NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has acquired the final portion of PTC Therapeutics’ remaining royalty on Roche’s Evrysdi for $240 million upfront and up to $60 million in sales-based milestones. Evrysdi, marketed by Roche, is an orally administered survival motor neuron-2 (SMN2) splicing modifier for the treatment of spinal muscular atrophy. Evrysdi was approved by the FDA in 2020 and has treated over 21,000 patients worldwide. In 2024, E ...

Financial Data and Key Metrics Changes - The company executed a $3 billion share repurchase authorization and bought back approximately $1 billion of stock in the first half of the year, slowing down in the third quarter due to increased deal flow [4][5][6] - Return on Invested Capital (ROIC) has been consistently in the mid-teens, while Return on Equity (ROE) has been in the low 20% range, with expectations to maintain these levels without taking on additional risks [11][12] Business Line Data and Key Metrics Changes - The company has focused on capitalizing on unique opportunities, with significant transactions such as Revolution Medicines and Imdeltra contributing to deal flow momentum [5][6] - The company is exploring creative structuring in deals, adapting to the needs of a broader range of companies [7][8] Market Data and Key Metrics Changes - The demand for customized deal structures has increased, reflecting a broader range of companies seeking partnerships [7][8] - The company anticipates continued growth in the royalty market, driven by increasing capital needs in the biopharma industry [22][35] Company Strategy and Development Direction - The company aims to maintain a balanced approach to investments, focusing on both approved products with attractive growth and developmental projects with significant upside potential [11][12] - The company is not under pressure to deploy capital aggressively but is prepared to take advantage of opportunities as they arise [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum in the biopharma sector, with expectations for more R&D partnership deals in the future [29][32] - The company views the increasing presence of other players in the royalty market as a positive development that adds legitimacy and depth to the market [34][35] Other Important Information - The company has been proactive in sourcing deals, engaging with earlier-stage companies to stay informed about developments and innovations [63][64] - The company does not foresee significant changes in the competitive landscape due to the entry of firms like Blackstone, maintaining confidence in its ability to secure attractive assets [33][34] Q&A Session Summary Question: How does the company view the future of capital deployment? - The company expects a baseline capital deployment of $2 billion to $2.5 billion, with potential for higher amounts depending on deal flow and opportunities [25][26] Question: What is the company's stance on equity investments? - The company does not plan to make equity investments a core part of its business but will consider them as a supplement when necessary [13] Question: How does the company assess the impact of competition on its investments? - The company differentiates itself by modeling the impact of competition effectively, as demonstrated in past investments like Tysabri [46][47] Question: What is the company's approach to sourcing deals? - The company engages in both incoming deal flow and proactive outreach to maintain relationships with potential partners [63][64]

Financial Data and Key Metrics Changes - The company internalized its external manager and announced a $3 billion share repurchase authorization, buying back approximately $1 billion of stock in the first half of the year [4][5] - Return on invested capital has been consistently in the mid-teens, while return on equity has been in the low 20% range over the last five years, with confidence in maintaining these levels without taking on additional risk [12][13] Business Line Data and Key Metrics Changes - The company has focused on capitalizing on unique opportunities, with significant transactions like Revolution Medicines and Imdeltra contributing to deal flow momentum [5][6] - The company is open to increasing capital deployment beyond the baseline of $2 billion-$2.5 billion, driven by ongoing momentum in the market [24][25] Market Data and Key Metrics Changes - The demand for customized deal structures has increased, reflecting a broader range of companies seeking partnerships [9] - The company sees a growing appetite for capital in the biopharma industry, indicating a robust market for royalty opportunities [22][36] Company Strategy and Development Direction - The company aims to maintain a balanced approach in investments, focusing on both approved products with growth potential and those in development [12][13] - The company is optimistic about the future of R&D partnerships, expecting more momentum in this area as pharma companies face pipeline pressures [30][32] Management's Comments on Operating Environment and Future Outlook - Management believes that the current political environment has not dramatically changed seller expectations, with confidence in continued investment opportunities [22] - The company is prepared for future growth, emphasizing the efficiency of its passive investment model and the ability to process multiple deals simultaneously [75][76] Other Important Information - The company has been proactive in building relationships with earlier-stage companies to stay informed about innovations and developments in the industry [68] - The use of AI in the investment process is being explored, but it is not expected to significantly lower barriers to entry in the royalty market [39][41] Q&A Session Summary Question: How does the company view the future of capital deployment? - The company anticipates a baseline capital deployment of $2 billion-$2.5 billion but is open to exceeding this based on market momentum and opportunities [24][25] Question: What is the company's stance on the evolving R&D partnership landscape? - The company believes that R&D partnerships will continue to evolve and sees significant opportunities in this area, especially as pharma companies face pipeline pressures [30][32] Question: How does the company approach seller expectations in transactions? - The company aims to pay fair and reasonable prices for assets, ensuring that both parties feel satisfied with the deal, which helps to expand the market over time [64][66]

