Core Insights - Royalty Pharma reported a revenue of $727 million for the quarter ended June 2025, reflecting a year-over-year increase of 19.6% and surpassing the Zacks Consensus Estimate of $686.22 million by 5.94% [1] - The company's EPS for the quarter was $1.14, compared to $0.96 in the same quarter last year, resulting in an EPS surprise of 3.64% against the consensus estimate of $1.10 [1] Financial Performance Metrics - The total portfolio receipts from royalty products amounted to $672 million, slightly below the average estimate of $680.22 million [4] - Key product performances included: - Cystic fibrosis franchise: $194 million, -0.4% year-over-year, below the estimate of $206.12 million [4] - Tysabri: $56 million, -12.3% year-over-year, above the estimate of $53.9 million [4] - Imbruvica: $44 million, -10.4% year-over-year, above the estimate of $39.81 million [4] - Xtandi: $42 million, +8.8% year-over-year, below the estimate of $42.75 million [4] - Promacta: $33 million, +8.2% year-over-year, below the estimate of $39.51 million [4] - Evrysdi: $33 million, +32.4% year-over-year, above the estimate of $31.21 million [4] - Trelegy: $57 million, +17.6% year-over-year, slightly below the estimate of $57.04 million [4] - Tremfya: $37 million, +23.7% year-over-year, below the estimate of $38.47 million [4] Stock Performance - Over the past month, Royalty Pharma's shares have returned +6.8%, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Biogen reported strong second-quarter 2025 results, with adjusted earnings per share (EPS) of $5.47, significantly exceeding the Zacks Consensus Estimate of $3.93, and a 4% year-over-year increase in earnings [1] - Total revenues for the quarter reached $2.65 billion, up 7% year over year, surpassing the Zacks Consensus Estimate of $2.32 billion [2] Revenue Breakdown - Product sales were $1.9 billion, a slight decline of 1% year over year, while revenues from anti-CD20 therapeutic programs increased by 5% to $467 million [3] - Contract manufacturing and royalty revenues surged 124% year over year to $245 million, and Alzheimer's collaboration revenues rose to $55 million from $12 million in the previous year [4][5] Performance of Key Products - Sales of Biogen's multiple sclerosis (MS) drugs totaled $1.1 billion, down 4% year over year, primarily due to generic competition for Tecfidera and biosimilar competition for Tysabri [7] - Tecfidera sales fell nearly 23% to $193.6 million, while Vumerity sales increased by around 30% to $212.2 million [8] - Spinraza sales declined 8.5% to $392.7 million, missing estimates, while rare disease drug Skyclarys generated $130.3 million, up 5.2% sequentially [12] New Product Performance - New drugs Leqembi, Skyclarys, and Zurzuvae showed strong demand and sequential sales growth, with Leqembi generating $63 million in U.S. sales, a 20% increase [5][11] - Zurzuvae recorded $46.4 million in sales, up 68% sequentially, driven by increased demand [13] Cost and Guidance Updates - Adjusted R&D expenses decreased by 13% to $394 million, while SG&A expenses rose 7% to $579 million [16] - Biogen raised its 2025 EPS outlook to $15.50-$16.00, reflecting a stronger business outlook, and expects total revenues to be flat compared to 2024 [18] Market Reaction and Future Outlook - The positive guidance and strong sales of Leqembi boosted investor confidence, leading to a more than 5% rise in pre-market trading [20] - Despite rising competitive pressure on MS drugs, new products have the potential to drive growth, although it remains uncertain if they can offset declines in existing products [21]

