Biopure Corporation Swot Analysis

Moromoke Adefila

Marketing Strategy

Biopure Case Analysis

Introduction

Biopure Corporation was founded in 1984 by a privately-owned pharmaceutical firm. After $200,000,000 worth of research, they have come up with two blood substitutes products. Oxyglobin which is a blood substitute for animals and Hemopure, a substitute for humans. They currently have an advantage in the animal blood substitute market, which a time advantage of 2-5years.

Problem Statement

        With little to no revenue, stakeholders are very anxious to make the company public. While Oxyglobin has already been approved by the FDA, the question is if it should be launched now, or if they should wait till Hemopure is approved and launch together. There is also a question of what price point to follow with Oxyglobin’s launch.

SWOT Analysis

Strengths

• Market Advantage by being the first approved blood substitute
• Both products are universal for their markets, all animals and all blood groups
• Very cheap raw material compared to their competitors
• Better product quality (e.g. long shelf life) when compared to competitors

Weaknesses

• No established network distribution
• No prior expertise in launching product, with no prior company to imitate
• No revenues

Opportunity

• High demand for blood substitutes in both markets
• No competitors in veterinary market substitutes

Threats

• Competition in the human blood substitution market
• The delay in the FDA approval is a significant threat to the launch of both products

Options Analysis

Launch Oxyglobin now

If Oxyglobin is launched immediately, it can build up a market reputation for blood substitutes before the launch of Hemopure. It can also be used to bring in revenues that can be used for the production and promotion of Hemopure and they can set up a distribution network that will also be useful in the launch of Hemopure. They can also gauge the public’s reaction to the idea of blood substitution.

Launch Oxyglobin and Hemopure together

        There will be no prior product to make the launch of Hemopure more acceptable to the consumers. They will also not have enough revenue for the proper promotion of both products, and would have to create a distribution network as well.

Recommendation

        It is recommended that the company launches Oxyglobin right now and then launch Hemopure when it is ready. There has to be a marketing strategy to properly differentiate both products so they are not confused.

        It is also recommended that Oxyglobin be charged at $100 as that attracts the highest number of vets and pet owners willing to try the product, which means the highest target market for the product.