EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
Chairman
Dr. John
Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
Beacon
Bioscience
CEO
 Ted Gastineau
ICON plc Global Organization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ICON PLC
Investor Relations Day 2007
Peter Gray
March 2nd  2007
 
 
 
Chairman
Dr. John Climax
Dev
ICON Corporate
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
Beacon
Bioscience
CEO
 Ted Gastineau
ICON plc Global Organization
 
 
 
Forward Looking Statements
Certain statements contained herein including, without limitation, statements containing the words “believes,” “anticipates,”
“intends,” “expects” and words of similar import, constitute
forward-looking statements concerning the Company's
operations, performance, financial condition and prospects.  Because such statements involve known and unknown risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements.  Given
these uncertainties, prospective investors are cautioned not to
place undue reliance on such forward-looking statements.  The
Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
The Journey So Far
 
 
 
2006
•
Revenues $450 million
•
Operating Profits $47m
•
EPS $1.33
•
Staff 4,300
1990
•
Revenues $0.5 million
•
Operating Profits $0m
•
Staff 5
The Journey So Far
2007 Guidance
•
Revenues $530-$550
•
Operating Profits $58 - $62m
•
EPS $1.63 - $1.71
•
Staff 4,800 – 5,100
 
 
 
Market Environment
 
 
 
*Source:  Tufts Centre for Study of Drug Development
Strong Market Environment with...
•
Fundamental R&D Spending Growth Trend 6%- 8% p.a.
¯
Phase II / III pipelines strengthening
•
Increased Outsourcing
¯
Being accelerated by activity & funding in Biotech / Speciality
¯
Globalisation of clinical research
¯
Cost containment pressures
¯
Evidence that projects, where CROs are engaged, complete faster than
“internal only” studies*
¯
Growth c.15% p.a. since 2001*
•
Increasing Regulation
¯
More patients/ more studies
¯
Post marketing surveillance
 
 
 
Biotech fund raising ($billions)
Source: Burrill and Company
…US Biotech Funding continuing to grow,
leading to...
 
 
 
Source:  Informa Health
…significant growth in the number of
companies with active clinical projects,….
Number of companies running clinical projects
 
 
 
Source: FDA Centre for Drug Evaluation & Research
(1) Includes active INDs for Therapeutic Biological Products Transferred from CBER to CDER effective 10/01/2003
(2) Includes INDs for Therapeutic Biological Products Transferred from CBER to CDER
… good recent growth in original IND Applications,….
 
 
 
Source:  FDA
Number of Active INDs
… which has lead to significant growth in the
number of active INDs,…
49% Increase since 2000
 
 
 
Source: IMS R&D Focus, Dec 2006 and previous year SMRs
2002 – 2006
46% Growth Phase I – II
…which is enriching pipelines generally,
and leading to…
 
 
 
1) Includes the Therapeutic Biological Products Transferred from CBER to CDER effective 10/01/2003
Source: FDA Centre for Drug Evaluation & Research
….a re-emergence of growth in NDA applications.
 
 
 
Not a “ Pig in a Python”, rather a …….
 
 
 
…bursting dam….
 
 
 
…bursting dam….
 
 
 
…bursting dam.
 
 
 
ICON Gross Business Wins - Last 10 Quarters ($ millions)
Strong business wins have led to…..
 
 
 
Net Business Wins  
Book to Bill Ratio
…good Net New Business Wins
  and strong book-to-bill…
 
 
 
…leading to record total backlog levels…
($ millions)
 
 
 
Value of backlog forecast to be earned in next 4 quarters
% coverage of next 4 quarters forecast revenues
…, strong forecast coverage of next 4 quarters
revenues……..
 
 
 
Client Concentration 2006 v 2005
…..and a broadening of the customer base. 
 
