RPRX · Royalty Pharma plc

Royalty Pharma delivered a robust start to 2026 with Portfolio Receipts of $925 million, reflecting 10% growth from $839 million in Q1 2025, primarily fueled by 13% Royalty Receipts expansion to $887 million. Key drivers included Tremfya (up 79% to $64 million), Voranigo (up 140% to $47 million), and Evrysdi (up 51% to $80 million), partially offset by Promacta declines due to U.S. generic competition. Milestones and other receipts fell 25% to $38 million. CEO Pablo Legorreta highlighted strong transaction activity, including up to $1.25 billion in royalties and novel R&D co-funding deals with Johnson & Johnson on JNJ-4804 ($500 million over two years for autoimmune diseases) and Teva on TEV-’408 (up to $500 million for vitiligo). Positive portfolio updates featured Phase 3 successes for daraxonrasib in pancreatic cancer and Myqorzo in hypertrophic cardiomyopathy, FDA approvals for Avlayah and Spinraza high-dose, and neladalkib NDA submission. The company raised full-year 2026 Portfolio Receipts guidance to $3,325-$3,450 million (prior: $3,275-$3,425 million), implying 4-8% Royalty Receipts growth, with payments for operating costs at 5.5-6.5% of receipts (down from 8.9% in 2025 post-internalization) and interest paid $350-$360 million. Liquidity remains solid with $718 million operating cash flow (up 20%), $586 million cash, and $9.2 billion debt. Capital deployment of $528 million supported acquisitions like Ziihera ($250 million). Shareholder returns included a $0.235/share dividend ($136 million) and $50 million share repurchases under a $3 billion program, reducing diluted shares 4% to 557 million.