Biotech companies are high-risk, high-reward investments. Usually, a biotech has just one drug in development, and if it gets that drug to market, you win. If the drug doesn't work out, you lose. You don't have to make binary bets like that if you buy Royalty Pharma (RPRX +0.17%). Not only does it have a professional management team that tracks drug developments, but it also invests in a diversified portfolio of drugs. Here's what you need to know before you jump aboard.
Royalty Pharma does things differently
The first thing to understand about Royalty Pharma is that it is neither a pharmaceutical nor a biotech company. It provides capital to drug makers and developers so they can advance their research. In exchange for the cash it provides, Royalty Pharma receives a royalty on sales generated by the drugs in which it invests. The royalties are usually modest relative to a drug company's profits, but Royalty Pharma has investments in many drugs, so the small royalties add up. Notably, the royalties require little to no expense for Royalty Pharma other than the upfront cash payment.
Image source: Getty Images.
The reliability of Royalty Pharma's model is evident in the dividend, which has increased each year since the company went public in 2020. To be fair, this isn't a high-yield investment, offering a yield of just 1.5% as of this writing. The average pharmaceutical stock, for reference, yields around 1.4%. The real story here is the diversification Royalty Pharma offers in an industry that is often hit-or-miss.
A portfolio approach monitored by experts
The pharmaceutical and biotech sectors are highly complex and highly competitive. Attempting to cherry-pick winners is a tall task for the average investor, who likely isn't a specialist. Royalty Pharma is filled with specialists, all of whom are looking to find good investment candidates. And they have a pretty good track record of success, with 14 drugs that have outperformed original sales expectations. Half of those drugs have produced, or are expected to produce, sales that are more than twice what they were when Royalty Pharma made its original investment.
The ability to identify strong drug candidates clearly demonstrates the management team's capabilities. But the bigger story is that there are 14 drugs on that list. Not one or two. In fact, the company has investments in 35 approved products and 16 drugs still in development. It collects royalties on 16 drugs that generate sales of $1 billion or more, making them blockbusters.
RPRX Royalty Pharma Plc$63.86+$0.11 (+0.17%)
NASDAQ · As of 4:00 PM ET 10/23/26
Moreover, the drugs on which Royalty Pharma collects royalties are spread across different drug makers. So you aren't betting on the success of just one healthcare business; you're gaining exposure to multiple companies at once. When you buy Royalty Pharma, you are getting a diversified portfolio of both approved and developed drugs from across the pharmaceutical spectrum. One investment provides you with expansive exposure to the broader drug sector.
Royalty Pharma isn't perfect, but it is very good
The above-noted royalty success stories are impressive, but no company hits home runs with every investment it makes. Royalty Pharma makes mistakes, too. However, that actually highlights the benefit of the business model. Royalty Pharma's industry expertise and diversification have created a portfolio that has produced impressive results overall. It allows you to invest in the drug sector without taking on the often binary risk of buying a company with only one drug in development.
For most investors, Royalty Pharma will be a fairly low-risk way to add pharmaceutical exposure to a portfolio. But the best part is that the company is always looking for new drugs to invest in, so the portfolio will develop along with the drug sector. In other words, Royalty Pharma is likely to be a good buy-and-hold investment in a sector known for research-driven change.
Healthcare isn't optional, which makes the pharmaceutical sector fairly resilient through the entire economic cycle. Royalty Pharma (RPRX +1.63%) has created a diversified portfolio of royalties on drugs that are approved for sale and on drugs that are still in development. For buy-and-hold income investors, this unique healthcare stock could be the perfect way to invest in the pharmaceutical sector. Here's why.
What does Royalty Pharma do? Pharmaceutical companies search for and develop drugs that they hope will one day generate large profits. However, the drug discovery process is complex, competitive, and costly. This is where Royalty Pharma comes in. Royalty Pharma provides drug companies with cash up front in exchange for the right to receive future royalties on approved drugs.
Image source: Getty Images.
The cash Royalty Pharma provides allows drug companies to continue their research efforts in a cost-effective manner. The cash that Royalty Pharma generates from its royalty portfolio funds the cash distributions it pays to shareholders. Royalty Pharma's yield is currently around 1.5%, slightly higher than the pharmaceutical sector's average of roughly 1.4%. Here are three big reasons why even the most conservative dividend investors should take a closer look at Royalty Pharma.
1. The big picture: healthcare is resilient It is important to understand Royalty Pharma's role in the broader healthcare sector, as it provides the funding drug companies need to continue developing new drugs. However, it is equally important to remember the role of healthcare for end customers. The drugs that Royalty Pharma owns royalties on help people live better lives. In some cases, they may even be the difference between life and death. Healthcare spending simply isn't optional most of the time.
So, even in a recession, healthcare spending tends to remain strong. This makes Royalty Pharma the type of investment you can comfortably hold through the entire economic cycle.
2. Royalty Pharma is run by industry experts There are any number of drug companies you could buy that would let you benefit from the resilient demand for healthcare. But which ones should you buy? That's actually a pretty difficult question to answer given the complexity and competition in the pharmaceutical sector. If you aren't an industry expert, you may not have the time or desire to do the legwork necessary to sort the wheat from the chaff.
RPRX Royalty Pharma Plc$63.16+$1.01 (+1.63%)
NASDAQ · As of 10:31 AM ET 10/22/26
Don't worry, you aren't alone. Investing is a lot of work in general, and even more work if you look at highly technical sectors. But Royalty Pharma has you covered since it employs industry experts to help it decide which drugs have the best prospects for success. Simply put, you don't need to be a pharma expert; you can just buy Royalty Pharma and let the company do all the hard work for you. And, notably, that means keeping up and adjusting to new developments in the sector so the company's royalty portfolio remains at the cutting edge.
3. Royalty Pharma's royalty portfolio is diversified The hard work is deciding which drugs to invest in. But there's an interesting twist with Royalty Pharma because it doesn't just work with one company. And its business isn't totally reliant on just one drug, as are many smaller, and even some larger, drug companies.
Royalty Pharma's portfolio includes 35 approved products and 16 that are still in development. A full 16 of its drugs generate more than $1 billion in annual revenue, making them "blockbuster" drugs, with an average remaining royalty duration of around 13 years. Royalty Pharma gives you broad exposure to the drug sector with a single investment. If you believe diversification is important for your stock portfolio, then this inherently diversified, dividend-paying drug stock will be right up your alley.
Royalty Pharma checks a lot of boxes Royalty Pharma isn't perfect. Just like any other pharma company, it will invest in drugs that don't work out as well as planned. However, when you step back, it provides investors with a reliable income stream in a highly resilient sector. And given the inherent complexity of the pharma sector, management's expertise and the diversification built into the business model make it an easy solution for investors who want drug exposure but aren't quite sure where to begin. If you aren't a drug industry expert, Royalty Pharma could be the one drug stock you buy and never have to sell.
BioAge Labs (NASDAQ:BIOA – Get Free Report) and Royalty Pharma (NASDAQ:RPRX – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Analyst Recommendations This is a summary of recent ratings and recommmendations for BioAge Labs and Royalty Pharma, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score BioAge Labs 1 1 6 0 2.62 Royalty Pharma 0 0 8 0 3.00 BioAge Labs currently has a consensus price target of $33.00, indicating a potential upside of 498.91%. Royalty Pharma has a consensus price target of $61.57, indicating a potential downside of 0.93%. Given BioAge Labs’ higher probable upside, equities research analysts plainly believe BioAge Labs is more favorable than Royalty Pharma.
Valuation and Earnings This table compares BioAge Labs and Royalty Pharma”s top-line revenue, earnings per share and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio BioAge Labs $8.99 million 28.13 -$80.61 million ($2.38) -2.32 Royalty Pharma $2.38 billion 15.03 $770.95 million $1.45 42.86 Royalty Pharma has higher revenue and earnings than BioAge Labs. BioAge Labs is trading at a lower price-to-earnings ratio than Royalty Pharma, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares BioAge Labs and Royalty Pharma’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets BioAge Labs -912.26% -28.99% -27.09% Royalty Pharma 32.14% 30.01% 14.91% Volatility and Risk BioAge Labs has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Royalty Pharma has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.
Insider and Institutional Ownership 54.3% of Royalty Pharma shares are held by institutional investors. 17.6% of BioAge Labs shares are held by insiders. Comparatively, 18.8% of Royalty Pharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary Royalty Pharma beats BioAge Labs on 10 of the 13 factors compared between the two stocks.
About BioAge Labs (Get Free Report)
We are a clinical-stage biopharmaceutical company developing therapeutic product candidates for metabolic diseases, such as obesity, by targeting the biology of human aging. Our technology platform and differentiated human datasets enable us to identify promising targets based on insights into molecular changes that drive aging. Our primary focus is metabolic disease, one of the greatest global healthcare challenges. Azelaprag, our lead product candidate, is an orally available small molecule that has been well-tolerated in 265 individuals across eight Phase 1 clinical trials. In preclinical obesity models, azelaprag demonstrated the ability to more than double the weight loss induced by a glucagon-like-peptide-1 receptor (GLP-1R) agonist while also restoring healthy body composition and improving muscle function. These preclinical results are supported by our Phase 1b clinical trial in older adults on bed rest where we observed decreased muscle atrophy, preservation of muscle quality and improved metabolism in subjects treated with azelaprag over a 10-day period. We plan to assess azelaprag’s potential to drive significant improvements in weight loss when combined with a GLP-1R agonist in two Phase 2 clinical trials. While the results of these preclinical studies and early clinical trials have demonstrated the potential use of azelaprag for the treatment of metabolic disease, they may not be predictive of the results of later-stage clinical trials. The ongoing STRIDES clinical trial will assess azelaprag in combination with tirzepatide, marketed as Zepbound® by Eli Lilly and Company (Lilly), with topline results anticipated in the third quarter of 2025. The second Phase 2 clinical trial will assess azelaprag in combination with semaglutide, marketed as Wegovy® by Novo Nordisk, with initiation expected in the first half of 2025 and topline results expected in the second half of 2026. We believe these trials will directly support our ultimate therapeutic goal of developing an all-oral combination product for obesity. We also intend to initiate an insulin sensitivity proof-of-concept trial of azelaprag monotherapy in the first half of 2025 to support potential indication expansion. We expect to report topline results from this proof-of-concept trial in the second half of 2025. We are also developing orally available small molecule brain-penetrant NLRP3 inhibitors for the treatment of diseases driven by neuroinflammation. We anticipate submitting an Investigational New Drug application (IND) for an NLRP3 inhibitor in the second half of 2025 and, if cleared, initiating a Phase 1 clinical trial in the first half of 2026. Our approach: Targeting human aging biology to treat chronic metabolic diseases The burden of many serious and chronic diseases—including cardiovascular disease and diabetes—increases with age. However, there is substantial natural variation in the human population, resulting in a broad range of aging trajectories and outcomes, with some people experiencing much longer lifespans as well as delayed disease onset. We created our company to identify biological pathways associated with longer, healthier human lifespans and to develop pharmaceutical products that can modulate these pathways with the intent to prevent and reverse specific diseases, focusing on metabolic diseases. — Our approach starts with human data. We examine the impact of the molecular changes that happen naturally as people age and study how these changes drive both functional decline (e.g., loss of muscle strength) and disease risk (e.g., obesity, insulin resistance, dyslipidemia, hypertension). To develop new insights into the biological drivers of aging, we have generated proprietary longitudinal human datasets based on exclusive access to a unique resource: serial biobanked human samples coupled with health records and functional measurements collected for up to 50 years, capturing individual aging trajectories measured over several decades. We analyze these samples using state-of-the-artmolecular profiling technologies, measuring thousands of biologically relevant molecules, and then apply computational tools to the resulting data to extract potential drivers of a long and healthy lifespan. — We have selected chronic metabolic diseases as our primary focus within age related chronic diseases, given their high prevalence and resulting potential for impact on population health. Chronic metabolic diseases represent some of the largest addressable therapeutics markets. Through our approach, we expect to target outsized commercial opportunities, initially within the obesity and diabetes landscape. For instance, according to third-party estimates, the global market for GLP-1R agonists, including those used to treat diabetes, is expected to grow to $150 billion by 2031. We were incorporated under the laws of the State of Delaware on April 1, 2015, under the name BioAge Labs, Inc. Our principal executive offices are located at 1445A South 50th Street, Richmond, California.
About Royalty Pharma (Get Free Report)
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies. Its portfolio consists of royalties on approximately 35 commercial products and 14 development-stage product candidates that address various therapeutic areas, such as rare disease, cancer, neuroscience, immunology, respiratory, infectious disease, hematology, and diabetes. The company was founded in 1996 and is based in New York, New York.
Receive News & Ratings for BioAge Labs Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BioAge Labs and related companies with MarketBeat.com's FREE daily email newsletter.
NEW YORK, Oct. 16, 2026 (GLOBE NEWSWIRE) -- The board of directors of Royalty Pharma plc (Nasdaq: RPRX) has approved the payment of a dividend for the fourth quarter of 2026 of $0.235 per Class A ordinary share.
The dividend will be paid on December 10, 2026, to shareholders of record at the close of business on November 13, 2026.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 16 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
NEW YORK, Oct. 09, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will report its third quarter 2026 financial results on Wednesday, November 4, 2026 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:00 a.m. Eastern Time that day.
Conference Call Information
Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events/ to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company's website for at least 30 days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 17 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Royalty Pharma (RPRX - Free Report) , which belongs to the Zacks Medical - Biomedical and Genetics industry, could be a great candidate to consider.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.25%.
For the last reported quarter, Royalty Pharma came out with earnings of $1.32 per share versus the Zacks Consensus Estimate of $1.27 per share, representing a surprise of 3.94%. For the previous quarter, the company was expected to post earnings of $1.22 per share and it actually produced earnings of $1.3 per share, delivering a surprise of 6.56%.
Price and EPS Surprise
For Royalty Pharma, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Royalty Pharma currently has an Earnings ESP of +0.21%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Eastern Bank raised its position in shares of Royalty Pharma PLC (NASDAQ:RPRX – Free Report) by 2.0% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 708,768 shares of the biopharmaceutical company’s stock after buying an additional 13,843 shares during the quarter. Eastern Bank owned 0.12% of Royalty Pharma worth $41,364,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently made changes to their positions in RPRX. Capital International Investors lifted its position in shares of Royalty Pharma by 14.3% in the 4th quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company’s stock valued at $1,201,870,000 after acquiring an additional 3,891,615 shares in the last quarter. Bank of America Corp DE raised its stake in Royalty Pharma by 29.0% during the 1st quarter. Bank of America Corp DE now owns 3,495,846 shares of the biopharmaceutical company’s stock valued at $167,696,000 after purchasing an additional 786,921 shares during the period. Amundi raised its stake in Royalty Pharma by 15.3% during the 1st quarter. Amundi now owns 3,088,773 shares of the biopharmaceutical company’s stock valued at $148,168,000 after purchasing an additional 409,394 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Royalty Pharma by 0.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,313,265 shares of the biopharmaceutical company’s stock valued at $128,025,000 after purchasing an additional 31,091 shares in the last quarter. Finally, Dorsey Asset Management LLC lifted its holdings in shares of Royalty Pharma by 0.8% in the first quarter. Dorsey Asset Management LLC now owns 2,276,570 shares of the biopharmaceutical company’s stock valued at $109,207,000 after purchasing an additional 17,101 shares in the last quarter. 54.35% of the stock is currently owned by institutional investors and hedge funds.