Financial Data and Key Metrics Changes - The company announced a $3 billion share repurchase authorization and repurchased approximately $1 billion of stock in the first half of the year, slowing down in the third quarter due to deal flow considerations [2][3] - Return on Invested Capital (ROIC) has been consistently in the mid-teens, while Return on Equity (ROE) has been in the low 20% range, with confidence in maintaining these levels without taking on additional risks [9][10] Business Line Data and Key Metrics Changes - The company has focused on capitalizing on unique opportunities in the second half of the year, with significant transactions such as Revolution Medicines and Imdeltra contributing to deal flow momentum [3][4] - The company is open to increasing capital deployment beyond the baseline of $2 billion to $2.5 billion, driven by ongoing momentum from synthetic deals and partnerships with pharmaceutical companies [21][22] Market Data and Key Metrics Changes - The demand for customized deal structures has increased, reflecting a broader range of companies seeking partnerships, which the company is well-positioned to accommodate [5][7] - The company sees a growing appetite for capital in the biopharma industry, indicating a robust environment for future royalty opportunities [18][29] Company Strategy and Development Direction - The company aims to maintain a balanced approach to investments, focusing on both approved products with attractive growth and developmental products with significant upside potential [9][10] - The company believes that the evolution of pharma R&D partnerships will continue, with more co-funding deals expected as companies face pipeline pressures [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet and exceed capital deployment targets, emphasizing the importance of making good investments rather than rushing to deploy capital [21][22] - The company remains optimistic about the potential in various therapeutic areas, including oncology and neurodegenerative diseases, while being cautious about the risks involved [42][45] Other Important Information - The company has seen an increase in incoming deal volume since its IPO, while also proactively reaching out to early-stage companies to maintain relationships and identify opportunities [52][53] - The use of AI in the investment process is being explored, but management believes that the fundamental barriers to entry in the royalty space will remain [32][34] Q&A Session Summary Question: How does the company view the future of capital deployment? - The company anticipates a baseline capital deployment of $2 billion to $2.5 billion but is open to exceeding this based on deal flow momentum [21][22] Question: What is the company's stance on the evolving pharma R&D partnership landscape? - The company believes that pharma R&D partnerships will continue to evolve, with more co-funding deals expected due to pipeline pressures [24][26] Question: How does the company approach the use of AI in its processes? - While the company is exploring AI for due diligence and efficiency, it maintains that significant capital and experience are still required to succeed in the royalty space [32][34]

With a market cap of $24.6 billion, Biogen Inc. (BIIB) is a global biotechnology leader specializing in therapies for neurological and neurodegenerative diseases. Its portfolio includes multiple sclerosis treatments such as Tecfidera, Vumerity, Avonex, Plegridy, and Tysabri, as well as Spinraza for spinal muscular atrophy and several biosimilars. Shares of the Cambridge, Massachusetts-based company have underperformed the broader market over the past 52 weeks. BIIB stock has risen 1.6% over this time fram ...

