S&P upgrades Icon citing PRA integration and expanded scope
Dublin, Ireland headquartered CRO Icon is doing more work with clients and cutting costs after integrating PRA Health Sciences according to S&P.
The US rating agency shared its thoughts last week in a note explaining why it upgraded the Irish contract research organization’s (CRO) credit rating from ‘BB+’ rating to a ‘BBB-,” which denotes an investment with lower risk of default.
S&P wrote that “Icon’s solid operating performance and voluntary debt prepayments improve credit metrics to a level commensurate with an investment-grade rating”.
The agency also cited the expansion of Icon’s scope with existing clients, profitability relating to the successful integration of PRA Health Sciences and “disciplined cost management” as the basis for the upgrade.
Icon CFO Brendan Brennan welcomed the upgrade, commenting “We are proud of the investment grade rating upgrade from S&P, which is aligned with our stated long-term capital allocation priorities for Icon, and indicative of the strong financial position of the company.
“Achieving this milestone reflects continued focus on strong cost management and the realization of the operational benefits following the successful integration of PRA Health Sciences” he said.
S&P’s comments are in keeping with forecasts Icon presented in February when it predicted full year 2023 revenue in the $7.9 - $8.3 million range - representing growth of 3.3% – 6.8%. At the time Icon cited “continued solid demand” for services from an “an ever-growing number of customer partnerships.”
One of these new partnerships is with Danish drug develop Leo Pharma, which called on Icon to help expand its program of dermatology focused clinical trials in deal struck in March.
In a press statement released at the time Icon said it would draw upon a team of 500 plus professionals from its lab unit, its Accellacare site-network, its Firecrest site management team and decentralized clinical trials wing to service the contract.
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