Royalty Pharma Announces Release of Deloitte’s Report on the Biopharma Royalty Market

Core Insights - The report by Royalty Pharma and Deloitte highlights the increasing importance of royalties in funding biopharma innovation, marking a shift towards a diversified funding model in the industry [1][2][6] - Royalties are recognized as a vital component of capital structure, providing flexible, non-dilutive capital to support significant capital requirements in biopharma [2][3][6] Industry Dynamics - The study involved over 110 biopharma leaders, primarily CEOs and CFOs, to gather insights on royalty funding, revealing that royalties play a crucial role in supporting life sciences innovation and commercial success [3][6] - The report indicates a growing acceptance of royalties as part of a diversified funding strategy, driven by their non-dilutive nature, absence of covenants, and retention of operational control [7] Market Outlook - 87% of surveyed biopharma executives expressed willingness to consider royalties in their capital raising plans over the next three years, indicating a positive outlook for royalty funding in the industry [7] - The strategic benefits of royalties, including attractive cost of capital and positive investor perception, are contributing to their increasing adoption in the biopharma sector [6][7] Company Overview - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation, collaborating with various entities from academic institutions to leading global pharmaceutical companies [4] - The company has a diverse portfolio of royalties, entitling it to payments based on the sales of over 35 commercial products, including notable therapies from Vertex, GSK, Roche, and others [4]