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Royalty Pharma plc
NASDAQ: RPRX Healthcare Pharma 🔎 Screen
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$25.3B
Market Cap
21.7
P/E
0.79
PEG
8.6%
ROCE
13.2%
ROE
0.92
D/E
65.6%
OPM
-8.4%
% from 52W High
85
α RS
🔍 RPRX is showing a high-conviction setup because it matches 10 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 85. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 10/39 · Technology in Leading quadrant · RS Rating 85
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🌏 Global Investor Returns
Currency-adjusted total returns for RPRX including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
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About

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. The company has research and development funding collaboration to advance the development of JNJ-4804, an investigational medicine for autoimmune diseases. The company was founded in 1996 and is based in New York, New York.

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📈 Growth Pattern
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⭐ Superinvestors Holding RPRX
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 790.9K $37.9M 0.06% Mar 2026
Steve Cohen Point72 Asset Management 490.0K $23.5M 0.03% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Portfolio Receipts (Revenue)
$773M
+6% YoY
Royalty Receipts
$768M
+14% YoY
Adjusted EBITDA
$736M
+16% YoY
Portfolio Cash Flow
$736M
+15% YoY
What Went Right
  • Royalty Receipts grew 14% to $768M, driven by Tremfya, Voranigo, Imdelltra and Evrysdi.
  • Raised full-year 2026 Portfolio Receipts guidance for a second consecutive quarter to $3.4B–$3.5B (implied Royalty Receipts growth of 7%–10%).
  • Deployed $1.1B of capital in 2026, including acquiry of a cliramitug royalty with peak annual royalty potential of $110M–$190M.
What to Watch
  • Milestones and other contractual receipts declined substantially due to a one-time prior-year payment; 2026 milestones are expected to fall to ~$60M from $128M in 2025.
  • Management flagged headwinds from Promacta's loss of exclusivity, US biosimilar Tysabri, and the potential impact of IRA.
  • Q&A noted monitoring of China-related legislative proposals (COINS/BINS Acts) that could affect out-licensing dynamics.
Management Guidance
  • Full-year 2026 Portfolio Receipts raised to $3.4B–$3.5B from $3.325B–$3.45B.
  • 2026 Royalty Receipts growth expected at 7%–10%.
  • Operating and professional costs expected at 5.5%–6.5% of Portfolio Receipts; interest paid expected ~$350M–$360M with Q3 ~$175M and a de minimis Q4 amount.
Investor Lens
The investment thesis is stronger after this call: Royalty Pharma delivered 14% growth in recurring Royalty Receipts, raised guidance for the second consecutive quarter, and expanded its development-stage pipeline to 19 programs with ~$2B in late-stage peak royalty potential. The cliramitug acquisition adds a potentially transformative TTR amyloidosis asset with blockbuster potential. The S&P upgrade to BBB across all agencies increases financial flexibility, while the company continues to generate a ~95% cash flow margin. Management's disciplined capital allocation and high ROIC/ROIE (14.2%/20.1%) reinforce confidence in long-term compounding.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG STRONG: Royalty Receipts +14%; Portfolio Receipts $773M, +6%; FY guidance raised.
Revenue
Portfolio Receipts (top line) grew 6% YoY to $773M, slightly ahead of guidance. Royalty Receipts, the recurring component, grew 14% to $768M, driven by Tremfya, Voranigo, Imdelltra and Evrysdi. Milestones and other contractual receipts declined substantially due to a one-time prior-year payment.
Profitability
Net income and EPS were not discussed. Adjusted EBITDA increased 16% YoY to $736M, and Portfolio Cash Flow rose 15% to $736M, reflecting high cash conversion and a ~95% margin.
Margins
Operating professional costs were 4.8% of Portfolio Receipts in Q2, benefiting from the internalization transaction; FY guidance remains 5.5%–6.5%. Portfolio cash flow margin stayed around 95%, underscoring the efficiency of the model.
Balance Sheet
Period-end cash and equivalents were $812M. Total investment-grade debt was $9.2B with a ~12-year weighted average duration; leverage was 2.8x gross / 2.6x net, with the $1.8B revolver undrawn. S&P upgraded the company in June, making Royalty Pharma BBB rated across all major agencies.
Key Risks
Management flagged expected headwinds from Promacta's loss of exclusivity, US biosimilar Tysabri, and the potential impact of IRA. Full-year milestones are expected to fall to ~$60M from $128M in 2025. In Q&A, China-related legislative proposals (COINS/BINS Acts) were noted as a risk being monitored.
Outlook
FY2026 Portfolio Receipts guidance was raised to $3.4B–$3.5B, implying Royalty Receipts growth of 7%–10%. Guidance excludes contributions from future royalty acquisitions and assumes no major adverse events.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Delivered double-digit growth in Q2 2026, raising full-year guidance as portfolio receipts and royalty receipts exceeded expectations. Expanded development pipeline, deployed $1.1B in royalty acquisitions, and maintained strong returns and financial flexibility.
Q1 2026 Q1 2026 2026-05-06
Delivered double-digit growth in portfolio and royalty receipts in Q1 2026, raised full-year guidance, and expanded R&D co-funding and global capabilities. Maintained strong returns and financial flexibility, with significant new deals and positive clinical milestones.
Q4 2025 Q4 2025 2026-02-11
Delivered double-digit growth in portfolio and royalty receipts for 2025, surpassing guidance and achieving key capital deployment targets ahead of schedule. Internalization of the manager drove cost savings, while synthetic royalties and a diversified pipeline position the company for continued growth in 2026.
Q3 2025 Q3 2025 2025-11-05
Delivered 11% year-over-year growth in portfolio and royalty receipts, raised 2025 guidance to $3.2–$3.25 billion, and expanded the development-stage pipeline to 17 therapies. Deployed $1 billion in Q3 on major royalty transactions and returned $1.5 billion to shareholders.
Q2 2025 Q2 2025 2025-08-06
Q2 2025 saw 20% growth in portfolio receipts and 11% in royalty receipts, surpassing guidance. Raised full-year outlook, completed a $2B partnership with Revolution Medicines, and returned $1.26B to shareholders. Ongoing Vertex royalty dispute and cost savings from internalization noted.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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