Royalty Pharma Stock Down 1.4% Shares of NASDAQ:RPRX traded down $0.79 during midday trading on Monday, hitting $56.37. 950,744 shares of the stock were exchanged, compared to its average volume of 3,423,206. The company has a market capitalization of $32.42 billion, a PE ratio of 38.89, a P/E/G ratio of 1.35 and a beta of 0.42. Royalty Pharma PLC has a 52-week low of $35.23 and a 52-week high of $64.38. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.80 and a current ratio of 2.80. The business’s fifty day simple moving average is $59.52 and its two-hundred day simple moving average is $54.96.
Royalty Pharma (NASDAQ:RPRX – Get Free Report) last issued its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.05. Royalty Pharma had a return on equity of 30.01% and a net margin of 32.14%.The company had revenue of $674.14 million for the quarter, compared to analyst estimates of $758.93 million. As a group, research analysts predict that Royalty Pharma PLC will post 5.32 earnings per share for the current fiscal year. Royalty Pharma Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Friday, August 14th were given a dividend of $0.2350 per share. This represents a $0.94 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Friday, August 14th. Royalty Pharma’s dividend payout ratio (DPR) is presently 64.83%.
Analysts Set New Price Targets A number of brokerages have recently weighed in on RPRX. The Goldman Sachs Group reiterated a “buy” rating and set a $66.00 price target on shares of Royalty Pharma in a report on Thursday, August 6th. Weiss Ratings upgraded Royalty Pharma from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, September 14th. TD Cowen lifted their target price on Royalty Pharma from $65.00 to $68.00 and gave the company a “buy” rating in a research note on Tuesday, September 8th. Wall Street Zen downgraded Royalty Pharma from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 26th. Finally, Morgan Stanley reissued an “overweight” rating and issued a $65.00 price target on shares of Royalty Pharma in a research report on Thursday, August 6th. Eight analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $61.29.
Read Our Latest Research Report on RPRX
Insider Buying and Selling In other Royalty Pharma news, EVP Christopher Hite sold 100,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $58.53, for a total value of $5,853,000.00. Following the completion of the sale, the executive vice president directly owned 270,401 shares of the company’s stock, valued at $15,826,570.53. The trade was a 27.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marshall Urist sold 4,126 shares of the stock in a transaction on Monday, September 28th. The stock was sold at an average price of $57.88, for a total transaction of $238,812.88. Following the transaction, the executive vice president owned 4,126 shares in the company, valued at approximately $238,812.88. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 204,126 shares of company stock valued at $12,088,813 over the last quarter. Corporate insiders own 18.84% of the company’s stock.
Royalty Pharma Company Profile (Free Report)
Royalty Pharma plc is a biopharmaceutical royalty acquisition company that provides funding to life sciences companies in exchange for rights to future payments associated with approved or development-stage medicines. Its business model gives biotechnology and pharmaceutical companies access to capital while allowing Royalty Pharma to participate in the commercial success of therapies without directly developing or marketing them.
The company invests in royalties and other economic interests tied to a broad range of biopharmaceutical products, including treatments for cancer, rare diseases, immune disorders, diabetes and other chronic conditions.
Featured Stories Five stocks we like better than Royalty Pharma What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? Datadog’s Rally Has Insiders Selling—Can It Keep Climbing?
Receive News & Ratings for Royalty Pharma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Royalty Pharma and related companies with MarketBeat.com's FREE daily email newsletter.
Whether it's biotech stocks or regular pharmaceutical stocks, when investors buy a particular name in healthcare, they are making a wager on a single company's pipeline. However, there is one unique name within this space that enables investors to gain more diversified exposure to current and potential future blockbuster drugs: Royalty Pharma (RPRX -1.70%).
Operating like both a biopharma company and a venture capital firm, Royalty provides capital to both for-profit drugmakers and nonprofit researchers, such as universities, in exchange for percentage ownership in their developed or underdeveloped drug candidates.
With the stock trading at a relatively low valuation, despite owning royalty interests in 16 blockbuster drugs, not to mention a slew of promising drug candidates, much suggests this is a gem among healthcare stocks that's still getting discovered by the market.
Image source: Getty Images.
Three reasons why Royalty Pharma is a drug stock standout I know what you are thinking: Why buy Royalty Pharma when investors can simply buy multiple drug stocks?
For one, while you could go ahead and attempt to build a diversified portfolio of drug candidate stocks, why not let Royalty Pharma's management team do the heavy lifting for you? Operating with a lean overhead that accounts for only 5.5%-6.5% of portfolio receipts, Royalty Pharma offers a team of experienced pharmaceutical executives and capital allocators dedicated to investing in royalty deals that generate solid returns on invested capital.
Premium Feature
Moneyball Superscore
80/100
Today's Change
(
-1.70
%) $
-0.99
Current Price
$
57.37
This brings us to Royalty Pharma's second key strength: the advantageous way that it structures its royalty deals. A prime example of this is one of the company's latest unsuccessful investments. In September, Novartis and its biotech partner Ionis Pharmaceuticals unveiled disappointing clinical trial data for its experimental heart drug pelacarsen.
Royalty Pharma, through a prior funding agreement with Ionis, held a royalty interest in pelacarsen, but just because this candidate failed doesn't mean Royalty is out of its investment. As disclosed in a Sept. 4 press release, the funding deal coupled exposure to pelacarsen with ownership in "stable and predictable" royalties from another drug, Spinraza. In short, while pelacarsen's failure limits upside potential, the company still expects to generate a positive return from this investment.
Third, thanks to the favorable way Royalty Pharma structures deals and manages risk, it has built a long track record of double-digit annualized returns on invested capital. As noted in its latest quarterly earnings release, Royalty Pharma's average return on invested capital and equity was 14.9% and 21.5%, respectively, between 2019 and 2025. For Q2 2026, these figures stood at 14.2% and 20.1%, respectively. During the quarter, management also reported 14% growth in royalty receipts.
An overlooked gem still entering prime time Since the start of the year, Royalty Pharma shares have surged over 50%. Price discovery is clearly taking shape as investors catch on to this company's unique strengths and impressive track record.
However, don't assume price discovery has completed just yet. Based on analyst estimates calling for adjusted earnings per share (EPS) of $5.34 during 2026 and $5.73 during 2027, Royalty Pharma seems like it's at the lower end of the valuation range among biopharma stocks. Yes, critics can counter this by pointing out that these strong adjusted earnings are relatively recent. For 2023, 2024, and 2025, Royalty Pharma reported EPS of $2.54, $1.93, and $1.80 per share, respectively.
However, with the company now scaled up and generating steady royalties and portfolio receipts from its blockbuster drugs, shares could be in for some serious multiple expansion if it meets or beats the aforementioned analyst forecasts. Established, profitable biotechs such as Amgen and Regeneron Pharmaceuticals trade at price-to-earnings (P/E) multiples in the high teens and low 20s.
Sure, contrary to this bull case, there are numerous long-term risks with Royalty Pharma. The company regularly issues new shares to finance expansion. In time, this dilution could weigh on long-term returns. Growing competition in the pharma royalty investment space could affect future returns.
Nevertheless, until Royalty Pharma's fiscal results and guidance more strongly reflect these risks, err on the side of optimism and consider this a long-term buy for investors seeking exposure to pharmaceutical stocks.
Royalty Pharma PLC (NASDAQ:RPRX – Get Free Report) EVP Christopher Hite sold 100,000 shares of the stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $58.53, for a total value of $5,853,000.00. Following the completion of the transaction, the executive vice president directly owned 270,401 shares of the company’s stock, valued at approximately $15,826,570.53. The trade was a 27.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Christopher Hite also recently made the following trade(s):
On Tuesday, August 18th, Christopher Hite sold 100,000 shares of Royalty Pharma stock. The shares were sold at an average price of $59.97, for a total transaction of $5,997,000.00. On Tuesday, June 30th, Christopher Hite sold 100,000 shares of Royalty Pharma stock. The stock was sold at an average price of $56.52, for a total transaction of $5,652,000.00. On Tuesday, June 30th, Christopher Hite sold 30,000 shares of Royalty Pharma stock. The shares were sold at an average price of $56.46, for a total transaction of $1,693,800.00. Royalty Pharma Stock Performance Shares of RPRX opened at $58.21 on Friday. The firm has a market capitalization of $33.47 billion, a PE ratio of 40.15, a P/E/G ratio of 1.37 and a beta of 0.44. The company has a quick ratio of 2.80, a current ratio of 2.80 and a debt-to-equity ratio of 0.88. The firm has a 50-day moving average price of $59.57 and a 200 day moving average price of $54.48. Royalty Pharma PLC has a 52-week low of $34.63 and a 52-week high of $64.38.
Royalty Pharma (NASDAQ:RPRX – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.05. The company had revenue of $674.14 million for the quarter, compared to the consensus estimate of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. On average, sell-side analysts anticipate that Royalty Pharma PLC will post 5.32 earnings per share for the current fiscal year. Royalty Pharma Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Friday, August 14th were given a $0.2350 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Friday, August 14th. Royalty Pharma’s dividend payout ratio is 64.83%.
Institutional Inflows and Outflows Several hedge funds have recently added to or reduced their stakes in RPRX. Sequoia Financial Advisors LLC grew its holdings in Royalty Pharma by 11.8% during the second quarter. Sequoia Financial Advisors LLC now owns 17,513 shares of the biopharmaceutical company’s stock valued at $982,000 after purchasing an additional 1,843 shares during the last quarter. Tidal Investments LLC lifted its stake in shares of Royalty Pharma by 298.6% in the second quarter. Tidal Investments LLC now owns 118,323 shares of the biopharmaceutical company’s stock worth $6,634,000 after buying an additional 88,642 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Royalty Pharma during the 2nd quarter worth $1,278,000. Engineers Gate Manager LP boosted its holdings in shares of Royalty Pharma by 141.2% during the 2nd quarter. Engineers Gate Manager LP now owns 137,994 shares of the biopharmaceutical company’s stock worth $7,737,000 after buying an additional 80,771 shares during the period. Finally, Integrated Wealth Concepts LLC grew its stake in Royalty Pharma by 14.1% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 15,385 shares of the biopharmaceutical company’s stock valued at $863,000 after buying an additional 1,907 shares during the last quarter. Institutional investors and hedge funds own 54.35% of the company’s stock.
Wall Street Analysts Forecast Growth RPRX has been the topic of several research analyst reports. Bank of America reiterated a “buy” rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. JPMorgan Chase & Co. upped their price objective on Royalty Pharma from $58.00 to $62.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Weiss Ratings raised Royalty Pharma from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, September 14th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $66.00 target price on shares of Royalty Pharma in a report on Thursday, August 6th. Finally, TD Cowen boosted their price target on shares of Royalty Pharma from $65.00 to $68.00 and gave the stock a “buy” rating in a research report on Tuesday, September 8th. Eight equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $61.29.
Read Our Latest Analysis on Royalty Pharma
About Royalty Pharma (Get Free Report)
Royalty Pharma plc is a biopharmaceutical royalty company that provides funding to life sciences companies in exchange for rights to receive future royalty payments from commercialized or late-stage therapies. Rather than developing and marketing medicines itself, the company invests in pharmaceutical and biotechnology innovations and seeks to generate income from the resulting royalty streams.
Its portfolio is linked to a range of therapies across areas including oncology, immunology, neuroscience, rare diseases and other specialty markets.
Featured Articles Five stocks we like better than Royalty Pharma Costco Ends Its Fiscal Year on a High Note, Eyes Big Expansion Cracker Barrel Stock Is Rallying Again, But the Turnaround Still Has a Traffic Problem Oracle’s Force Majeure Notice Exposes a Bigger Problem for the AI Build-Out Oil May Be Stronger Than It Looks—And Diamondback Is on Sale
Receive News & Ratings for Royalty Pharma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Royalty Pharma and related companies with MarketBeat.com's FREE daily email newsletter.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksRoyalty Pharma NASDAQ: RPRX executives said the company is monitoring a shifting biopharma policy environment, expanding its artificial-intelligence capabilities and building a presence in China, while maintaining a disciplined approach to capital deployment and leverage.
Speaking during a fireside chat, Chief Financial Officer Terry Coyne said policy developments in Washington remain fluid ahead of the midterm elections. He cited most-favored-nation, or MFN, policies as an ongoing topic of attention but said the company does not have a firm view on how the policy landscape will ultimately develop.
Get Royalty Pharma alerts:
1 Trial, 2 Franchises: Zenas Stock Climbs on Landmark DataOn potential effects outside the U.S., Coyne said the implications for drug pricing and commercialization in Europe are still “largely TBD.” However, he said Royalty Pharma incorporates a range of outcomes into its investment models, including whether products launch in certain markets, differences between U.S. and international pricing, and potential effects on U.S. prices.
AI Focused on Diligence and Strategic Partnerships Coyne said Royalty Pharma views artificial intelligence primarily as a way to improve and accelerate due diligence rather than simply increase the number of transactions it completes. AI could help the company process information from pharmaceutical and biotechnology partners more quickly, improve forecasts and identify issues earlier in the evaluation process, he said.
4 Healthcare Stocks With Massive Gains—and More to ComeThe company hired an executive earlier in the year to lead its AI effort, according to Coyne. The hire previously led AI efforts at IQVIA. Over time, Royalty Pharma also sees potential to offer AI-related capabilities to partners, including support for clinical-trial design.
“We don’t want to be viewed as purely financial partner,” Coyne said. “We want to be viewed as a strategic partner to help our partners grow.”
He said these resources may be particularly useful for smaller biotechnology companies with fewer internal capabilities, while larger pharmaceutical companies generally have substantial expertise in running clinical trials.
China Opportunity Expected to Take Time Greg Butz, executive vice president of partnering and investments, said Royalty Pharma is investing in a local team and educating companies in China about royalty financing. The company hired Ken Sun from Goldman Sachs to build its team in the region, with Sun based in Hong Kong.
Butz said the company’s initial focus is on passive royalties held by Chinese companies following the rise in licensing deals between Chinese drug developers and Western pharmaceutical companies. Those royalties are tied to products expected to be developed and commercialized in Western markets.
Royalty Pharma does not include contributions from China in its stated annual capital-deployment target of $2 billion to $2.5 billion, Butz said, reflecting the time needed for the market opportunity to mature. Coyne added that many products underlying these royalty streams have not yet reached the market, though some could become more actionable as late-stage clinical data emerge over the next several years.
On U.S.-China policy risk, Coyne said the company generally purchases royalties connected to products controlled by Western companies, with royalty structures typically located outside China. He said the longer-term question is whether policy could slow Western pharmaceutical companies’ licensing activity involving Chinese assets.
New Funding Structures and Capital Deployment Executives also discussed Royalty Pharma’s transaction with Revolution Medicines, which they described as an example of funding late-stage development and allowing a company to remain independent longer rather than immediately pursuing a large-pharma partnership.
Butz said the structure has generated inbound interest and could be repeatable, though each transaction would be evaluated individually for risk and return. Coyne said synthetic royalties can complement equity, convertible debt and licensing proceeds as part of a biotech company’s broader capital structure.
“We don’t want to ever feel forced to deploy capital,” Coyne said. He characterized the company’s $2 billion to $2.5 billion annual deployment outlook as a conservative modeling assumption rather than a ceiling, adding that the company reviewed 480 opportunities last year and completed eight transactions.
Coyne said future payments under existing commitments, including a $500 million clinical-trial co-funding commitment with Johnson & Johnson, are included in annual capital-deployment figures as the cash is funded.
On leverage, he said Royalty Pharma could increase debt levels for a particularly compelling transaction but would generally not go above four times leverage and would seek to delever quickly. He said the company is rated BBB by all three major rating agencies and intends to preserve its investment-grade status.
