Irish CRO Icon has closed the book on its investigation into its accounting practices and restated its consolidated financials for 2023 and 2024.
According to the company’s fourth-quarter and full-year results, Icon’s revenue was overstated by 0.8% of total revenue in full-year 2023 and by 1.1% in full-year 2024. The company reported no impact to customers, operations or cash flow.
Alongside the investigation, the company said it amended its cancellation and backlog recognition processes to improve visibility into relevant financial metrics.
“I am also pleased that we have concluded the investigation into certain accounting practices,” Icon CEO Barry Balfe said via statement. “We identified the issues, rigorously investigated them and are actively building a stronger control environment. This will remain a priority for me, for our Board and for the broader leadership team.”
In February, Icon revoked its 2025 financial guidance and launched an internal investigation after becoming aware of possible accounting errors in its prior-year financial statements. The company also delayed the release of its fourth-quarter and full-year financial results.
Following the February 12 announcement, Icon’s stock fell 37% and traded at around $84. While still well below its January high of more than $200, the stock was trading just above $125 on Thursday morning.
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The CRO industry has struggled recently with slowing demand from Big Pharma, but Icon posted fourth-quarter revenue of $2.11 billion, up 2.5% from the prior year.
“Our competitive position remains very strong, with established partnerships continuing to deliver, while newer relationships are maturing and increasingly contributing to results. Importantly, the demand environment is also improving, supported by strengthening biotech funding and sustained large pharma investment,” Balfe added via release.
