Biopure

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Biopure

• OEM Team 1
• Mike Alcantara
• William Buckley
• Michelle Dennis
• Max Weiss

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Product Definition

• Blood substitute
• Derived from bovine hemoglobin
• Transports oxygen to tissue
• Oxyglobin - animal (dog)
• Hemopure human
• Human version more refined
• Clinical 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 Demand
• Acute Blood Loss
• Elective Surgery (Anonymous) 5800
• Elective Surgery (Autologous) 1100
• Emergency Surgery (hosp) 1000
• Trauma (in field) 200
• Chronic Anemia 3200
• Not Transfused
• Rejected 1200
• Expired 1500
• Transfusions not done
• Borderline 1000
• Trauma 1800
• Therefore, the total available human market is
  16.8 million units per year.

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Market SummaryHuman blood substitute (Hemopure)

• Low Potential
• Elective Surgery (Autologous) 1100
• Chronic Anemia 3200
• High Potential
• Elective Surgery (Anonymous) 5800
• Emergency Surgery (hosp) 1000
• Target
• Trauma (in field) 200
• Rejected 1200
• Expired 1500
• Borderline (not done) 1000
• Trauma (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/distributio
  n
• Growing pains experienced in less visible market

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Biopure SWOT Analysis

Internal Environment 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
External Environment 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/distributio
  n
• 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)
• Vets 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 1Dont 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

• Pluses
• We would be able to sell both products for a very
  high price and make a more profit per unit on
  both products. Minuses
• Minuses
• Biopure 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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Competition

• The competitive landscape animal market
• Lack of blood supply constricting transfusions
• 78-93 supply from donor animals residing on
  premises
• 7-22 from few blood banks
• Incompatible blood types lengthen recovery time
• 50-100 wholesale cost
• 84 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
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Hemopure
Reduce 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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Oxyglobin
An alternative to producing your own blood
. Oxyglobin will give you easy access to Oxygen
carrying hemoglobin to save someones best
friend.
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Biopure
When 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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Hemopure
Hemopure is a safe and effective alternative for
any blood type
8 out of 10 Experts rate Hemopure as the blood
substitute of choice.