Portfolio Diversification and Pipeline Readouts Coyne said Royalty Pharma’s three largest products currently account for about 45% of revenue, compared with roughly 55% for a typical pharmaceutical company. By the end of the decade, the company expects its top three products to represent about 30% of revenue as other products ramp and new investments are added.
The company expects several clinical and commercial updates over the next 18 months, including a cutaneous lupus readout for Biogen’s litifilimab by the end of 2026 and systemic lupus data in 2027. Other assets identified by Coyne included daraxonrasib, frexalimab in multiple sclerosis and full data for pelabresib.
Coyne said Royalty Pharma has continued to grow despite loss-of-exclusivity headwinds, citing prior losses of royalties tied to Gilead’s HIV franchise and Merck’s Januvia, as well as the genericization of Plaquenil. He said Xtandi is expected to face U.S. generic competition in late summer 2027, which could have a limited fourth-quarter effect, while the company otherwise sees a relatively clean 2027 from a loss-of-exclusivity standpoint.
About Royalty Pharma (NASDAQ:RPRX)Royalty Pharma plc is a biopharmaceutical royalty company that provides funding to life sciences companies in exchange for rights to receive future royalty payments from commercialized or late-stage therapies. Rather than developing and marketing medicines itself, the company invests in pharmaceutical and biotechnology innovations and seeks to generate income from the resulting royalty streams.
Its portfolio is linked to a range of therapies across areas including oncology, immunology, neuroscience, rare diseases and other specialty markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Royalty Pharma Right Now?Before you consider Royalty Pharma, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Royalty Pharma wasn't on the list.
While Royalty Pharma currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Royalty Pharma plc (RPRX) Bank of America Global Healthcare Conference 2026 September 23, 2026 6:45 AM EDT
Company Participants
Terrance Coyne - Executive VP & CFO
Conference Call Participants
Richard Wagner - BofA Securities, Research Division
Presentation
Richard Wagner
BofA Securities, Research Division
Good morning. My name is Richard Wagner. I work with Jason Gerberry covering U.S. large cap pharma based in London. On his behalf, I'm pleased to welcome Terry Coyne, CFO of Royalty Pharma and Greg Butz and Managing and Partnering for a 40-minute fireside chat. So thank you both.
Terrance Coyne
Executive VP & CFO
Thanks for having us.
Richard Wagner
BofA Securities, Research Division
My pleasure. So if we could start with pharma policy, what are you paying close attention to ahead of the midterm elections, how would be impactful biopharma ecosystem.
Question-and-Answer Session
Terrance Coyne
Executive VP & CFO
Yes. So it's a great question. I think there's a lot of moving pieces on the policy front. And I wouldn't point to anything -- any one thing in particular. Obviously, MFA continues to come up. But I think we're paying attention to sort of the broad better coming out of [indiscernible] and has any strong views one way or another on how this all shaked out, but we're definitely paying close attention.
Richard Wagner
BofA Securities, Research Division
You mentioned in -- this question is from the OUS impact. So there was a publication in The Lancet that argued that biopharma was under pressure to increase U.S. launch prices, but potentially forego commercialization in certain EU countries. So in the past, Royalty framed the OUS impacts from MFN, TBD. Are these dynamics becoming clearer, one? And then second, are they factoring into your...
NEW YORK and WASHINGTON, Sept. 15, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma and Blood Cancer United today announced a $7.5 million donation from Royalty Pharma to support Blood Cancer United’s Therapy Acceleration Program (TAP), a collaborative venture philanthropy initiative designed to accelerate the development of promising blood cancer therapies through strategic equity investments and hands-on collaboration with biotech companies.
The donation marks a new phase for TAP, with Royalty Pharma serving as the first and largest corporate donor under an updated model that invites direct donations to the program. TAP donations are deployed as venture capital investments in early-stage biotech companies advancing therapies with high potential to address significant unmet needs in blood cancer. In addition to providing critical funding, TAP offers scientific, clinical and business expertise, strategic guidance and access to a global network of blood cancer experts to help bring new therapies closer to patients.
TAP is designed to generate outcomes aligned with Blood Cancer United’s mission, including positive clinical trial results, regulatory approvals, and new treatment options for patients. Financial returns from TAP are reinvested into the program to support future partnerships and investments, extending the impact of donor support and helping accelerate the development of future blood cancer therapies.
“For nearly 30 years, Royalty Pharma has invested in scientific and medical innovation, including many important advances in blood cancer,” said Pablo Legorreta, Chief Executive Officer and Chairman of the Board of Royalty Pharma. “We believe that scientific discovery can only transform patients’ lives when it is successfully translated into medicines. This gift reflects both our longstanding commitment to advancing blood cancer innovation and our confidence in Blood Cancer United’s ability to help promising therapies move closer to patients.”
This donation builds on a collaborative partnership between Blood Cancer United and Royalty Pharma. In 2022, Royalty Pharma launched a five-year, $7.5 million alliance with the organization focused on addressing healthcare disparities in blood cancer care and treatment, including expanding access to clinical trials for underserved patients. The new gift expands that relationship with a shared commitment to drive the next generation of blood cancer therapies to patients.
“As scientific advances create new possibilities for patients, many promising therapies still fail to reach patients,” said Dr. E. Anders Kolb, president and CEO of Blood Cancer United. “TAP helps move those therapies forward by supporting companies at a critical stage of development where funding and expertise can determine whether a therapy advances or stalls. This gift from Royalty Pharma will help us continue to advance science, create new treatment options, and ultimately improve outcomes for people with blood cancer.”
Watch Dr. Kolb discuss this milestone for TAP.
“It takes a lot of determination and smart people, along with a fair amount of good fortune and investors, of course, to develop new treatments, especially for rare diseases,” said Troy Wilson, Ph.D., JD, president, CEO and co-founder of Kura Oncology. “TAP and Royalty Pharma are a formidable pairing that combines all of that. Above all, they share our conviction that patients must remain at the center of every decision we make.”
TAP and Blood Cancer United provided early, critical support for foundational work conducted at the University of Michigan and played a key role in introducing that work to Kura Oncology. Kura then advanced the development of ziftomenib, a member of a new class of drugs known as menin inhibitors. Ziftomenib is now FDA-approved as a targeted therapy for adults with relapsed or refractory acute myeloid leukemia with a susceptible NPM1 mutation.
Royalty Pharma’s commitment is part of a broader effort by a group of inaugural funders supporting this next phase of TAP. Blood Cancer UK also contributed $1 million to the program, and Blood Cancer United committed $15 million to support TAP’s continued growth.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 17 development-stage product candidates. For more information, visit www.royaltypharma.com.
About Blood Cancer United®
Blood Cancer United® (formerly The Leukemia & Lymphoma Society) is the largest global nonprofit focused on blood cancer patient support, research, and advocacy. Since their founding in 1949, the organization has consistently evolved to better serve people affected by all 100-plus types of blood cancer. Blood Cancer United funds innovative research, offers free resources and personalized support, and advocates at state and national levels for more accessible and affordable healthcare for all patients. To learn more, visit www.BloodCancerUnited.org.
About Therapy Acceleration Program
The Therapy Acceleration Program® is Blood Cancer United’s mission-driven, strategic venture philanthropy initiative that seeks to accelerate the development of innovative blood cancer therapies and change the standard of care.
TAP collaborates with biotech companies to support the development of novel platforms, first-in-class therapies addressing high unmet medical needs, emerging patient populations, and orphan indications.
Founded in 2007, TAP was created to help move promising blood cancer therapies into clinical development faster. As it approaches its 20th year, the program continues to provide funding and scientific, clinical and drug development expertise to advance therapies at critical stages of development to address unmet medical needs.
Since its launch, TAP has supported six therapies that have gone on to receive U.S. Food and Drug Administration approval or be included in the National Comprehensive Cancer Network guidelines. More than 30 active clinical studies are currently evaluating TAP supported therapies.
The updated TAP model builds on Blood Cancer United’s longstanding approach to funding science while expanding opportunities for collaboration with industry and philanthropic partners. By enabling directed donations to TAP and continuing to reinvest returns, the model is intended to help accelerate the pace of drug development.
Royalty Pharma Investor Relations and Communications
Royalty Pharma plc (RPRX) Morgan Stanley 24th Annual Global Healthcare Conference September 14, 2026 2:35 PM EDT
Company Participants
Pablo Legorreta - Founder, Chairman of the Board & CEO
Marshall Urist - Head of Research & Investments
Conference Call Participants
Terence Flynn - Morgan Stanley, Research Division
Presentation
Terence Flynn
Morgan Stanley, Research Division
Okay. Great. Thanks for joining us, everybody. I'm Terence Flynn, Morgan Stanley's U.S. biopharma analyst. For important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative.
I'm very pleased to be hosting this afternoon, Royalty Pharma. From -- presenting from the company, we have Pablo Legorreta, the company's CEO and Chairman. Thank you. And we have Marshall Urist, who is Head of Research and Investments. Thank you both so much for being here today to join us on the first day of our conference. Really looking forward to it.
I thought maybe we'd start high level, Pablo. And then again, we'll go to some of the pipeline portfolio questions later on for Marshall. But again, as I look back, your 5-year deployment target that you set was $10 billion to $12 billion back in 2022 at your Investor Day, you hit that about a year ahead of schedule now. So how are you thinking about the next set of targets here and the deployment goal as you think about the business?
Question-and-Answer Session
Pablo Legorreta
Founder, Chairman of the Board & CEO
Well first of all, thank you for the invitation to participate in your conference and for the relationship with you and Morgan Stanley, which has been key to our growth over decades. And so yes, we have been able to invest the amount we guided when we went public, $10 billion to $12 billion
NEW YORK, Sept. 09, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will participate in the following upcoming investor conferences during the month of September:
Morgan Stanley 24th Annual Global Healthcare Conference on Monday, September 14, 2026 at 2:35 p.m. EDTBofA Global Research Global Healthcare Conference on Wednesday, September 23, 2026 at 11:45 a.m. BST The webcast will be accessible from Royalty Pharma’s “Events” page at https://www.royaltypharma.com/investors/events/. Webcasts will also be archived for a minimum of thirty days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 17 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
On Tuesday, Novartis AG (NYSE:NVS) stock witnessed one of the sharpest single-day declines for the company in recent history.
Phase 3 HARBOR Trial Misses Primary EndpointOn Tuesday, the company shared data from the global Phase 3 HARBOR study evaluating del-desiran for myotonic dystrophy type 1 (DM1).
The study did not demonstrate statistically significant improvement versus placebo on the primary endpoint of video hand opening time (vHOT), a novel measure of hand myotonia.
Myotonia is a neuromuscular condition where muscles are unable to relax right away after a voluntary contraction or strong effort.
Read Next
Safety findings from HARBOR were generally consistent with previously reported data.
Novartis is evaluating the full HARBOR dataset and will engage with health authorities to determine the most appropriate development path for del-desiran.
Del-desiran is one of three antibody-oligonucleotide conjugate (AOC) therapies added to the Novartis neuromuscular pipeline through the acquisition of Avidity Biosciences for a whopping $12 billion.
Status of $12 Billion Avidity Pipeline AcquisitionNovartis is advancing delpacibart zotadirsen (del-zota) in patients with Duchenne muscular dystrophy with mutations amenable to exon 44 skipping (DMD44).
The company filed del-zota for accelerated approval and received FDA priority review designation.
Novartis is planning to meet with the FDA on next steps for delpacibart braxlosiran (del-brax) in facioscapulohumeral muscular dystrophy (FSHD) based on recent positive Phase 1/2 biomarker data.
Pelacarsen Cardiovascular Trial FailsOn Friday, Novartis also shared another trial disappointment after it released data from the pelacarsen phase 3 Lp(a)HORIZON trial, a cardiovascular outcomes study.
The study did not meet its primary endpoint of reducing the risk of cardiovascular events, a composite of cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, and urgent coronary revascularization requiring hospitalization, compared to placebo.
Lower lipoprotein (a) (Lp(a)) levels were achieved with pelacarsen in this study population, which was receiving guideline-directed treatments, including lipid-lowering and antihypertensive therapies.
Elevated Lp(a) is an inherited cardiovascular risk factor affecting approximately one in five people worldwide with no approved targeted treatment.
Ripple Effect Hits PartnersAfter the update, Ionis Pharmaceuticals Inc. (NASDAQ:IONS) stock also tanked as Novartis obtained global rights to develop, manufacture, and commercialize pelacarsen under a 2019 license and collaboration agreement.
In 2023, Royalty Pharma plc (NASDAQ:RPRX) acquired an interest in Ionis’ royalty in Biogen’s SPINRAZA (nusinersen) and Novartis’ pelacarsen for up to $1.125 billion, including an upfront payment of $500 million and up to $625 million in additional pelacarsen milestone payments.
After the disappointing trial data, Royalty Pharma stock is also trading lower on Tuesday.
NVS/IONS/RPRX Stock Price Activity: Novartis shares were down 12.57% at $139.88, Ionis Pharmaceuticals shares were down 9.80% at $52.40, and Royalty Pharma shares were down 6.29% at $59.94 during premarket trading Tuesday, according to Benzinga Pro data.
NEW YORK, Sept. 04, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced an update on Novartis' Phase 3 results from the HORIZON outcomes trial for pelacarsen, an antisense oligonucleotide studied in patients with atherosclerotic cardiovascular (CV) disease and elevated lipoprotein(a), or Lp(a). The trial did not meet its primary endpoint of reducing the risk of cardiovascular events, a composite of cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, and urgent coronary revascularization requiring hospitalization in the overall study population, compared to placebo. Novartis intends to present the Lp(a) HORIZON trial data at an upcoming medical congress.
Royalty Pharma continues to deliver solid portfolio execution, supported by robust management and increased scalability for higher-value transactions. The company is capitalizing on inflows into the biopharma sector, with a strategic shift toward development-stage assets that yield higher IRRs and a strong track record of regulatory approvals. Several positive catalysts are coming up. All are poised to drive incremental royalty growth.
Royalty Pharma (RPRX - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, RPRX crossed above the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Shares of RPRX have been moving higher over the past four weeks, up 5.2%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that RPRX could be poised for a continued surge.
Looking at RPRX's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on RPRX for more gains in the near future.
Company announcement – No. 38 / 2026 Zealand Pharma enters into a USD 100 million royalty purchase and sale agreement with Royalty Pharma for the economics related to rusfertide Zealand Pharma will receive USD 100 million for the sale of its economic interests related to rusfertide, including royalty rights on the potential future global net sales of rusfertide.
NEW YORK, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced an agreement for $100 million in funding to Zealand Pharma in exchange for Zealand Pharma's economics related to rusfertide (PTG-300), a potential first-in-class therapy for polycythemia vera, a rare and chronic blood disorder.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksRoyalty Pharma NASDAQ: RPRX raised its 2026 outlook for the second consecutive quarter after reporting higher second-quarter royalty receipts, continued capital deployment and progress across its development-stage pipeline.
Chief Executive Officer Pablo Legorreta said the company delivered 6% growth in portfolio receipts, its reported top-line measure, and 14% growth in total receipts during the quarter. Portfolio receipts reached $773 million, slightly ahead of management’s expectations, while portfolio cash flow totaled $736 million.
Get Royalty Pharma alerts:
1 Trial, 2 Franchises: Zenas Stock Climbs on Landmark Data“We delivered 6% growth in portfolio receipts, our top line, and 14% growth in total receipts, which are our recurring cash flows,” Legorreta said. He added that the company has now recorded 25 consecutive quarters as a public company with double-digit growth on average.
Guidance Raised Again Chief Financial Officer Terry Coyne said Royalty Pharma now expects 2026 portfolio receipts of $3.4 billion to $3.5 billion, compared with prior guidance of $3.325 billion to $3.45 billion. The outlook assumes royalty-receipt growth of approximately 7% to 10%, up from the prior 4% to 8% range.