Core Insights - Biogen reported Q3 2025 adjusted EPS of $4.81, exceeding the Zacks Consensus Estimate of $3.89, with an 18% year-over-year increase [1][11] - Total revenues for the quarter reached $2.53 billion, a 3% increase year-over-year, driven by strong sales growth of new drugs [2][11] Financial Performance - Product sales amounted to $1.85 billion, up 4% year-over-year, with anti-CD20 therapeutic program revenues rising 11% to $494 million [3][11] - Contract manufacturing and royalty revenues fell 35% year-over-year to $151 million, while Alzheimer's collaboration revenues increased to $43 million from $19 million [4][5] Drug Sales and Growth - Biogen's MS revenues totaled $1.06 billion, a 1% increase on a reported basis, with Vumerity sales up 36% year-over-year to nearly $215 million [7][11] - Tecfidera sales declined 28% to $168 million, while Tysabri sales rose 6% to $432 million [8][11] - Rare disease drug Skyclarys generated $133 million in sales, a 30% increase year-over-year [12][11] Cost Management - Adjusted R&D expenses decreased 7% year-over-year to $432 million, while adjusted SG&A expenses rose 6% to $592 million [16][11] Guidance and Future Outlook - Biogen raised its sales guidance for 2025, expecting approximately flat or 1% growth in constant currency terms [17][11] - Adjusted EPS guidance was lowered from $15.50-$16.00 to $14.50-$15.00 due to anticipated costs from business development transactions [19][11] Strategic Developments - Biogen resubmitted a regulatory filing for a higher dose of Spinraza, with a decision expected by April 3, 2026 [20][21] - The company completed enrollment in late-stage studies for litifilimab, with data readouts expected in the second half of 2026 [22][11] Market Position - Despite competitive pressures on MS drugs and Spinraza, Biogen's new products are positioned to drive long-term growth [27][11] - The company aims to build a multi-franchise portfolio with significant revenue potential from key pipeline products [27][11]

Core Insights - Biogen's key growth drivers, Leqembi and Skyclarys, faced challenges in Q3, impacting stock performance [1][2] - Despite these challenges, Biogen reported better-than-expected sales and earnings, driven by older multiple sclerosis treatments [4][5] Financial Performance - Biogen reported earnings of $4.81 per share on $2.54 billion in sales, exceeding analyst forecasts of $3.88 and $2.34 billion respectively [4] - Year-over-year, earnings increased by 18% and sales rose by 3%, with a 2% increase in constant currency [4] - Sales of Skyclarys reached $133 million, slightly below expectations, while Leqembi generated $69 million in U.S. sales, also below projections [2][3] Product Performance - Tysabri sales rose 6% to $431.8 million, surpassing forecasts, while Tecfidera sales fell 28% to $168 million but still exceeded projections [5] - Revenue from Spinraza was in line with expectations at $374 million, reflecting a 2% decline [6] Guidance and Outlook - Biogen lowered its adjusted earnings outlook to $14.50 to $15 per share, accounting for a $1.25 per-share negative impact from business development transactions [7] - The company raised its sales outlook, now expecting flat to 1% growth in constant currency for the year [7][8] - The new earnings guidance fell short of analysts' expectations of $15.76 per share, while sales projections align with Biogen's expectations of $9.69 billion [8]

