The Collaborative International Dictionary of English v.0.48:

Sanguification \San`gui*fi*ca"tion\, n. [Cf. F. sanguification.
   See Sanguify.] (Physiol.)
   The production of blood; the conversion of the products of
   digestion into blood; hematosis.
   [1913 Webster]

WordNet (r) 3.0 (2006):

sanguification
    n 1: the formation of blood cells in the living body (especially
         in the bone marrow) [syn: hematopoiesis,
         haematopoiesis, hemopoiesis, haemopoiesis,
         hemogenesis, haemogenesis, hematogenesis,
         haematogenesis, sanguification]