BioPure Corporation, which was founded in 1984 by entrepreneurs Carl Rausch and David Judelson, is a privately owned biopharmaceutical firm specializing in the ultra purification of proteins for human and veterinary use. In 1998 Biopure pioneered the development of oxygen therapeutics using “Hemoglobin”, a new class of pharmaceuticals that are intravenously administered to deliver oxygen to the body's tissues. Biopure's two products, Hemopure for human use, and Oxyglobin for animal veterinary use, both represented a new Oxygen based treatment approach for managing patients' oxygen requirements in a broad range of potential medical applications. The factor distinguishing Biopure’s two products from other blood substitute products being developed by two possible rivals, Baxter International and Northfeild Laboratories, is that its hemoglobin based source is bovine rather than human and was derived from the blood cells of cattle. Both of Biopure’s blood substitute products were in the final stages of the approval process of the Food and Drug Administration (FDA) in 1998. Oxyglobin had just received the FDA’s approval for commercial release declaring it safe and effective for medical use. Hemopure was entering final Phase 3 clinical trials and was optimistically expected to see final FDA approval for release in 1999. The FDA approval of Oxyglobin and its possible subsequent release into the veterinary market caused concern over whether the early release of Hemoglobin would impinge BioPure’s ability to price Hemopure when the product finally received approval. Given that the two products were almost identical in properties and function, it was thought that the early release of Oxyglobin would create an unrealistic price expectation for Hemopure if released first.
Although blood transfusions in the veterinary market are infrequent and the market scope is limited, Oxyglobin has the potential to become a lucrative investment for Biopure. Based on the approximate 355,000 blood transfusions (please see Exhibit 1 for the calculations behind this estimate) performed on animals in 1995, a definite opportunity exists for Oxyglobin within the veterinary blood market. Since the number of blood transfusions conducted in 1995 represented on average only 2.5% of animals suffering from acute blood loss, increased availability of animal blood could possibly stimulate the market.
In order to estimate the possible impacts of introducing Oxyglobin as a major product, it was assumed that Biopure would be able to produce and sell its full capacity of 300,000 units per year. As can be seen in Exhibit 1, the results of such an aggressive marketing strategy would yield a positive gross margin of between 49% and 66%, assuming the product was sold at a price of $100 to $150 per unit.
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If the firm decides to pursue alternative two, Burroughs and Wellcome must construct a new pricing strategy. Some of the firm’s uncertainties consist of the public perception of the company, the implication of the current pricing strategy to revenues, the effect to the bottom line because of the reduction in price, the impact of an introduction of a new product from other competitors in the future, and the unclear outcome on profits due to regulatory constraints.
There are two solutions that provide the optimal profit given the current constraints under which JP Molasses operates. Under these conditions, the optimal profit is $63,571. This profit margin is achieved in both cases with revenue of $942,354 and cost of $412,333 for material purchased and $466,450 for fixed and variable costs in processing, for total cost of $878,783.
Optical Distortion Inc. is a small new company, not yet in business, with a cash asset of $200,000 and a patent for an innovative new product (the only one) which is a contact lens designed to impair the eyesight of chickens. . These lenses are used instead of debeaking. Lensed chickens are more likely to survive. They also eat more efficiently than debeaked chickens. The key issue facing ODI is "How to market these lenses?". The analysis in this paper provides recommendations for ODI on their marketing and pricing strategy to launch this new product.
In modern times, the experimentation on animals has led to just as many advances in medical science as there are in veterinary science and practice. Ibn Zuhr paved the way for basic surgical procedures that advanced over time as the anatomy of humans and animals were not seen as being one and the same. Blood transfusions came about through ...
Blood safety is an important issue. People end up needing blood transfusions for many reasons that all mean they have already entered the medical system needing care for injuries or disease, yet there is a risk that their treatment can hurt or even kill them. Public health has made tremendous strides in blood safety over the past few decades, but there is still more that needs to be done. Because of how broad the donation system is, individual treatment of these adverse reactions is not a good preventative measure and instead this must be seen as a public health issue. Increased reporting, studies, and analysis should be done to decrease the number of adverse reactions to blood and blood products.
