AnalysisWhile bad news for one doesn't necessarily spell good news for another, this seems to be the case in the pharmaceutical industry.
Reports of struggling drug companies have inundated the news of late, and the beneficiaries seem to be the clinical research organisations such as Icon.
With research and development spending increasing at about 12 per cent globally, and the outsourcing element of that rising at an even faster rate of about 15 per cent, it seems that Icon can do no wrong.
Jack Gorman, an analyst at Davy, yesterday upgraded his forecasts for this year and next by about 5 per cent after the 2006 figures came in ahead of expectations. The story, he says, is a very positive one, and one that in the future is likely to get even better.
"They are in a really hot space," he says, adding that significant growth is expected in this area of the healthcare sector.
Dealers in Dublin said they expected more upgrades to come through on the back of yesterday's numbers.
The Dublin-based, but Iseq and Nasdaq-listed, company has fallen under the radar of many Irish investors despite recently expanding its Dublin facility.
Last year's growth came in most part from the clinical trials division, which is continually winning new business. However, more significant as an eye-catching headline is the turnaround in fortunes at the labs business. While significantly smaller, this division had suffered after failing to win enough business to cater for what had been a significant expansion in the early part of the decade. Now things have picked up in this area, and the company seems to be firing on all cylinders.