4 Healthcare Stocks With Massive Gains—and More to ComeThe outlook incorporates the loss of exclusivity for PROMACTA, the launch of a Tysabri biosimilar in the U.S. and potential effects from the Inflation Reduction Act, according to Coyne. It also assumes milestones and other contractual receipts decline to about $60 million in 2026 from $128 million in 2025.
Management maintained guidance for operating and professional costs at 5.5% to 6.5% of portfolio receipts and expects interest paid of about $350 million to $360 million for the full year. Coyne said second-half operating costs are expected to be higher than first-half levels because of cash-payment seasonality.
Royalty receipts grew 14% in the quarter, driven by Tremfya, Voranigo, IMDELLTRA and Evrysdi. The company said this growth offset headwinds from Promacta and IMBRUVICA. Portfolio-receipt growth was lower than royalty-receipt growth because the prior-year period included a one-time payment in milestones and other contractual receipts.
Cliramitug Deal Adds TTR Exposure Royalty Pharma announced it acquired a portion of Neurimmune’s royalty interest in AstraZeneca’s cliramitug for up to $425 million. The arrangement includes a $125 million upfront payment, another $125 million payment due in the first quarter of 2027, and up to $175 million tied to clinical and regulatory milestones.
In exchange, Royalty Pharma will receive a 3.75% royalty on worldwide net sales of cliramitug, an investigational therapy for transthyretin amyloid cardiomyopathy, or ATTR-CM. Marshall Urist, executive vice president and head of research and investments, said cliramitug is designed to remove amyloid deposits already accumulated in the heart, distinguishing it from approved products intended to slow further accumulation.
A Phase III outcomes study in roughly 1,200 patients is fully enrolled, with results expected in 2028. AstraZeneca has projected peak annual sales of $3 billion to $5 billion for cliramitug. Based on that estimate, Royalty Pharma expects potential peak annual royalty payments of approximately $110 million to $190 million and an internal rate of return in the teens, Urist said.
The transaction is Royalty Pharma’s second investment in TTR amyloidosis following its 2025 investment in AMVUTTRA. Urist said the company sees a substantial untreated patient population in ATTR-CM, noting that about 80% of patients remain untreated.
Pipeline and Capital Allocation Chairman of Partnering and Investments Chris Hite said Royalty Pharma’s development-stage pipeline has expanded to 19 potential therapies, from three at the time of its June 2020 initial public offering. The company estimates peak potential royalties from its late-stage pipeline now total approximately $2 billion.
The company cited expected or ongoing milestones across several programs, including:
Results in 2026 from Novartis’ pelacarsen outcomes trial. Phase III data in 2026 for Biogen’s litifilimab in systemic lupus. Expected 2027 Phase III results for daraxonrasib in lung cancer and litifilimab in cutaneous lupus. Potential pivotal data in 2027 for Sanofi’s frexalimab in multiple sclerosis and Johnson & Johnson’s seltorexant in major depressive disorder. Hite said about 84% of the company’s approximately $22 billion in invested capital is tied to products that were approved at the time of investment or development-stage programs that subsequently received approval. Development-stage therapies account for 12% of invested capital, although about one-third of that capital is in programs that have already produced positive pivotal results.
Royalty Pharma deployed $877 million on royalty deals in the first half, while Legorreta said announced royalty acquisitions totaled $1.7 billion year to date. The company returned approximately $367 million to shareholders during the first half, including around $100 million in share repurchases.
Balance Sheet and Market Expansion At the end of June, Royalty Pharma had $812 million in cash and equivalents, $9.2 billion of investment-grade debt and an undrawn $1.8 billion revolving credit facility. Total debt-to-adjusted EBITDA was 2.8 times, or 2.6 times on a net basis. Coyne said the company is now rated BBB by all three major credit rating agencies following an S&P upgrade in June.
Management also discussed its efforts to build a presence in China. Legorreta said the company is taking a patient approach but views the market as potentially large and attractive, particularly as Chinese biopharma companies seek Western partners for clinical development and commercialization. The company said it is monitoring proposed U.S. policy measures but believes existing out-licensing activity has already created a substantial royalty opportunity.
About Royalty Pharma (NASDAQ:RPRX)Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.
The company's transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Royalty Pharma Right Now?Before you consider Royalty Pharma, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Royalty Pharma wasn't on the list.
While Royalty Pharma currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
Royalty Pharma (RPRX - Free Report) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.94%. A quarter ago, it was expected that this company would post earnings of $1.22 per share when it actually produced earnings of $1.3, delivering a surprise of +6.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Royalty Pharma, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $773 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.52%. This compares to year-ago revenues of $727 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Royalty Pharma shares have added about 48.8% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Royalty Pharma?While Royalty Pharma has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Royalty Pharma was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.12 on $852.03 million in revenues for the coming quarter and $5.18 on $3.44 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Verastem (VSTM - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This drug developer is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of -18%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Verastem's revenues are expected to be $23.15 million, up 981.8% from the year-ago quarter.
For the quarter ended June 2026, Royalty Pharma (RPRX - Free Report) reported revenue of $773 million, up 6.3% over the same period last year. EPS came in at $1.32, compared to $1.14 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $761.4 million, representing a surprise of +1.52%. The company delivered an EPS surprise of +3.94%, with the consensus EPS estimate being $1.27.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Royalty Pharma performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Portfolio Receipts- Royalty Receipts- Products- Cystic fibrosis franchise: $194 million versus $196.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Portfolio Receipts- Royalty Receipts- Products- Imdelltra: $17 million versus $18.06 million estimated by two analysts on average.Portfolio Receipts- Royalty Receipts- Products- Imbruvica: $36 million versus $34.81 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -18.2% change.Portfolio Receipts- Royalty Receipts- Products- Xtandi: $44 million versus $43.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.Portfolio Receipts- Royalty Receipts- Products- Promacta: $8 million versus $6.54 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -75.8% change.Portfolio Receipts- Royalty Receipts- Products- Tremfya: $57 million compared to the $63.28 million average estimate based on two analysts. The reported number represents a change of +54.1% year over year.Portfolio Receipts- Royalty Receipts- Products- Cabometyx/Cometriq: $23 million compared to the $22.24 million average estimate based on two analysts. The reported number represents a change of +15% year over year.Portfolio Receipts- Royalty Receipts- Products- Evrysdi: $47 million versus the two-analyst average estimate of $48.36 million. The reported number represents a year-over-year change of +42.4%.Portfolio Receipts- Royalty Receipts- Products- Trodelvy: $14 million versus $12.09 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +40% change.Portfolio Receipts- Royalty Receipts- Products- Other products: $139 million versus $116.3 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +41.8% change.Portfolio Receipts- Royalty Receipts- Products- Royalty Receipts: $768 million compared to the $753.9 million average estimate based on two analysts. The reported number represents a change of +14.3% year over year.Portfolio Receipts- Royalty Receipts- Products- Trelegy: $58 million versus the two-analyst average estimate of $57.65 million. The reported number represents a year-over-year change of +1.8%.View all Key Company Metrics for Royalty Pharma here>>>
Shares of Royalty Pharma have returned -0.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Portfolio Receipts growth of 6% to $773 million; Royalty Receipts growth of 14%Net cash provided by operating activities of $728 millionRaised full year 2026 guidance: Portfolio Receipts expected to be $3,400 million to $3,500 million NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the second quarter of 2026 and raised full year 2026 guidance for Portfolio Receipts.
“Royalty Pharma delivered strong second quarter results with Royalty Receipts growth of 14%,” said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. “Our transaction pipeline remains exciting and we continued to bolster our development-stage pipeline in recent months, bringing total Capital Deployment to over $1 billion so far in 2026. Following our acquisition of a royalty on AstraZeneca’s cliramitug, our development-stage pipeline now totals 19 potential therapies. Lastly, our strong financial performance has allowed us to raise our top-line guidance for the second time this year, driven by the strength of our diversified portfolio. The fundamental tailwinds supporting our business are compelling and we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.”
Double-digit growth in Royalty Receipts in the second quarter of 2026
Royalty Receipts grew 14% to $768 million, driven by Tremfya, Voranigo, Imdelltra and Evrysdi.Portfolio Receipts increased by 6% to $773 million, reflecting lower milestones and other contractual receipts. Strong transaction activity
Acquired royalty on AstraZeneca’s cliramitug for transthyretin amyloidosis with cardiomyopathy in July 2026.Announced value of transactions of $1.7 billion and Capital Deployment of $1.1 billion as of August 4, 2026. Positive portfolio updates
Revolution Medicines’ NDA for daraxonrasib in pancreatic cancer accepted for review by FDA and the EMA has started its accelerated review; Gilead’s Trodelvy received FDA and EC approval for first-line metastatic triple-negative breast cancer; GSK’s Jideytro received FDA approval for ROS1+ non-small cell lung cancer; Amgen’s Imdelltra received EC approval for small cell lung cancer.GSK completed the acquisition of Nuvalent (Jideytro and neladalkib for lung cancer); Teva completed the acquisition of Emalex Biosciences (ecopipam for Tourette syndrome). Raising financial guidance for full year 2026 (excludes contribution from future transactions)
Royalty Pharma now expects 2026 Portfolio Receipts to be between $3,400 million and $3,500 million (previously $3,325 million to $3,450 million), representing expected Royalty Receipts growth of 7% to 10%. Financial & Liquidity Summary
Three Months Ended June 30,($ and shares in millions; unaudited)20262025ChangePortfolio Receipts7732025ChangeNet cash provided by operating activities7287276%Adjusted EBITDA (non-GAAP)*736364100%Portfolio Cash Flow (non-GAAP)*73663316%Weighted average Class A ordinary shares outstanding - diluted55764115% *See “Liquidity and Capital Resources” section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement.
2026 Financial Outlook
Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the date of this release, as follows:
Provided August 5, 2026PreviousPortfolio Receipts$3,400 million to $3,500 million$3,325 million to $3,450 millionPayments for operating and professional costs5.5% to 6.5% of Portfolio Receipts5.5% to 6.5% of Portfolio ReceiptsInterest paid$350 million to $360 million$350 million to $360 million
Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above Portfolio Receipts guidance provided on August 5, 2026 includes expected Royalty Receipts growth of 7% to 10% in 2026.
Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026.
Payments for operating and professional costs in 2026 are expected to decrease as a percentage of Portfolio Receipts, compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the internalization transaction on May 16, 2025.
Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the quarterly interest payment schedules for the term loan assumed as part of the internalization transaction and borrowings under our revolving credit facility. In 2026, Royalty Pharma anticipates interest paid to be approximately $350 million to $360 million. Interest paid in the third quarter of 2026 is anticipated to be approximately $175 million, with a de minimis amount anticipated in the fourth quarter of 2026. These projections reflect repayment of the $380 million term loan in July 2026 and assume no additional debt financing in 2026. In the second quarter of 2026, Royalty Pharma collected interest of $5 million on its cash and cash equivalents, which partially offset interest paid.
Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.
Portfolio Receipts Highlights Three Months Ended June 30,($ in millions; unaudited)20262025ChangeProducts:Marketers:Therapeutic Area: Cystic fibrosis franchiseVertexRare disease1941940%TysabriBiogenNeuroscience675619%TrelegyGSKRespiratory58573%TremfyaJohnson & JohnsonImmunology573753%EvrysdiRocheRare disease473342%VoranigoServierOncology462672%XtandiPfizer, AstellasOncology44426%ImbruvicaAbbVie, Johnson & JohnsonOncology3644(16)%Cabometyx/CometriqExelixis, Ipsen, TakedaOncology232012%ImdelltraAmgenOncology17—n/aTrodelvyGileadOncology141036%SpinrazaBiogenRare disease1112(11)%AmvuttraAlnylamRare disease9—n/aPromactaNovartisHematology833(75)%Other products(5)13910928%Royalty Receipts76867214%Milestones and other contractual receipts556(91)%Portfolio Receipts7737276% Amounts shown in the table may not add due to rounding.
Royalty Receipts was $768 million in the second quarter of 2026, an increase of 14% compared to $672 million in the second quarter of 2025. The increase was primarily driven by Tremfya, Voranigo, Imdelltra and Evrysdi, partially offset by declines from Promacta due to U.S. generic competition and from Imbruvica. Royalty Receipts from Evrysdi included the benefit of the additional royalties acquired in December 2025.
Portfolio Receipts was $773 million in the second quarter of 2026, an increase of 6% compared to $727 million in the second quarter of 2025, primarily driven by the same Royalty Receipts increases noted above, partially offset by lower Milestones and other contractual receipts due to a one-time distribution received in the prior year period.
Liquidity and Capital Resources
Royalty Pharma’s liquidity and capital resources are summarized below:
As of June 30, 2026, Royalty Pharma had cash and cash equivalents of $812 million and total debt with principal value of $9.2 billion. In July 2026, Royalty Pharma repaid the $380 million term loan upon maturity.
In the second quarter of 2026, Royalty Pharma paid a quarterly dividend of $0.235 per share, equating to $135 million in dividends and distributions.
Royalty Pharma repurchased approximately 0.9 million Class A ordinary shares for $45 million in the second quarter and two million Class A ordinary shares for $96 million for the first six months of 2026. The weighted-average number of diluted Class A ordinary shares outstanding for the second quarter of 2026 was 557 million, a decline of 1% as compared to 562 million for the second quarter of 2025.
Liquidity Summary
Three Months Ended June 30,($ in millions; unaudited)20262025Portfolio Receipts773727Payments for operating and professional costs(37)(94)Adjusted EBITDA (non-GAAP)736633Interest (paid)/received, net(0)8Portfolio Cash Flow (non-GAAP)736641 Amounts may not add due to rounding.
Adjusted EBITDA (non-GAAP) was $736 million in the second quarter of 2026. Payments for operating and professional costs were 4.8% of Portfolio Receipts. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs.Portfolio Cash Flow (non-GAAP) was $736 million in the second quarter of 2026. Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases, or utilized for other discretionary investments. Refer to Table 4 for Royalty Pharma’s reconciliation of each non-GAAP measure to the most directly comparable GAAP financial measure, net cash provided by operating activities.
Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $349 million in the second quarter of 2026, consisting primarily of royalty funding for daraxonrasib and R&D funding for JNJ‑4804 and litifilimab.
The table below details Capital Deployment by category:
Capital Deployment
Three Months Ended June 30,Six Months Ended June 30,($ in millions; unaudited)2026202520262025Purchases of available for sale debt securities—(75)—(75)Acquisitions of financial royalty assets(251)(1)(703)(2)Development-stage funding payments(98)(301)(123)(351)Milestone payments—(219)(50)(269)Contributions from legacy non-controlling interests - R&D—0—0Capital Deployment(349)(595)(877)(696) Amounts may not add due to rounding.
Royalty Transactions
As of August 4, 2026, Royalty Pharma has announced new transactions of up to $1.7 billion, which reflects the entire amount of potential capital committed for new transactions, including potential future milestones.
In July 2026, Royalty Pharma acquired a portion of Neurimmune AG’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront. Cliramitug is a Phase 3 first-in-class transthyretin (TTR)-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy, a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart. The information in this section should be read together with Royalty Pharma’s reports and documents filed with the SEC at www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors section of Royalty Pharma’s website at www.royaltypharma.com.
Key Developments Relating to the Portfolio
The key developments related to Royalty Pharma’s royalty interests are discussed below based on disclosures from the marketers of the products.
daraxonrasibIn July 2026, Revolution Medicines announced that the U.S. Food and Drug Administration (FDA) accepted for review the company’s New Drug Application (NDA) for daraxonrasib, an oral RAS(ON) multi-selective inhibitor, for previously treated metastatic pancreatic ductal adenocarcinoma. In July 2026, Revolution Medicines announced that the European Medicines Agency (EMA) started an accelerated assessment of daraxonrasib.
