6. Exhibit 1: Hemopure Base Case Market Potential
Hemopure Market Potential (Base Sales Price)
RBC: Field Trauma
Field Trauma 50,000
Average Units per Case 4.00
Units Needed in Field 200,000
RBC: Hospital & Clinic
Surgeries 2,450,000
Average Units per Case 3.22
S&T Unit's Used 7,900,000
Chronic and Ongoing 1,500,000
Borderline Transfusions 1,000,000
Average Units per Case 2.13
C&B Unit's Used 5,333,333
Price per Unit $700
Total Market Potential $9,403,333,333
A full sheet with base, best, and worst case scenario’s can be found in appendix A.
Competitive Landscape
The process of creating human blood substitutes is a combination of (1) extracting
hemoglobin with RBCs, (2) purifying from infectious agents, and (3) modifying to
prevent breakdown. The leading competitors are:
Baxter International
In 1996, Baxter was acknowledged as a leader within manufacturing and selling
blood‐related medical products. Baxter International had a long history of product
breakthroughs and successes. Their blood substitute, HemAssist, was expected to
add to this portfolio. HemAssist was the first blood substitute to reach Phase 3
clinical trials. Construction of a production facility (annual 1 million units) was near
completion and the pricing range is similar to Hemo.
Northfield Laboratories
Northfield had also recently entered Phase 3 trials with a blood substitute product
called PolyHeme. The Northfield product is similar to Baxter’s in production and
usage profile. Northfield is a smaller firm committed to developing a human blood
substitute. Smaller facilities for production (300,00 units annually) still need to be
finalized.
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9. Appendix A: Base, Best, and Worst Case – Hemopure Market Potential
HemoPure Market Potential (Base Sales Price)
RBC: Field Trauma
# of Trauma cases 50,000
Average Units per Case 4.00
Units Needed in Field 200,000
RBC: Hospital & Clinic
Surgeries or Trauma 2,450,000
Average Units per Case 3.22
S&T Unit's Used 7,900,000
Chronic and Ongoing 1,500,000
Borderline Transfusions 1,000,000
Average Units per Case 2.13
C&B Unit's Used 5,333,333
Price per Unit $700
Total Market Potential $9,403,333,333
HemoPure Market Potential (Best Sales Price)
RBC: Field Trauma
# of Trauma cases 50,000
Average Units per Case 4.00
Units Needed in Field 200,000
RBC: Hospital & Clinic
Surgeries or Trauma 2,450,000
Average Units per Case 3.22
S&T Unit's Used 7,900,000
Chronic and Ongoing 1,500,000
Borderline Transfusions 1,000,000
Average Units per Case 2.13
C&B Unit's Used 5,333,333
Price per Unit $800
Total Market Potential $10,746,666,667
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10. HemoPure Market Potential (Worst Sales Price)
RBC: Field Trauma
# of Trauma cases 50,000
Average Units per Case 4.00
Units Needed in Field 200,000
RBC: Hospital & Clinic
Surgeries or Trauma 2,450,000
Average Units per Case 3.22
S&T Unit's Used 7,900,000
Chronic and Ongoing 1,500,000
Borderline Transfusions 1,000,000
Average Units per Case 2.13
C&B Unit's Used 5,333,333
Price per Unit $600
Total Market Potential $8,060,000,000
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11. Appendix B: 3Year Revenue Model – Yearly Forecasted Totals
YEARLY FORECASTED TOTALS
Year 1 Year 2 Year 3
So. Cal Accounts 35 160 160
Cen. Cal Accounts 20 80 110
Nor. Cal Accounts 0 35 85
Total Accounts 55 275 355
Sales Price $700 $675 $650
Units / Account 50 65 75
Annual Units 18000 124150 305250
Total Revenue $12,600,000 $83,801,250 $198,412,500
COGS $15,000,000 $15,000,000 $15,000,000
Marketing Budget $40,000,000 $20,000,000 $20,000,000
So. Cal Reps 4 16 16
Cen. Cal Reps 2 8 11
Nor. Cal Reps 0 4 9
Total Sales Reps 6 28 36
Sales Force Salary $6,600,000 $29,850,000 $61,650,000
Marketing Collateral $1,200,000 $1,200,000 $1,200,000
Total Sales Expense $7,800,000 $31,050,000 $62,850,000
Admin & Legal $2,000,000 $2,000,000 $2,000,000
Total Revenue $12,600,000 $83,801,250 $198,412,500
Total Expenses $64,800,000 $68,050,000 $99,850,000
Net Profit ($52,200,000) $15,751,250 $98,562,500
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