Biopure Case Summary

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Biopure firm’s success is highly dependent on its decision to launch veterinary blood substitute Oxyglobin ahead of its human blood substitute, Hemopure. The main concern for Biopure is the negative effects of pricing Oxyglobin at $150-$200 on the Hemopure, which is to be priced between $600- $800. Since both products are identical in composition and as such, Oxyglobin is an ancillary product of Hemopure, Biopure will find it challenging to justify the high price of its Hemopure product. By launching Oxyglobin early Biopure can generate revenues and create its own market in the veterinary sector. With this success, Biopure can go public and become a valuable company. Moreover, per Andy wright, Biopure will get enough learning and can improve its product based on feedbacks. …show more content…

On the other hand, if Biopure chooses not to launch Oxyglobin then it will lose the revenue stream and an opportunity to differentiate itself in the market. Moreover, Biopure, with Hemopure, will be entering the market along with other two competitors and will face fierce competition. Additionally, Biopure competitors, Baxter International and Northfield Laboratories, are launching blood substitutes relied on human blood, Biopure will need to address the endowment and status quo effects and convince consumers to shift from using human based blood substitutes to cattle based blood substitutes and hence will lose valuable time to promote the benefits of its Hemopure product before launch. Finally, based on the analysis of gains and losses, it is recommended that Biopure to launch Oxyglobin because it has a relative advantage than not

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