Full Press Release Details
ROYALTY PHARMA REPORTS FIRST QUARTER 2025 RESULTS
NEW YORK, NY, May 8th, 2025 - Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the first quarter of
2025 and raised full year 2025 guidance for Portfolio Receipts.
Our business momentum continued in the first quarter of 2025 as we delivered
double-digit growth in Portfolio Receipts and raised our financial guidance, said Pablo Legorreta, Royalty Pharma s founder and Chief Executive Officer. Guided by our dynamic capital allocation framework, we repurchased over
$700 million of our Class A ordinary shares given our attractive outlook, we expanded our development-stage portfolio with an R&D funding partnership with Biogen and we again increased our quarterly dividend. Looking ahead, we have
strong fundamental tailwinds underpinning our business with a robust deal pipeline and we remain on track to acquire our external manager in the second quarter. We plan to share further details on our attractive long-term outlook at our upcoming
Investor Day in September.
Double-digit growth in Royalty Receipts and Portfolio Receipts
Significant repurchase activity under recently announced $3 billion authorization
Positive clinical and regulatory updates across royalty portfolio
Raised financial guidance for full year 2025 (excludes contribution from future transactions)
| Three Months Ended March 31, | ||||||
| (unaudited) | ||||||
| ($ and shares in millions) | 2025 | 2024 | Change | |||
| Portfolio Receipts | 839 | 717 | 17% | |||
| Net cash provided by operating activities | 596 | 665 | (10)% | |||
| Adjusted EBITDA (non-GAAP)* | 738 | 656 | 12% | |||
| Portfolio Cash Flow (non-GAAP)* | 611 | 584 | 5% | |||
| Weighted average Class A ordinary shares outstanding - diluted | 578 | 597 | (3)% | |||
| * See Liquidity and Capital Resources section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement. |
Portfolio Receipts Highlights
| Three Months Ended March 31, | ||||||||||||
| (unaudited) | ||||||||||||
| ($ in millions) | 2025 | 2024 | Change | |||||||||
| Products: | Marketers: | Therapeutic Area: | ||||||||||
| Cystic fibrosis franchise | Vertex | Rare disease | 250 | 218 | 14% | |||||||
| Trelegy | GSK | Respiratory | 85 | 71 | 21% | |||||||
| Tysabri | Biogen | Neuroscience | 61 | 69 | (12)% | |||||||
| Evrysdi | Roche | Rare disease | 53 | 45 | 17% | |||||||
| Xtandi | Pfizer, Astellas | Cancer | 52 | 41 | 28% | |||||||
| Imbruvica | AbbVie, J&J | Cancer | 46 | 50 | (8)% | |||||||
| Promacta | Novartis | Hematology | 44 | 43 | 4% | |||||||
| Tremfya | Johnson & Johnson | Immunology | 36 | 36 | (1)% | |||||||
| Cabometyx/Cometriq | Exelixis, Ipsen, Takeda | Cancer | 21 | 18 | 16% | |||||||
| Spinraza | Biogen | Rare disease | 13 | 7 | 95% | |||||||
| Trodelvy | Gilead | Cancer | 13 | 10 | 23% | |||||||
| Erleada | Johnson & Johnson | Cancer | 11 | 9 | 21% | |||||||
| Other products (5) | 105 | 88 | 19% | |||||||||
| Royalty Receipts | 788 | 705 | 12% | |||||||||
| Milestones and other contractual receipts | 51 | 12 | 309% | |||||||||
| Portfolio Receipts | 839 | 717 | 17% |
Amounts shown in the table may not add due to rounding.
Royalty Receipts was $788 million in the first quarter of 2025, an increase of 12% compared to $705 million in the first quarter of 2024. The
increase was primarily driven by strong growth from the cystic fibrosis franchise, Trelegy and Xtandi, as well as royalties from the 2024 launch of Voranigo.
Portfolio Receipts was $839 million in the first quarter of 2025, an increase of 17% compared to $717 million in the first quarter of 2024,
primarily driven by the same Royalty Receipts increases noted above and a milestone payment of $27 million related to Airsupra.
Royalty Pharma s liquidity and capital resources are summarized below:
As of March 31, 2025, Royalty Pharma had cash and cash equivalents of $1.1 billion and total debt with principal value of $7.8 billion.
In January 2025, Royalty Pharma completed the sale of the MorphoSys Development Funding Bonds for $511 million in upfront cash. This payment, combined
with quarterly repayments received prior to the sale, resulted in total cash proceeds of $530 million on the $300 million investment that was made in September 2022. The proceeds provide added flexibility to pursue the company s
dynamic capital allocation strategy.
