Icon is delaying publication of its financial results while lawyers investigate if the Irish clinical trials group overstated revenues for 2023 and 2024. Its shares were down more than 35 per cent on the Nasdaq exchange in New York at one point on Thursday.
The Leopardstown-based business, which tests new medicines and treatments for pharmaceutical manufacturers, was due to report 2025 financial results this month.
However, the Nasdaq-listed company confirmed that it was investigating accounting practices and controls, and would instead issue the earnings release on or before April 30th.
Initial indications are that Icon overstated revenue by less than 2 per cent for 2023 and 2024, the company said.
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“Outside legal counsel is conducting the investigation with the support of forensic and technical accounting firms,” a statement confirmed.
“Due to the ongoing investigation, including a delay of normal quarter and year-end reporting processes, the company is not yet able to communicate its 2025 financial performance and is withdrawing its previously issued 2025 full year financial guidance.”
Icon reported revenues of $8.281 billion (€6.97 billion) for 2024 and $8.12 billion for the previous year, its financial statements for both periods show.
In October, the company said that it expected full-year financial revenues for 2025 to be between $8.05 billion and $8.1 billion.
Concerns raised by management prompted the Icon board’s audit committee to begin investigating some of its accounting practices and controls last October, according to the company’s statement.
Icon expects to report “one or more material weaknesses” in certain internal controls over financial reporting as a result, it added. Icon’s investigation focuses primarily on revenue recognition from 2023 through to 2025.
The company said that the inquiry has not identified any impact on its customers from the accounting practices under review.
Icon is implementing a series of “corrective actions to enhance our internal controls over financial reporting”, chief executive Barry Balfe confirmed.
He said the company had a strong business and that he looked forward to reporting its 2025 financial results. Icon’s board is committed “transparency, accountability and strong governance”, chairman Ciarán Murray stressed.
Murray added that he had full faith in the company’s executives and their ability to implement the changes needed.
Founded in 1990, the New York-listed Irish group employs 40,000 people in operations across 55 countries carrying out clinical trials of new drugs developed by pharmaceutical manufacturers.
According to its website, recent notable projects include an anthrax vaccine clinical trial for the US Biomedical Advanced Research and Development Authority, a federal organisation that develops vaccines and treatments for public health medical emergencies.
