Commercial Models

Advanced Clinical provides a variety of commercial models, with which clients are afforded tremendous flexibility in working with us to realize the greatest value. Our typical commercial models are outlined below, which blend service relationship type, payment type and level of financing:

• Type of service relationship – describes the interaction between AC and its clients, covering ownership and operation of the assets, contract duration and the level of commitment by both parties
  • Arm’s length transaction – A single project that occurs for a defined period of time in which AC provides all of the labor and assets
  • Multi-year contracts – AC typically operates some of the client’s processes over a period of years, and transfer of labor and assets may occur
  • Ongoing partnerships – An arrangement whereby AC and its client make a commitment to collaborate in order to accomplish specified objectives, and both sides share in control

• Payment metric – the unit (labor or asset) on which our fee is based
  • Usage-based – Clients pay for the amount of services used with labor units being measured by time and asset units being measured by the applicable technical metric
  • Fixed-based – Clients pay a flat fee (typically monthly or annually) for an estimated range of use
  • Contingency – Client pays only if AC successfully delivers the required results, such as gain sharing arrangements, pay-for-performance and risk/reward driven contracts

• Level of financing- amount of financing AC offers its clients
  • No financing
  • Limited financing – AC provides some of the funding for a transaction

We bundle these aspects together to offer the following types of commercial models: time and materials , asset transfers, dedicated capacity, performance based, unit based, fixed price as well as profit sharing.