In April 2026, Revolution Medicines announced positive Phase 3 results from the RASolute-302 trial evaluating daraxonrasib in patients with previously treated metastatic pancreatic cancer.
Jideytro (zidesamtinib) and neladalkib In July 2026, GSK announced that the FDA approved Jideytro (zidesamtinib), a ROS proto-oncogene 1 (ROS1)-selective inhibitor, for the treatment of adult patients with locally advanced or metastatic ROS1-positive non-small cell lung cancer who have received a prior ROS1 kinase inhibitor.In July 2026, GSK announced that it completed the acquisition of Nuvalent for approximately $10.6 billion, including Jideytro (zidesamtinib) and neladalkib, two highly selective ROS1 and anaplastic lymphoma kinase inhibitors for the treatment of non-small cell lung cancer.
In May 2026, Nuvalent announced the FDA accepted its NDA for neladalkib for filing and granted the application Priority Review with a Prescription Drug User Fee Act (PDUFA) date of November 27, 2026.
TEV-’408In July 2026, Teva Pharmaceuticals (Teva) announced plans to advance TEV-’408 into a Phase 2b study in patients with non-segmental vitiligo, following positive Phase 1b results.deucrictibantIn July 2026, Pharvaris announced that the FDA accepted its NDA for deucrictibant immediate-release for the on-demand treatment of hereditary angioedema attacks and assigned a PDUFA date of April 23, 2027.Trodelvy In June 2026, Gilead announced that the FDA approved Trodelvy for the first-line treatment of certain patients with metastatic triple-negative breast cancer.In June 2026, Gilead announced that the European Commission (EC) approved Trodelvy as a first-line treatment for certain patients with metastatic triple-negative breast cancer who are not candidates for PD-L1 inhibitors.
In June 2026, Gilead announced the discontinuation of the Phase 3 KEYNOTE-D46/EVOKE-03 study evaluating Trodelvy in combination with Keytruda for patients with previously untreated metastatic non-small cell lung cancer.
ecopipamIn June 2026, Teva announced the completion of its acquisition of Emalex Biosciences for up to $900 million, including $700 million at closing, which added ecopipam and other neuroscience therapies to its portfolio. Furthermore, Teva announced the submission of an NDA to the FDA for ecopipam for the treatment of pediatric Tourette syndrome.ImdelltraIn June 2026, the EC approved Imdelltra for the treatment of adult patients with extensive-stage small cell lung cancer.ErleadaIn May 2026, Johnson & Johnson announced that the Phase 3 PROTEUS study evaluating Erleada in combination with androgen deprivation therapy before and after radical prostatectomy, in patients with high-risk localized or locally advanced prostate cancer, met its primary endpoints.obexelimabIn May 2026, Zenas BioPharma announced the submission of a Biologics License Application (BLA) to the FDA for obexelimab for the treatment of Immunoglobulin G4-related disease.TremfyaIn May 2026, Johnson & Johnson announced that the FDA approved a supplemental BLA for Tremfya to include the inhibition of progression of structural joint damage in adults with active psoriatic arthritis.TEV-’749In May 2026, Teva announced that the EMA accepted for review its Marketing Authorization Application for TEV-’749 for the treatment of schizophrenia in adults.MyqorzoIn May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal Phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. The study met both dual primary endpoints, demonstrating statistically significant improvements from baseline to week 36 versus placebo.ZiiheraIn April 2026, Jazz Pharmaceuticals announced that the FDA accepted for filing a supplemental BLA for Ziihera, in combination regimens for the first-line treatment of adult patients with human epidermal growth factor receptor 2 (HER2)-positive metastatic gastroesophageal adenocarcinoma, and granted Priority Review, with a PDUFA date of August 25, 2026.
Financial Results Call
Royalty Pharma will host a conference call and simultaneous webcast to discuss its second quarter of 2026 results today at 8:00 a.m., Eastern Time. Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company’s website for at least 30 days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates.
Forward-Looking Statements
The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof.
This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law.
Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source.
For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov.
Portfolio Receipts
Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from Royalty Pharma’s portfolio investments, the primary source of capital that is deployed to make new portfolio investments. Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. Royalty Receipts includes variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to Royalty Pharma.
Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed contractual receipts, net of contractual payments to legacy non-controlling interests, that are attributed to Royalty Pharma. Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are not central to Royalty Pharma’s fundamental business strategy. 2025 Portfolio Receipts does not include the $511 million of proceeds from the sale of the MorphoSys Development Funding Bonds, as the transaction was treated as an asset sale.
Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships.
Use of Non-GAAP Measures
Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP.
The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity.
Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities.
The company has provided reconciliations of these non-GAAP liquidity measures to the most directly comparable GAAP financial measure, being net cash provided by operating activities in Table 4.
Royalty Pharma Investor Relations and Communications
Royalty Pharma plcCondensed Consolidated Statements of Operations(7)(unaudited)Table 1 Three Months Ended June 30,($ in millions)20262025Income and other revenues Income from financial royalty assets638550Other royalty income and revenues3628Total income and other revenues674579Operating expense/(income) Provision for changes in expected cash flows from financial royalty assets268(204)Provision for credit losses on unfunded commitments1393Research and development funding expense98301General and administrative expenses (includes 107 and 91 of share-based compensation expense for the three months ended June 30, 2026 and 2025, respectively)162180Total operating expense, net541369Operating income133210Other (income)/expense Equity in earnings of equity method investees(4)(3)Interest expense9469Other (income)/expense, net(38)51Total other expense, net52117Consolidated net income before tax8193Income tax expense——Consolidated net income8193Net income attributable to non-controlling interests6460Net income attributable to Royalty Pharma plc1832 Amounts may not add due to rounding.
Royalty Pharma plcSelected Balance Sheet Data (unaudited)Table 2 ($ in millions)As of June 30, 2026As of December 31, 2025Cash and cash equivalents812619Total current and non-current financial royalty assets, net17,08217,063Total assets19,82019,621Current portion of long-term debt380380Long-term debt, net of current portion8,5828,571Total liabilities10,0349,906Total shareholders’ equity9,7869,715 Royalty Pharma plcCondensed Consolidated Statements of Cash Flows (unaudited)Table 3 Three Months Ended June 30,Six Months Ended June 30,($ in millions)2026202520262025Cash flows from operating activities: Cash collections from financial royalty assets8157271,7301,556Cash collections from intangible royalty assets0040Other royalty cash collections32246656Distributions from equity method investees21—2513Interest received591121Development-stage funding payments(98)(301)(123)(351)Payments for operating and professional costs(37)(94)(73)(196)Payments for Employee EPAs(5)(0)(14)(0)Interest paid(5)(1)(179)(140)Net cash provided by operating activities7283641,447960Cash flows from investing activities: Acquisition of businesses, net of cash acquired—(74)—(74)Distributions from equity method investees(13)632999Purchases of equity securities(5)—(28)(4)Proceeds from equity securities36—36—Purchases of available for sale debt securities—(75)—(75)Proceeds from available for sale debt securities43915Proceeds from sales of available for sale debt securities———511Acquisitions of financial royalty assets(251)(1)(703)(2)Milestone payments—(219)(50)(269)Other(0)(9)(0)(9)Net cash (used in)/provided by investing activities(230)(312)(708)192Cash flows from financing activities: Distributions to legacy non-controlling interests - Portfolio Receipts(86)(89)(164)(174)Distributions to continuing non-controlling interests(35)(39)(74)(92)Dividends to shareholders(105)(93)(209)(189)Repurchases of Class A ordinary shares(45)(292)(95)(1,000)Contributions from legacy non-controlling interests - R&D—0—0Contributions from non-controlling interests - other—5—6Debt issuance costs and other(2)—(2)—Other(0)—(1)—Net cash used in financing activities(273)(508)(546)(1,449)Net change in cash and cash equivalents226(456)193(297)Cash and cash equivalents, beginning of period5861,088619929Cash and cash equivalents, end of period812632812632 EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma plcGAAP to Non-GAAP Reconciliation (unaudited)Table 4 Three Months Ended June 30,($ in millions)20262025Net cash provided by operating activities (GAAP)728364Adjustments: Proceeds from available for sale debt securities(6)43Distributions from equity method investees(6)(13)63Interest paid/(received), net(6)0(8)Development-stage funding payments98301Distributions to legacy non-controlling interests - Portfolio Receipts(6)(86)(89)Payments for Employee EPAs50Adjusted EBITDA (non-GAAP)736633Interest (paid)/received, net(6)(0)8Portfolio Cash Flow (non-GAAP)736641 EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma plc
Description of Approved Indications for Select Portfolio Therapies
Table 5
Cystic fibrosis franchiseCystic fibrosisTysabriRelapsing forms of multiple sclerosisTrelegyChronic obstructive pulmonary disease and asthmaTremfyaPlaque psoriasis, psoriatic arthritis, ulcerative colitis and Crohn’s diseaseEvrysdiSpinal muscular atrophyVoranigoLow-grade gliomaXtandiProstate cancerImbruvicaHematological malignancies and chronic graft versus host diseaseCabometyx/CometriqKidney, liver and thyroid cancerImdelltraSmall cell lung cancerTrodelvyBreast cancerSpinrazaSpinal muscular atrophyAmvuttraTransthyretin amyloidosisPromactaChronic immune thrombocytopenia purpura and aplastic anemia
Notes
(1) Portfolio Receipts is defined above in the section entitled “Portfolio Receipts.”
(2) Adjusted EBITDA is defined under the credit agreement as Portfolio Receipts minus payments for operating and professional costs. Operating and professional costs reflect Payments for operating and professional costs from the GAAP condensed consolidated statements of cash flows. See GAAP to Non-GAAP reconciliation in Table 4.
(3) Portfolio Cash Flow is defined under the credit agreement as Adjusted EBITDA minus interest paid or received, net. See GAAP to Non-GAAP reconciliation in Table 4. Portfolio Cash Flow reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases or utilized for other discretionary investments.
(4) Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other financial assets, Milestone payments, Development-stage funding payments less Contributions from legacy non-controlling interests - R&D.
(5) Other products primarily include Royalty Receipts on the following products: Crysvita, Erleada, Farxiga/Onglyza, Nesina, Niktimvo, Nurtec ODT, Orladeyo, Prevymis and distributions from the Legacy SLP Interest, which is presented as Distributions from equity method investees on the GAAP condensed consolidated statements of cash flows.
(6) The table below shows the line item for each adjustment and the direct location for such line item on the GAAP condensed consolidated statements of cash flows.
Reconciling AdjustmentStatements of Cash Flows ClassificationInterest (paid)/received, netOperating activities (Interest paid less Interest received)Distributions from equity method investeesInvesting activitiesProceeds from available for sale debt securitiesInvesting activitiesDistributions to legacy non-controlling interests - Portfolio ReceiptsFinancing activities (7) The condensed consolidated statement of operations for 2025 has been recast to reflect the adoption of ASU 2025-07 by removing the losses previously recognized on derivative.
Analysts on Wall Street project that Royalty Pharma (RPRX - Free Report) will announce quarterly earnings of $1.27 per share in its forthcoming report, representing an increase of 11.4% year over year. Revenues are projected to reach $761.4 million, increasing 4.7% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Royalty Pharma metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Portfolio Receipts- Royalty Receipts- Products- Cystic fibrosis franchise' should arrive at $196.14 million. The estimate indicates a year-over-year change of +1.1%.
The average prediction of analysts places 'Portfolio Receipts- Royalty Receipts- Products- Imbruvica' at $34.81 million. The estimate points to a change of -20.9% from the year-ago quarter.
The consensus among analysts is that 'Portfolio Receipts- Royalty Receipts- Products- Xtandi' will reach $43.92 million. The estimate points to a change of +4.6% from the year-ago quarter.
Analysts forecast 'Portfolio Receipts- Royalty Receipts- Products- Promacta' to reach $6.54 million. The estimate indicates a change of -80.2% from the prior-year quarter.
Analysts expect 'Portfolio Receipts- Royalty Receipts- Products- Tremfya' to come in at $63.28 million. The estimate points to a change of +71% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Portfolio Receipts- Royalty Receipts- Products- Cabometyx/Cometriq' of $22.24 million. The estimate suggests a change of +11.2% year over year.
The combined assessment of analysts suggests that 'Portfolio Receipts- Royalty Receipts- Products- Evrysdi' will likely reach $48.36 million. The estimate indicates a change of +46.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Portfolio Receipts- Royalty Receipts- Products- Trodelvy' should come in at $12.09 million. The estimate indicates a change of +20.9% from the prior-year quarter.
The consensus estimate for 'Portfolio Receipts- Royalty Receipts- Products- Other products' stands at $116.30 million. The estimate suggests a change of +18.7% year over year.
Analysts' assessment points toward 'Portfolio Receipts- Royalty Receipts- Products- Royalty Receipts' reaching $753.90 million. The estimate suggests a change of +12.2% year over year.
It is projected by analysts that the 'Portfolio Receipts- Royalty Receipts- Products- Trelegy' will reach $57.65 million. The estimate indicates a change of +1.1% from the prior-year quarter.
Analysts predict that the 'Portfolio Receipts- Royalty Receipts- Products- Spinraza' will reach $11.32 million. The estimate suggests a change of -5.7% year over year.
View all Key Company Metrics for Royalty Pharma here>>>
Shares of Royalty Pharma have demonstrated returns of +0.4% over the past month compared to the Zacks S&P 500 composite's +1.7% change. With a Zacks Rank #3 (Hold), RPRX is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Royalty Pharma?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Royalty Pharma (RPRX - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $1.28 a share two days away from its upcoming earnings release on August 5, 2026.
RPRX has an Earnings ESP figure of +0.53%, which, as explained above, is calculated by taking the percentage difference between the $1.28 Most Accurate Estimate and the Zacks Consensus Estimate of $1.27. Royalty Pharma is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RPRX is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Amgen (AMGN - Free Report) as well.
Slated to report earnings on August 4, 2026, Amgen holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $5.61 a share one day from its next quarterly update.
Amgen's Earnings ESP figure currently stands at +0.11% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.60.
RPRX and AMGN's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
August 03, 2026 08:15 ET | Source: Royalty Pharma plc
NEW YORK, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced the appointment of Greg Raskin, M.D. as Senior Vice President, Head of Academic Initiatives, effective August 2026. Greg will lead Royalty Pharma's outreach efforts with academic and non-profit institutions as well as oversee the Royalty Pharma Translational Prize. Greg joins Royalty Pharma after nearly three decades at the intersection of science, medicine and investing, and most recently served as Senior Vice President, Technology Development at Memorial Sloan Kettering Cancer Center.
"We are delighted to welcome Greg to Royalty Pharma," said Pablo Legorreta, Chief Executive Officer and Chairman of the Board of Royalty Pharma. "Greg's experience in licensing and drug development, combined with his investing background, makes him uniquely suited to deepen our engagement with the scientific community. We see an exciting opportunity to support innovators as they navigate today's funding challenges. Increasingly, academic institutions are at the forefront of discovering novel targets, advancing our understanding of disease biology and mechanisms of action, and pioneering new therapeutic modalities that give rise to cutting-edge medicines. By helping them unlock new funding solutions, we can advance their missions while expanding our access to groundbreaking innovation, creating true win-win partnerships.”
"Royalty Pharma has long played a foundational role in connecting breakthrough science to the capital needed to advance important innovation," said Greg Raskin. "I am excited to join in this new role, where I will partner with universities and non-profits, reflecting Royalty Pharma's long-standing commitment to supporting academic science."
