biopure oem team #1: mike alcantara william buckley michelle dennis max weiss

BiopureOEM Team #1:Mike AlcantaraWilliam BuckleyMichelle Dennis

Max Weiss

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Product Definition

Blood substituteDerived from bovine hemoglobinTransports oxygen to tissueOxyglobin - animal (dog)Hemopure – human

Human version more refinedClinical trials anticipated

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Market SummaryAnimal blood substitute (Oxyglobin)

Available – 5,400,000 units 15,000 clinics * 800 cases per clinic * 1.5 units per dog (on average)

* 30% of patients who would benefit from a transfusion. Potential – 1,749,375 units

Set price at $100, lower prices would result in a loss to Biopure Percentage of Vets willing to use * Percentage of Owners willing to

use * number of dogs that would benefit * 1.5 units per dog Target – 249,750 units

Set price at $200 Maximize profit Stay high, for release of Hemopure

Percentage of Vets willing to use * Percentage of Owners willing to use * number of dogs that would benefit * 1.5 units per dog

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Market SummaryAnimal blood substitute (Oxyglobin)

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Market SummaryAnimal blood substitute (Oxyglobin)

Obstacles to success in the animal market: Proclivity of vets to not perform blood

transfusions Price of Oxyglobin (due to future release of

Hemopure) When Hemopure is introduced, production

capacity of Oxyglobin will be constrained Use profits from Oxyglobin in first two years

to increase production capacity

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Market SummaryHuman blood substitute (Hemopure)

Available DemandAcute Blood Loss

Elective Surgery (Anonymous) 5800Elective Surgery (Autologous) 1100Emergency Surgery (hosp) 1000Trauma (in field) 200

Chronic Anemia 3200Not Transfused

Rejected 1200Expired 1500

Transfusions not done Borderline 1000Trauma 1800

Therefore, the total available human market is 16.8 million units per year.

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Market SummaryHuman blood substitute (Hemopure)

Low PotentialElective Surgery (Autologous) 1100Chronic Anemia 3200

High Potential Elective Surgery (Anonymous) 5800Emergency Surgery (hosp) 1000

TargetTrauma (in field) 200Rejected 1200Expired 1500Borderline (not done) 1000Trauma (not done) 1800

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Market SummaryHuman blood substitute (Hemopure)

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Market SummaryHuman blood substitute (Hemopure)

Obstacles to success in the human market: FDA final approval Acceptance of use by medical professionals Competitor(s) garnering market share (Baxter &

Northfield) Negative Public perception of injecting “cow

blood” The current price of donated blood (125-225)

Recommend Hemopure price at $500

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Oxyglobin vs. Hemopure

Oxyglobin threats to Hemopure: Pricing deferential Negative public perception of injecting “dog blood”

Perception of Oxyglobin and Hemopure as essentially the same product.

How Oxyglobin is an asset to Hemopure: Revenue to asset production Provides test run for production/sales/distribution Growing pains experienced in less visible market

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Biopure SWOT Analysis

InternalEnvironment

Strengths- Larger of Supply of production

material- Stored at room temperature- Disease Free- Longer shelf life- Immediately 100% effective

Weaknesses- Short Half Life- 5-10 units max dosage- Not FDA approved yet

ExternalEnvironment

Threats- Negative public perception of

source (cow vs human)- Competitors - Historical lack of Vet

transfusion usage

Opportunities- Supply blood substitute

during times of shortages.- Time to market on Animal

Blood Substitute.- Get the Biopure name on the

Market with Oxyglobin

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Market Strategy Biopure should release Oxyglobin now at

$200/unit to Vets We set the price for Oxyglobin at the high side because

of the release of Hemopure in 2 years after FDA approval.

Hemopure at $500/unit to hospitals justify the markup because production for Hemopure

runs at half the capacity of Oxyglobin. The profits from Oxyglobin should be put towards

increasing production capacity when Hemopure is released, we do not have to ramp

down on the production of Oxyglobin when both products are on the market.

