NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will participate in a fireside chat at TD Cowen’s 46th Annual Health Care Conference on March 3, 2026 at 1:10 p.m. ET. The webcast will be accessible from Royalty Pharma’s “Events” page at https://www.royaltypharma.com/investors/events/. The webcast will also be archived for a minimum of thirty days. About Royalty Pharma Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties an ...

NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will participate in a fireside chat at TD Cowen’s 46th Annual Health Care Conference on March 3, 2026 at 1:10 p.m. ET. The webcast will be accessible from Royalty Pharma’s “Events” page at https://www.royaltypharma.com/investors/events/. The webcast will also be archived for a minimum of thirty days. About Royalty Pharma Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties an ...

分组1 - Royalty Pharma plc (RPRX) reported strong financial performance in 2025, with double-digit growth in both Royalty Receipts and Portfolio Receipts, leading to excellent returns on invested capital [1] - The company has maintained effective capital deployment strategies, contributing to its financial success [1] 分组2 - The focus of the analysis is on identifying promising biotechnology companies that are innovating through unique mechanisms of action, first-in-class therapies, or platform technologies [1] - The approach emphasizes evaluating the scientific basis of drug candidates, the competitive landscape, clinical trial design, and potential market opportunities while balancing financial fundamentals and valuation [1]

分组1 - Royalty Pharma plc (RPRX) reported strong financial performance in 2025, with double-digit growth in both Royalty Receipts and Portfolio Receipts, leading to excellent returns on invested capital [1] - The company has maintained effective capital deployment strategies, contributing to its financial success [1] 分组2 - The analyst emphasizes a focus on identifying promising biotechnology companies that innovate through unique mechanisms of action, first-in-class therapies, or platform technologies [1] - The approach combines scientific expertise with financial and market analysis to deliver research that is both technically sound and investment-driven [1] - The goal is to provide insights that help investors understand opportunities and risks in the biotech sector, which is characterized by the potential for significant returns through breakthrough science [1]

Group 1 - The core viewpoint is that Royalty Pharma plc (NASDAQ: RPRX) is viewed positively following its Q4 and full-year 2025 results, indicating solid execution and an attractive entry point for investors [1] - The stock is supported by resilient figures and is being analyzed by buy-side hedge professionals who focus on fundamental, income-oriented, long-term analysis across global developed markets [1]

Core Insights - Royalty Pharma experienced a "landmark year" in 2025, achieving double-digit growth in both portfolio and royalty receipts, and internalizing its external manager to enhance governance and reduce costs [2][5][18] Financial Performance - The company reported a return on invested capital (ROIC) of 15.8% and return on equity (ROE) of 22.8% for 2025 [5] - Royalty receipts grew by 13% for the year and 17% in the fourth quarter, while portfolio receipts increased by 16% for the year and 18% in the fourth quarter [13] - The company ended 2025 with $619 million in cash, $9.2 billion in debt, and a leverage ratio of approximately 3x [3][15] Cost Management - Management expects to achieve $100 million in cost savings in 2026 due to the internalization of the external manager, aiming for an operating and professional cost ratio of 4%–5% over time [1][5] Strategic Transactions - In 2025, Royalty Pharma executed eight transactions with a total announced value of $4.7 billion, deploying $2.6 billion, marking its strongest year for synthetic royalties [4][6][7] - The company reviewed over 480 potential royalty transactions, resulting in 109 in-depth reviews and 35 proposals [6] 2026 Guidance - For 2026, management guided portfolio receipts of $3.275 billion to $3.425 billion, implying a royalty growth of approximately 3% to 8% [3][16] - The guidance reflects anticipated headwinds from product loss of exclusivity and the introduction of biosimilars [2][16] Pipeline and Future Catalysts - The company estimates combined peak sales of over $43 billion across 20 development-stage therapies, translating to more than $2.1 billion in peak annual royalties [11] - Upcoming pivotal readouts are expected over the next 24 months, including data from Revolution Medicines and Novartis [17] Capital Allocation - Royalty Pharma returned $1.7 billion to shareholders in 2025 through $1.2 billion in buybacks and over $500 million in dividends [14]

