Royalty Pharma plc (Nasdaq: RPRX) today provided an update on its
business performance, including recent key accomplishments, and the
full year 2023 outlook for Portfolio Receipts. Pablo Legorreta,
Royalty Pharma’s founder and Chief Executive Officer, will discuss
these updates tomorrow as part of a webcast presentation at the
42nd Annual J.P. Morgan Healthcare Conference to be held at 12:00
p.m. Eastern Time / 9:00 a.m. Pacific Time.
“Royalty Pharma delivered record performance in 2023,” said
Pablo Legorreta. “We expect to achieve an all-time high for
Portfolio Receipts of approximately $3.05 billion, representing our
third consecutive year of double-digit underlying growth since our
initial public offering in 2020. We deployed substantial capital to
acquire royalties on eight therapies, including our strongest year
ever for synthetic royalty transactions. We remain in an excellent
position to deliver compounding growth in the years to come while
executing on our mission and vision to accelerate innovation in
life sciences and transform patient lives globally.”
Record 2023 Financial Performance
Based on preliminary unaudited fourth quarter 2023 results,
Royalty Pharma now expects to deliver Portfolio Receipts for full
year 2023 of approximately $3,050 million, which includes a $50
million payment related to oral zavegepant and exceeds the upper
end of its previous guidance range of $2,950 million to $3,000
million. This represents underlying growth of 11% year-over-year
prior to Biohaven-related payments and reflects the strong
performance of Royalty Pharma’s diversified royalty portfolio.
Royalty Pharma also expects Net cash provided by operating
activities to be approximately $2,980 million to $2,990 million for
full year 2023.
Portfolio Receipts was previously referred to as Adjusted Cash
Receipts. The calculation of Portfolio Receipts will result in the
same total as under Royalty Pharma’s previous presentation of
Adjusted Cash Receipts. This change of presentation will facilitate
increased transparency into the economics of individual royalties,
as Royalty Receipts by product and franchise, will be reported net
of legacy non-controlling interests.
Royalty Pharma’s preliminary unaudited fourth quarter 2023
results provided in this press release are subject to change in
connection with the completion of the company’s final adjustments
and other developments that may arise during the preparation and
audit of its financial statements. Royalty Pharma’s management will
host a conference call to discuss Royalty Pharma’s fourth quarter
and full year 2023 results in February 2024.
Strong Capital Deployment Added Innovative Therapies,
Enhancing Long-term Growth
Since 2020, Royalty Pharma has announced transactions of
approximately $13 billion, including $4.0 billion in 2023.
Important additions to Royalty Pharma’s portfolio in the past year
have included incremental royalties on Evrysdi, the fast-growing
therapy for spinal muscular atrophy, as well as the potentially
practice-changing, development-stage compounds pelacarsen for
cardiovascular disease and KarXT for schizophrenia. Royalty Pharma
also had its strongest year ever for synthetic royalties with
announced transactions of $775 million, including Adstiladrin for
bladder cancer, which is the first gene therapy added to its
portfolio, Skytrofa, an approved therapy for growth hormone
deficiency and TEV-‘749, an exciting development-stage compound for
schizophrenia.
In total, 34 unique therapies have been added to the company’s
portfolio since 2020 (of which 17 are either currently or projected
to be blockbusters that generate annual sales of $1 billion or more
based on consensus estimates). In aggregate, based on consensus
sales forecasts, investments made since 2020 are estimated to add
approximately $1.2 billion to Royalty Pharma’s Portfolio Receipts
in 2025.
Biopharma Funding Environment Driving New Royalty
Opportunities
The biopharmaceutical ecosystem is generating significant demand
for capital to fund the ongoing wave of healthcare innovation.
Reflecting this positive market backdrop, between 2019 and 2023,
the number of in-depth reviews of new royalty opportunities
conducted by Royalty Pharma increased by 133%, resulting in an 80%
increase in announced annual transaction value (from $2.2 billion
in 2019 to $4.0 billion in 2023).
Given Royalty Pharma’s unique role at the heart of funding life
sciences innovation, Royalty Pharma believes that there will be
significant opportunity to deploy capital and fund innovation,
while creating value for its stakeholders. This is reflected in the
company’s capital deployment target of $10 billion to $12 billion
from 2022 to 2026 and in Royalty Pharma’s expectation that it has
the potential over the longer term to double its average annual
capital deployment to $4 billion to $5 billion.
