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ICON plc 28th Annual J.P. Morgan Healthcare Conference January 2010. Forward Looking Statements.
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ICON plc 28th Annual J.P. Morgan Healthcare ConferenceJanuary 2010
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. This presentation includes selected non-GAAP financial measures. For a presentation of the most directly comparable GAAP financial measures, please refer to the Quarter 3 2009 press release consolidated income statement headed Consolidated Income Statements (Unaudited) (US GAAP)
ICONs Global Footprint Operating from 68 offices in 38 Countries
Drugs in Development by Indication Drugs in Development by Indication (#compounds) ICON Backlog by Indication (Revenue) Source – R&D Directions 9th Annual Report
ICON Phase II-IV Clinical Research • Full range of Trial Management Services • >5000 staff working on circa 400 studies with circa 100,000 patients in over 10,000 sites.
Technology in Trial Management • Electronic Data Capture (EDC) • Medidata Rave/Phase Forward/ Oracle Clinical RDC / Sponsor systems • Deployed on c.280 current studies. • 2009 c.160 wins v’s 2005 c.17 wins • Interactive voice response systems (IVRS) • Patient enrolment, randomisation and management in 850 projects over 50,000 sites.
ICON Laboratories • Capabilities in: • Bio analytical Lab • Bio-marker Lab • Global Central Lab • Global Lab footprint in key global regions, including the US, UK, Singapore, India and Ireland. • All ICON laboratories are either GCP or GLP as well as CAP accredited. • Our BA labs have over 1,500 assays developed in support of over 2500 studies.
ICON Early Phase Testing • Capacity in excess of 200 beds in the US and UK • ICON is collaborating with the Central Manchester University Hospitals Foundation to develop a purpose-built translational medicine facility which will be open in 2010.
ICON Medical Imaging • Market Leading positions in Oncology and CEC based on own proprietary Imaging Management Platform • Provides world class solutions in the development of imaging biomarkers that support drug development • Over 100 FDA submissions
DOCS (Contract Staffing) • Core Services: • Functional Resourcing • Flexible Resourcing Services • Permanent Recruitment Support • Training & Development Programs
No of Compounds in Development * Source :Pharmaprojects
Each 3% Increase in Outsourcing Penetration Drives a 9% Increase in the CRO Market Market Penetration 32.4% Market Penetration 35.4% 9%
Total Biotech Funding ($ Millions) * Source :Burrell and Co
New Business Wins and Net Book to Bill Ratio (NB:B) Peer NB:B (12 Mth Avg.) ICLR NB:B (12 Mth Avg.) Gross Business Wins Net Business Wins Source: Jefferies & Co.
Total Backlog Level ($ Millions) +6% YoY
Coverage of next 4 quarters from Backlog Value of backlog forecast to be earned in next 4 quarters
Opportunities…. but also Risks Strategy
ICON’s Strategy • Build Deep Strategic Relationships • Create Stronger differentiation across our services • Retain a flexible business model to respond to differing client outsourcing strategies • Build scale in early phase development • Build scale in post approval business (Phase IV) • Enter new/grow position in selected markets
Net Revenue CAGR of 28% since 2005 CAGR 28% Millions *Guidance range issued October 21st 2009
EBIT Margin Progression (9 Mths to Sept.)
Earnings Per Share Growth CAGR 37% *Guidance range issued October 21st 2009
Free Cash Flow FCF * Estimate assumes DSO of approx 60 days. Historic periods FCF exclude Dublin Campus construction costs
ICON Plc Historic Share Price Performane ICON S&P 500 Nasdaq Composite
Investment Case Summary • Top Global Clinical CRO - #4 • Deep customer relationships • Quality of staff • Experienced Management team • Excellent Reputation • Solid market fundamentals • Outstanding record of growth • Strong balance sheet