Should Biopure introduce Oxyglobin now or until after Hemopure is approved by FDA?
Two types of blood substitutes were invented to replace the functions of biological blood for human and veterinary use, particularly for blood transfusion purpose. Oxyglobin is designed for animals, whilst, Hemopure is for humans. Given Oxyglobin has been approved by FDA and Hemopure is still pending for final trial, there is a fierce debate within Biopure on whether Oxyglobin should be introduced now or wait until after Hemopure is approved. To analyze the situation, let’s take an in-depth look at the current veterinary and human blood markets.
Veterinary blood market
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Though the veterinary market is not that big compared with the human market, Oxyglobin is able to bring revenue to Biopure with its monopoly position.
Human Blood Substitutes
About the Human Blood Substitutes, it shows that there is no urgent need for the human blood substitutes since the donated human blood is still operating efficiently. Not many people are willing to take human blood substitutes instead of donated human blood. Thus, it does have some shortcoming that the substitute may bring the potential for higher toxicity if human body is transfusion over 5 to 10 units. On the contrast, the human body is able to tolerate the limitless and continuous replacement of one’s blood with donated blood. Apparently, there’s no evidence to prove that this human blood substitutes is 100% safe for human and not generated any side-effect while in treatment. More importantly, the uncertainly situation has still appeared due to the production processes and their pending FDA approval did not preclude them from using fresh RBCs. Even though the price of “Hemopure” was estimated at higher turnover which is $600 to $800 per unit than “Oxyglobin”, only little systematic testing had been done by Biopure before. Without compressive testing and research, it is hard for investors to calculate how exactly the market price should be considered and how to do those doctors, insurance providers or patients re-act the set price. Compare with “Oxyglobin”, it will be identified as high risk investment issue unless the above issues are resolved, especially in getting authorized approval.
Introduce Oxyglobin first
After comparing blood market, our recommendation is introduce Oxyglobin first and launch Hemopure until getting the FDA approval in order to achieve the below 3 purposes.
Brighten up the brand image can help launching Hemopure
As Oxyglobin is the animal blood substitutes which already getting the FDA approval and first entry to the market, it can create noise in the market and brighten up the brand image of Biopure. If Oxyglobin build up many successful cases, it can proof the reliability of product and give a good perception for customers to buy Hemopure when it launches out. Thus, it can help to improve...