 
 
STRATEGY
 
 
 
2006
•
Revenues $450 million
•
Operating Profits $51m
•
Bookings $665m
•
Staff 4,300
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Goal 2010
•
Revenues $1bn
•
Of which acquisitions
contribute $150m
•
Margins ≥14%
Core Strategy is Organic Growth, with acquisitions
adding new services or scale.
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
  Ciaran
Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
Ted Gastineau
ICON Central
Laboratories
President
Bo
Scott-Edwards
b
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
Financial Performance
 
 
 
 
 
 
Q4 ’06
Q4 ’PY
% Increase
  
Net Revenue
128.9
88.1
46.4%
  
Direct Costs
72.5
48.7
48.8%
  
SG & A
37.6
26.8
40.3%
  
D & A
3.9
3.5
11.2%
  
 
_____
_____
_____
  
Operating Income
14.9
9
65%
  
Net Income
12.4
7
79%
  
 
_____
_____
_____
  
EPS (ex SFAS123R)
42c
24c
75%
  
EPS (Inc SFAS123R)
39c
      
Weighted Average no. of
Shares (ex SFAS123R)
29.7m
28.5m
    
Recent Financial Performance
($ millions, except EPS)
 
 
 
 
 
 
 
FY 2006
FY 2005
% Increase
  
Net Revenue
456
342.8
32.9%
  
Direct Costs
254
189.6
34%
  
SG & A
134.7
108.5
24.1%
  
D & A
14.9
13.9
7.4%
  
 
_____
_____
_____
  
Operating Income
51.9
30.8
68.6%
  
Net Income
42.4
24.3
74.3%
  
 
_____
_____
_____
  
EPS (ex SFAS123R)
145c
86c
68.6%
  
EPS (Inc SFAS123R)
133c
      
Weighted Average no. of Shares
29.3m
28.3m
    
Recent Financial Performance
($ millions, except EPS)
 
 
 
 
 
 
 
 
 
 
Net Revenue CAGR of 29% over 7 Years
 
 
 
Earnings Per Share Growth
 
 
 
 
May 31, 05
(Year)
Dec  31, 05
(7 mths)
Dec 31, 06
(Year)
Net Cash
$78.4
$82.3
$98
Total assets
$347.6
$349.1
$476.3
Shareholder’s equity
$233.1
$241.6
$302.7
Cashflow from operations
$23.8
$11.7
$51.5
Capital expenditures
$15.6
$7.8
$12.3
Shares outstanding
27.8
28.0
28.5
       
Summary Balance Sheet and Cash Flow
($ millions)
 
 
 
*Source SEC Filings
Revenue Growth v Peers: Net Revenue
CAGR between 2000 and 2005
 
 
 
Investment Highlights
•
Top 4 global CRO
•
Strong market fundamentals
•
Outstanding record of organic growth
•
Strong balance sheet
•
Margin expansion opportunity
•
Good strategic position
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
Ted Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON
Clinical US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
CFO
Ciaran Murray
ICON plc Global Organization
 
 
 
ICON Clinical Research
Service Overview
 
 
 
Services
•
ICON  Clinical Research is a global provider of outsourced Phase II – IV
development services to the pharmaceutical, biotechnology and medical
device industries.
•
Clinical trial management services include:
¯
Project Management
¯
Clinical Monitoring
¯
Data Management
¯
Biostatistics
¯
Medical Affairs, Medical Writing & Safety Surveillance
¯
Late Phase Services (patient registries, health economics, outcomes
research)
¯
Interactive Technologies (IVRS, ePRO, Portals, etc.)
 
