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Biopure Analysis

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SITUATION ANALYSIS

Blood Supply
- 14 Million units were donated, 12.9 were not analogous and 1.1 mill were - in 1995 3.2M units of blood into 1.5M patients - chronic illness (ex: anaemia) - 8.1M units were put into 2.5M patients - acute blood loss

demand of human blood is often in shortage (in certain times)

Blood substitutes - used for an alternative to human blood
1997 - no approved blood substitute
Biopure has spent $200 M in the development of bovine-sourced substitute
Oxyglobin - animals, Hemopure - Humans
No revenue, enough capital to operate 2 more years
1998, Biopure was one of three legitimate contenders in the emerging field of “blood substitutes.”
Oxyglobin ready to launch

OPPORTUNITY/PROBLEM/ISSUE

1. How do you assess Biopure’s potential in the human market? (Hemopure)

*Pros and Cons Table
*Hemopure against competitors Table

Competitors have larger production capacity, established distribution network

Hemopure Product Characteristics
- “Universal,” no blood typing needed, less potential for rejection
- Cannot cause infections or be contaminated
- Increased shelf life, can be stored for 2 years
- 100% efficient at carrying oxygen to vital organs
- Purity, efficacy, convience
- Need in critical-care situations

Finances
- Received $50 million for funding

Competitive Advantage
- Baxter and NL compete for limited available (1.2 million) expired or rejected units
- Biopure has unlimited supply from cows (10,000 cattle could supply full production)

(1.2 million units expire per year - Baxter deals with Red Cross, gets half of 1.2 units at $8)
(Northfield gets Blood Centers of America(unknown percentage) at $8 but recently changed to $26)

In the animal market? (Oxyglobin)

- Biopure only company actively engaged in developing blood substitute for animals
- Ahead of potential competitors by 2 to 5

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