Animals have always held a very special place in the hearts of the human race. They are our best friends, our stress relievers, members of our families, and our test subjects for experimentation. For hundreds of years, animals have been used in laboratory settings as a replacement for humans when studying the effects of medical treatments. On average, nearly one hundred million animals are used in clinical trials every year (Ferdowsian). These animals have contributed to hundreds of breakthroughs in the medical field including countless toxicity tests to determine drug toxicity to humans, and exposure to paralyzing anesthetics to create anesthesia used in surgical procedures today. These animals have been vital
... the engineering of synthetic blood parts, and the use of growth-factor proteins have given both researchers and patients hope. Using one’s own blood via self-donations, intraoperative hemodilution (extracting blood before an operation, then dispensing it back into the body afterward), blood recycling during surgery, and designated donations are also options for patients who wish to ensure further a clean transfusion. Finally, the practice of extracting illness-fighting white blood cells from donated blood before a transfusion may filter some diseases from the donation.
Imagine having a headache and not having aspirin to take, or being diabetic and not being able to take certain types of insulin (Williams 3). It seems impossible that these drugs could be unavailable to humans, but they would not be attainable had scientists not tested these drugs on non-animal subjects. Contrary to what many people believe, testing drugs on animals often give defective results. “More than 205,000 new drugs are marketed worldwide every year, most undergo the most archaic and unreliable testing methods still in use: animal studies” (PETA 1). Although animals may seem the like ideal specimens for testing new drugs, the experiments are untrustworthy and can cause unknown side effects.
...f the product is given to a human through the skin. It is said that this could be a new and very effective alternative to Animal Experiments. Scientist have grown a small piece of human liver tissue from stem cells which might one may be possible to perform initial ‘human’ safety trails in a lab. I suppose that if the laws on the necessity for animal testing were relaxed, it would encourage the scientist to develop other methods of testing toxicity that were equally effective. There are alternatives, it is just whether or not the scientist will peruse them.
Millions of animals are used to test consumer products, but they also become victims to experiments for medical research. In The Ethics of Animal Research (2007) both authors state that there have been many medical advances with the development of medicines and treatments as a result of research conducted on animals (para 1). These medical i...
Although blood transfusions had been used before the First World War, many were not successful due to lack of knowledge in this type of treatments. World War I pushed the development of blood transfusions, allowing them to be safer. Before the war in the 17th century, blood transfusions often occurred with the use of animal blood, a practice that did not achieve desired results. These transfusions often times came from sheep, and although they were sometimes successful, it was discovered that any large amounts of transfusions would cause death. Coming to the conclusion that animal blood transfusions did not save lives, scientists looked to humans for human to human transfusions. Many of these attempted transfusions were met with failure but in 1818, Dr. James Blundell accomplished the first successful human blood transfusion; four ounces of blood were transferred to the patient from her husband. From that moment on, doctors began to learn even more about blood transfusions and how to do them properly. By 1901, the four human blood groups were discovered by Karl Landsteiner; with less differences in the bloods transfused together, coagulation and clumping amounts decreased. This benefited many lives in that toxic reactions to the wrong types of blood did not occu...
Med-Pharmex Incorporated is known nationally and abroad as a pharmaceutical manufacturer of animal-related products. Before gaining fame worldwide, the business began its journey to success as a small lab in 1983, which slowly grew over time. Since then, the company maintains its main goal, and that is to produce drugs that promote the health of companion animals, such as dogs, cats, and horses, as well as food-producing animals, such as pork and chickens. To ensure legal responsibility, the company’s manufacturing process is examined by the United States Food and Drug Administration (FDA). Med-Pharmex works closely with veterinary clinics who purchase their life-saving drugs and represent them in the market. Despite manufacturing drugs, the
1. Diversity should provide greater alternatives and inputs into the decision process, but if diversity is blocked due to organizational infrastructures that do not allow the free flow of information, than the diversity goes unutilized. Johnson & Johnson (J&J) structured its company to insure the positive impact of diversity in regards to decision making through its creation of FrameworkS. Through Frameworks, the executive committee is partnered with a variety of managers from around the organization that concentrate on specific, unprogrammed organizational decisions. FrameworkS matches the problem with appropriate decision making method. In this approach, managers share the problem with others and engage the group in consensus to arrive at a final decision.
We know that it was going to be expensive to produce the product but we are confident that no matter the cost of production, our sales would greatly succeed the cost. The cost of producing a 5 oz. can was about 75 to 80 cents if they can produce 100,000 per month. If we were to produce 50,000 cans per month, that cost would rise by 5 to 10 cents per can. A 10 oz. can would cost about 25% more than a 5 oz. can would to produce. With those numbers, 100,000 5 oz. cans would cost us about $900,000-$960,000 per year to produce. 50,000 5 oz. cans would cost us $750,000. 100,000 10 oz. cans would cost us $1.125M-$1.2M a year...