Greg Raskin Biography
Prior to joining Royalty Pharma, Greg spent more than a decade at Memorial Sloan Kettering Cancer Center, most recently as Senior Vice President, Technology Development, where he led biotechnology startup efforts, technology transfer, monetization and business development. Earlier in his career, Greg was a Vice President at AllianceBernstein, where he led healthcare and life sciences investing for the firm’s venture capital fund. Previously, he served as a biotech analyst at Baker Brothers Investments and as a management consultant at McKinsey & Company, where he primarily worked with pharmaceutical and biotech companies. Greg received his M.D. from Yale School of Medicine and a B.A. in molecular biophysics and biochemistry from Yale College. He currently serves as a Lecturer in the Department of Economics at both Stanford University and Yale University, where he teaches courses on the economics and science of drug development.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
The market expects Royalty Pharma (RPRX - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +11.4%.
Revenues are expected to be $761.4 million, up 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.82% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Royalty Pharma?For Royalty Pharma, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.53%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Royalty Pharma will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Royalty Pharma would post earnings of $1.22 per share when it actually produced earnings of $1.30, delivering a surprise of +6.56%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Royalty Pharma appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAcadia Pharmaceuticals (ACAD - Free Report) , another stock in the Zacks Medical - Biomedical and Genetics industry, is expected to report earnings per share of $0.06 for the quarter ended June 2026. This estimate points to a year-over-year change of -62.5%. Revenues for the quarter are expected to be $293.82 million, up 11.1% from the year-ago quarter.
The consensus EPS estimate for Acadia has been revised 5.8% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +25.00%.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Acadia will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Bank of New York Mellon Corp decreased its position in Royalty Pharma PLC (NASDAQ:RPRX – Free Report) by 2.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,302,043 shares of the biopharmaceutical company’s stock after selling 37,662 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.23% of Royalty Pharma worth $62,459,000 at the end of the most recent quarter.
Other hedge funds have also recently modified their holdings of the company. Phillips Wealth Planners LLC grew its stake in shares of Royalty Pharma by 1.9% in the fourth quarter. Phillips Wealth Planners LLC now owns 13,113 shares of the biopharmaceutical company’s stock worth $521,000 after purchasing an additional 242 shares during the last quarter. Strs Ohio raised its position in Royalty Pharma by 2.8% during the 4th quarter. Strs Ohio now owns 9,318 shares of the biopharmaceutical company’s stock valued at $360,000 after purchasing an additional 252 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd raised its position in Royalty Pharma by 0.6% during the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 43,287 shares of the biopharmaceutical company’s stock valued at $1,673,000 after purchasing an additional 255 shares during the last quarter. Cary Street Partners Financial LLC lifted its holdings in Royalty Pharma by 1.1% in the 4th quarter. Cary Street Partners Financial LLC now owns 24,405 shares of the biopharmaceutical company’s stock worth $943,000 after buying an additional 260 shares during the period. Finally, Private Trust Co. NA lifted its holdings in Royalty Pharma by 52.9% in the 4th quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company’s stock worth $32,000 after buying an additional 288 shares during the period. Hedge funds and other institutional investors own 54.35% of the company’s stock.
Insider Buying and Selling at Royalty Pharma In related news, Director Gregory Norden sold 3,045 shares of Royalty Pharma stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $53.00, for a total transaction of $161,385.00. Following the completion of the transaction, the director directly owned 191,803 shares of the company’s stock, valued at $10,165,559. This trade represents a 1.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Terrance P. Coyne sold 64,399 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $53.98, for a total transaction of $3,476,258.02. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 427,800 shares of company stock valued at $23,333,723 in the last quarter. 18.84% of the stock is owned by insiders.
Royalty Pharma Trading Up 0.5% NASDAQ RPRX opened at $58.72 on Thursday. The company has a quick ratio of 2.66, a current ratio of 2.66 and a debt-to-equity ratio of 0.86. Royalty Pharma PLC has a twelve month low of $34.08 and a twelve month high of $59.44. The firm has a market capitalization of $33.81 billion, a PE ratio of 39.95, a P/E/G ratio of 10.35 and a beta of 0.43. The stock’s 50 day moving average is $55.37 and its 200 day moving average is $49.00.
Royalty Pharma (NASDAQ:RPRX – Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share for the quarter, topping the consensus estimate of $1.22 by $0.08. The company had revenue of $630.58 million for the quarter, compared to analysts’ expectations of $881.69 million. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%. Research analysts forecast that Royalty Pharma PLC will post 5.18 earnings per share for the current fiscal year.
Royalty Pharma Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be paid a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, August 14th. Royalty Pharma’s dividend payout ratio (DPR) is presently 63.95%.
Wall Street Analysts Forecast Growth Several research firms have recently issued reports on RPRX. Weiss Ratings cut Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. Wall Street Zen raised Royalty Pharma from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 9th. JPMorgan Chase & Co. lifted their price target on shares of Royalty Pharma from $50.00 to $58.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Citigroup boosted their price objective on shares of Royalty Pharma from $50.00 to $66.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Finally, Morgan Stanley upped their price objective on shares of Royalty Pharma from $61.00 to $63.00 and gave the stock an “overweight” rating in a report on Friday, April 10th. Seven analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Royalty Pharma has an average rating of “Buy” and an average target price of $56.57.
View Our Latest Stock Analysis on RPRX
Royalty Pharma Profile (Free Report)
Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.
The company’s transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.
Featured Articles Five stocks we like better than Royalty Pharma Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding RPRX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Royalty Pharma PLC (NASDAQ:RPRX – Free Report).
Receive News & Ratings for Royalty Pharma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Royalty Pharma and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEFifth Third Bancorp Buys 19,655 Shares of ONE Gas, Inc. $OGS
NEXT HEADLINE »Streaming Stocks To Watch Now – July 21st
July 22, 2026 07:05 ET | Source: Royalty Pharma plc
NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has acquired a portion of Neurimmune’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront.
Cliramitug is a Phase 3 first-in-class TTR-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy (ATTR-CM), a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart. Currently approved therapies for ATTR-CM slow disease progression by preventing ATTR accumulation but do not target amyloid already accumulated in the heart. Cliramitug is currently in the Phase 3 DepleTTR-CM trial with results expected in 2028i.
“We are excited to acquire a royalty interest in cliramitug,” said Pablo Legorreta, Chief Executive Officer and Chairman of the Board of Royalty Pharma. “Cliramitug combines a differentiated scientific approach with promising clinical data and addresses a rapidly growing market with significant unmet need. Cliramitug is our second recent investment in this indication and has the potential to transform the ATTR-CM disease course. This therapy further bolsters our development-stage pipeline, and we believe it will become a valuable contributor to our portfolio over the long term.”
“We are developing a novel class of therapeutics and are excited to enter into a partnership with Royalty Pharma related to our cardiac ATTR depleter, cliramitug,” said Roger M. Nitsch, President and Chief Executive Officer of Neurimmune. “Today’s transaction is providing funds to further advance our internal R&D pipeline while retaining the majority of our royalty and milestone interests in cliramitug.”
The ATTR-CM market grew over 40% in 2025 to greater than $7 billion in sales, driven by increasing diagnosis rates and new therapeutic options. AstraZeneca provided a peak sales target of between $3 billion and $5 billion for cliramitug at its May 2024 Investor Day.
Transaction terms
Under the terms of the agreement, Royalty Pharma will provide Neurimmune up to $425 million, including $125 million upfront, in exchange for a 3% to 4% royalty on worldwide net sales of cliramitug. In the first quarter of 2027, Royalty Pharma will provide another $125 million in cash to Neurimmune, with the remaining $175 million payable based on the achievement of certain clinical and regulatory milestones.
Advisors
Goodwin Procter and Maiwald acted as legal advisors to Royalty Pharma.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 20 development-stage product candidates. For more information, visit www.royaltypharma.com.
AlTi Global Inc. trimmed its position in Royalty Pharma PLC (NASDAQ:RPRX – Free Report) by 50.5% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 25,073 shares of the biopharmaceutical company’s stock after selling 25,554 shares during the period. AlTi Global Inc.’s holdings in Royalty Pharma were worth $1,203,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. LM Advisors LLC bought a new stake in Royalty Pharma during the fourth quarter worth approximately $26,000. Lloyd Advisory Services LLC. acquired a new stake in shares of Royalty Pharma during the 4th quarter valued at $30,000. Private Trust Co. NA boosted its stake in shares of Royalty Pharma by 52.9% during the 4th quarter. Private Trust Co. NA now owns 832 shares of the biopharmaceutical company’s stock worth $32,000 after acquiring an additional 288 shares in the last quarter. Blue Trust Inc. boosted its stake in shares of Royalty Pharma by 173.4% during the 1st quarter. Blue Trust Inc. now owns 689 shares of the biopharmaceutical company’s stock worth $33,000 after acquiring an additional 437 shares in the last quarter. Finally, CIBC Private Wealth Group LLC grew its holdings in shares of Royalty Pharma by 66.4% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,118 shares of the biopharmaceutical company’s stock worth $43,000 after acquiring an additional 446 shares during the last quarter. 54.35% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades Several equities research analysts have recently commented on RPRX shares. Wall Street Zen raised Royalty Pharma from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. UBS Group lifted their price target on Royalty Pharma from $51.00 to $57.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Weiss Ratings downgraded Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, May 15th. Morgan Stanley upped their price objective on shares of Royalty Pharma from $61.00 to $63.00 and gave the company an “overweight” rating in a research note on Friday, April 10th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Royalty Pharma from $50.00 to $58.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $56.57.
View Our Latest Stock Analysis on Royalty Pharma
Royalty Pharma Stock Down 1.5% Shares of Royalty Pharma stock opened at $57.29 on Tuesday. The stock has a 50-day moving average price of $55.12 and a 200 day moving average price of $48.72. The company has a market cap of $32.99 billion, a P/E ratio of 38.97, a P/E/G ratio of 10.30 and a beta of 0.43. The company has a current ratio of 2.66, a quick ratio of 2.66 and a debt-to-equity ratio of 0.86. Royalty Pharma PLC has a 1 year low of $34.08 and a 1 year high of $59.44.
Royalty Pharma (NASDAQ:RPRX – Get Free Report) last released its earnings results on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share for the quarter, beating the consensus estimate of $1.22 by $0.08. The company had revenue of $630.58 million for the quarter, compared to analysts’ expectations of $881.69 million. Royalty Pharma had a return on equity of 29.25% and a net margin of 33.88%. As a group, analysts expect that Royalty Pharma PLC will post 5.18 EPS for the current fiscal year.
Royalty Pharma Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be paid a $0.235 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.6%. Royalty Pharma’s dividend payout ratio is 63.95%.
Insider Transactions at Royalty Pharma In related news, EVP Christopher Hite sold 100,000 shares of Royalty Pharma stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $56.52, for a total transaction of $5,652,000.00. Following the completion of the sale, the executive vice president owned 459,399 shares of the company’s stock, valued at approximately $25,965,231.48. This trade represents a 17.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory Norden sold 3,045 shares of the business’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $53.00, for a total value of $161,385.00. Following the completion of the transaction, the director owned 191,803 shares in the company, valued at $10,165,559. This trade represents a 1.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 427,800 shares of company stock valued at $23,333,723 in the last three months. 18.84% of the stock is currently owned by insiders.
Royalty Pharma Company Profile (Free Report)
Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.
The company’s transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.
Featured Articles Five stocks we like better than Royalty Pharma The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
Receive News & Ratings for Royalty Pharma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Royalty Pharma and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAmova Asset Management Americas Inc. Sells 4,933 Shares of MercadoLibre, Inc. $MELI
NEXT HEADLINE »Amova Asset Management Americas Inc. Sells 1,092,615 Shares of Roku, Inc. $ROKU
Chicago Partners Investment Group LLC purchased a new stake in Royalty Pharma PLC (NASDAQ:RPRX – Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 10,756 shares of the biopharmaceutical company’s stock, valued at approximately $535,000.
Other institutional investors have also added to or reduced their stakes in the company. Morgan Stanley grew its position in shares of Royalty Pharma by 25.2% during the 4th quarter. Morgan Stanley now owns 55,274,069 shares of the biopharmaceutical company’s stock valued at $2,135,790,000 after purchasing an additional 11,110,115 shares in the last quarter. Capital International Investors raised its holdings in Royalty Pharma by 14.3% during the 4th quarter. Capital International Investors now owns 31,104,309 shares of the biopharmaceutical company’s stock valued at $1,201,870,000 after buying an additional 3,891,615 shares during the last quarter. Norges Bank purchased a new position in shares of Royalty Pharma in the fourth quarter valued at about $131,923,000. Qube Research & Technologies Ltd raised its stake in shares of Royalty Pharma by 737.3% during the third quarter. Qube Research & Technologies Ltd now owns 2,481,771 shares of the biopharmaceutical company’s stock valued at $87,557,000 after acquiring an additional 2,185,366 shares during the last quarter. Finally, Millennium Management LLC raised its stake in shares of Royalty Pharma by 379.2% during the third quarter. Millennium Management LLC now owns 2,235,133 shares of the biopharmaceutical company’s stock valued at $78,855,000 after acquiring an additional 1,768,702 shares during the last quarter. Hedge funds and other institutional investors own 54.35% of the company’s stock.
Insiders Place Their Bets In other Royalty Pharma news, Director Gregory Norden sold 3,045 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $53.00, for a total transaction of $161,385.00. Following the transaction, the director owned 191,803 shares in the company, valued at approximately $10,165,559. This represents a 1.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 100,000 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $56.52, for a total transaction of $5,652,000.00. Following the sale, the executive vice president directly owned 459,399 shares in the company, valued at approximately $25,965,231.48. The trade was a 17.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 427,800 shares of company stock valued at $23,333,723. 18.84% of the stock is currently owned by corporate insiders.
Royalty Pharma Trading Down 0.6% NASDAQ RPRX opened at $58.18 on Friday. The stock has a market cap of $33.50 billion, a P/E ratio of 39.58, a P/E/G ratio of 10.30 and a beta of 0.43. The stock’s fifty day moving average price is $55.01 and its 200-day moving average price is $48.52. Royalty Pharma PLC has a 12 month low of $34.08 and a 12 month high of $59.44. The company has a current ratio of 2.66, a quick ratio of 2.66 and a debt-to-equity ratio of 0.86.
Royalty Pharma (NASDAQ:RPRX – Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The biopharmaceutical company reported $1.30 earnings per share for the quarter, beating analysts’ consensus estimates of $1.22 by $0.08. Royalty Pharma had a net margin of 33.88% and a return on equity of 29.25%. The business had revenue of $630.58 million during the quarter, compared to analyst estimates of $881.69 million. As a group, equities analysts forecast that Royalty Pharma PLC will post 5.18 EPS for the current fiscal year.
Analyst Ratings Changes Several analysts recently issued reports on RPRX shares. Weiss Ratings cut Royalty Pharma from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. Morgan Stanley lifted their price target on shares of Royalty Pharma from $61.00 to $63.00 and gave the company an “overweight” rating in a report on Friday, April 10th. UBS Group lifted their target price on shares of Royalty Pharma from $51.00 to $57.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. JPMorgan Chase & Co. boosted their price target on shares of Royalty Pharma from $50.00 to $58.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Finally, Citigroup increased their price target on shares of Royalty Pharma from $50.00 to $66.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $56.57.
View Our Latest Stock Report on RPRX
About Royalty Pharma (Free Report)
Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.
The company’s transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.