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Brining Oxyglobin to Market

Should the Oxyglobin release be done now? Yes:

Revenue for asset production Provides test run for production/sales/distribution Growing pains experienced in less visible market Market diversification when Hemopure is released Hedges against Hemopure delays/failure

Oxyglobin Price: $200 to Vets (~$400 to consumers). Reasons: 60% of vets willing to use in critical cases (Target Market) 65% of dog owners willing to use in critical cases (Target Market) Vet’s may accept less than 100% mark-up ($50 is typical markup) Decrease difference between Oxyglobin and Hemopure price.

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Alternative Market Strategy 1Don’t Release Hemopure at all

Pluses If sufficiently penetrated, the demand for Oxyglobin will

consume the majority of the production capacity. We will maximize revenue earlier.

Minuses Not releasing Hemopure would be disregarding a

proven market. Hemopure has the potential to revolutionize critical care

situations, not releasing Hemopure would be holding back a helpful product from the people.

Not releasing Hemopure would potentially forfeit a bountiful gain in goodwill.

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Alternative Market Strategy 2Release Oxyglobin with Hemopure

PlusesWe would be able to sell both products for a

very high price and make a more profit per unit on both products. Minuses

MinusesBiopure would not be making any revenue to

increase production capacity. We do not want to have another two years of

zero revenue.Although we would be making more profit per

unit, we would not have as many units to sell.

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CompetitionThe competitive landscape – animal market

Lack of blood supply constricting transfusions78-93% supply from donor animals residing on premises7-22% from few blood banksIncompatible blood types lengthen recovery time$50-100 wholesale cost84% vets dissatisfied

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Positioning Statement for Physicians

For physicians who want to save lives. Hemopure uses cutting edge technology to deliver a safe universal blood substitute than can be given to ANY blood type, because we use disease free hemoglobin that is more effective at delivering oxygen than the standard red blood cells.

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Positioning Statement Physicians

For physicians who demand the latest in medical advancements. Hemopure can be easily administered and deliver more oxygen to the patients organs without the risk of disease, because hemopure is pure, effective and convenient.

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Positioning Statement Public

For people who want a safer substitute when receiving blood. Hemopure is free of any contamination, disease, and safe for any blood type because we use break thru technology to produce hemoglobin that will transfer oxygen throughout our body more effectively than the processes used today, ask your physician about Hemopure.

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Positioning for Vets

For vets who want to save a mans best friend. Oxyglobin is an easy alternative to producing and maintaining your own supply, because Oxyglobin can be shelved for up to two years and allow you easy access to vital hemoglobin to save a mans best friend.

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Positioning for Vets

For vets who want an easy and reliable alternative to producing and or maintaining blood for transfusions. Oxyglobin is a blood substitute than can be stored up to two years because we use the latest in technology to produce hemoglobin that has a long shelf life and will allow you to always have access to it whenever it is needed.

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Advertisement

HemopureReduce the risk of blood rejection

Eliminate probability of transferring disease

Hemopure is an easy to maintain, universal blood substitute that

outperforms conventional blood transfusions by supplying more oxygen

throughout the body.

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HemopureProduct of Biopure

Hemopure offers the latest in medical advances though the

development of Oxygen carrying hemoglobin that delivers more

oxygen to vital organs than standard blood transfusions without the risk of disease.

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OxyglobinAn alternative to

producing your own blood .

Oxyglobin will give you easy access

to Oxygen carrying

hemoglobin to save someone’s

best friend.

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BiopureWhen you want the latest in medical technology Biopure is a blood substitute that can deliver more Oxygen to your organs than red blood cells.

Udderly the best.

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8 out of 10 8 out of 10 Experts rate Experts rate Hemopure as Hemopure as the blood the blood substitute of substitute of choice.choice.

HemopureHemopure is a is a safe and safe and effective effective

alternative for alternative for any blood typeany blood type