Financial Performance - In 2025, the company generated $3.3 billion in Portfolio Receipts, excluding $511 million from the sale of MorphoSys Development Funding Bonds[21] - The company announced transactions with a total potential value of $4.7 billion and deployed $2.6 billion in cash for acquiring royalties and contractual receipts[21] - The biopharmaceutical royalty market reached $10.0 billion in transaction value in 2025, a 40% increase from the average of $7.1 billion over the previous five years[32] - The company executed transactions with an aggregate announced value of $19.4 billion from 2020 to 2025, capturing approximately 48% market share of all royalty transactions during this period[35] - As of December 31, 2025, the portfolio included royalties on 16 therapies generating over $1 billion in sales, with 7 therapies exceeding $3 billion[39] - The estimated weighted average duration of the portfolio's royalties is approximately 13 years, with significant products protected by long patent lives[41] - In 2025, the company paid dividends and distributions of $511.9 million and repurchased $1.2 billion of shares[42] Investment Strategy - The company has a success rate of 90% for development-stage acquisitions, with $6.5 billion of these products already approved[45] - The company’s investment approach is agnostic to therapeutic area and treatment modality, allowing for broad acquisition opportunities across the biopharmaceutical industry[47] - The company focuses on acquiring royalties on approved products and development-stage candidates with strong proof of concept data, mitigating development risk[47] Revenue Projections - The company expects 2025 portfolio receipts to reach $3.254 billion, with end market sales projected at $36.5 billion across its approved products[51] - The cystic fibrosis franchise is projected to generate $917 million in royalty receipts, with end market sales of $11.725 billion in 2025[51] - Trelegy is anticipated to contribute $332 million in royalties, with end market sales of $3.912 billion[51] - Tysabri is expected to yield $250 million in royalties, with end market sales of $1.665 billion[51] Royalty Structures - The company has a blended royalty rate of slightly over 9% for the cystic fibrosis franchise, with ownership percentages of 86.8%[55] - The royalty rate for Evrysdi is tiered, starting at 8% on the first $500 million and going up to 16% on sales exceeding $2 billion[55] - The company acquired a royalty interest in Alnylam's Amvuttra for $310 million, which is an approved RNAi therapeutic[64] - The portfolio includes development-stage product candidates, with Ampreloxetine expected to have Phase 3 data available in Q1 2026[62] - The company has a perpetual royalty interest in Tysabri, with tiered payments of 18% on the first $2 billion and 25% on sales exceeding $2 billion[55] - Spinraza royalties will revert to Ionis after reaching aggregate royalties of $475 million or $550 million, depending on specific events[60] Funding and Financial Commitments - As of December 31, 2025, the company has funded a total of $275 million under the Cytokinetics Commercial Launch Funding, with total repayments expected to reach $450 million[65] - The company anticipates receiving $100 million if the Phase 3 trial of omecamtiv mecarbil is positive and FDA approval is granted, along with potential tiered royalties[66] - If TEV-'749 is approved by the FDA, the company will receive $100 million plus tiered royalty payments based on worldwide sales[67] - The company plans to provide $250 million in funding over six quarters for Biogen's R&D, contingent on meeting certain regulatory milestones[67] Market Competition and Risks - The company faces significant competition in acquiring biopharmaceutical royalties, with potential acquirers including larger biopharmaceutical companies and institutional investors[68] - The biopharmaceutical industry is highly competitive, and products may become obsolete due to new alternatives or improvements, impacting revenue streams[69] Workforce and Governance - As of December 31, 2025, the company had 100 employees, with no union representation, and completed the acquisition of its former external manager[76] - The workforce is composed of 48% women and approximately 36% ethnically diverse individuals, reflecting the company's commitment to diversity[77] - The company maintains robust governance policies to ensure compliance with regulatory standards and ethical practices[72] Sustainability and Financial Position - The company is focused on sustainability practices to minimize environmental impact and track its carbon footprint[75] - The company held cash and cash equivalents of $618.7 million as of December 31, 2025, with $235.1 million in cash and $383.6 million in interest-bearing money market funds[388] - The company has a $1.8 billion Revolving Credit Facility, a $350 million Uncommitted Credit Facility, and a $380 million Term Loan, with no outstanding borrowings on the Revolving and Uncommitted Credit Facilities as of December 31, 2025[390] Financial Asset Management - As of December 31, 2025, Vertex accounted for 32% of the current portion of financial royalty assets, making it the largest individual marketer and payor of royalties[391] - The company is subject to interest rate sensitivity due to its investments in marketable securities, which primarily bear variable interest rates[386] - The company has not experienced significant losses in the collection of income or revenue from its royalty assets or available for sale debt securities to date[392] - The company’s investment policy focuses on capital preservation and liquidity needs, maintaining excess cash in money market funds and investment-grade securities[389] - The company is exposed to foreign currency exchange risk, particularly with royalties paid in currencies other than U.S. dollars, such as Euro and British pound[387] - The company follows established risk management policies, including the use of derivative financial instruments to manage interest rate and foreign currency risks[386] Regulatory and Legal Considerations - The company’s ability to continue its business may be adversely affected if the SEC changes its interpretation regarding royalty receivables[84] - The company was incorporated under the laws of England and Wales on February 6, 2020, and is a holding company with a controlling equity interest in Royalty Pharma Holdings Ltd[85]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 