Clinical trials group Icon posts 11% rise in revenues

Dublin-headquartered drugs group Icon has reported an 11 per cent year increase in revenues to $388 million(€354 million) for the first quarter.

The company, which is a global provider of drug development solutions and services to the pharmaceutical, biotechnology and medical device industries, said income from operations totalled $66.7 million or 17.2 per cent of revenue. This compares to $43 million or 12.3 per cent of revenue for the same period a year earlier.

Given the strengthening of the dollar, Icon said it had increased earnings guidance for the full year from a range of between $3.45 and $3.60 to a range of between $3.60 and $3.70. It also decreased revenue guidance from a range of between $1,610 and $1,675 million to a range of between $1,600 and $1,650 million.

Net income was $56 million or 90 cents per share on a diluted basis in the first quarter, versus $36.2 million or 57 cents per share for the same three month period in 2014.

The Nasdaq-listed firm reported gross business wins totalling $516 million. This represents a gross book to bill of 1.33. Net business wins were $454 million, representing a net book to bill of 1.17.

Operating income margin for the quarter equated to 16.4 per cent. This excludes a once-off foreign exchange reevaluation gain of $2.9 million.

Earnings per share were 90 cents. Excluding the currency revaluation gain, earnings per share were 86 cents.

Cash generated from operating activities totalled $61.1 million while capital expenditure was $10.7 million.

During the quarter under review, Icon completed the acquisition of MediMedia Pharma Solutions for an initial cash consideration of $105 million. the consequence of this is that the company’s net cash declined from $216 million at the end of December 2014 to $172 million at the end of March 2015.

Icon employs 11,200 people at 81 locations in 38 countries. In Ireland, the group has approximately 1,015 staff in Dublin and Limerick.

The clinical trials company announced plans in January to develop a new global innovation hub in Ireland in a move which will create a further 200 jobs.