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									          OEM Team #1:
          Mike Alcantara
Biopure   William Buckley
          Michelle Dennis
            Max Weiss
                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 Summary
Animal 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



                                                                            3
         Market Summary
Animal blood substitute (Oxyglobin)




                                  4
         Market Summary
Animal 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 Summary
Human 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.                                                              6
        Market Summary
Human 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
                                       7
        Market Summary
Human blood substitute (Hemopure)




                                8
        Market Summary
Human 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
                                                    10
       Biopure SWOT Analysis

              Strengths                          Weaknesses
              - Larger of Supply of production   - Short Half Life
                  material                       - 5-10 units max dosage
  Internal    - Stored at room temperature       - Not FDA approved yet
Environment   - Disease Free
              - Longer shelf life
              - Immediately 100% effective


              Threats                            Opportunities
              - Negative public perception of    - Supply blood substitute
                  source (cow vs human)            during times of shortages.
  External
              - Competitors                      - Time to market on Animal
Environment
              - Historical lack of Vet             Blood Substitute.
                  transfusion usage              - Get the Biopure name on the
                                                   Market with Oxyglobin 11
                  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.
                                                             12
        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.
                                                                        13
        Alternative Market Strategy 1
        Don’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.
                                                               14
      Alternative Market Strategy 2
    Release 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. 15
                    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.


                                          17
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.



                                           18
    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.

                                           19
          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.


                                            20
          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




                22
        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.
     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.
                                        24
 Oxyglobin
 An alternative to
   producing your
     own blood .
Oxyglobin will give
 you easy access
to Oxygen carrying
   hemoglobin to
  save someone’s
     best friend.
                      25
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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8 out of 10     Hemopure is
Experts rate     a safe and
Hemopure as       effective
the blood       alternative
substitute of       for any
choice.          blood type
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