You guys are probably right but I once put it to the exCEO about how deals like this were structured and while he wouldn't disclose details (appropriate) he did confirm that the parameters I put to him were in the right ballpark my recollection is sketchy as I can't remember all the stages (eg commit, pre clinical, Phase 1,2 & 3 & FDA approval) but something like this -
I pointed out in that past that deals had been structured poorly in that PYC didn't get ongoing payments for extensions (se some old posts of mine on PYC criticising this long before I invested) but I believe that there is some sort of reasonable payment (I took that to be $1-3m) for any extensions.
Cash itself is mildly helpful in that is stops investors worrying about a CR but the validation is the more valuable thing - the SP could double on an extension and triple on a commitment . . . . Or it could do nothing . . .
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