Pharmaceutical firm Icon reports good year with profits rising 92% to €45m

Irish pharmaceutical services company Icon has reported a 92% increase in annual net profits, for 2012, to $60.4 million (€45.2m.

The Dublin-headquartered firm — which, late last year, delisted from the Iseq, in favour of a full listing on New York’s Nasdaq exchange — also said earnings per share, for the year, increased from 52c to $1.

Chief executive Ciaran Murray said 2012 validated the company’s investment strategy, “as we won a record $1.6bn of new business and reported milestone revenue of $1.12bn and earnings per share of $1”.

The final three months of last year saw Icon attract new business of $378m.

Icon has also upped its full-year financial guidance for 2013; saying it now expects annual revenues this year to come in at between $1.26bn and $1.29bn. Towards the end of last year, the company had guided for a range of $1.21bn to $1.24bn. Earnings per share guidance has also been increased — from a range of $1.40-$1.55 to one of $1.44-$1.60.

Much of the reasoning behind Icon’s upgrading of its current year’s guidance is the likely contribution from its recent acquisition — the clinical trials division of US group, Cross Country Healthcare. Earlier this month, Icon bought the business for an initial cash consideration of €38.3m.

In a research preview note, ahead of yesterday’s figures, Davy Stockbrokers suggested Icon is “very well positioned in what is a growing clinical research organisation market”.

“Operating margin recovery has been consistent over the last 18 months or so, although there is more to do here,” said Davy’s Jack Gorman.