Full Press Release Details
ROYALTY PHARMA REPORTS Q4 AND FULL YEAR 2024 RESULTS
NEW YORK, NY, February 11, 2025 - Royalty Pharma plc (Nasdaq: RPRX) today reported financial
results for the fourth quarter and full year 2024 and introduced full year 2025 guidance for Portfolio Receipts.
We had an incredibly successful
2024, delivering double-digit growth in Royalty Receipts, which was significantly above our initial guidance, and deploying $2.8 billion of capital on value-enhancing royalties said Pablo Legorreta, Royalty Pharma s founder and Chief
Executive Officer. We are very excited for the opportunities ahead as the fundamentals of our business have never been stronger. Additionally, we have already taken two major steps at the start of 2025 to enhance shareholder value, announcing
the acquisition of our external manager, which is expected to result in multiple financial and strategic benefits, and a new $3 billion share repurchase program, which highlights the confidence we have in our business and the attractive value
we see in our shares. With a robust transaction pipeline and significant financial flexibility, I am confident that Royalty Pharma is well positioned to deliver attractive, compounding growth over the long term.
Strong Royalty Receipts growth; Portfolio Receipts growth impacted by a high base of comparison
Capital Deployment of $2.8 billion in 2024 with royalties on eight new therapies added to the portfolio
Exciting new product launches expected across the royalty portfolio in 2025
Financial guidance for
full year 2025 (excludes contribution from future transactions)
Financial & Liquidity Summary
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| ($ and shares in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
| Portfolio Receipts | 742 | 736 | 1% | 2,801 | 3,049 | (8)% | ||||||||||||||
| Net cash provided by operating activities | 743 | 773 | (4)% | 2,769 | 2,988 | (7)% | ||||||||||||||
| Adjusted EBITDA (non-GAAP)* | 669 | 682 | (2)% | 2,565 | 2,806 | (9)% | ||||||||||||||
| Portfolio Cash Flow (non-GAAP)* | 678 | 687 | (1)% | 2,452 | 2,708 | (9)% | ||||||||||||||
| Weighted average Class A ordinary shares outstanding - diluted | 589 | 598 | (1)% | 594 | 603 | (1)% |
Portfolio Receipts Highlights
| Three Months Ended December 31, | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| ($ in millions) | 2024 | 2023 | Change | |||||||||||||
| Products: | Marketers: | Therapeutic Area: | ||||||||||||||
| Cystic fibrosis franchise | Vertex | Rare disease | 237 | 207 | 14% | |||||||||||
| Trelegy | GSK | Respiratory | 74 | 60 | 23% | |||||||||||
| Tysabri | Biogen | Neuroscience | 61 | 68 | (11)% | |||||||||||
| Evrysdi | Roche | Rare disease | 56 | 20 | 182% | |||||||||||
| Xtandi | Pfizer, Astellas | Cancer | 46 | 38 | 20% | |||||||||||
| Imbruvica | AbbVie, J&J | Cancer | 46 | 50 | (10)% | |||||||||||
| Promacta | Novartis | Hematology | 44 | 44 | (1)% | |||||||||||
| Tremfya | Johnson & Johnson | Immunology | 39 | 35 | 11% | |||||||||||
| Cabometyx/Cometriq | Exelixis, Ipsen, Takeda | Cancer | 20 | 18 | 11% | |||||||||||
| Spinraza | Biogen | Rare disease | 15 | 17 | (13)% | |||||||||||
| Orladeyo | BioCryst | Rare disease | 11 | 8 | 36% | |||||||||||
| Trodelvy | Gilead | Cancer | 11 | 10 | 10% | |||||||||||
| Erleada | Johnson & Johnson | Cancer | 11 | 9 | 25% | |||||||||||
| Nurtec ODT/Zavzpret | Pfizer | Neuroscience | 7 | 5 | 49% | |||||||||||
| Other products (5) | 54 | 63 | (14)% | |||||||||||||
| Royalty Receipts | 729 | 651 | 12% | |||||||||||||
| Milestones and other contractual receipts | 13 | 84 | (85)% | |||||||||||||
| Portfolio Receipts | 742 | 736 | 1% |
Results for full year 2024 and 2023 are shown in Table 5. Amounts shown in the table may not add due to rounding.