Featured Articles Five stocks we like better than Royalty Pharma Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors
Receive News & Ratings for Royalty Pharma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Royalty Pharma and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEFifth Third Bancorp Grows Stake in Alcoa $AA
NEXT HEADLINE »Chicago Partners Investment Group LLC Invests $505,000 in AptarGroup, Inc. $ATR
July 17, 2026 16:15 ET | Source: Royalty Pharma plc
NEW YORK, July 17, 2026 (GLOBE NEWSWIRE) -- The board of directors of Royalty Pharma plc (Nasdaq: RPRX) has approved the payment of a dividend for the third quarter of 2026 of $0.235 per Class A ordinary share.
The dividend will be paid on September 10, 2026, to shareholders of record at the close of business on August 14, 2026.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
July 15, 2026 16:15 ET | Source: Royalty Pharma plc
NEW YORK, July 15, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will report its second quarter 2026 financial results on Wednesday, August 5, 2026 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:00 a.m. Eastern Time that day.
Conference Call Information
Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events/ to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company's website for at least 30 days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Royalty Pharma (RPRX - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Royalty Pharma currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if RPRX is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For RPRX, shares are up 2.74% over the past week while the Zacks Medical - Biomedical and Genetics industry is up 2.25% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.83% compares favorably with the industry's 8.13% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Royalty Pharma have risen 19.55%, and are up 60.47% in the last year. In comparison, the S&P 500 has only moved 10.84% and 21.72%, respectively.
Investors should also take note of RPRX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now RPRX is averaging 3,280,736 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with RPRX.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost RPRX's consensus estimate, increasing from $5.05 to $5.06 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that RPRX is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Royalty Pharma on your short list.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Royalty Pharma (RPRX - Free Report) , which belongs to the Zacks Medical - Biomedical and Genetics industry.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.17%.
For the last reported quarter, Royalty Pharma came out with earnings of $1.3 per share versus the Zacks Consensus Estimate of $1.22 per share, representing a surprise of 6.56%. For the previous quarter, the company was expected to post earnings of $1.33 per share and it actually produced earnings of $1.46 per share, delivering a surprise of 9.77%.
Price and EPS Surprise
For Royalty Pharma, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Royalty Pharma has an Earnings ESP of +1.76% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
A strong stock as of late has been Royalty Pharma (RPRX - Free Report) . Shares have been marching higher, with the stock up 4.8% over the past month. The stock hit a new 52-week high of $58.84 in the previous session. Royalty Pharma has gained 50% since the start of the year compared to the 1.7% move for the Zacks Medical sector and the 5.8% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Royalty Pharma reported EPS of $1.3 versus consensus estimate of $1.22.
For the current fiscal year, Royalty Pharma is expected to post earnings of $5.06 per share on $3.44 in revenues. This represents a 4.76% change in EPS on a 5.6% change in revenues. For the next fiscal year, the company is expected to earn $5.52 per share on $3.68 in revenues. This represents a year-over-year change of 9.04% and 7.03%, respectively.
Valuation MetricsRoyalty Pharma may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Royalty Pharma has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.5X. On a trailing cash flow basis, the stock currently trades at 12.1X versus its peer group's average of 14.7X. Additionally, the stock has a PEG ratio of 1.59. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Royalty Pharma currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Royalty Pharma passes the test. Thus, it seems as though Royalty Pharma shares could have potential in the weeks and months to come.
How Does RPRX Stack Up to the Competition?Shares of RPRX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Fortrea Holdings Inc. (FTRE - Free Report) . FTRE has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Fortrea Holdings Inc. beat our consensus estimate by 433.33%, and for the current fiscal year, FTRE is expected to post earnings of $0.80 per share on revenue of $2.61 billion.
Shares of Fortrea Holdings Inc. have gained 4.7% over the past month, and currently trade at a forward P/E of 21.98X and a P/CF of 1.78X.
The Medical - Biomedical and Genetics industry is in the top 44% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RPRX and FTRE, even beyond their own solid fundamental situation.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Royalty Pharma (RPRX - Free Report) . This company, which is in the Zacks Medical - Biomedical and Genetics industry, shows potential for another earnings beat.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 7.59%.
For the last reported quarter, Royalty Pharma came out with earnings of $1.46 per share versus the Zacks Consensus Estimate of $1.33 per share, representing a surprise of 9.77%. For the previous quarter, the company was expected to post earnings of $1.11 per share and it actually produced earnings of $1.17 per share, delivering a surprise of 5.41%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Royalty Pharma. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Royalty Pharma has an Earnings ESP of +2.05% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
April 15, 2026 16:15 ET | Source: Royalty Pharma plc
NEW YORK, April 15, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will report its first quarter 2026 financial results on Wednesday, May 6, 2026 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:00 a.m. Eastern Time that day.
Conference Call Information
Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events/ to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company's website for at least 30 days.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
April 17, 2026 08:30 ET | Source: Royalty Pharma plc
NEW YORK, April 17, 2026 (GLOBE NEWSWIRE) -- The board of directors of Royalty Pharma plc (Nasdaq: RPRX) has approved the payment of a dividend for the second quarter of 2026 of $0.235 per Class A ordinary share.
The dividend will be paid on June 10, 2026, to shareholders of record at the close of business on May 15, 2026.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
April 21, 2026 13:00 ET | Source: Royalty Pharma plc
NEW YORK, April 21, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced the launch of the Royalty Pharma Translational Prize, which recognizes exceptional achievements in translational medicine. The Prize will honor scientific breakthroughs that bridge the gap between fundamental discovery and the development of new medicines that improve and extend patients’ lives. It will include a $1 million award distributed among one or more established scientists whose work has translated unique scientific insights into medicines with significant impact, particularly contributions not yet recognized by the field’s most prominent awards.
“Royalty Pharma believes that scientific discovery can transform patient lives when it is successfully translated into medicines,” said Pablo Legorreta, Chief Executive Officer and Chairman of the Board of Royalty Pharma. “With the Royalty Pharma Translational Prize, we aim to recognize and celebrate the scientists whose discoveries have crossed that crucial bridge - from insight to impact - and to highlight the importance of translational research in advancing human health.”
The Prize will be administered by Royalty Pharma and selected by an independent international committee of leading scientists and industry experts. The committee will be chaired by Sir Gregory Winter, Nobel Laureate in Chemistry and pioneer of antibody engineering whose work has led to multiple life‑saving therapies.
“The Royalty Pharma Translational Prize will help create a culture of translation in academia, encourage other people into the area and facilitate the creation of new medicines. By recognizing scientists whose work has demonstrably improved patient care, the Royalty Pharma Translational Prize underscores the essential role that translational research plays in turning promising discoveries into medicines.” said Sir Gregory Winter.
The Prize will be presented annually, with nominations opening in summer 2026. The first laureate will be recognized in spring 2027 at the Accelerating Bio‑Innovation (ABI) conference.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
About the Royalty Pharma Translational Prize
The Prize honors scientific breakthroughs that bridge the gap between fundamental discovery and the development of new medicines that improve and extend patients’ lives. It is awarded annually to one or more established scientists whose work has translated unique scientific insights into medicines with significant impact, particularly contributions not yet recognized by the field’s most prominent awards. For more information, visit www.rptranslationalprize.com.
About Accelerating Bio-Innovation
The Accelerating Bio-Innovation conference series was created by Royalty Pharma as a forum that bridges the worlds of academia, industry, and finance to gain new insights and inspire collaborations that will lead to new medicines. Alternating between the University of Cambridge UK and the Massachusetts Institute of Technology, the invitation-only ABI conference brings together life-science business leaders, renowned scientists, visionary entrepreneurs, and finance innovators. At the heart of each ABI conference is a curated program featuring world-class speakers, engaging social events, and high-impact networking opportunities, all designed to inspire dialogue, foster connections, and drive innovation in life sciences. For more information, visit www.abiconference.com.
Royalty Pharma Investor Relations and Communications
Codexis (CDXS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis producer of custom industrial enzymes is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +36%.
Revenues are expected to be $14.98 million, up 98.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 92.86% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Codexis?For Codexis, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +41.94%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Codexis will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Codexis would post earnings of $0.01 per share when it actually produced earnings of $0.11, delivering a surprise of +1,000.00%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Codexis appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Medical - Biomedical and Genetics industry, Royalty Pharma (RPRX - Free Report) , is soon expected to post earnings of $1.22 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +15.1%. Revenues for the quarter are expected to be $891.22 million, up 6.2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Royalty Pharma has been revised 2.3% down to the current level. Nevertheless, the company now has an Earnings ESP of +2.05%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Royalty Pharma will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Portfolio Receipts growth of 10% to $925 million; Royalty Receipts growth of 13%Net cash provided by operating activities of $718 millionRaised full year 2026 guidance: Portfolio Receipts expected to be $3,325 million to $3,450 million NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the first quarter of 2026 and raised full year 2026 guidance for Portfolio Receipts.
“Royalty Pharma has delivered a strong start to 2026 across multiple dimensions. We grew Royalty Receipts by 13% and announced up to $1.25 billion of royalty transactions in the first quarter,” said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. “Importantly, we continue to innovate our business and are very excited by the emergence of a significant opportunity in R&D co-funding with global biopharma companies. Our transactions this year included two such agreements - with Johnson & Johnson and Teva - underscoring the growing demand for this novel funding modality. We were also delighted by positive clinical and regulatory developments across our portfolio, notably the unprecedented overall survival benefit for daraxonrasib in pancreatic cancer. Lastly, we took major steps to strengthen our capabilities in the Asia-Pacific region, Partnering and AI with the addition of key leaders to our team. As a result, we are incredibly well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.”
Double-digit growth in Royalty Receipts and Portfolio Receipts
Royalty Receipts grew 13% to $887 million in the first quarter of 2026 driven by Tremfya, Voranigo and Evrysdi.Portfolio Receipts increased by 10% to $925 million. Strong transaction activity
Acquired three royalties for $1.25 billion in announced value; Capital Deployment of $528 million in the first quarter.R&D co-funding collaborations in immunology announced with Johnson & Johnson on JNJ-4804 and Teva on TEV-’408. Positive clinical and regulatory updates across royalty portfolio
Positive Phase 3 results for Revolution Medicines’ daraxonrasib in pancreatic cancer and Cytokinetics’ Myqorzo in non-obstructive hypertrophic cardiomyopathy.Denali’s Avlayah (tividenofusp alfa) approved by FDA (Hunter syndrome); Nuvalent’s neladalkib (lung cancer) New Drug Application submitted to FDA. Raising financial guidance for full year 2026 (excludes contribution from future transactions)
Royalty Pharma now expects 2026 Portfolio Receipts to be between $3,325 million and $3,450 million (previously $3,275 million to $3,425 million), representing expected Royalty Receipts growth of 4% to 8%. Financial & Liquidity Summary
Three Months Ended March 31,($ and shares in millions; unaudited)20262025ChangePortfolio Receipts92583910%Net cash provided by operating activities71859620%Adjusted EBITDA (non-GAAP)*88973821%Portfolio Cash Flow (non-GAAP)*72261118%Weighted average Class A ordinary shares outstanding - diluted557578(4)% *See “Liquidity and Capital Resources” section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement.
2026 Financial Outlook
Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the date of this release, as follows:
Provided May 6, 2026PreviousPortfolio Receipts$3,325 million to $3,450 million$3,275 million to $3,425 millionPayments for operating and professional costs5.5% to 6.5% of Portfolio Receipts5.5% to 6.5% of Portfolio ReceiptsInterest paid$350 million to $360 million$350 million to $360 million Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above Portfolio Receipts guidance provided on May 6, 2026 includes expected Royalty Receipts growth of 4% to 8% in 2026.
Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026.
Payments for operating and professional costs in 2026 are expected to decrease as a percentage of Portfolio Receipts, compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the internalization transaction on May 16, 2025.
Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the quarterly interest payment schedule for the term loan assumed as part of the internalization transaction. In 2026, Royalty Pharma anticipates interest paid to be approximately $350 million to $360 million.(5) Interest paid in the third quarter of 2026 is anticipated to be approximately $175 million. De minimis amounts are anticipated in the second and fourth quarters of 2026. These projections assume no additional debt financing in 2026, including no drawdown on the revolving credit facility. In the first quarter of 2026, Royalty Pharma collected interest of $6 million on its cash and cash equivalents, which partially offset interest paid.
Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.
Portfolio Receipts Highlights
Three Months Ended March 31,($ in millions; unaudited)20262025ChangeProducts:Marketers:Therapeutic Area: Cystic fibrosis franchiseVertexRare disease2532501%TrelegyGSKRespiratory988515%EvrysdiRocheRare disease805351%TremfyaJohnson & JohnsonImmunology643679%TysabriBiogenNeuroscience5961(3)%XtandiPfizer, AstellasOncology5152(3)%VoranigoServierOncology4720140%ImbruvicaAbbVie, Johnson & JohnsonOncology3846(17)%Cabometyx/CometriqExelixis, Ipsen, TakedaOncology23219%PromactaNovartisHematology1744(61)%ImdelltraAmgenOncology17—n/aTrodelvyGileadOncology13137%SpinrazaBiogenRare disease1213(9)%AmvuttraAlnylamRare disease8—n/aOther products(6)1089612%Royalty Receipts88778813%Milestones and other contractual receipts3851(25)%Portfolio Receipts92583910% Amounts shown in the table may not add due to rounding.
Royalty Receipts was $887 million in the first quarter of 2026, an increase of 13% compared to $788 million in the first quarter of 2025. The increase was primarily driven by Tremfya, Voranigo and Evrysdi, partially offset by a decline from Promacta due to U.S. generic competition. Royalty Receipts from Evrysdi included the benefit of the additional royalties acquired in December 2025.
Portfolio Receipts was $925 million in the first quarter of 2026, an increase of 10% compared to $839 million in the first quarter of 2025, primarily driven by the same Royalty Receipts increases noted above, partially offset by lower Milestones and other contractual receipts.
Liquidity and Capital Resources
Royalty Pharma’s liquidity and capital resources are summarized below:
As of March 31, 2026, Royalty Pharma had cash and cash equivalents of $586 million and total debt with principal value of $9.2 billion.
In the first quarter of 2026, Royalty Pharma paid a quarterly dividend of $0.235 per share, equating to $136 million in dividends and distributions.
In January 2025, Royalty Pharma announced a share repurchase program under which it may repurchase up to $3.0 billion of its Class A ordinary shares. Royalty Pharma repurchased approximately 1.1 million Class A ordinary shares for $50 million in the first quarter of 2026. The weighted-average number of diluted Class A ordinary shares outstanding for the first quarter of 2026 was 557 million, a decline of 4% as compared to 578 million for the first quarter of 2025.
Liquidity Summary
Three Months Ended March 31,($ in millions; unaudited)2026 2025 Portfolio Receipts925 839 Payments for operating and professional costs(36)(102)Adjusted EBITDA (non-GAAP)889 738 Interest paid, net(167)(127)Portfolio Cash Flow (non-GAAP)722 611 Amounts may not add due to rounding.
Adjusted EBITDA (non-GAAP) was $889 million in the first quarter of 2026. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs.Portfolio Cash Flow (non-GAAP) was $722 million in the first quarter of 2026. Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases, or utilized for other discretionary investments. Refer to Table 4 for Royalty Pharma’s reconciliation of each non-GAAP measure to the most directly comparable GAAP financial measure, net cash provided by operating activities.
Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $528 million in the first quarter of 2026, consisting primarily of upfront payments for the Ziihera (see ‘Royalty Transactions’) and Avlayah (formerly known as tividenofusp alfa) transactions and a milestone payment related to Trelegy.