18% in Q4 and 16% for the full year [25][5] - Return on invested capital was 15.8% and return on invested equity was 22.8% for the year, reflecting strong returns [28][5] - The company raised its guidance three times during the year, delivering results slightly above the top end of the most recent update [5][6] Business Line Data and Key Metrics Changes - The company deployed $2.6 billion in capital for the year, with 67% of investments in approved products and 33% in development stage therapies [18][31] - Synthetic royalty transactions reached a record value of $4.7 billion in 2025, exceeding traditional royalties for the first time [15][61] - Royalty receipts from key products like Voranigo, Trelstar, and Tremfya contributed significantly to growth, with minimal contribution from new acquisitions [27][25] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time, with a strong growth trajectory observed [9] - The average annual transaction value in the biopharma market nearly doubled over the past five years compared to the previous five years [9] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [5][6] - The company is excited about expanding its team and platform in China, indicating a strategic focus on international growth [36][73] - The internalization of the external manager is expected to enhance governance and reduce costs, aligning intellectual capital with the royalty portfolio [7][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the potential for significant value creation from the development stage pipeline [11][12] - The company anticipates continued growth driven by the increasing recognition of biopharma royalties and the demand for capital in life sciences [10][11] - Future guidance for 2026 indicates expected growth in royalty receipts of 3%-8%, despite anticipated losses from exclusivity expirations [32][35] Other Important Information - The company returned $1.7 billion to shareholders through share repurchases and dividends, with a 7% increase in dividends announced for Q1 2026 [8][31] - The company expects to maintain a high level of cash conversion and efficiency, with operating costs projected to decrease significantly in 2026 [33][25] Q&A Session Summary Question: Sustainability of dividends and buybacks - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a current bias towards royalties [40][42] Question: Involvement in private companies and capital markets - Management is open to exploring high-quality assets in private companies and remains focused on investing in high-quality pharmaceutical products [44][42] Question: Performance of Alyftrek and patient conversion - Management noted that the conversion to Alyftrek has been gradual but consistent, with expectations for continued contributions from the cystic fibrosis franchise [48][52] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in the cardiovascular space, emphasizing a diverse approach to drug delivery formats [59][54] Question: Synthetic royalties trend - Management is optimistic about the growth of synthetic royalties, noting increased awareness and demand for this funding model [61][62] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class, with no change in outlook despite trial delays, awaiting results from Novartis [63][64] Question: Underappreciated assets in the portfolio - Management highlighted significant potential in the pipeline, with several products expected to deliver substantial value [70][69] Question: China opportunity and strategic focus - Management is excited about the growing opportunity in China, with plans to expand the team and platform in the region [73][72]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 16% for the year and royalty receipts growing 13% [5][24] - The company maintained a return on invested capital of 15.8% and a return on invested equity of 22.8% for the year [5][27] - The company returned $1.7 billion to shareholders, including $1.2 billion in share repurchases and over $500 million in dividends, with a 7% increase in dividends announced for the first quarter of 2026 [7][29] Business Line Data and Key Metrics Changes - The company reported strong performance from key products such as Voranigo, Trelstar, TREMFYA, and the cystic fibrosis franchise, contributing to the growth in royalty receipts [26] - In 2025, synthetic royalty transactions reached a record value of $4.7 billion, significantly higher than previous years, indicating a growing trend in this funding modality [14][15] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time in 2025, with a strong growth trajectory observed over the past five years [8] - The company noted that the demand for capital in life sciences is increasing, driven by the recognition of the benefits of biopharma royalties [9] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [5][10] - The company plans to continue expanding its capital deployment strategy, with a focus on high-quality assets and innovative therapies [12][16] - The internalization of the external manager is expected to enhance governance and reduce costs, further supporting the company's strategic goals [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to deliver consistent returns, even in uncertain market conditions [10][11] - The guidance for 2026 indicates expected growth in royalty receipts of 3%-8%, reflecting the strength of the existing portfolio [30][33] - Management highlighted the potential for significant value creation from the development stage pipeline, with multiple pivotal readouts expected in the near term [20][22] Other Important Information - The company achieved its five-year capital deployment target of $10 billion-$12 