Biopure Case Study

2794 words 12 pages
Table of Contents
Executive Summary 3
Analysis of Internal and External Environment 3
Alternatives - Evaluation 5
Recommendation: 6
Decision Criterion Grid 7
Appendix 9
Exhibit 1: Exhaustive SWOT Analysis 9
Exhibit 2 : Estimated Market Demand for Oxyglobin 13
Exhibit 3: Estimation of veterinary Market and per year 14
Exhibit 4: Financial Projections – Sensitivity Analysis 15

Executive Summary

In 1998, Biopure Corporation is one of the three legitimate contenders in the emerging field of “blood substitutes”. Biopure has invested $200M on the R&D on blood substitutes in the past with its primary goal being the development of a human blood substitute ( Hemopure) but Its entry into animal market (Oxyglobin) had been some
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Having a product in the market will help Biopure establish a brand name and put itself on active stock investor’s radar. It would also ensure a steady revenue stream which will increase Biopure’s chances of achieving a lucrative IPO

Risk Mitigation: Biopure’s investors have spent $200M so far on product development. They are eager to see return on their investment. Alternative 1-1 will secure a 13% ROI. Also, Biopure’s potential IPO would provide other sources to fund Hemopure R&D therefore current investors will not have to carry the full burden of risk associated with a failure to secure FDA approval for Hemopure

Experience in Product launching: Oxyglobin is the first product that Biopure will launch. This is a challenge for their marketing team. Considering that the animal market is relatively small and that Biopure has yet to take a product to the market, this step would give Biopure a chance to gain experience on product launching strategy and apply it to a larger human market once Hemopure receives FDA approval

Internal disruption Alternative 1-1 will utilize the marketing team already in place. It will also guarantee the highest return which will ensure management team satisfaction

Long Term Viability While our recommendation emphasizes short term well being of Biopure. We believe that short term performance is vital for a


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