Core Viewpoint - Biogen is expected to report second-quarter 2025 results on July 31, with sales and earnings estimates at $2.32 billion and $3.95 per share, respectively, following a previous earnings miss of 7.4% [1][11]. Group 1: Sales Performance - Lower sales of Biogen's multiple sclerosis (MS) drugs are anticipated, likely offset by revenue growth from new products [2]. - Sales of Tecfidera and Tysabri are projected to decline due to generic and biosimilar competition, with estimates for Tecfidera at $178.0 million and Tysabri at $373.0 million [3][4]. - Vumerity's sales are expected to rise, with estimates at $70.0 million and $181.9 million [4]. - Spinraza's sales are estimated at $397.0 million and $403.0 million, with a potential reversal in favorable shipment timing impacting second-quarter results [5]. - Skyclarys is likely to see mixed dynamics in the U.S. and global markets, with growth driven more by ex-U.S. sales [6][9]. Group 2: Collaborations and New Products - Biogen's collaboration with Sage Therapeutics for Zurzuvae involves shared profits and losses, with strong patient demand expected to continue [7]. - Alzheimer's collaboration revenues, including Biogen's share from Leqembi, are expected to rise, with Leqembi's sales improving sequentially [8][10]. Group 3: Earnings Expectations - Biogen's earnings surprise history shows a mixed performance, with a four-quarter average surprise of 8.36% [11]. - The Earnings ESP for Biogen is -0.85%, indicating a lower likelihood of an earnings beat this quarter [14].

Core Insights - Royalty Pharma plc has appointed Carole Ho and Elizabeth (Bess) Weatherman to its Board of Directors, enhancing its leadership team with expertise in biopharmaceuticals and finance [1][2][3] Group 1: Board Appointments - Carole Ho is the Chief Medical Officer and Head of Development at Denali Therapeutics, with 20 years of experience in biopharma, previously serving as Vice President of Clinical Development at Genentech [2][3] - Bess Weatherman has 35 years of experience as an investor in the healthcare industry and is currently a Special Limited Partner at Warburg Pincus, having joined the firm in 1988 [3] Group 2: Company Overview - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical sector, collaborating with various innovators [4] - The company has a portfolio that includes royalties on over 35 commercial products and 16 development-stage product candidates, indicating a strong position in the market [4] Group 3: Corporate Governance - The appointment of the new board members increases independent representation on the board to over 90%, reflecting Royalty Pharma's commitment to enhanced corporate governance [5]

Core Insights - Royalty Pharma will participate in the Goldman Sachs 46th Annual Global Healthcare Conference on June 10, 2025 [1] - The event will be accessible via a webcast on Royalty Pharma's website and archived for at least thirty days [1] Company Overview - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical sector [2] - The company collaborates with a range of entities, from academic institutions to leading global pharmaceutical companies, to support innovation [2] - Royalty Pharma's portfolio includes royalties from over 35 commercial products, such as Vertex's Trikafta and GSK's Trelegy, as well as 15 development-stage product candidates [2]

Core Viewpoint - Biogen reported first-quarter 2025 adjusted earnings per share (EPS) of $3.02, missing the Zacks Consensus Estimate of $3.32, with an 18% year-over-year decline in earnings due to a $165 million upfront payment to Stoke Therapeutics for a collaboration agreement [1][2][19] Financial Performance - Total revenues for Q1 2025 were $2.43 billion, reflecting a 6% year-over-year increase on a reported basis and an 8% increase on a constant-currency basis, surpassing the Zacks Consensus Estimate of $2.23 billion [2] - Total product sales reached $1.73 billion, up 1% year over year on a reported basis and 3% on a constant-currency basis [4] - Contract manufacturing and royalty revenues surged 61% year over year to $293 million, while Alzheimer's collaboration revenues increased to $33 million from $3 million in the prior year [5][6] Product Sales Breakdown - Multiple sclerosis (MS) revenues totaled $953 million, down 11% on a reported basis due to generic competition for Tecfidera [9] - Sales of Spinraza rose 24.2% to $423.9 million, exceeding the Zacks Consensus Estimate of $365 million [12] - New drug Qalsody for ALS recorded sales of $15.5 million, while Zurzuvae for postpartum depression generated $28 million in sales, reflecting a 21.7% sequential increase [13][14] Cost and Guidance - Adjusted R&D expenses decreased 3% year over year to $427 million, while adjusted SG&A expenses rose 1% to $572 million [16] - The company reaffirmed its total revenue guidance for 2025, expecting a mid-single-digit percentage decline in constant currency terms compared to 2024, and lowered its adjusted EPS guidance to a range of $14.50 to $15.50 [18][19] Market Performance - Year to date, Biogen's shares have declined 20.9%, compared to a 3.3% decrease in the industry [3]