Royalty Receipts was $729 million in the fourth quarter of 2024, an increase of 12% as compared to $651 million in the fourth quarter of
2023. The increase was primarily driven by strong growth from Evrysdi, the cystic fibrosis franchise, Trelegy, Xtandi and Tremfya. Royalty receipts from Evrysdi included the benefit of the additional royalties acquired in October 2023 and June 2024.
Portfolio Receipts was $742 million in the fourth quarter of 2024, an increase of 1% as compared to $736 million in the fourth quarter
of 2023. The increase was primarily driven by the same Royalty Receipts increases noted above, offset by a decrease in milestones and other contractual receipts, which reflected a $50 million payment related to the oral formulation of
zavegepant in the prior period.
Liquidity and Capital Resources
Royalty Pharma s liquidity and capital resources are summarized below:
As of December 31, 2024, Royalty Pharma had cash and cash equivalents of $929 million and total debt with principal value of $7.8 billion.
During the fourth quarter of 2024, Royalty Pharma repurchased approximately two million Class A ordinary shares for $50 million. For full year 2024,
Royalty Pharma repurchased approximately eight million Class A ordinary shares for $230 million. The weighted-average number of diluted Class A ordinary shares outstanding for the fourth quarter of 2024 was 589 million as
compared to 598 million for the fourth quarter of 2023. The weighted-average number of diluted Class A ordinary shares outstanding for full year 2024 was 594 million as compared to 603 million for full year 2023.
In January 2025, Royalty Pharma s Board of Directors authorized a new share repurchase program under
which Royalty Pharma may repurchase up to $3.0 billion of its Class A ordinary shares. Royalty Pharma intends to repurchase $2.0 billion of its shares in 2025, subject to market conditions. The total value of shares repurchased will
depend on the discount to the intrinsic value at which its Class A ordinary shares are trading. This new share repurchase program replaces the unused $465 million of the company s original $1.0 billion share repurchase program
that was announced in March 2023.
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
| (unaudited) | ||||||||
| ($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
| Portfolio Receipts | 742 | 736 | 2,801 | 3,049 | ||||
| Payments for operating and professional costs | (72) | (54) | (236) | (243) | ||||
| Adjusted EBITDA (non-GAAP) | 669 | 682 | 2,565 | 2,806 | ||||
| Interest received/(paid), net | 8 | 5 | (113) | (98) | ||||
| Portfolio Cash Flow (non-GAAP) | 678 | 687 | 2,452 | 2,708 |
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 was $522 million in the fourth quarter of 2024, consisting
primarily of the acquisitions of royalties on Niktimvo and Rytelo. Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $2.8 billion for full year 2024.
The table below details Capital Deployment by category:
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
| (unaudited) | ||||||||
| ($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
| Acquisitions of financial royalty assets | (496) | (1,002) | (2,506) | (2,116) | ||||
| Development-stage funding payments - upfront and milestone | (50) | |||||||
| Development-stage funding payments - ongoing | (1) | (1) | (2) | (2) | ||||
| Purchases of available for sale debt securities | (150) | |||||||
| Milestone payments | (25) | (75) | (12) | |||||
| Investments in equity method investees | (2) | (11) | (13) | |||||
| Acquisitions of other financial assets | (18) | |||||||
| Contributions from legacy non-controlling interests - R&D | 0 | 0 | 1 | 1 | ||||
| Capital Deployment | (522) | (1,005) | (2,761) | (2,192) |
Amounts may not add due to rounding.
In January 2025, Royalty Pharma announced the sale of the MorphoSys Development Funding Bonds for $511 million in upfront cash (press release).