The table below details Capital Deployment by category:
Capital Deployment
Three Months Ended March 31,($ in millions; unaudited)2026 2025 Acquisitions of financial royalty assets(452)(1)Development-stage funding payments(26)(51)Milestone payments(50)(50)Contributions from legacy non-controlling interests - R&D— 0 Capital Deployment(528)(101) Amounts may not add due to rounding.
Royalty Transactions
During the first quarter of 2026, Royalty Pharma announced new transactions of up to $1.25 billion, which reflects the entire amount of potential capital committed for new transactions, including potential future milestones.
Recent transactions include:
In March 2026, Royalty Pharma entered into an R&D co-funding arrangement with Johnson & Johnson to provide $500 million over two years for the development of JNJ‑4804, an investigational medicine for autoimmune diseases.In March 2026, Royalty Pharma acquired a royalty interest in Ziihera from Zymeworks Inc. for $250 million. Ziihera, which is marketed by Jazz Pharmaceuticals and BeOne Medicines, is approved for human epidermal growth factor receptor 2 (HER2)-positive metastatic biliary tract cancer and is in development for HER2-positive gastric cancer.In January 2026, Royalty Pharma announced a funding agreement with Teva Pharmaceuticals for TEV-’408 for up to $500 million. The agreement includes up to $75 million to co-fund a Phase 2b study for vitiligo targeted for 2026. Based on the results of this study, Royalty Pharma has the option to provide up to an additional $425 million to co-fund the Phase 3 development program. The information in this section should be read together with Royalty Pharma’s reports and documents filed with the SEC at www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors section of Royalty Pharma’s website at www.royaltypharma.com.
Key Developments Relating to the Portfolio
The key developments related to Royalty Pharma’s royalty interests are discussed below based on disclosures from the marketers of the products.
MyqorzoIn May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. ACACIA-HCM met both dual primary endpoints, demonstrating statistically significant improvements from baseline to week 36 compared to placebo.In February 2026, Cytokinetics announced that the European Commission (EC) approved Myqorzo for the treatment of symptomatic obstructive hypertrophic cardiomyopathy in adult patients.
ZiiheraIn April 2026, Jazz Pharmaceuticals announced that the U.S. Food and Drug Administration (FDA) accepted for filing, with Priority Review, a supplemental Biologics License Application for Ziihera in combination regimens for the first line treatment of adult patients with HER2-positive metastatic gastroesophageal adenocarcinoma. The FDA has set a Prescription Drug User Fee Act target action date of August 25, 2026.daraxonrasibIn April 2026, Revolution Medicines announced positive Phase 3 results from the RASolute 302 trial evaluating daraxonrasib in patients with previously treated metastatic pancreatic cancer. Based on these results, Revolution Medicines intends to submit the data to global regulatory authorities, including the FDA, as part of a future New Drug Application (NDA) under the Commissioner’s National Priority Voucher program.neladalkibIn April 2026, Nuvalent announced the submission of an NDA to the FDA for neladalkib, an investigational anaplastic lymphoma kinase (ALK)‑selective inhibitor, for tyrosine kinase inhibitor pre‑treated advanced ALK‑positive non-small cell lung cancer.SpinrazaIn March 2026, Biogen announced that the FDA approved the high dose regimen of Spinraza for spinal muscular atrophy (SMA).In January 2026, Biogen announced that the EC granted marketing authorization for a high dose regimen of Spinraza for SMA.
litifilimabIn March 2026, Biogen reported positive Phase 2 results from the AMETHYST Phase 2/3 study (Part A) of litifilimab in cutaneous lupus erythematosus (CLE), demonstrating reductions in skin disease activity through week 24.In January 2026, Biogen announced that the FDA granted Breakthrough Therapy Designation for litifilimab for the treatment of CLE.
AvlayahIn March 2026, Denali Therapeutics announced that the FDA granted accelerated approval of Avlayah (tividenofusp alfa) for the treatment of Hunter syndrome. Avlayah is the first FDA-approved biologic specifically designed to cross the blood-brain barrier and reach the whole body, including the brain.TazverikIn March 2026, Ipsen announced that it was voluntarily withdrawing Tazverik from all Ipsen markets based on emerging data from the ongoing Phase Ib/III SYMPHONY-1 trial. In addition, Eisai announced plans to discontinue sales of Tazverik in Japan. In the first quarter of 2026, Royalty Pharma recorded $69 million of non-cash impairment charges related to Tazverik.ampreloxetineIn March 2026, Theravance Biopharma reported that the Phase 3 CYPRESS study evaluating ampreloxetine in patients with symptomatic neurogenic orthostatic hypotension due to multiple system atrophy did not meet the primary endpoint. As a result, Theravance will wind down the ampreloxetine program.TEV-’749In February 2026, Teva Pharmaceuticals announced that the FDA accepted the NDA for olanzapine extended-release injectable suspension (TEV-'749) for the treatment of schizophrenia in adults.pelabresibIn January 2026, Novartis announced plans to submit a European Union regulatory filing for pelabresib in 2026, and that it would begin a new Phase 3 study in the United States, China and Japan.obexelimabIn January 2026, Zenas BioPharma announced positive results from the Phase 3 INDIGO trial of obexelimab in Immunoglobulin G4-related disease (IgG4-RD), which met the primary endpoint demonstrating a clinically meaningful and highly statistically significant reduction in risk of IgG4-RD flare. Zenas anticipates submitting a Biologics License Application in Q2 2026 and a Marketing Authorization Application to the European Medicines Agency in the second half of 2026. Financial Results Call
Royalty Pharma will host a conference call and simultaneous webcast to discuss its first quarter 2026 results today at 8:00 a.m., Eastern Time. Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company’s website for at least 30 days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates.
Forward-Looking Statements
The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof.
This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law.
Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source.
For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov.
Portfolio Receipts
Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from Royalty Pharma’s portfolio investments, the primary source of capital that is deployed to make new portfolio investments. Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. Royalty Receipts includes variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to Royalty Pharma.
Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed contractual receipts, net of contractual payments to legacy non-controlling interests, that are attributed to Royalty Pharma. Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are not central to Royalty Pharma’s fundamental business strategy. 2025 Portfolio Receipts does not include the $511 million of proceeds from the sale of the MorphoSys Development Funding Bonds, as the transaction was treated as an asset sale.
Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships.
Use of Non-GAAP Measures
Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP.
The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity.
Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities.
The company has provided reconciliations of these non-GAAP liquidity measures to the most directly comparable GAAP financial measure, being net cash provided by operating activities in Table 4.
Royalty Pharma Investor Relations and Communications
Royalty Pharma plc
Condensed Consolidated Statements of Operations(8)(unaudited)
Table 1 Three Months Ended March 31,($ in millions)2026
2025
Income and other revenues Income from financial royalty assets595 539 Other royalty income and revenues36 29 Total income and other revenues631 568 Operating (income)/expense Provision for changes in expected cash flows from financial royalty assets(197)(127)Provision for credit losses on unfunded commitments(4)— Research and development funding expense40 51 General and administrative expenses (includes 122 and 1 of share-based compensation expense for the three months ended March 31, 2026 and 2025, respectively)159 111 Financial royalty asset impairment69 — Total operating expense, net68 34 Operating income563 534 Other (income)/expense Equity in earnings of equity method investees(22)(6)Interest expense94 65 Other expense, net23 41 Total other expense, net95 100 Consolidated net income before tax468 434 Income tax expense— — Consolidated net income468 434 Net income attributable to non-controlling interests174 195 Net income attributable to Royalty Pharma plc295 239 Amounts may not add due to rounding.
Royalty Pharma plc
Selected Balance Sheet Data (unaudited)
Table 2 ($ in millions)As of March 31, 2026As of December 31, 2025Cash and cash equivalents586619Total current and non-current financial royalty assets, net17,32217,063Total assets19,81519,621Current portion of long-term debt380380Long-term debt, net of current portion8,5768,571Total liabilities9,8799,906Total shareholders’ equity9,9379,715 Royalty Pharma plc
Condensed Consolidated Statements of Cash Flows (unaudited)
Table 3 Three Months Ended March 31,($ in millions)2026 2025 Cash flows from operating activities: Cash collections from financial royalty assets916 830 Cash collections from intangible royalty assets4 0 Other royalty cash collections34 32 Distributions from equity method investees4 13 Interest received6 12 Development-stage funding payments(26)(51)Payments for operating and professional costs(36)(102)Payments for Employee EPAs(10)— Interest paid(174)(139)Net cash provided by operating activities718 596 Cash flows from investing activities: Distributions from equity method investees42 36 Purchases of equity securities(23)(4)Proceeds from equity securities0 — Proceeds from available for sale debt securities4 13 Proceeds from sales of available for sale debt securities— 511 Acquisitions of financial royalty assets(452)(1)Milestone payments(50)(50)Net cash (used in)/provided by investing activities(478)504 Cash flows from financing activities: Distributions to legacy non-controlling interests - Portfolio Receipts(78)(85)Distributions to continuing non-controlling interests(40)(54)Dividends to shareholders(104)(95)Repurchases of Class A ordinary shares(50)(709)Contributions from legacy non-controlling interests - R&D— 0 Contributions from non-controlling interests - other— 1 Other(0)— Net cash used in financing activities(273)(941)Net change in cash and cash equivalents(32)159 Cash and cash equivalents, beginning of period619 929 Cash and cash equivalents, end of period586 1,088 EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma plc
GAAP to Non-GAAP Reconciliation (unaudited)
Table 4 Three Months Ended March 31,($ in millions)2026 2025 Net cash provided by operating activities (GAAP)718 596 Adjustments: Proceeds from available for sale debt securities(7)4 13 Distributions from equity method investees(7)42 36 Interest paid, net(7)167 127 Development-stage funding payments26 51 Distributions to legacy non-controlling interests - Portfolio Receipts(7)(78)(85)Payments for Employee EPAs10 — Adjusted EBITDA (non-GAAP)889 738 Interest paid, net(7)(167)(127)Portfolio Cash Flow (non-GAAP)722 611 EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma plc
Description of Approved Indications for Select Portfolio Therapies
Table 5
Cystic fibrosis franchise
Cystic fibrosisTrelegyChronic obstructive pulmonary disease and asthmaEvrysdiSpinal muscular atrophyTremfyaPlaque psoriasis, psoriatic arthritis, ulcerative colitis and Crohn’s diseaseTysabriRelapsing forms of multiple sclerosisXtandiProstate cancerVoranigoLow-grade gliomaImbruvicaHematological malignancies and chronic graft versus host diseaseCabometyx/CometriqKidney, liver and thyroid cancerPromactaChronic immune thrombocytopenia purpura and aplastic anemiaImdelltraSmall cell lung cancerTrodelvyBreast cancerSpinrazaSpinal muscular atrophyAmvuttraTransthyretin amyloidosis Notes
(1)Portfolio Receipts is defined above in the section entitled “Portfolio Receipts.”(2) Adjusted EBITDA is defined under the credit agreement as Portfolio Receipts minus payments for operating and professional costs. Operating and professional costs reflect Payments for operating and professional costs from the GAAP condensed consolidated statements of cash flows. See GAAP to Non-GAAP reconciliation in Table 4.(3)Portfolio Cash Flow is defined under the credit agreement as Adjusted EBITDA minus interest paid or received, net. See GAAP to Non-GAAP reconciliation in Table 4. Portfolio Cash Flow reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases or utilized for other discretionary investments.(4)Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other financial assets, Milestone payments, Development-stage funding payments less Contributions from legacy non-controlling interests - R&D.(5)The term loan that Royalty Pharma assumed as part of the Internalization has a Secured Overnight Financing Rate (SOFR) based variable interest rate. Royalty Pharma estimated the related interest payment for 2026 based on the forward curve as of April 29, 2026.(6)Other products primarily include Royalty Receipts on the following products: Crysvita, Emgality, Erleada, Farxiga/Onglyza, IDHIFA, Niktimvo, Nurtec ODT, Orladeyo, Skytrofa, Soliqua, Yorvipath and distributions from the Legacy SLP Interest, which is presented as Distributions from equity method investees on the GAAP condensed consolidated statements of cash flows.(7)The table below shows the line item for each adjustment and the direct location for such line item on the GAAP condensed consolidated statements of cash flows. Reconciling AdjustmentStatements of Cash Flows ClassificationInterest paid, netOperating activities (Interest paid less Interest received)Distributions from equity method investeesInvesting activitiesProceeds from available for sale debt securitiesInvesting activitiesDistributions to legacy non-controlling interests - Portfolio ReceiptsFinancing activities (8)The condensed consolidated statement of operations for 2025 has been recast to reflect the adoption of ASU 2025-07 by removing the losses previously recognized on derivative.
Royalty Pharma (RPRX - Free Report) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.56%. A quarter ago, it was expected that this company would post earnings of $1.33 per share when it actually produced earnings of $1.46, delivering a surprise of +9.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Royalty Pharma, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $925 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.79%. This compares to year-ago revenues of $839 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Royalty Pharma shares have added about 30.5% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Royalty Pharma?While Royalty Pharma has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Royalty Pharma was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $783.05 million in revenues for the coming quarter and $5.08 on $3.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Harmony Biosciences Holdings, Inc. (HRMY - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of -2.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Harmony Biosciences Holdings, Inc.'s revenues are expected to be $222.47 million, up 20.4% from the year-ago quarter.
Have you been paying attention to shares of Royalty Pharma (RPRX - Free Report) ? Shares have been on the move with the stock up 7.6% over the past month. The stock hit a new 52-week high of $50.82 in the previous session. Royalty Pharma has gained 30.5% since the start of the year compared to the -7.3% gain for the Zacks Medical sector and the -1.6% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, Royalty Pharma reported EPS of $1.3 versus consensus estimate of $1.22 while it beat the consensus revenue estimate by 5.95%.
For the current fiscal year, Royalty Pharma is expected to post earnings of $5.08 per share on $3.45 in revenues. This represents a 5.18% change in EPS on a 5.95% change in revenues. For the next fiscal year, the company is expected to earn $5.41 per share on $3.63 in revenues. This represents a year-over-year change of 6.35% and 5.36%, respectively.
Valuation MetricsThough Royalty Pharma has recently hit a 52-week high, what is next for Royalty Pharma? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Royalty Pharma has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.7X. On a trailing cash flow basis, the stock currently trades at 10.6X versus its peer group's average of 13.9X. Additionally, the stock has a PEG ratio of 3.22. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Royalty Pharma currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Royalty Pharma passes the test. Thus, it seems as though Royalty Pharma shares could have potential in the weeks and months to come.
Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Royalty Pharma (RPRX - Free Report) and Amgen (AMGN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Royalty Pharma has a Zacks Rank of #2 (Buy), while Amgen has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that RPRX likely has seen a stronger improvement to its earnings outlook than AMGN has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RPRX currently has a forward P/E ratio of 9.92, while AMGN has a forward P/E of 14.84. We also note that RPRX has a PEG ratio of 3.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMGN currently has a PEG ratio of 3.35.
Another notable valuation metric for RPRX is its P/B ratio of 3. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMGN has a P/B of 19.35.
These metrics, and several others, help RPRX earn a Value grade of B, while AMGN has been given a Value grade of C.
RPRX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that RPRX is likely the superior value option right now.
May 07, 2026 16:15 ET | Source: Royalty Pharma plc
NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will participate in the following upcoming investor conferences during the month of May:
BofA Securities 2026 Healthcare Conference on Wednesday, May 13 at 1:40 p.m. ET / 10:40 a.m. PTRBC Capital Markets 2026 Global Healthcare Conference on Tuesday, May 19 at 10:00 a.m. ET The webcasts will be accessible from Royalty Pharma’s “Events” page at https://www.royaltypharma.com/investors/events/. Webcasts will also be archived for a minimum of thirty days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 19 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma Investor Relations and Communications
