Question

PLEASE i need issues that facing BIOPURE corporation and some recommendations to address these issues . thanks

Answer 1

The issue being faced by Biopure is regarding the launch of its two products, namely Oxyglobin and Hemopure. Oxyglobin is a blood substitute for the vet market while Hemopure is a similar substitute for Human market. While Oxyglobin has been approved for commercialization, Hemopure would get FDA approved in about 2 years. Thus, the dilemma faced by Biopure is, ‘When to launch Oxyglobin?’.

The recommendations to address this issue can be either of the two pathways:

1. Launch Oxyglobin now and Hemopure after 2 years

This will give Biopure a first mover advantage as well as pave the way for Hemopure’s launch via a strong already set distribution network. Not only will it generate a string product image, but also the profits generated by selling Oxyglobin can be used to further research and develop Hemopure in order to increase its efficiency. Also, the company can learn from the mistakes with Oxyglobin’s production & selling and apply these to Hemopure before commercialization.

2. Launch both products together

If both products get launched together, the number of units produced for both would be lesser, since both require the same storage and distribution set-up. But, Bipoure can sell the products at a higher price, making more profits per unit cost to compensate for the same.