billion one year ahead of schedule [10][17] - The company has a robust pipeline of 20 development-stage therapies, with estimated combined peak sales of over $43 billion, translating to over $2.1 billion in peak annual royalties [22] Q&A Session Summary Question: Sustainability of dividends and buybacks in 2026 - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a focus on returning capital to shareholders while prioritizing royalty investments [38][40] Question: Involvement in private companies and capital markets - Management stated that they are open to investing in high-quality assets within private companies and are excited about the growth of opportunities in the sector [42] Question: Performance of ALYFTREK and patient conversion - Management noted that the conversion to ALYFTREK has been gradual but consistent, with expectations for continued contributions from the cystic fibrosis franchise [45][50] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in the cardiovascular and cardiometabolic markets, emphasizing a diversified approach to drug delivery formats [51][52] Question: Future of synthetic royalties - Management is optimistic about the continued growth of synthetic royalties, highlighting their advantages over traditional financing methods [56][59] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class and is awaiting results from ongoing trials, with no change in their positive outlook [60][61] Question: Underappreciated assets in the portfolio - Management highlighted the significant potential for value creation in the pipeline, with several products expected to deliver strong returns [66][68] Question: China opportunity and strategic focus - Management is excited about the growing opportunity in China and is looking to expand their team and platform in the region [69][71] Question: Teva's IL-15 asset and mid-stage investments - Management explained that the investment in Teva's asset was driven by the unmet need in the vitiligo market and emphasized their flexible investment structure [76][78] Question: Growth potential of VORANIGO - Management expressed strong confidence in the growth trajectory of VORANIGO, anticipating it to become a blockbuster product [79][80]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 16% for the year and royalty receipts growing 13% [4][23] - The company maintained a return on invested capital of 15.8% and a return on invested equity of 22.8% for the year [4][26] - The company returned $1.7 billion to shareholders, including $1.2 billion in share repurchases and over $500 million in dividends, with a 7% increase in dividends announced for Q1 2026 [6][28] Business Line Data and Key Metrics Changes - The cystic fibrosis franchise, along with products like Voranigo, Trelstar, and Tremfya, were key drivers of growth, contributing significantly to the overall increase in royalty receipts [25] - The company executed eight transactions for nine therapies in 2025, with an announced value of $4.7 billion, reflecting a disciplined approach to capital allocation [12][17] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time, with a strong growth trajectory observed over the past five years [8] - Synthetic royalty transactions set a new record in 2025, with a market value increase of about 50% compared to the previous year, totaling $4.7 billion [14][15] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [4][5] - The company is excited about expanding its team and platform in China, indicating a strategic focus on international growth opportunities [34][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the potential for significant value creation from the development stage pipeline [10][22] - The company anticipates a growth rate of 3%-8% in royalty receipts for 2026, reflecting strong underlying momentum despite expected challenges from loss of exclusivity for certain products [29][33] Other Important Information - The internalization of the external manager in 2025 is expected to yield cost savings and improved governance [5][6] - The company achieved its five-year capital deployment target of $10 billion-$12 billion one year ahead of schedule [10][17] Q&A Session Summary Question: Sustainability of dividends and buybacks in 2026 - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a current bias towards royalties [39][41] Question: Involvement in private companies and capital markets - Management is open to exploring high-quality pharmaceutical products within private companies and sees growth opportunities regardless of market conditions [43][44] Question: Performance of Alyftrek and patient conversion - Management noted that the conversion to Alyftrek has been gradual but steady, with expectations for continued contributions from the cystic fibrosis franchise [47][51] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in general medicine and indicated a flexible approach to drug delivery formats based on patient needs [53][54] Question: Future of synthetic royalties - Management is optimistic about the growth of synthetic royalties, noting increased awareness and demand for this funding model [57][60] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class and is awaiting results from ongoing trials, emphasizing the potential for significant royalties [61][62] Question: Underappreciated assets in the portfolio - Management highlighted the significant potential for value creation in the pipeline, particularly in products like solanezumab and frexalimab [68][69] Question: China opportunity and transaction pipeline - Management is excited about the growing opportunity set in China and is actively pursuing expansion in that market [70][72]