Royalty Pharma Reports Strong Q4 and Full Year 2024 Results, Guidance for 2025

Royalty Pharma plc (Nasdaq: RPRX), a leading buyer of biopharmaceutical royalties, reported its fourth quarter and full year 2024 financial results on February 11, 2025. The company delivered strong performance, driven by double-digit growth in Royalty Receipts and a robust transaction pipeline. Here's a summary of the key highlights and what they mean for investors.



Strong Royalty Receipts Growth

* Royalty Receipts grew 12% to $729 million in the fourth quarter of 2024 and 13% to $2,771 million for the full year 2024.
* The growth was driven by strong performance from Evrysdi, the cystic fibrosis franchise, Trelegy, Xtandi, and Tremfya.
* Royalty receipts from Evrysdi included the benefit of additional royalties acquired in October 2023 and June 2024.

Portfolio Receipts and Capital Deployment

* Portfolio Receipts increased 1% to $742 million in the fourth quarter of 2024 and decreased 8% from $3,049 million to $2,801 million for the full year 2024.
* Capital Deployment of $2.8 billion in 2024 included royalties on eight new therapies added to the portfolio.
* Royalty Pharma significantly expanded its development-stage portfolio by acquiring royalties on four potential new therapies.

New Product Launches and Guidance for 2025

* Royalty Pharma expects to benefit from new product launches in 2025, including Servier's Voranigo, Bristol Myers Squibb's Cobenfy, Ascendis' Yorvipath, Syndax and Incyte's Niktimvo, and Geron's Rytelo.
* The company provided full year 2025 guidance for Portfolio Receipts, expecting them to be between $2,900 million and $3,050 million, representing expected growth of 4% to 9%.



Enhancing Shareholder Value

* Royalty Pharma's acquisition of its external manager and the new $3 billion share repurchase program are expected to enhance shareholder value by improving operational efficiency, reducing costs, and increasing alignment with the company's long-term goals.
* The company's robust transaction pipeline and significant financial flexibility position it well to deliver attractive, compounding growth over the long term.

In conclusion, Royalty Pharma's strong performance in 2024, particularly in Royalty Receipts growth, reflects the resilience and potential of the biopharmaceutical industry. The company's acquisition of its external manager and the new share repurchase program are expected to enhance shareholder value, while its robust transaction pipeline and significant financial flexibility position it well for future growth. Investors should consider Royalty Pharma as a strong investment opportunity in the biopharmaceutical royalty market.