In January 2025, Royalty Pharma announced a new share repurchase program under which it may repurchase up to
$3.0 billion of its Class A ordinary shares. During the first quarter of 2025, Royalty Pharma repurchased approximately 23 million Class A ordinary shares for $723 million. During the first quarter of 2024, Royalty Pharma
did not repurchase any Class A ordinary shares. The weighted-average number of diluted Class A ordinary shares outstanding for the first quarter of 2025 was 578 million as compared to 597 million for the first quarter of 2024.
| Three Months Ended March 31, | ||||
| (unaudited) | ||||
| ($ in millions) | 2025 | 2024 | ||
| Portfolio Receipts | 839 | 717 | ||
| Payments for operating and professional costs | (102) | (61) | ||
| Adjusted EBITDA (non-GAAP) | 738 | 656 | ||
| Interest paid, net | (127) | (73) | ||
| Portfolio Cash Flow (non-GAAP) | 611 | 584 |
Amounts may not add due to rounding.
Refer to Table 4 for Royalty Pharma s reconciliation of each non-GAAP measure to the most directly comparable
GAAP financial measure, net cash provided by operating activities.
Capital Deployment reflects cash payments during the period for new and previously
announced transactions. Capital Deployment was $101 million in the first quarter of 2025, consisting primarily of the upfront research and development ( R&D ) funding for litifilimab (discussed further below) and a milestone
payment related to Trelegy.
In April 2025, Ferring Pharmaceuticals announced U.S. Food and Drug Administration ( FDA ) approval of a new
manufacturing hub in Parsippany, NJ for Adstiladrin, its novel gene therapy for bladder cancer. The approval triggered a $200 million milestone payment that was paid in the second quarter of 2025 as part of the royalty agreement announced in
The table below details Capital Deployment by category:
| Three Months Ended March 31, | ||||
| (unaudited) | ||||
| ($ in millions) | 2025 | 2024 | ||
| Acquisitions of financial royalty assets | (1) | (86) | ||
| Development-stage funding payments | (51) | (1) | ||
| Milestone payments | (50) | |||
| Investments in equity method investees | (7) | |||
| Contributions from legacy non-controlling interests - R&D | 0 | 0 | ||
| Capital Deployment | (101) | (93) |
Amounts may not add due to rounding.
Royalty Transactions
In February 2025, Royalty Pharma
entered into an R&D funding arrangement with Biogen to provide up to $250 million over six quarters, including $50 million upfront for the development of litifilimab. Litifilimab is in Phase 3 development for the treatment of lupus.
The announced transaction amount reflects the entire amount of capital committed for new transactions during the year, including potential future milestones.
The information in this section should be read together with Royalty Pharma s reports and documents
filed with the SEC at www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors section of Royalty Pharma s website at www.royaltypharma.com.
Internalization Transaction
In January 2025, Royalty
Pharma agreed to acquire its external manager, RP Management, LLC (the Manager ) (press release). This transaction to simplify Royalty Pharma s corporate structure is expected to result in multiple benefits for shareholders. On a
financial basis, the acquisition is expected to reduce costs and enhance economic returns on investments. Specifically, the acquisition will generate cash savings of greater than $100 million in 2026, rising to greater than $175 million in
2030 and driving cumulative savings of greater than $1.6 billion over ten years. The acquisition also increases shareholder alignment, enhances corporate governance, ensures management continuity and simplifies Royalty Pharma s corporate
The total transaction value of approximately $1.1 billion(7) consists of approximately
24.5 million shares of Royalty Pharma equity that will vest over five to nine years, approximately $100 million in cash(8), and the assumption of $380 million of the Manager s
The closing of the internalization transaction is subject to shareholders approval of the issuance of the share consideration and
other customary closing conditions, including required regulatory approvals. The shareholder meeting will take place on May 12, 2025 and the transaction is estimated to close during the second quarter of 2025.
Key Developments Relating to the Portfolio
developments related to Royalty Pharma s royalty interests are discussed below based on disclosures from the marketers of the products.
