47% revenue increase reported by ICON

Pharmaceutical giant ICON has reported a 47% increase in net revenues to $68.9m (€58.9m) in its Q1 earnings to end August 2003.

The contract clinical research organisation also said that income from operations was $7.6m (€6.5m), up 46% on the $5.2m (€4.4m) reported for the first quarter last year.

Operating margins remained unchanged at 11.1% from the equivalent period last year.

Net income for the quarter was $5.6m (€4.7m) or 44 cents per share, on a diluted basis, compared with $4m (€3.4m) or 33 cents per share compared to the corresponding period in 2002.

ICON Chairman Dr. John Climax said : "The performance in the first quarter has given us an excellent start to fiscal 2004.

"We were particularly pleased with the award of $134m (€114m) of net new business; a record for ICON.

Our strong levels of revenue growth have continued, and our operating margins have shown a solid improvement over the previous quarter, all of which reinforce our confidence in ICON's future outlook," he added.

The company reported that it has acquired Globomax for an initial consideration of $11m (€9.4m) in cash, with further payments of up to $4m (€3.4m) payable over the next three fiscal years.

This is subject to the achievement of certain performance targets.

The inclusion of Globomax's results is expected to have a modestly accretive impact on earnings per share for fiscal 2004.

ICON also announced the appointment of Mr Shuji Higuchi as a non-executive director to its Board. Mr. Higuchi has over 38 years of experience in the pharmaceutical industry.

Icon has over 2,500 employees providing services to the pharmaceutical and biotech industries from 31 locations in 18 countries worldwide.