Icon forecasts growth despite ongoing market challenges
Icon expects demand for clinical trial services to continue growing in 2023 despite ongoing “macroeconomic challenges.”
The Dublin, Ireland headquartered clinical research organization (CRO) outlined its forecast for coming year in a report last month, predicting full year 2023 revenue in the $7,940 - $8,340 million range - representing growth of 3.3% – 6.8%.
CEO Steve Cutler cited an expansion of the CRO’s customer base last year as the basis for the prediction.
“Icon’s achievements in advancing the speed and efficiency of clinical development continue to progress as we support an ever-growing number of customer partnerships, and we are pleased with our strong operational delivery and cost management in 2022.
“Our outlook for 2023 reflects a continued solid demand environment albeit with persistent macroeconomic challenges.”
Business wins
The comments are in keeping details Icon shared during a presentation at the JP Morgan Healthcare conference.
At the time Cutler told analysts during the Q&A session “business wins” would remain an important upside driver for Icon.
“On the upside point of view, business wins are important, and the second half of 2022 and the first half of 2023 will play into that. We’re not announcing anything for Q4 at this stage, but we feel that we are in a good place from that point of view.”
“Again, the makeup of the portfolio – vaccine work, rescue trials – things that burin a little faster will get us more towards the upside.”
“On the other hand, if [lower] biotech funding really does become more of a burden and large pharma and the FSP doesn’t compensate for that it may push us more towards the lower side.”
2022 performance
Icon has yet to report its 2022 full year financials, however, the firm reaffirmed its guidance of revenue in the range of $7,690 - $7,810 million and adjusted earnings per share1 in the range of $11.65 - $11.85.
Unsplash/hjwinunsplsh