| Tremfya | In May 2025, Johnson & Johnson announced that the European Commission ( EC ) approved Tremfya for the treatment of adult patients with moderately to severely active Crohn s disease. In April 2025, Johnson & Johnson announced that the EC approved Tremfya for the treatment of adult patients with moderately to severely active ulcerative colitis. In March 2025, Johnson & Johnson announced that the FDA approved Tremfya, which is now the first and only IL-23 offering both subcutaneous and intravenous induction options for the treatment of adults with moderately to severely active Crohn s disease. | |
| aficamten | In May 2025, Cytokinetics announced that the FDA has extended the Prescription Drug User Fee Act (PDUFA) action date for the New Drug Application for aficamten to December 26, 2025. The FDA notified Cytokinetics that additional time is required to conduct a full review of the company s proposed Risk Evaluation and Mitigation Strategy (REMS). No additional clinical data or studies have been requested of Cytokinetics by the FDA. | |
| Cobenfy | In April 2025, Bristol Myers Squibb announced that topline results from the Phase 3 ARISE trial evaluating Cobenfy as an adjunctive treatment to atypical antipsychotics in adults with schizophrenia did not reach the threshold for a statistically significant difference compared to placebo with an atypical antipsychotic for the primary endpoint of the change from baseline to Week 6 in the Positive and Negative Syndrome Scale (PANSS) total score. | |
| Trodelvy | In April 2025, Gilead announced positive topline results from the Phase 3 Ascent-04/Keynote-D19 study, demonstrating that Trodelvy plus Keytruda significantly improved progression-free survival ( PFS ) compared to Keytruda and chemotherapy in patients with previously untreated PD-L1+ metastatic triple-negative breast cancer. Overall survival ( OS ), a key secondary endpoint, was not mature at the time of the PFS primary analysis. However, there was an early trend in improvement for OS with Trodelvy plus Keytruda. Gilead will continue to monitor OS outcomes, with ongoing patient follow-up and further analyses. |
| trontinemab | In April 2025, Roche announced that new trontinemab data continue to support rapid and deep, dose-dependent reduction of amyloid plaques in Phase 1b/2a Brainshuttle AD study. Roche expects to initiate a Phase 3 program for trontinemab later this year. | |
| ecopipam | In February 2025, Emalex announced positive Phase 3 results for ecopipam in patients with Tourette syndrome. The study showed statistical significance between ecopipam and placebo for both the primary efficacy endpoint in pediatrics and the secondary efficacy endpoint in pediatrics and adults. Emalex will meet with the FDA and other global health authorities to discuss submission later this year of a New Drug Application ( NDA ). | |
| Spinraza | In January 2025, Biogen announced that the FDA accepted the supplemental NDA and the European Medicines Agency validated the application for a higher dose regimen of Spinraza for spinal muscular atrophy. | |
| TEV- 749 | In January 2025, Teva announced that TEV- 749 (olanzapine LAI) achieved Phase 3 targeted injections without PDSS (post-injection delirium/sedation syndrome), and the full safety presentation is expected in the second quarter of 2025. |
2025 Financial Outlook
Royalty Pharma has provided guidance for full year 2025, excluding new transactions and borrowings announced after the date of this release, as follows:
| Provided May 8th, 2025 | Previous | |||
| Portfolio Receipts | $2,975 million to $3,125 million (Growth of ~+6% to 12% year/year) | $2,900 million to $3,050 million (Growth of ~+4% to 9% year/year) | ||
| Payments for operating and professional costs | Approximately 10% of Portfolio Receipts | Approximately 10% of Portfolio Receipts | ||
| Interest paid | $260 million | $260 million |
The above Portfolio Receipts guidance represents expected growth of 6% to 12% in 2025. Royalty Pharma s full year 2025
guidance reflects a negligible estimated foreign exchange impact to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2025.
2025 guidance for payments for operating and professional costs and interest paid does not reflect the impact of the internalization transaction announced on
January 10, 2025 and will be updated following the closing of the internalization transaction, which is expected in the second quarter of 2025.
Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma s existing notes and is anticipated to be approximately
$260 million in 2025. Interest paid in the third quarter of 2025 is anticipated to be $119 million. De minimis amounts are anticipated in the second and fourth quarter of 2025. These projections assume no additional debt financing in 2025,
including no drawdown on the revolving credit facility. In the first quarter of 2025, Royalty Pharma collected interest of $12 million on its cash and cash equivalents, which partially offset interest paid.
Royalty Pharma today provides this guidance based on its most up-to-date view
of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.
Financial Results Call
Royalty Pharma will host a
conference call and simultaneous webcast to discuss its first quarter 2025 results today at 8:30 a.m., Eastern Time. Please visit the Investors page of the company s website at
https://www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company s website for at least 30 days.
About Royalty Pharma plc
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, GSK s Trelegy, Roche s Evrysdi, Johnson & Johnson s Tremfya, Biogen s Tysabri and Spinraza, AbbVie and Johnson &
Johnson s Imbruvica, Astellas and Pfizer s Xtandi, Novartis Promacta, Pfizer s Nurtec ODT and Gilead s Trodelvy, and 15 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, market growth and plans for capital deployment, plus the benefits of
the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its
structure. In some cases, you can identify such forward-looking statements by terminology such as anticipate, intend, believe, estimate, plan, seek, project,
expect, may, will, would, could or should, 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,