Balancing Progress and Cash Flow: How One Pharmaceutical Company Optimized Funding with an Extended Terms Agreement 

Pharmaceutical companies often face long timelines and large capital commitments that strain even the most well-managed budgets. Progress payments for manufacturing and development activities can create cash flow pressure years before a product reaches the clinic or market.

For VC-backed organizations, this challenge is amplified. Leadership must balance immediate R&D needs against the timing of future funding rounds. In such cases, customizable financial solutions can help align expenditure with milestone-driven business models, keeping key programs moving without compromising liquidity.

Article Summary 

• A VC-backed pharmaceutical company faced an invoice for a product not set to deliver for over two years
• Leadership wanted to maintain liquidity to continue R&D while aligning payments to delivery milestones
• By using a customizable financial solution, an Extended Terms Agreement (ETA), the company deferred payments for one year, followed by structured quarterly installments
• This no-penalty early payoff option added flexibility, enabling financial control while maintaining scientific momentum
• This case illustrates how strategic financing solutions can protect cash flow and reduce development risk in pharmaceutical programs

Table of Contents 

1. Case Study 1 Progress Payments vs. Funding Realities
2. Case Study 2: Modernizing Metabolomics with a Fleet Upgrade  
3. Outcome: Preserved Liquidity and Financial Agility
4. Key Takeaways for Pharmaceutical Innovators

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Case Study 1 Progress Payments vs. Funding Realities

A VC-backed pharmaceutical company developing therapies for acute and life-threatening illnesses faced a significant financial hurdle: a large progress payment invoice was due immediately for a product that would not be delivered for more than two years. 

Although the company had established relationships with Thermo Fisher Scientific, PPD™, and Patheon™, it wanted to conserve cash to fund ongoing R&D and operational priorities. Leadership sought a solution that would defer outflow until the product’s delivery phase without slowing scientific progress. 

Thermo Fisher Scientific approved an Extended Terms Agreement (ETA) structured to provide the company with maximum financial flexibility. 

Key details of the ETA included: 

• A one-year payment deferral, allowing the company to conserve cash through critical development phases.
• Quarterly payments beginning after the deferral period, spreading the cost over one year.
• This no-penalty early payoff option, giving the company the freedom to complete payment once additional funding was secured.

This customizable financial solution gave the organization control over its payment timeline while continuing to fund high-priority R&D programs.

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Case Study 2: Modernizing Metabolomics with a Fleet Upgrade  

A global leader in metabolomics research relied on 36 Orbitrap mass spectrometers, many of which were out of date. The company wanted to refresh instruments in bundles while consolidating technology across multiple sites.

At the same time, they needed to control capital spending while supporting a new customer initiative.  

The Leasing Solution:  
Through a multi-year lease, the company acquired 6 Orbitrap Exploris 120 instruments with Vanquish H Tandem LC systems and extended service coverage. This solution lowered capital expenditure, accelerated the replacement of older instruments, and positioned the company to support both ongoing and new metabolomics initiatives.  

• Learn more about the Equipment Technology Refresh Program  

  Key Takeaways  

• Flexibility fuels growth: Leasing helped enable each organization to move forward without waiting for larger budget approvals
• Lower CAPEX, higher impact: Long-term leases and promotional interest rates helped conserve cash for strategic initiatives
• Future-proofing technology: Companies gained the latest instruments needed for scientific advancement while avoiding the burden of large, one-time purchases 

For growth-phase companies, equipment leasing isn’t just a financing tool, it’s a strategic enabler that helps teams scale faster, stay technologically current, and manage cash flow with confidence.  

Outcome: Preserved Liquidity and Financial Agility

The pharmaceutical company successfully aligned its payment obligations with project delivery milestones preserving liquidity during critical early development. By deferring large capital outflows, it maintained funding for in-house research and other strategic initiatives.

When new capital became available, the leadership team exercised the early payoff option at the one-year mark, demonstrating disciplined financial management while maintaining uninterrupted scientific progress.

This case underscores how customizable financial solutions like the ETA help pharmaceutical innovators navigate long development timelines, manage milestone-based cash flow, and sustain growth momentum.

Key Takeaways for Pharmaceutical Innovators 

• Align payments to milestones: Match financial commitments to product delivery and development timelines
• Preserve liquidity for innovation: Defer large capital outlays to keep R&D programs fully funded
• Build in flexibility: Early payoff options create room to adapt as funding conditions evolve
• Strengthen partner relationships: Financial agility enables consistent progress with key CDMO and CRO partners

Explore how equipment leasing and other customizable financial solutions can help your organization balance cash flow, help accelerate development, and manage long-term projects more efficiently. 

Learn more about flexible financing solutions available to help you stay current, competitive, and move forward with confidence.

Thermo Fisher Financial Solutions is committed to ensuring that science continues, even in uncertain times. We’re not just providing financing—we’re providing momentum.

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