This payment, combined with payments previously received, results in total cash proceeds of $530 million on the $300 million investment that was made in September 2022. The proceeds strengthen Royalty Pharma s balance sheet and
provide added flexibility to pursue its disciplined capital allocation strategy.
Royalty Transactions
For full year 2024, Royalty Pharma announced new transactions of up to approximately $2.8 billion. The announced transactions amount reflects the entire
amount of capital committed for new transactions during the year, including potential future milestones.
Recent transactions include:
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
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 structure.
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 existing debt.
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 transaction is estimated to close during the second quarter of 2025.
Relating to the Portfolio
The key developments related to Royalty Pharma s royalty interests are discussed below based on disclosures from the
marketers of the products.
| 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. | |
| Cystic fibrosis franchise | In December 2024, Vertex announced the U.S. Food and Drug Administration (FDA) approval of the new triple-combination modulator Alyftrek (vanzacaftor triple) for the treatment of cystic fibrosis in people ages 6 and older with at least one responsive mutation. In November 2024, Vertex announced that it had completed regulatory submissions for the vanzacaftor triple in the European Union, the United Kingdom, Canada, Australia, New Zealand and Switzerland, and reviews are underway. | |
| Skytrofa | In December 2024, Ascendis announced the U.S. FDA accepted for review its supplemental Biologics License Application (sBLA) in adult growth hormone deficiency for Skytrofa. The FDA set a Prescription Drug User Fee Act (PDUFA) goal date of July 27, 2025. | |
| aficamten | In December 2024, Cytokinetics announced that the FDA accepted its New Drug Application (NDA) for aficamten for the treatment of Obstructive Hypertrophic Cardiomyopathy. The FDA has assigned the NDA a Prescription Drug User Fee Act date of September 26, 2025. Additionally, the European Medicines Agency validated the Marketing Authorization Application for aficamten, and it will now be reviewed by the Committee for Medicinal Products for Human Use (CHMP). | |
| Trodelvy | In November 2024, Gilead announced plans to voluntarily withdraw the U.S. accelerated approval of Trodelvy for use in pre-treated adult patients with locally advanced or metastatic urothelial cancer, following the results of the Phase 3 TROPiCS-04 trial. |
| Airsupra | In October 2024, AstraZeneca announced that positive high-level results from the BATURA Phase 3b trial showed Airsupra met the primary endpoint, demonstrating a statistically significant and clinically meaningful reduction in the risk of a severe exacerbation when used as an as-needed rescue medication in response to symptoms compared to as-needed albuterol. These positive results triggered a milestone payment from AstraZeneca, of which Royalty Pharma received its pro rata portion of $27 million in January 2025. | |
| MK-8189 | In October 2024, Merck updated its public disclosures to remove MK-8189 from its pipeline chart and Royalty Pharma does not anticipate making a further investment in this program. | |
| pelabresib | In October 2024, Novartis announced that based on its review of 48-week data from the Phase 3 MANIFEST-2 study, longer follow-up time is needed to determine the regulatory path for pelabresib in myelofibrosis. Novartis will continue to follow patients in MANIFEST-2 and evaluate the potential for additional studies to support registration. | |
| trontinemab | In October 2024, Roche presented its latest Phase 1b/2a interim results for trontinemab at the Clinical Trials on Alzheimer s Disease (CTAD) conference, which demonstrated rapid and robust amyloid plaque depletion after 12 to 28 weeks of treatment and an overall favorable safety profile with very limited amyloid related imaging abnormalities (ARIA-E) observed. |
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 February 11, 2025 | ||
| Portfolio Receipts | $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 (1) | |
| Interest paid | $260 million |
The above Portfolio Receipts guidance represents expected growth of 4% to 9% 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 to be 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 is anticipated to be approximately $138 million in the first quarter of 2025, which includes the first interest payment on the $1.5 billion notes issued in June 2024. 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 2024, Royalty Pharma collected interest of $46 million on its cash and cash equivalents.
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 fourth quarter and full year 2024 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 14 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 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,