Mixed results for pharma services firm ICON

FIRST-QUARTER revenue at international pharmaceutical services company ICON grew by 5% but net income almost halved in the first three months of 2011.

Net revenue for the period amounted to $229.3 million (€157m); up from $219.1m for the corresponding period last year.

However, net income fell on a year-on-year basis from $22.2m to $12.8m, mainly due to the company undertaking a number of cost reduction steps, which ultimately led to restructuring costs of $5m.

ICON provides services to the pharmaceutical, biotechnology and medical devices industries.

Quarterly earnings per share amounted to 21c, down from 38c for the first quarter of 2010.

Operating profit for the quarter fell from $26.8m to just under $16m.

ICON — which is headquartered in south Dublin — said the net value of new business wins during the course of the first three months of the year amounted to $257m; with the gross value coming in at $329m.

The company’s chief executive, Peter Gray, said that performance to date this year has met with expectations and a return to growth is anticipated for the second half of the year.

“With strong gross bookings of $329m, a strengthening pipeline of new opportunities and the Central Lab progressing as planned, we believe we’re on track for a return to growth in the second half,” Mr Gray said.

Back in February, ICON reported a dip in full-year operating profits for 2010, from $116.3m to $92m, but posted a 1.4% rise in revenues to $900m.

Las year, profits fell in each of the company’s divisions.