 
 
ICON’s Business Trends
In Clinical Research
 
 
 
1Excludes IVR only data
2Gross = All RFPs Received
3 Net = (Gross minus Cancelled, Declined, Non Award, Sent to Other Division)
Clinical Research 2003 – 2006 Annual (Gross vs. Net)
Global RFP Flow
 
 
 
1Excludes IVR and Lab data
2Gross = All RFPs Received
3 Net = (Gross minus Cancelled, Declined, Non Award, Sent to Other Division)
Clinical Research 2003 - 2006 Annual (Gross vs. Net)
Global RFP Value ($ Million)
by Participating Region
 
 
 
1 Excludes Change Order Values
1 Includes IVR Values
2 Based on Award Notification Date
3 Adjusted Value not used as 2003-2005 data would not be accurate
Award Value in Millions
Global Historical Awards by Originating Region
 
 
 
1 Excludes Change Order Values
1 Includes IVR Values
2 Based on Award Notification Date
3 Adjusted Value not used as 2003-2005 data would not be accurate
Award Value in Millions
Global Historical Awards by Participating Region
 
 
 
 Excludes IVR Values
Award Value in Millions
Award Values by Therapeutic Area Summary
 
Award Value in Millions
 
 
 
Excludes IVR Values
Award Value in Millions
Global/Regional Award Values
Therapeutic Area Summary - 2006
 
 
 
+ 200%
Therapeutic Growth (Awards)
Significant growth in Oncology, CNS, Anti-infectives & Endocrinology
 
 
 
2003
2006
Therapeutic Growth (%Revenues)
 
 
 
Composition of Business
(Phase II-IV only) (% of Revenue)
 
 
 
Increased Outsourcing of Full Service Work
(U.S. Business)
 
 
 
Total Number of Active Projects by Region
 
 
 
Increasing Contribution by EU and ROW
to ICON’s Business growth….
 
 
 
Active Projects & Therapeutic Mix by Region
(% of Backlog for 2007)
 
 
 
Concluding Remarks
 
 
 
ICON is well Positioned to…….
•
Capitalise on the expanding market in late phase and safety studies
•
Increase geographical “foot print” to enhance patient recruitment for
global studies
•
Shift backend support to low cost regions such as India
•
Utilize technology to improve efficiency and enhance value (ICOPhone,
ePRO, EDC, ICOnet)
•
Achieve excellence in key therapeutic areas and global project
management
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
 Ted Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON
Clinical US
COO
Malcolm
Burgess
ICON plc Global Organization
 
 
 
•
Electronic Data Capture (EDC) has been around almost
30 years
•
Adoption has been slower than the technologists
predicted
•
So what’s changed
EDC – Origins of the species
 
 
 
ICON’s evaluation and selection of vendors
•
Historical experience with 14 different systems
¯
Driven by state of the market and client variation (no clear leader)
¯
Breath of experience beyond the reach of Pharma
•
Evaluated top 15 systems during 2004
¯
Functionality (Investigator, Monitor & Data Manager)
¯
Scalability & Financial stability
¯
Cost comparison
•
Selected Medidata Rave™ (February 2005)
¯
Non-exclusive agreement
•
Rave™ well accepted but clients continue to mandate other systems
•
Added Phase Forward Inform™ (January 2007)
¯
Rave™ and Inform™ dominated 2006 sales (each about 40% of market)
¯
Allows us to cover the majority of our EDC committed client base 
•
So why Rave™ & Inform™ (and not other suppliers)
¯
Ease of use (Investigator, Monitor and Data Management)
¯
Internet enabled with zero footprint at site (minimal support overhead)
¯
Established relationships with ICON & positive real life experiences
¯
Limit to speed of technology transfer & number of systems
¯
Continue to review other niche providers (eg Late Phase)
 
 
 
Adoption metrics 
•
In the last 3 years
¯
ICON has won 6 times as many EDC projects than in the preceding
13 years
¯
EDC Wins have more than doubled year on year
•
8 wins in 2004, 17 wins in 2005 and 38 wins in 2006
¯
Requests for proposals featuring EDC comprised about 35% of
our portfolio at the end of 2006 (<1% in 2003)
¯
Currently over 20% of our projects are using EDC, this is projected
to reach between 35 and 40% by the end of 2007
•
Current EDC project portfolio
¯
53 ongoing EDC studies (plus 25 completed studies)
•
31 studies in Medidata Rave™ 
•
Over 2,000 sites and 20,000 patients
•
11 studies using Phase Forward Inform™
•
Over 450 sites and 5,000 patients
•
11 studies using other EDC systems (client mandated)
 
