Clinical research giant Icon reports 8% rise in first-half operating profit

ICON, THE largest provider of clinical research for drug makers in the State, has reported an 8 per cent increase in first-half operating profit, which rose to $48.1 million (€33.7 million).

Turnover rose by 4.8 per cent to $439.8 million for the six months to the end of June, with just under half its revenues coming from the US.

Direct costs rose 5.5 per cent to $249.9 million, primarily due to higher wage costs for staff employed on projects and a rise in laboratory costs. Over the period, the percentage of turnover accounted for by direct costs rose two percentage points to 56.4 per cent, compared with the first half last year.

Icon also booked a $13.4 restructuring charge in the second quarter as it reorganised its operations in response to the “globalisation of clinical studies and its attendant impact on resources in existing and emerging markets”.

At the end of the first half the company had net cash reserves of $83.2 million with working capital of $173.9 million. It had credit lines of $64 million, down from $105 million at the end of December.

Basic earnings per share for the period were $0.65 compared with $0.60 during the comparable period last year.

Icon purchased UK-based firm Veeda Laboratories for $1.9 million in July. Oxford-based Veeda provides biomarker laboratory services to the pharmaceutical and biotechnology sectors.

Dublin-headquartered Icon employs 7,000 in 38 countries and is listed on the Nasdaq, with a secondary listing on the Iseq.