Rob Cottrell's questions to ICON PLC (ICLR) leadership • Q2 2025
Question
Rob Cottrell of Cleveland Research Company asked how to reconcile commentary on higher near-term pass-throughs with increased price competition, and how higher pass-throughs flow through to bookings and backlog.
Answer
CEO Steve Cutler explained that the two are not offsetting factors, as price competition centers on margin-producing direct fees, while pass-throughs are non-margin costs dictated by study type. CFO Nigel Clerkin clarified that pass-throughs are simply included as part of the total value of a gross study award and are not treated differently in bookings.