Webcast of J.P. Morgan Healthcare
Conference
Royalty Pharma will present at the 42nd Annual J.P. Morgan
Healthcare Conference at 12:00 p.m. ET / 9:00 a.m. PT tomorrow. The
webcast will be accessible from Royalty Pharma’s “Events” page at
https://www.royaltypharma.com/investors/news-and-events/events. The
webcast will also be archived for a minimum of thirty days.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of
biopharmaceutical royalties and a leading funder of innovation
across the biopharmaceutical industry, collaborating with
innovators from academic institutions, research hospitals and
non-profits through small and mid-cap biotechnology companies to
leading global pharmaceutical companies. Royalty Pharma has
assembled a portfolio of royalties which entitles it to payments
based directly on the top-line sales of many of the industry’s
leading therapies. Royalty Pharma funds innovation in the
biopharmaceutical industry both directly and indirectly - directly
when it partners with companies to co-fund late-stage clinical
trials and new product launches in exchange for future royalties,
and indirectly when it acquires existing royalties from the
original innovators. Royalty Pharma’s current portfolio includes
royalties on more than 35 commercial products, including Vertex’s
Trikafta, Kalydeco, Orkambi and Symdeko, Biogen’s Tysabri, AbbVie
and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s
Xtandi, GSK’s Trelegy, Novartis’ Promacta, Pfizer’s Nurtec ODT,
Johnson & Johnson’s Tremfya, Roche’s Evrysdi, Gilead’s
Trodelvy, and 12 development-stage product candidates.
Forward-Looking Statements
The information set forth herein does not purport to be complete
or to contain all of the information you may desire. Statements
contained herein are made as of the date of this document unless
stated otherwise, and neither the delivery of this document at any
time, nor any sale of securities, shall under any circumstances
create an implication that the information contained herein is
correct as of any time after such date or that information will be
updated or revised to reflect information that subsequently becomes
available or changes occurring after the date hereof.
This document contains statements that constitute
“forward-looking statements” as that term is defined in the United
States Private Securities Litigation Reform Act of 1995, including
statements that express the company’s opinions, expectations,
beliefs, plans, objectives, assumptions or projections regarding
future events or future results, in contrast with statements that
reflect historical facts. Examples include discussion of Royalty
Pharma’s strategies, financing plans, growth opportunities and
market growth. In some cases, you can identify such forward-looking
statements by terminology such as may,” “might,” “will,” “should,”
“expects,” “plans,” “anticipates,” “believes,” “estimates,”
“target,” “forecast,” “guidance,” “goal,” “predicts,” “project,”
“potential” or “continue,”” the negative of these terms or similar
expressions. Forward-looking statements are based on management’s
current beliefs and assumptions and on information currently
available to the company. However, these forward-looking statements
are not a guarantee of Royalty Pharma’s performance, and you should
not place undue reliance on such statements. Forward-looking
statements are subject to many risks, uncertainties and other
variable circumstances, and other factors. Such risks and
uncertainties may cause the statements to be inaccurate and readers
are cautioned not to place undue reliance on such statements. Many
of these risks are outside of the company’s control and could cause
its actual results to differ materially from those it thought would
occur. The forward-looking statements included in this document are
made only as of the date hereof. The company does not undertake,
and specifically declines, any obligation to update any such
statements or to publicly announce the results of any revisions to
any such statements to reflect future events or developments,
except as required by law.
Certain information contained in this document relates to or is
based on studies, publications, surveys and other data obtained
from third-party sources and the company's own internal estimates
and research. While the company believes these third-party sources
to be reliable as of the date of this document, it has not
independently verified, and makes no representation as to the
adequacy, fairness, accuracy or completeness of, any information
obtained from third-party sources. In addition, all of the market
data included in this document involves a number of assumptions and
limitations, and there can be no guarantee as to the accuracy or
reliability of such assumptions. Finally, while the company
believes its own internal research is reliable, such research has
not been verified by any independent source.
For further information, please reference Royalty Pharma’s
reports and documents filed with the U.S. Securities and Exchange
Commission (SEC). You may get these documents by visiting EDGAR on
the SEC website at www.sec.gov.
Portfolio Receipts
Portfolio Receipts is a key performance metric that represents
our ability to generate cash from our portfolio investments, the
primary source of capital that we can deploy to make new portfolio
investments. Portfolio Receipts is defined as the sum of Royalty
Receipts and Milestones and Other Contractual Receipts. Royalty
Receipts include variable payments based on sales of products, net
of contractual payments to the legacy non-controlling interests,
that is attributed to Royalty Pharma. Milestones and Other
Contractual Receipts include sales-based or regulatory milestone
payments and other fixed contractual receipts, net of contractual
payments to legacy non-controlling interests, that is attributed to
Royalty Pharma. Portfolio Receipts does not include proceeds from
equity securities or proceeds from purchases and sales of
marketable securities, both of which are not central to our
fundamental business strategy.
Portfolio Receipts is calculated as the sum of the following
line items from our GAAP consolidated statements of cash flows:
Cash collections from financial royalty assets, Cash collections
from intangible royalty assets, Other royalty cash collections,
Proceeds from available for sale debt securities and Distributions
from equity method investees less Distributions to legacy
non-controlling interests - Portfolio Receipts, which represent
contractual distributions of royalty receipts and proceeds from
available for sale debt securities to the legacy investors.
Royalty Pharma Investor Relations and
Communications
+1 (212) 883-6772ir@royaltypharma.com
Royalty Pharma (NASDAQ:RPRX)
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