NEW YORK, Oct. 09, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will report its third quarter 2025 financial results on Wednesday, November 5, 2025 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:00 a.m. Eastern Time that day. Conference Call Information Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events/ to obtain conference call information and to vi ...

Core Insights - Royalty Pharma is hosting an Investor Day to discuss its strategies for shareholder value creation through its unique business model in the biopharma royalty market [1][2] - The company anticipates continued strong growth in the biopharma royalty market, targeting a mid-teens average annual total shareholder return through 2030 [2][12] Financial Performance and Projections - Royalty Pharma expects a compound annual growth rate of approximately 12% in Portfolio Receipts from 2020 to 2025, aiming for at least $4.7 billion in Portfolio Receipts by 2030 [3][4] - The company has achieved a Return on Invested Capital (ROIC) of approximately 15% and a Return on Invested Equity (ROIE) of approximately 21% since 2019 [6][7] - The biopharma royalty market has seen significant growth, averaging $6.2 billion in announced transaction value per year from 2020 to 2024, more than double the previous five-year average [7][9] Capital Deployment and Investment Strategy - Royalty Pharma is on track to exceed its five-year capital deployment target of $10 billion to $12 billion, with $14 billion in announced transactions and $9 billion deployed to date [4][5] - The company expects to achieve an unlevered internal rate of return (IRR) in the mid-teens on its post-IPO investments, with strong returns on both approved and development-stage products [5][6] Market Trends and Industry Position - A Deloitte market study indicates growing interest in royalty funding among biopharma executives, with 54% reporting increased interest and 87% considering royalties for capital needs [9][10] - Royalty Pharma has expanded its workforce approximately three-fold since its IPO, enhancing its capabilities in data and analytics to support its growth strategy [10][11] Shareholder Value Creation - The company aims to be a premier capital allocator in life sciences, with plans for share buybacks and a commitment to grow dividends by a mid-single digit percentage annually [11][12] - Royalty Pharma's investment platform is expected to gain recognition, potentially leading to significant upside beyond the targeted mid-teens total shareholder return [12]

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]

Core Viewpoint - Royalty Pharma plc has announced a $2.0 billion offering of senior unsecured notes, which is expected to close on September 16, 2025, subject to customary closing conditions [1]. Group 1: Offering Details - The offering consists of three tranches: $600 million of 4.450% Notes due 2031, $900 million of 5.200% Notes due 2035, and $500 million of 5.950% Notes due 2055 [7]. - The net proceeds from the offering will be used for general corporate purposes [2]. - The offering is being managed by BofA Securities, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, and TD Securities as joint lead book-running managers [3]. Group 2: Company Background - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a significant funder of innovation in the biopharmaceutical industry [6]. - The company collaborates with various entities, including academic institutions and leading global pharmaceutical companies, to fund innovation and acquire royalties [6]. - Royalty Pharma's portfolio includes royalties on over 35 commercial products, such as Vertex's Trikafta and GSK's Trelegy, as well as 17 development-stage product candidates [6].

Group 1 - Royalty Pharma's board of directors has approved a dividend of $0.22 per Class A ordinary share for Q3 2025, to be paid on September 10, 2025, to shareholders of record by August 15, 2025 [1] Group 2 - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical industry, collaborating with various entities from academic institutions to leading global pharmaceutical companies [2] - The company has a portfolio of royalties linked to over 35 commercial products, including notable therapies such as Vertex's Trikafta, GSK's Trelegy, and Roche's Evrysdi, among others [2] - Royalty Pharma funds innovation both directly by co-funding late-stage clinical trials and indirectly by acquiring existing royalties from original innovators [2]

Core Points - Royalty Pharma plc will report its second quarter 2025 financial results on August 6, 2025, before U.S. financial markets open [1] - A conference call and webcast will be held at 8:00 a.m. Eastern Time on the same day [1][2] Company Overview - Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation in the biopharmaceutical industry [3] - The company collaborates with various innovators, including academic institutions, research hospitals, non-profits, small and mid-cap biotechnology companies, and leading global pharmaceutical companies [3] - Royalty Pharma's portfolio includes royalties on over 35 commercial products, such as Vertex's Trikafta, GSK's Trelegy, Roche's Evrysdi, and others, as well as 16 development-stage product candidates [3]

Core Viewpoint - Royalty Pharma has successfully completed the acquisition of its external manager, RP Management, with 99.9% shareholder approval, marking a significant milestone in the company's evolution and positioning for long-term growth [1][2]. Group 1: Acquisition Details - The acquisition of RP Management allows Royalty Pharma to internalize its management structure, enhancing transparency, accountability, and alignment with shareholders [2]. - The company will update its full-year 2025 guidance to reflect the internalization in its upcoming financial results [2]. Group 2: Historical Context - Royalty Pharma has operated under an external management model since its founding in 1996, paying fees based on portfolio receipts and security investments [3]. - Following the internalization, all employees of RP Management have transitioned to Royalty Pharma, strengthening the company's operational capabilities [3]. Group 3: Management and Equity Structure - Prior to 2024, Pablo Legorreta was the sole owner of RP Management, but equity interests were granted to 35 team members to support succession planning [3]. - Management, excluding Pablo Legorreta, will receive approximately 50% of the equity issued in the transaction, with vesting continuing through 2033, while Legorreta's equity will vest over five years [3]. Group 4: Company Overview - Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical industry [4]. - The company collaborates with various entities, including academic institutions and leading pharmaceutical companies, and holds royalties on over 35 commercial products [4].

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].