Industry Overview - The first-quarter earnings season for the drug and biotech sector is underway, with major companies like Pfizer, Eli Lilly, Amgen, Biogen, and Regeneron set to announce results [1] - Johnson & Johnson and Merck have reported results, both exceeding first-quarter estimates for earnings and sales, while Sanofi had mixed results, beating earnings estimates but missing sales [1] Earnings Trends - As of April 23, 15% of companies in the Medical sector, representing 33.8% of the sector's market capitalization, reported quarterly earnings, with 77.8% surpassing estimates for both earnings and revenues [3] - Year-over-year earnings increased by 4.7%, and revenues rose by 9.4% [3] - Overall, first-quarter earnings for the Medical sector are expected to increase by 35%, while sales are projected to rise by 7.8% compared to the previous year [3] Company Performance Pfizer (PFE) - Pfizer has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 44.16% [5] - The Zacks Consensus Estimate for first-quarter sales and earnings is $13.88 billion and 64 cents per share, respectively [6] - Non-COVID operational revenues are driving growth, supported by products like Vyndaqel, Padcev, and Eliquis, despite a decline in sales of COVID products [7] Eli Lilly (LLY) - Eli Lilly has had mixed performance, exceeding earnings expectations in three of the last four quarters, with an average earnings surprise of 8.47% [8] - The Zacks Consensus Estimate for sales and earnings is $12.62 billion and $3.52 per share, respectively [8] - Growth is expected to be driven by demand for FDA-approved tirzepatide medicines, although sales of Mounjaro and Zepbound were below expectations [9][10] Amgen (AMGN) - Amgen has shown strong performance, beating earnings estimates in each of the last four quarters, with an average earnings surprise of 5.23% [11] - The Zacks Consensus Estimate for first-quarter sales and earnings is $7.96 billion and $4.15 per share, respectively [11] - Product sales are expected to be driven by strong volume growth, although prices may decline due to higher rebates [12] Biogen (BIIB) - Biogen has consistently beaten earnings estimates in the last four quarters, with an average earnings surprise of 11.80% [13] - The Zacks Consensus Estimate for sales and earnings is $2.23 billion and $3.52 per share, respectively [13] - Lower sales of multiple sclerosis drugs are likely to be offset by revenues from new drugs [14] Regeneron (REGN) - Regeneron has had mixed results, surpassing earnings expectations in three of the last four quarters, with an average earnings surprise of 3.23% [16] - The Zacks Consensus Estimate for first-quarter sales and earnings is $3.28 billion and $8.43 per share, respectively [17] - Sales of Eylea are expected to have declined due to competition, but sales of Eylea HD and Dupixent are likely to have surged [18][19]

