite small and selective.
Advertising to the distributor with special discount and additional benefit upon the point of sale. Since there are over 200 independent distributors in the US, Biopure would not have to worry about logistic and transportation.
The release of Oxyglobin is a great opportunity for Biopure to acquire the experiences needed in order to successfully publish Hemopure to the market. The profit that Oxyglobin generates would raise the money needed to advertise Hemopure commercially and possibility offsets some of the potential loss if there is

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