Royalty Pharma PLC

Latest Results (07.08.2024):

Strong Royalty Receipts Growth

In the first quarter of 2024, Royalty Pharma PLC reported a 14% increase in Royalty Receipts, reaching $705 million. This growth was driven by strong performance in their portfolio, particularly from royalties on Evrysdi, Trelegy, and the cystic fibrosis franchise.

Portfolio Receipts Decline

Royalty Pharma PLC's Portfolio Receipts for Q1 2024 were $717 million, a 37% decrease from $1,131 million in the same period of 2023. This decline was primarily due to a high base of comparison, including a $475 million Biohaven-related milestone payment received in Q1 2023.

Capital Deployment

During the first quarter of 2024, Royalty Pharma PLC deployed approximately $670 million in capital. This includes a significant transaction to acquire royalties on Sanofi’s frexalimab, a potential multi-blockbuster in Phase 3 development for multiple sclerosis, for around $525 million including estimated transaction costs.

Financial Guidance for 2024

Royalty Pharma PLC has provided financial guidance for the full year 2024, excluding contributions from future transactions. The company expects Portfolio Receipts to be between $2,600 million and $2,700 million, with anticipated growth in Royalty Receipts of 5% to 9%.

Liquidity and Capital Resources

As of March 31, 2024, Royalty Pharma PLC had cash and cash equivalents of $843 million and total debt with a principal value of $6.3 billion. Adjusted EBITDA for Q1 2024 was $656 million, while Portfolio Cash Flow was $584 million, reflecting the cash generated by the business that can be redeployed into value-enhancing royalty acquisitions or other investments.