Core Viewpoint - Biogen is expected to report first-quarter 2025 results on May 1, with sales and earnings estimates at $2.24 billion and $3.34 per share, respectively. The company faces challenges from declining sales of multiple sclerosis (MS) drugs, which may be offset by revenues from new drugs [1][2][5]. Sales Performance of MS Drugs - Sales of Biogen's MS drugs, including Tecfidera and Tysabri, are anticipated to decline due to increased competition and the introduction of generic versions in various markets [2][5]. - The Zacks Consensus Estimate for Tecfidera sales is $199.0 million, while the internal estimate is $185.7 million. For Tysabri, the estimates are $363.0 million and $348.6 million, respectively [3][4]. - Vumerity's sales rose in the fourth quarter due to higher demand, with estimates for the first quarter at $141.0 million (Zacks) and $139.8 million (internal) [4]. Impact of Biosimilars and Generics - The decline in MS revenues is expected to be more pronounced in 2025 due to the anticipated entry of biosimilars for Tysabri and generics for Tecfidera in certain European markets [5]. Other Drug Sales - Spinraza's sales improved in the fourth quarter, but demand may have decreased in the first quarter, with estimates at $364.0 million (Zacks) and $338.1 million (internal) [6]. - Sales of Skyclarys for Friedreich's ataxia are expected to rise year-over-year, with estimates at $110.0 million (Zacks) and $111.4 million (internal) [7]. - Zurzuvae's launch has exceeded expectations, with strong patient demand likely contributing to improved sales in the first quarter [8][9]. Alzheimer's Collaboration and Revenues - Revenues from contract manufacturing, royalties, and Alzheimer's collaboration are expected to rise, particularly from the drug Leqembi, which has shown strong sales growth in recent quarters [10][11]. - Leqembi's sales have improved sequentially, with strong growth noted in China and Japan, and it was recently approved in the European Union [11][12]. Overall Revenue Expectations - Overall revenues for the first quarter of 2025 are expected to be negatively impacted by seasonality, higher discounts, and channel dynamics in the U.S., along with foreign exchange headwinds [13]. Key Events - Biogen announced a collaboration with Stoke Therapeutics to develop zorevunersen for Dravet syndrome, with a pivotal study expected to begin in the first quarter of 2025 [14]. Earnings Surprise History - Biogen has consistently beaten earnings estimates in the past four quarters, with an average earnings surprise of 11.8%. However, the current model does not predict a beat for the upcoming quarter, with an Earnings ESP of -15.8% [15][16][17].

Group 1 - Royalty Pharma appointed Vlad Coric, M.D. to its Board of Directors, effective immediately [1][2] - Vlad Coric is the Chairman and CEO of Biohaven, a biopharmaceutical company with a focus on neuroscience, immunology, and oncology [1][2] - Coric's leadership at Biohaven included the FDA approval and launch of Nurtec ODT for migraine treatment and the filing of an NDA for zavegepant [2][3] - Under Coric's leadership, Biohaven grew significantly and was sold to Pfizer for approximately $13 billion in May 2022 [2] Group 2 - Coric has over 20 years of experience in drug discovery and clinical development, with expertise in various therapeutic areas [3] - His educational background includes a medical degree from Wake Forest University and a Bachelor of Science degree from the University of Connecticut [3] - Royalty Pharma is the largest buyer of biopharmaceutical royalties and funds innovation in the biopharmaceutical industry [4] - The company collaborates with a range of entities, from academic institutions to leading global pharmaceutical companies, and has a portfolio of royalties on over 35 commercial products [4]

Core Insights - Royalty Pharma plc has appointed Vlad Coric, M.D. to its Board of Directors, effective immediately, enhancing its leadership team with his extensive biopharmaceutical experience [1][2]. Group 1: Appointment and Leadership - Vlad Coric is the Chairman and CEO of Biohaven, a biopharmaceutical company focused on neuroscience, immunology, and oncology [1][2]. - Pablo Legorreta, CEO of Royalty Pharma, expressed excitement about Coric's appointment, highlighting his entrepreneurial approach and leadership skills as valuable assets [2]. - Coric has notable experience in royalty funding, having completed multiple transactions with Royalty Pharma during his time at Biohaven [2]. Group 2: Achievements and Experience - Under Coric's leadership, Biohaven achieved FDA approval and launched Nurtec ODT for migraine treatment, and filed an NDA for zavegepant, the first intranasal CGRP antagonist for ultra-rapid migraine relief [2]. - Coric oversaw Biohaven's growth from its founding to its sale to Pfizer in May 2022 for approximately $13 billion [2]. - He has over 20 years of experience in drug discovery and clinical development, with expertise across various therapeutic areas including neurology, psychiatry, and oncology [3]. Group 3: Company Overview - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a leading funder of innovation in the biopharmaceutical industry [4]. - The company collaborates with a range of innovators, from academic institutions to leading global pharmaceutical companies, and has a portfolio of royalties based on top-line sales of leading therapies [4]. - Royalty Pharma's portfolio includes royalties on over 35 commercial products and 15 development-stage candidates, indicating a strong position in the biopharmaceutical market [4].