Royalty Pharma(US:RPRX)2025-11-05 14:10Financial Performance - For the three months ended September 30, 2025, Vertex accounted for 35% of total income, while Roche contributed less than 10%[208]. - Total income and other revenues for the first nine months of 2025 reached $1,756.2 million, an increase of $86.3 million, or 5.2%, compared to the same period in 2024[226]. - Income from financial royalty assets increased by $45.6 million, or 8.6%, in Q3 2025 compared to Q3 2024, primarily due to the Voranigo royalty acquired in August 2024[228]. - Net income attributable to Royalty Pharma plc decreased by $255.8 million, or 47.0%, in Q3 2025 compared to Q3 2024, totaling $288.2 million[226]. - Other royalty income and revenues increased by $5.1 million, or 6.2%, in the first nine months of 2025, primarily due to sales growth of Nurtec ODT[231]. - Income from financial royalty assets for the first nine months of 2025 was $1,668.7 million, an increase of $81.1 million, or 5.1%, compared to the same period in 2024[229]. - Adjusted EBITDA for the three months ended September 30, 2025, was $779.4 million, compared to $679.4 million for the same period in 2024, representing a 14.7% increase[289]. - Portfolio Cash Flow for the nine months ended September 30, 2025, was $1.91 billion, up from $1.77 billion in the same period in 2024, indicating a 7.7% growth[289]. Expenses and Provisions - General and administrative expenses rose by $240.1 million, or 142.0%, in the first nine months of 2025 compared to the same period in 2024, primarily due to increased employee compensation expenses[226]. - Provision for changes in expected cash flows from financial royalty assets was $12.1 million in Q3 2025, a significant change from a provision of $(227.6) million in Q3 2024[226]. - Research and development funding expense increased by $50.0 million in Q3 2025 compared to Q3 2024, reflecting ongoing investments in product candidates[226]. - G&A expenses rose by $62.0 million, or 109.3%, in Q3 2025 compared to Q3 2024, mainly driven by higher share-based compensation expenses[241]. - Interest expense increased by $13.1 million, or 19.6%, in Q3 2025 compared to Q3 2024, primarily due to a $380 million term loan and the issuance of $2.0 billion in senior unsecured notes[246]. Cash Flow and Investments - The company generated $1.7 billion in net cash from operating activities for the first nine months of 2025, a decrease of $363.8 million compared to $2.0 billion in the same period of 2024[272][278]. - Cash used in investing activities decreased by $1.4 billion in the first nine months of 2025, primarily due to lower cash used for acquisitions of financial royalty assets[279]. - In the first nine months of 2025, the company invested $1.7 billion in royalties, milestones, and other contractual receipts[270]. - The company has access to up to $1.8 billion in revolving commitments under its Revolving Credit Facility[274]. - Cash used in financing activities was $886.4 million in the first nine months of 2025, compared to cash provided of $619.1 million in the same period of 2024[280]. Royalty Receipts - Royalty Receipts from the cystic fibrosis franchise increased by $45.6 million, driven by strong demand for Trikafta/Kaftrio and higher net pricing in the U.S.[264]. - Trelegy Royalty Receipts rose by $27.9 million due to volume growth across all regions, reflecting increased patient demand[264]. - Xtandi Royalty Receipts increased by $21.1 million, attributed to sales growth particularly in the U.S.[265]. - Milestones and other contractual receipts increased by $91.4 million, primarily due to a one-time distribution related to the Legacy SLP Interest[268]. - Voranigo Royalty Receipts reached $79.5 million, driven by a strong launch in the U.S.[265]. - Royalty Receipts from other products increased by $19.9 million, supported by recent acquisitions[268]. - Tysabri Royalty Receipts decreased by $16.3 million due to increased competition and pricing pressures[265]. - Tremfya Royalty Receipts increased by $21.7 million, driven by market share gains and growth in new indications[265]. Debt and Financing - The company has total outstanding borrowings of $9.2 billion as of September 30, 2025, up from $7.8 billion as of December 31, 2024[274]. - The company issued $2.0 billion in senior unsecured notes in September 2025 with a weighted average coupon rate of 5.16%[283]. - The company has a $380 million Term Loan with Bank of America, maturing on July 31, 2026, with an interest rate of either Daily SOFR plus 1.25% or Term SOFR plus 1.25%[284]. - As of September 30, 2025, the company has an uncommitted line of credit agreement with Société Générale providing a borrowing capacity of up to $350 million, with no outstanding borrowings[285]. - The Revolving Credit Facility has a borrowing capacity of $1.8 billion, with $1.69 billion maturing on December 22, 2028, and $110 million maturing on October 31, 2027[286]. Acquisitions and Strategic Initiatives - The company completed the acquisition of RP Manager on May 16, 2025, as part of its internalization strategy[196]. - In November 2025, the company acquired a royalty interest in Alnylam's Amvuttra for $310 million, which is an approved RNAi therapeutic[271]. - The company entered into a funding arrangement with BeOne for up to $950 million, including an upfront payment of $885 million for a royalty on Imdelltra[297]. - A two-part $2 billion funding arrangement with Revolution Medicines includes up to $1.25 billion for a synthetic royalty and a senior secured term loan of up to $750 million[298]. - The company has a long-term funding arrangement with Cytokinetics, with $275 million remaining available under the Cytokinetics Commercial Launch Funding as of September 30, 2025[300]. Assets and Liabilities - Current assets increased to $652,195 thousand as of September 30, 2025, compared to $53,380 thousand as of December 31, 2024[311]. - Current liabilities decreased to $441,816 thousand as of September 30, 2025, from $1,100,681 thousand as of December 31, 2024[311]. - Non-current liabilities increased to $9,067,768 thousand as of September 30, 2025, compared to $6,613,747 thousand as of December 31, 2024[311]. - Non-current intercompany notes receivable due from Non-Guarantor Subsidiaries increased to $2,860,003 thousand as of September 30, 2025, from $2,430,894 thousand as of December 31, 2024[311]. - There are no material restrictions on distributions from the operating subsidiaries, which hold the majority of cash and cash equivalents[310].