Royalty Pharma Plc (RPRX) is a leading buyer of biopharmaceutical royalties that entitle it to payments based directly on the top-line sales of leading therapies. With a portfolio of more than 45 products, the company owns royalties on both commercial products like Imbruvica and development-stage product candidates.
The company’s most valuable royalty assets by net carrying value include its cystic fibrosis franchise (37%), Tysabri (15%), Imbruvica (11%), and Xtandi (8%). During the third quarter of 2020, the company’s largest revenue contributors included its cystic fibrosis franchise (27%), Imbruvica (19%), its HIV franchise (13%), and Tysabri (10%).
The company’s overall portfolio of more than 45 marketed therapies and three development-stage product candidates targets a diverse range of therapeutic areas.
Strong Performance
Royalty Pharma reported third quarter revenue that rose 16% to $538 million, beating consensus estimates by $63.74 million, driven by its cystic fibrosis (CF) and Imbruvica divisions. Consolidated net income came in at $624 million during the quarter.
The company also continued to expand its portfolio with new acquisitions, including an expanded agreement with the CF Foundation. Regulatory approvals for Kaftrio by the EC and Evrysdi by the FDA, combined with positive study results for Trodelvy, could also point to greater royalty revenue from development-stage products.
The company raised its quarterly dividend by 13.3% to $0.17 per share, which represents a 1.4% forward yield. The dividend is payable on March 15, 2021 to shareholders on record as of February 19, 2021.
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