Core Viewpoint - Biogen is expected to exceed expectations in its third-quarter 2025 results, with earnings estimates at $3.89 per share and sales at $2.34 billion, following a previous quarter where earnings surpassed expectations by 39.2% [1] Factors Impacting Biogen - Lower sales of multiple sclerosis (MS) drugs are anticipated, particularly due to generic competition for Tecfidera and biosimilar competition for Tysabri, but this may be offset by revenue growth from new products [2][3] - The decline in MS revenue is expected to be more pronounced in the second half of the year, especially in the ex-U.S. market due to intensified competition [3] - Sales estimates for Tecfidera are $158 million (Zacks Consensus) and $162.9 million (model estimate), while Tysabri's estimates are $370 million and $346.9 million, respectively [3] Performance of Other Drugs - Vumerity's sales are projected to rise due to increased demand, with estimates at $173 million (Zacks) and $169.6 million (model) [4] - Spinraza's sales are likely to decline, with estimates at $373 million (Zacks) and $360 million (model) [4] - Sales of Skyclarys for Friedreich's ataxia are expected to improve, driven by demand growth and geographic expansion, although U.S. growth may be tempered by Medicare discount dynamics [5][6] - Zurzuvae's sales are also expected to rise due to strong patient demand, following its EU approval in September [7] Collaboration and Revenue Streams - Revenues from contract manufacturing, royalties, and Alzheimer's collaborations are expected to increase, particularly from Leqembi, which has shown consistent sales growth [8][10] - Leqembi's sales have improved sequentially over the past four quarters, with its recent approvals in various markets contributing to this growth [10][11] Earnings Surprise History - Biogen has a history of beating earnings estimates, achieving an average surprise of 10.16% over the last four quarters, although its stock has declined by 1.9% this year compared to a 9.2% industry increase [12] Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for Biogen, supported by a positive Earnings ESP of +1.08% and a Zacks Rank of 3 [14][15]

Core Points - Royalty Pharma's board of directors has approved a dividend of $0.22 per Class A ordinary share for the fourth quarter of 2025 [1] - The dividend payment date is set for December 10, 2025, with a record date of November 14, 2025 [1] Company Overview - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a significant funder of innovation in the biopharmaceutical industry [2] - The company collaborates with various entities, including academic institutions, research hospitals, non-profits, small and mid-cap biotechnology companies, and leading global pharmaceutical companies [2] - Royalty Pharma's portfolio includes royalties from over 35 commercial products and 17 development-stage product candidates, entitling it to payments based on the top-line sales of leading therapies [2]

Core Insights - Biogen's key multiple sclerosis (MS) drugs, including Tecfidera and Tysabri, along with the spinal muscular atrophy (SMA) treatment Spinraza, are experiencing declining sales due to increased competition, impacting overall revenue growth [1][3][10] Sales Performance - Sales of Tecfidera are declining due to the launch of multiple generic versions in North America, Brazil, and certain European countries [3] - Tysabri's sales are also declining as a result of heightened competition in the U.S. and the introduction of biosimilars in Europe, with a U.S. biosimilar expected by Q4 2025 [3][4] - Spinraza's revenues are anticipated to be lower in the second half of the year due to unfavorable shipment timing and competition from Novartis' Zolgensma and Roche's Evrysdi [5] New Drug Developments - Biogen's collaboration with Eisai on Leqembi for Alzheimer's disease shows potential for long-term growth, with sequential sales improvements noted over the past four quarters [6][10] - Leqembi has been launched in multiple countries and is expected to generate significant sales due to the unmet need in Alzheimer's treatment [7] - Skyclarys is witnessing strong demand trends, particularly in the U.S. and EU, with ex-U.S. sales projected to become a more significant growth driver in 2025 [9] Financial Outlook - Biogen's total revenues rose by 7% in the first half of 2025, driven by new drug sales, although the overall revenue for 2025 is projected to remain flat compared to 2024 [11][12] - The contribution from new drugs is increasing, but it is not yet sufficient to offset the declining revenues from MS drugs and Spinraza [12] Valuation and Estimates - Biogen's stock has declined by 2.2% this year, contrasting with an 8.7% increase in the industry [13] - The company's shares are trading at a forward price/earnings ratio of 9.49, lower than the industry average of 15.88 and its own 5-year mean of 13.55 [15] - The Zacks Consensus Estimate for 2025 earnings has increased from $14.87 to $15.68 per share over the past 90 days [16]