1

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

2

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.

3

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.

4

Alternative Market Strategy 1Don’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.

5

Alternative Market Strategy 2Release Oxyglobin with Hemopure

PlusesWe would be able to sell both products for a

very high price and make a more profit per unit on both products. Minuses

MinusesBiopure 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.