 
 
Supports complex
studies (eg
Oncology)
Faster time to
database lock and
final study reports
Access to data
(Adaptive trials)
>$6M
Drivers for adoption – cost, speed & visibility
 
 
 
ICON
Investor Relations Day 2007
Short Break
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
 Ted Gastineau
ICON Central
Laboratories
President
Bo
Scott-Edwards
b
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
IMPROVE
•
Root and branch review of Standard Operating Procedures to enhance
consistency of client experience and efficiency of operational delivery
¯
Data Management
¯
Site visits
¯
Document Management & Archiving
¯
Regulatory & Ethics submissions
¯
Site selection & feasibility
 
 
 
EXPEDITE
•
A review of project management methodology, procedures, and tools,
to enhance consistency of client experience and effectiveness of
operational delivery
¯
Consistent work break down structure across systems
¯
Templates to assist in task planning
¯
More structured approach to risk management
¯
Standardised global training for project leaders
¯
Creation of a global Project Management Office
 
 
 
New Investments in tools
•
Continuous investment in new tools to support new processes and to
provide a scaleable system framework for the enterprise
¯
Clinical Trial management system ( ICOTrial ) active on over 70 projects
¯
SOPs management systems launched at the end of 2006 (iDoc )
¯
Sales contact management tool launched in January 2007 (salesforce.com)
¯
New training and compliance system currently being launched (iLearn )
¯
New enterprise wide financial and project accounting system will go live in Q3
2007
 
 
 
Supporting Growth – Systems, Process, and QA
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
 Ted Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON
Clinical
ROW
President
Dr Dan
Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
JPMA – Japan Dec 2006
Total R&D Spend of Japanese Pharmaceutical Companies
 
 
 
JCROA-Japan, Dec 2006
The Revenue of CROs in Japan
 
 
 
 
Clinical Staff
Location
ICON
70
Tokyo
Quintiles
300
10 offices in Japan
CMIC
350
10 offices in Japan
EPS
300
10 offices in Japan
MSP
150
3-4 offices in Japan
Parexel
250
Kobe/Tokyo
CROs in Japan (as of 2006)
 
 
 
CRO Opportunities in Japan
•
Domestic growth
¯
Increasing Demands
•
Headcount cut in pharma Vs more clinical trials
•
Pivotal studies Vs local studies
•
Mega companies (big three) Vs middle/small pharmas
•
CRO growth Vs SMO involvement (less SMO needs)
•
SMO currently acts as a ‘patient broker’
•
Regional study management
¯
Joint studies between Japan and region
•
Unique processes, culture difference, language, ICON’s presence in the
region
•
Current modification on Japanese Regulations (Asia data to support
Japanese NDA)
 
 
 
Clinical Research in India – Medium term opportunity
•
Progressively developing infrastructure ( >14000 hospitals by 2010)
•
Cost effectiveness -50% of the cost in US
•
Large Population
¯
Genetically heterogeneous
¯
Treatment Naive Patient population
¯
Expedited target recruitment
•
Indications
¯
Prevalence of rare diseases
¯
Huge patient population of diseases like Diabetes and
Tuberculosis
•
Compliance to global quality and ethical standards
•
Availability of highly skilled medical professionals and research staff
•
Large pool of English speaking Caucasian population
•
Streamlined regulatory structure
 
 
 
Amritsar
Geographical spread of current ICON
managed sites
 
 
 
