Posted Tue, May 29th, 2012
By Martin Steel
News
Equipment When Needed

Every scientist in every clinical and pharmaceutical organization has to learn to compete for the financial resources that will make their groups successful.

Historically, instruments were purchased and depreciated over a long period of time – not unreasonable when their useful life was up to 15 years. Innovation in analytical instrumentation like Mass Spectrometry and Chromatography, however, has erupted in the last 10 years. Now the technology race is changing the utility of older instruments at a faster rate than ever before. The scientist's ability to get in and out of the right technology is now challenged by a whole new cost structure. Not only must the cost of a new instrument be justified, but potentially writing off the book value of the Scientist's current instrument can greatly impact an annual budget, needless to say, the bottom line.

Other industries experiencing the same impact of hi-tech evolution have come to grips with the problem, meeting the needs of both user and corporation. McKinley Scientific has drawn upon its experience in these other markets to bring a similar and expanded approach to pharmaceutical, clinical, biotech and contract research organizations that are using analytical instrumentation. Our vendor independence provides access to leasing of a broad range of OEM instrumentation.

The instrument approach is simple. The scientist must be objective in an assessment of how long a new instrument will be used for. This includes an understanding of when the next new technology might be available and how it's availability may drive the need to change. Once this is understood, the instrument acquisition will fall into one of two categories:

Outright purchase: where the use is defined in excess of 5 yearsLease: where the use is defined as less than 5 years

What is a lease?

You can lease an instrument anywhere from 6 to 48 months at the end of which, you return the instrument no strings attached. Because the instrument has value at the end of the lease, the scientist or "lessee" does not pay the full purchase price over the period of the lease. No time and effort are expended trying to sell off an instrument at the end of use, and there are no depreciation schedules to battle with. Usually, the use of the instrument is treated as an operating expense.

Those who lease, over time, become accustomed to the cycle of paying monthly or quarterly as an operational expense, and the cycle of decision-making becomes  driven by the flexibility of the lease end date. With the cost of instrumentation coming down while innovation is on the rise, at the end of the lease, the scientist may be better positioned to move one instrument out and a new one in, without impacting the monthly expense in a detrimental way.

McKinley Scientific have taken the time and invested time in understanding technology trends and can accurately predict the market value of an instrument 2, 3 or 4 years out. This results in the most competitive costs for leasing instrumentation.

McKinley Scientific provides instrumentation expertise that allows scientists and researchers to maximize the value of instrumentation, in use or in market, at inception or at disposition.

We can help you finance to own, or lease to use equipment for a specified period of time. Full pay-out, or fixed and fair market value purchase options, capped and guaranteed buy-back option structures.