Publication of financial results for 2025 has been delayed and results for the previous two years may have to be revised down, the company said. That is dramatic and highly unusual for a stock-market-listed company, triggering the investor reaction.
Icon is relatively low profile but it is one of Ireland’s biggest home-grown businesses. Turnover last year was $8.2bn and it has more than 40,000 employees working in 55 countries. Its main business is providing services to pharmaceutical companies, including clinical trials, technology and lab services.
The business is global but its leadership, based in Dublin, remains overwhelmingly Irish including chairman Ciaran Murray, CEO Barry Balfe and CFO Nigel Clerkin.
The business was established here in 1991 by medical doctor Dr John Climax and pharmacologist Dr Ronan Lambe.
While the shares did partially recover from the worst of the fall, investors are still nursing a massive hit.
Shares that closed on Wednesday at $133.14 each plunged as low as $66.58 at one point on Thursday after the announcement. That is a drop of almost precisely 50pc and one of the biggest single day declines ever for an Irish company – albeit one listed in the Nasdaq exchange in the US.
Wednesday’s share price had valued the business at more than $10bn – meaning on paper at least the drop was as large as $5bn.
The stock clawed back the worst of the slump, recovering to $83.10 a share by 6pm Irish time – still a nearly 40pc drop and bad news for shareholders that include a slew of Irish executives and employees who have worked with the business since it was founded.
The extraordinary plunge was a sharp and fast reaction to Icon’s warning to investors earlier in the day, announcing an “ongoing internal investigation” into certain of the company’s accounting practices and controls.
Publication of quarterly and full-year results for 2025 has been pushed back and the company said preliminary indications are that revenue in 2023 and 2024 may have been overstated “by less than two percent for each fiscal year”.
Outside legal counsel is conducting the investigation with the support of forensic and technical accounting firms, Icon said in a statement on Thursday.
“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.”
The company said it intends to release its fourth quarter and full-year 2025 earnings results on or prior to April 30, 2026.
The issues raised are being investigation following concerns reported to the Icon board’s audit committee through the company’s management, the statement said.
Icon was already facing a class action lawsuit in the US over allegations that the company, its now former CEO, and its former chief financial officer made misleading statements regarding the group’s financial performance and future business prospects in violation of the Securities Exchange Act in the US.
Last September, the complainants in the case amended the complaint and named Icon’s current CEO in addition to the original defendants.
Icon has always insisted it “intends to defend the action vigorously”. Last November, it filed a motion to dismiss the securities litigation, although the US court action continues.
In its statement on Thursday, the company said its investigation primarily focuses on revenue recognition in fiscal years 2023 through to 2025.
“The company is in the process of evaluating the design and operation of certain internal controls over financial reporting and expects to report one or more material weaknesses as a result,” it said.
The investigation has not identified any impact to customers, Icon said.
Icon chair Ciaran Murray said: “The Icon board of directors is committed to transparency, accountability and strong governance.
“The board of directors and I have full faith in Icon’s executive team and their ability to implement the changes needed as a result of the investigation and execute our strategy for the years ahead.”
Icon CEO Barry Balfe said: “Icon is a strong business underpinned by a longstanding commitment to quality, integrity and transparency.
“In response to the current investigation, we are implementing a series of corrective actions to enhance our internal controls over financial reporting. I look forward to reporting our 2025 results and to providing commentary on the broader market as we continue to execute on our commercial strategy.
“I am proud of our teams and the great work they do for our customers to deliver new treatments for patients.”
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