NEW YORK, May 16, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has successfully closed the acquisition of its external manager, RP Management, LLC (“RP Management”). The acquisition received overwhelming support from Royalty Pharma’s shareholders, with 99.9% of votes cast in favor of the transaction. “The completion of the internalization marks an exciting new chapter for Royalty Pharma,” said Pablo Legorreta, founder and Chief Executive Officer. “It reinforces our comm ...

Core Viewpoint - Royalty Pharma plc has received overwhelming shareholder approval (99.9%) for its transition from an external management model to an integrated corporate structure, marking a significant milestone for the company [1][4]. Financial Impact - The internalization transaction is expected to generate cash savings exceeding $100 million in 2026 and over $175 million in 2030, with cumulative savings projected to exceed $1.6 billion over the next ten years [3][8]. - The total transaction value is approximately $1.1 billion, which includes 24.5 million shares of Royalty Pharma equity, $100 million in cash, and the assumption of $380 million in existing Manager debt [5][6]. Corporate Governance and Structure - The internalization is anticipated to enhance corporate governance, increase transparency, and align the leadership team more closely with shareholder interests [2][3]. - Following the transaction, all employees of the external Manager will become direct employees of Royalty Pharma, simplifying the corporate structure [7][8]. Shareholder Benefits - The acquisition is expected to strengthen shareholder alignment and ensure management continuity, with shares received by management vesting over 5 to 9 years [3][9]. - The internalization may also expand Royalty Pharma's shareholder base and enhance the company's valuation over time [3][8]. Background Information - Royalty Pharma has operated under an external management model since its founding in 1996, paying quarterly fees to the Manager based on portfolio receipts and security investments [7].

更多资料加入知识星球：水木调研纪要 关注公众号：水木纪要 M Update 1Q25 Behind; Innovative Transition Ongoing Reaction to earnings April 30, 2025 04:07 AM GMT Fosun Pharmaceutical | Asia Pacific Morgan Stanley Asia Limited+ Yanru Tao Equity Analyst Yanru.Tao@morganstanley.com +852 3963-1041 Alexis Yan, CFA Equity Analyst Alexis.Yan@morganstanley.com +852 2239-7953 Impact to our thesis Financial results versus consensus Direction of next 12-month Unchanged Meaningful shortfall Meaningful revision lower consensus EPS Key Takeaways 1Q25 R ...

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $417.1 million, an increase of $76.1 million or 22.3% year over year, with $57.3 million from acquisitions and $18.4 million from organic growth of 5.4% [13][20] - Adjusted EBITDA was $86.4 million, up $15.4 million or 21.7% year over year, with adjusted EBITDA margins at 20.7%, down 10 basis points year over year [16][20] - Adjusted net income was $12.2 million or $0.19 per diluted share, an increase of $3.5 million or about $0.04 per share [19] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 25.9% year over year, with pricing up 5.6% and volume down 1.7% [13][14] - Collection pricing was up 5.8%, while volumes decreased by 1.7%, attributed to slower roll-off volumes during winter [9][14] - Resource Solutions revenues grew by 9.5% year over year, with national accounts up 10.9% [15][16] Market Data and Key Metrics Changes - Organic growth in the landfill business exceeded 7%, driven by both price and volume increases [8][9] - The average price per ton in the landfill business was up 4.8% in the quarter [15] - Commodity prices remained stable, with recent softness in the fiber market offset by strength in plastics and aluminum [15] Company Strategy and Development Direction - The company continues to focus on internalizing more of its own tons and executing its acquisition strategy, having closed four deals year to date with approximately $50 million in annualized revenues [10][25] - The active M&A pipeline is robust, with over $500 million in revenues in various stages of engagement [26] - The company aims to enhance operational efficiency through fleet automation and route optimization [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2025 outlook, citing limited exposure to tariffs and a resilient business model [10][22] - The company is closely monitoring macroeconomic uncertainties but remains optimistic about future value creation opportunities [10][21] - Management noted that the challenging winter weather impacted roll-off volumes but expects a seasonal uptick as spring progresses [9][72] Other Important Information - The company was recognized on Forbes' 2025 America's Best Midsized Employers list, highlighting its commitment to core values and culture [7] - The company has a consolidated net leverage ratio of 2.45 times and maintains approximately $900 million of availability between excess cash and an undrawn revolver [21] Q&A Session Summary Question: How much of the landfill volume increase is due to lost construction and demolition volumes flowing back? - Management indicated that about one-third of the increase is from recapturing construction and demolition tons in the New York market, with two-thirds from efforts to internalize additional tons [30][31] Question: What is the unfilled annual landfill capacity today? - Management stated that they are running about 30% excess capacity, primarily in New York State, with opportunities to drive more volume to specific landfills [32][33] Question: Can you provide an update on the Juniper Ridge landfill gas plant ramp? - The Juniper Ridge project is online but operating at low production levels, with expectations for ramp-up throughout the year [36][38] Question: What is the expected EBITDA contribution from internalization? - Management noted that the impact of internalization on EBITDA is complex and varies by acquisition, making it difficult to provide a specific figure [75][76] Question: Why was the full year guidance not changed despite strong Q1 results? - Management explained that it is typical not to change guidance in the first quarter unless there are significant deviations from expectations [90][91]