Case Study

Artificial Blood: A solution to blood shortages?

By Rob MacLennan,
Frost & Sullivan

In many ways, blood is to the healthcare system what oil is to the transportation system. Every day in hospitals across the U.S, thousands of individuals rely on blood and blood products to sustain life. In a typical year over 4 million Americans will need a transfusion to survive illness or injury. Despite this, many in the blood banking industry contend that America is fast approaching a crisis situation.

A crisis in the making?

Demand for blood transfusions continues to grow year after year, driven mainly by the increasing number of transplant surgeries -- which require massive amounts of blood -- and the aging of the population. On the supply side, blood banks are finding it increasingly difficult to attract the new donors required to meet the expanding demand.

Artificial Blood: A Potential Solution

Artificial blood represents one potential solution to the blood shortage crisis plaguing the American healthcare system. Over the past forty years a number of biotech companies have been trying to come up with an alternative to human blood. The race is being driven by the immense revenue potential. One company estimated the worldwide supply for transfusions at 60 million units per year and at current pricing forecast a market worth approximately $18 billion per year. Currently four companies are closest to market with artificial blood products: Biopure Corporation, Alliance Pharmaceutical Corporation, Northfield and Hemosol. The approach undertaken is based on reproducing hemoglobin, the protein in red blood cells responsible for carrying oxygen to the body's cells. For example, Biopure's product is called Hemopure and is made from the hemoglobin from slaughtered cattle. Alliance is relying on a synthetic compound of fluorine and carbon, known as perfluorocarbons.

Artificial blood products provide a number of advantages over human blood:

  • They can be transfused to any person, regardless of blood type and testing which is of great benefit in emergency surgery where every second counts.
  • They may be stored at room temperature for up to two years, precluding the need for refrigeration units.
  • Artificial blood has a better safety profile than human blood with respect to the risk of transmitting infectious agents and allogens.
  • Unlike human blood which relies on the generosity of volunteer donors, artificial blood provides the advantage of wide-scale availability.
Future Outlook

The outlook for artificial blood products has never been brighter. A number of companies are currently involved in Phase III clinical trials. Most recently, Hemopure recently received approval in South Africa for the treatment of acute anemia and avoidance of red blood cells in adult surgery patients. The company is planning to file a US marketing application later this year.

Artificial blood is not likely to solve the blood shortage crisis anytime soon. Several hurdles will need to be addressed, including FDA approval and acceptance by the medical community, as well as the public. Pricing of these products also need to be addressed. In their present state of development, their role is restricted to short-term applications. Many consider their role will be not in replacing donated blood but serving as a short-term substitute until human blood is available. With increasingly reported blood shortages, the demand for these products may be considerable in the near future.

Source: Frost & Sullivan

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