Icon revenues up ahead of Irish expansion

Revenues at Irish-headquartered drugs group Icon rose more than 10% to €353.8m in the first three months of the year as the firm prepares to take on 200 additional Irish staff. 

The roles which are to be based in Limerick and Dublin will come on stream following the creation of a new global innovation hub here.

The hub, announced earlier this year, will foster the development of technologies and clinical trial processes that will enable faster access to large volumes of clinical data with the roles to include those in IT, data analytics and clinical science among others.

The Nasdaq-listed clinical trials group yesterday posted a strong set of results for the opening quarter of the year. Income from operations climbed more than 17% to $66.7m (€60.7m) compared to $43m for the same quarter last year.

Operating income margin in the first quarter included a one-off foreign exchange revaluation gain of about $2.9m. When this is excluded, operating income margin in the quarter equated to 16.4% and earnings per share were 86 cents.

Commenting on the results, chief executive Ciaran Murray said the pharmaceutical company would increase its earning projections for the year on the back of the strengthening dollar.

““Our first quarter represents a solid start to 2015. Revenue grew by 13% year on year on a constant dollar organic basis. Excluding the one-time foreign exchange benefit, our operating margins expanded to 16.4% and earnings per share were 86 cents, an increase of 51% over last year.

“During the quarter we saw a further strengthening of the US dollar and as a result we have increased earnings guidance for the full year from a range of $3.45 to $3.60 to a range of $3.60 to $3.70 and decreased revenue guidance from a range of $1,610 to $1,675m to a range of $1,600 to $1,650m.”

Icon also completed the takeover of MediMedia Pharma Solutions for an initial cash consideration of $105m in the opening quarter.

The acquisition gives the group additional scientific communications capabilities, according to Icon. Net cash at the end of March this year consequently stood at $172m as opposed to $216m at the close of 2014.

The group also announced a dedicated medical device and diagnostic research service group during the period.

Icon has 11,200 employees in 81 locations in 38 countries. In Ireland, it employs about 1,000 staff from its global HQ in Dublin and office in Limerick. The company specialises in the development, management and analysis of programs that support clinical development.