Clinical Research in China – Longer term opportunity
•
Top investigators-5-10 years global experience
•
Patient pool/ Recruitment reliability (216 hospitals,53
different specialties for GCP certified clinical trials
centers)
•
Rapidly expanding pharmaceutical market ---5th
largest by 2010, 2nd/3rd largest by 2020
•
Huge CRO market potential
•
Cost-competitive : 40% reduction Vs EU & USA
•
Global trials accelerated China marketing registration
•
More clinical trials for domestic NDAs
•
Long timeline for CTA approval
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Developme
nt Solutions
President
Dr Thomas
Frey
Beacon
Bioscience
CEO
Ted Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
ICON Development Solutions
•
Medeval: Full Service Clinical Pharmacology Unit, Manchester, UK
•
GloboMax: Strategic Product Development Consulting, Baltimore, US
•
ICON Consulting (YRCR): Regulatory Affairs Consulting, Early Phase Clinical
Operations, Marlow, UK
 
 
 
ICON Development Solutions
 
 
 
•
Regulatory and Development Strategy
•
Protocol Design
•
Regulatory Submissions and Agency Meetings
•
Study/Program Execution
•
Evaluation and Reporting
Ø
From compound selection through development to approval
and beyond
Service Proposition
 
 
 
Area
Collective Expertise
Clinical Drug Development / Clinical
Pharmacology
>12 MDs/PhD >130 years experience,
>1200 ph I/IIA trials
Regulatory Affairs
15 MSc/PhD >150 years
EU/US experience
CMC, Formulation Development
>6 MSc/PhD >100 years experience
PK/PD, Pharmacometrics
14 MSc/PhD, over 100 years
experience
Scientific Capability
 
 
 
Area
Activity
Development Consulting
Build on US strengths and expand in
EU
Regulatory, Publishing
E-submission requirement in EU/US
creates big growth opportunity
Phase I
US Phase I acquisition
Expansion into special population
studies
PK, PD, Pharmacometrics
Constant demand for services,
modeling and simulation rising
CMC, Non-clinical
Life cycle management segment
growing
Strategy For Growth
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
Dr Ted
Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
Central Laboratory – 2006 Overview
•
Revenue grew by +65%
¯
Europe: +93%USA:+62%
•
Won 289 New studies
¯
Strike rate:47%
¯
Repeat business:88%(31 New Clients)
•
Backlog:~$100m(+26%)
•
Customer Satisfaction:
¯
94% would use us again
¯
94% would recommend us to colleagues
¯
54% thought we were the “best” Central Laboratory
¯
33% thought we were as good as the “others”
•
Headcount grew to 356
 
 
 
Central Laboratory – 2007 Outlook
•
Target Revenue growth:>20%
•
Target margin:8-10% at year end
•
Expanding Sales Team
•
Organization growth tailored to demand
•
Expanded use of Six Sigma and Metrics
•
Continue to expand test menu/platforms
¯
Focus on Flow Cytometry and key biomarkers
 
 
 
Central Laboratory – 2007 Outlook
•
Kit output:
¯
~45,000 kits/month compared to ~25,000 in 2005
•
Upgrading systems & processes to yield further
efficiencies
¯
Kit automation initiative underway
¯
Upgrade to IT systems underway
¯
Launched new RDA system
•
Dublin has expanded – Laboratory & Support Teams
¯
Will continue as new HQ comes on line
•
Singapore is on line
¯
Sample receipt/Reporting
•
Actively seeking partners in India & China
 
 
 
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Total Kits
Total Accessions
Kits & Accessions - 2006
 
 
 
Challenges…
•
Extending our Global presence…
¯
Singapore, India, China…
¯
Upgrading our Affiliate activity…
•
Adding high caliber staff
•
Retaining our distinctive style -
¯
A service business built around a Lab
¯
Producing high quality data
¯
Noted for Responsiveness and Flexibility
¯
Focused on Customer Delight!
•
Keeping focused:
¯
Efficiency & Effectiveness with High Quality!
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
 Ted
Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
What we do
Beacon provides a Complete Solution for medical
imaging based product development.
 
