CLINICAL RESEARCH group Icon has reported strong double-digit earnings growth for last year and says it is well-positioned entering 2010.
The business, which is based in Dublin but conducts much of its work in the United States, says it expects revenues to grow by up to 5.9 per cent in the current year – nearly double the rate in 2009.
Icon, which tests new medicines for pharmaceutical, biotechnology and medical device companies, yesterday reported fourth-quarter profit after tax of of $30.9 million, an increase from $21 million a year earlier. For the year as a whole, net profit jumped more than 20 per cent to $94.3 million from $78.1 million in 2008.
Revenues rose 3 per cent to $888 million over the year, in light of which Dublin analyst Jack Gorman at Davy described the profit performance as “exceptional” given the “economic headwinds, client consolidation and healthcare reform” the company faced last year.
Chief executive Peter Gray said: “We are pleased with our performance in what has been a challenging year. Revenues increased by 3 per cent margins improved significantly from 11.5 per cent to 13.1 per cent and earnings per share were up 18 per cent.”
He said that with a backlog of work worth $1.84 billion and a strong balance sheet, the company had entered 2010 in a good position. “While external factors are challenging and many governments are endeavouring to reduce healthcare costs, including pharmaceutical prices, we remain positive, though cautious, as 2010 commences.”
Davy’s Mr Gorman said that although new investment spending would hold back margins in the near term, “this is in anticipation of demand growth as we progress through 2010.
“Planned investments in quality and training also reflect how seriously Icon is addressing the FDA warning letter received late last year” in relation to alleged violations in two studies conducted for a client between 2004 and 2006.
