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Market Potential Analysis Exercise: BIOPURE

Dr. Jacobs has presented a market potential of 8.2-11.3 million units for Hemopure based on current transfusions. Mr. Rausch would like a focus on segmentation defined by usage.

1. How will you revise the market potential for Hemopure? Consider demand for blood substitute products in each of the 4 distinct customer usage segments.

(You may want to use information on p.4-5 of the case as well as Exhibit 5 of the case)

(5 Points)2. Baxter with HemAssist and Northfield with PolyHeme have decided to enter the market. Given their relative strengths in the marketplace, to what would you revise the demand forecast you stated in response to question 1?

(Note that you may want to review the competitive information on p. 8 of the case. before formulating your response.)

(3 Points)Andy Wright is convinced that he will have an important 1st mover advantage if he launches Oxyglobin soon, and he also believes that his earlier work may have underestimated market potential in the veterinary marketplace.

Revisit the opportunity in the veterinary market, specifically for use of Oxyglobin in dogs. Instead of looking at historical transfusion data, Mr. Rausch wants you to focus on the potential market for canine blood substitute products.

3. Based upon potential applications of canine blood substitutes (rather than current transfusions), what is your forecast of the market potential for the Oxyglobin product?

(7 Points)Please be specific and show your work.