 
 
A Complete Solution
•
Design                  Clinical Trial Design focused
                            on imaging.  Regulatory
                                          ________________________________________________________________             
•
Implement             the imaging at hospitals
                                                         _________________________________________________________________
•
Manage                all digital images centrally from
                            radiology department
                                                        _________________________________________________________________
•
Analyze                 Provide centralized analysis of images
                            quantitative, qualitative
                                                         _________________________________________________________________
•
Deliver                  Develops comprehensive digital
                            databases for Sponsor and Agency
 
 
 
We think differently
•
Imaging sees/measures
structure and function
•
Each pixel represents a
physiologic/metabolic
characteristic. 
•
Images are spatially
distributed data
 
 
 
Information is a Verb
“Information: verb 
 active information derived from passive
data using a new level of information
analysis.”
-Michael Dertouzous, M.I.T. 1998
 
 
 
2005
2006
Therapeutic Growth (%Revenues)
 
 
 
Medical Imaging – 2005 and 2006
Global RFP Value ($ Million)
 
 
 
New Awards and Backlog
 
 
 
Revenue and Margin
 
 
 
Re-branding Beacon Bioscience to
ICON Medical Imaging
•
Beacon Bioscience will be re-branded to become
ICON Medical Imaging
•
This reflects our further integration and our status as a
core division of ICON
•
We are launching a year long campaign including
mailers, meetings, and trade shows
•
Excellent opportunity to re-tell our growth story,
emphasize our size and differentiate the value
proposal
 
 
 
Chairman
Dr. John Climax
ICON Corporate
Dev
President
Bill Taaffe
CEO
Peter Gray
CFO
Ciaran Murray
ICON
Development
Solutions
President
Dr Thomas Frey
Beacon
Bioscience
CEO
 Ted Gastineau
ICON Central
Laboratories
President
Bob
Scott-Edwards
ICON
Contracting
Solutions
Tony
Southers
Snr VP
VP Corporate
QA
Jo Coyle
VP Global IT
Mike McGrath
VP Process
Development
Alan Morgan
Exec. VP
Organisational
Development
Sean Leech
VP Strategic HR
Eimear Kenny
Group Director
Market
Development
Simon Holmes
ICON Clinical
EU
President
Dr Peter
Sowood
ICON Clinical
US
President
Dr John
Hubbard
ICON Clinical
ROW President
Dr Dan Weng
ICON Clinical Research
ICON plc Global Organization
 
 
 
BPA / MCS Acquisition October 2002
•
Two business segments BPA and MCS
•
BPA
¯
Clinical Division with good Transplant,
Oncology and Vaccine experience
¯
BPA integrated into the US clinical division
•
MCS –
¯
Focused on contract staffing
¯
New service for ICON
¯
Stand alone status
 
 
 
BPA – Post Acquisition
•
BPA was integrated into ICON and many of the
personnel are still with ICON 4 years on
•
Added to the overall value of ICON
¯
Critical mass when required and
¯
Therapeutic expertise and experience
                        Success !!!!!!
 
 
 
June 2005
•
Tony Southers (Ex VP of BD-Europe) appointed Head
of MCS
¯
Introduced a Sales Team and a Client ‘Service’
focus
¯
Improved / Updated processes & technology
¯
Upgraded candidate package
¯
Developed growth strategy
¯
Re-aligned the group into ICON and improved
operational leverage
¯
Change of name
 
 
 
MCS Re-launch
Plan
ICS Revenue History
 
 
 
ICS Future Growth Opportunities
•
Growth within the US will continue
¯
35% growth next year (current NY location)
¯
Expand permanent placement capabilities
¯
West Coast market exploration (build or buy)
•
Other opportunities within new markets
¯
Europe (build or buy)
¯
Advantage of offering global coverage
¯
Same clients within US and EU
•
Further opportunities beyond EU would include the new
emerging markets
¯
South America & Asia
 
 
 
ICON PLC
Q&A Session