To: Carl Rausch
From: Sukhada Kulkarni
RE: Release of Oxyglobin
Date: October 30, 2013

The intent of this document is to provide suggestion for the timeline to release Oxyglobin. I would recommend releasing Oxyglobin to the market as soon as possible.

Situation Analysis:
There has been a debate if Oxyglobin release should be delayed by two years as it might jeopardize the sales of Hemopure. The concern here is that the estimated price of Oxyglobin ($150 per unit) might not allow Hemopure to be released at a higher estimated price as $600 per unit. As per my analysis this should not be a major concern as the advantages of releasing outweighs this concern. Here are the reasons why Oxyglobin should be released soon in the market: * As FDA approval takes time, being the first player in the market will give us an edge over the others and we will get an opportunity to establish Biopure. The possibility of success of Oxyglobin will become a platform for Hemopure to use the brand image already built. * The competitors Baxter Internationals and Northfield Laboratories are expected to release their products for human blood substitute at a price $600 to $800 per unit. The price of Hemopure should be compared against other human blood substitute as opposed to animal blood substitute. * As we do not have prior experience of going into market, this will be a good opportunity to experiment and learn before releasing Hemopure. It will also help us to form contacts with distribution networks, as our competitors have established distribution network. * This will be a good opportunity to generate our first profit. The estimated profit is around 20 to 34 million (Refer appendix).

Pricing Strategy:
I would recommend releasing Oxyglobin at a price $200 per unit because: * The average cost of a visit to vet is $60 but blood transfusion is an expensive