ICON cites positive customer mix, demand, and PRA as revenue drivers in 2021
Revenue in the fourth quarter was $1.8 billion – up 147.4% year-on-year. For the full year ICON brought in $5.48 billion, up 95.9% on the total generated in 2020.
On the firm’s earnings call CEO Steve Cutler cited the “transformational” acquisition of PRA Health Sciences and increased customer demand as ICON’s major revenue drivers in 2021.
“The overall environment in clinical development throughout 2021 was robust as biopharma development spending continued to grow, and biotech funding activity was near the record levels seen in 2020.”
He also said ICON provided support for 30 newly approved drugs in 2021 in areas such as liver disease, schizophrenia, a range of cancers and infectious diseases including COVID-19.
“Alongside our biopharma partners, ICON has played a key role in the ongoing development of COVID vaccines and therapies. We rose to the challenge of executing clinical trials in record timelines, starting up sites and recruiting patients with increased efficiency.”
Customer mix
ICON saw increased demand from all types of companies according to Cutler, who said, “Approximately half of revenue attributable to large Biopharma, and 45% attributable to small and mid-sized Biopharma companies.
“Within this segment, companies that have less than $100 million in annual R&D spend represented a mid-teen percentage of our overall revenue in 2021.”
This positive customer mix was also highlighted by CFO Brendan Brennan.
He told analysts “Our top customer represented 8% of revenue, and our top five customers represented 31.6% of revenue. Our top ten represented 45.3%, while our top 25 represented 65%”
Partnerships
And customer demand will also be key in 2022 according to Cutler, who again cited the acquisition of PRA as an important step for ICON.
He told analysts “Customers are increasingly turning to CROs as partners, not just providers, to aid in the development of these complex, groundbreaking therapies.
“As new ICON, we can be even more of a strategic partner to our customers. With the unique resources, world-class talent, and differentiated solutions we offer.”
ICON reiterated that it expects revenue to be in the range of $7.77 billion to $8.05 billion – representing growth of 42% to 47% - in 2022.
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