Oxyglobin should be …show more content… Only because Oxyglobin and Hemopure are almost identical in physical properties and appearance, it does not mean that they cannot be priced differently.
There are currently different medical products and services for humans and animals that are differently priced. In order to distribute Oxyglobin, Biopure should use several nonoverlapping regional distributors. Oxyglobin is the first new blood substitute for the veterinary market and is ready for consumer use.
At the same time, Biopure management realizes that launching Oxyglobin immediately has many benefits, including providing an instant revenue stream and enhancing Biopures reputation. Establish a successful brand to launch Hemopure in the future. Realistically, this cost for a human blood substitute will not make waves due to its benefits over donated blood and the fact that the cost is passed on from hospital, to patient, and finally to insurance company.
Biopure desperately needs to enhance its reputation and increase awareness among customers since it has not yet launched any products and it is not a public company in contrast to Baxter, for example.
Hemopure is another new blood substitute for the human market and it will take two years to launch the product from now on. I settled on the target market by focusing on the segmentation criteria of practice demographics and usage behaviors.Additionally, these two groups are high incident practices that tend to handle most canine surgeries and canine trauma cases. If something were to go wrong with the approval of Hemopure and the launch was delayed which occurred with Baxters HemAssist , Biopure would in an extremely difficult financial situation. Blood transfusions are more common in these practices for example, emergency practices conduct an average of blood transfusions per year compared to 17 at a primary practice and thus, they require more blood than other segments. It should also be noted that there is no reason to assume that vets will automatically double the price of Oxyglobin for pet owners, so demand by pet owners may be even higher. Also, pet owners are aware that emergency room visits and surgeries cost more on average compared to regular primary care checkups. Biopure desperately needs to enhance its reputation and increase awareness among customers since it has not yet launched any products and it is not a public company in contrast to Baxter, for example. Biopure needs its first product launch, whichever it chooses, to be successful in order to enhance its reputation, make a profit, take the company public, and grow into a successful and trusted company.
These two classes of vets have the highest average monthly caseload and the highest gross revenues see Exhibit 7. As a result, Biopure must decide whether to immediately launch Oxyglobin into the veterinary blood market or delay the release until after the approval and establishment of Hemopure in the human blood market.
Additionally, the emerging and growing necessity for blood substitutes will yield great demand in the following years which will translate to higher selling prices for Biopure, all things equal.