Royalty Pharma (RPRX)
Market Price (2/6/2026): $43.51 | Market Cap: $18.8 BilSector: Health Care | Industry: Biotechnology
Royalty Pharma (RPRX)
Market Price (2/6/2026): $43.51Market Cap: $18.8 BilSector: Health CareIndustry: Biotechnology
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.0%, FCF Yield is 13% | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% | Key risksRPRX key risks include [1] its dependence on the sales and pricing of the biopharmaceutical products underlying its royalties, Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 65% | Weak multi-year price returns3Y Excs Rtn is -45% | |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 102%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 102%, CFO LTM is 2.4 Bil, FCF LTM is 2.4 Bil | ||
| Low stock price volatilityVol 12M is 23% | ||
| Megatrend and thematic driversMegatrends include Precision Medicine, and Aging Population & Chronic Disease. Themes include Biopharmaceutical R&D, and Oncology Treatments. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.0%, FCF Yield is 13% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 65% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 102%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 102%, CFO LTM is 2.4 Bil, FCF LTM is 2.4 Bil |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Precision Medicine, and Aging Population & Chronic Disease. Themes include Biopharmaceutical R&D, and Oncology Treatments. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Weak multi-year price returns3Y Excs Rtn is -45% |
| Key risksRPRX key risks include [1] its dependence on the sales and pricing of the biopharmaceutical products underlying its royalties, Show more. |
Qualitative Assessment
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Royalty Pharma (RPRX) stock has gained about 20% since 10/31/2025 because of the following key factors:
1. Royalty Pharma reported strong third-quarter 2025 financial results on November 5, 2025, surpassing analyst expectations for both revenue and earnings per share. The company reported $814 million in revenue against an estimated $754 million, and non-GAAP EPS of $1.17 compared to an estimated $1.06. This robust performance, driven by an 11% year-over-year growth in Portfolio Receipts, led to an upward revision of its full-year 2025 guidance, signaling management's confidence in continued financial strength.
2. The company received bullish sentiment and increased price targets from financial analysts during this period. As of early February 2026, Royalty Pharma had nine "buy" ratings and no "hold" or "sell" recommendations, with an average target price suggesting a potential upside of over 15%. Notably, UBS upgraded Royalty Pharma to a "Buy" rating from "Neutral," and Citi also raised its price target for the stock.
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1. Royalty Pharma reported strong third-quarter 2025 financial results on November 5, 2025, surpassing analyst expectations for both revenue and earnings per share. The company reported $814 million in revenue against an estimated $754 million, and non-GAAP EPS of $1.17 compared to an estimated $1.06. This robust performance, driven by an 11% year-over-year growth in Portfolio Receipts, led to an upward revision of its full-year 2025 guidance, signaling management's confidence in continued financial strength.
2. The company received bullish sentiment and increased price targets from financial analysts during this period. As of early February 2026, Royalty Pharma had nine "buy" ratings and no "hold" or "sell" recommendations, with an average target price suggesting a potential upside of over 15%. Notably, UBS upgraded Royalty Pharma to a "Buy" rating from "Neutral," and Citi also raised its price target for the stock.
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Stock Movement Drivers
Fundamental Drivers
The 18.1% change in RPRX stock from 10/31/2025 to 2/5/2026 was primarily driven by a 60.7% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 2052026 | Change |
|---|---|---|---|
| Stock Price ($) | 37.33 | 44.10 | 18.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,305 | 2,350 | 1.9% |
| Net Income Margin (%) | 44.3% | 32.6% | -26.5% |
| P/E Multiple | 15.5 | 24.9 | 60.7% |
| Shares Outstanding (Mil) | 424 | 432 | -1.9% |
| Cumulative Contribution | 18.1% |
Market Drivers
10/31/2025 to 2/5/2026| Return | Correlation | |
|---|---|---|
| RPRX | 18.1% | |
| Market (SPY) | -0.7% | 17.8% |
| Sector (XLV) | 7.3% | 37.1% |
Fundamental Drivers
The 21.2% change in RPRX stock from 7/31/2025 to 2/5/2026 was primarily driven by a 71.7% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 2052026 | Change |
|---|---|---|---|
| Stock Price ($) | 36.38 | 44.10 | 21.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,264 | 2,350 | 3.8% |
| Net Income Margin (%) | 48.3% | 32.6% | -32.5% |
| P/E Multiple | 14.5 | 24.9 | 71.7% |
| Shares Outstanding (Mil) | 435 | 432 | 0.8% |
| Cumulative Contribution | 21.2% |
Market Drivers
7/31/2025 to 2/5/2026| Return | Correlation | |
|---|---|---|
| RPRX | 21.2% | |
| Market (SPY) | 7.5% | 11.2% |
| Sector (XLV) | 19.3% | 41.3% |
Fundamental Drivers
The 43.2% change in RPRX stock from 1/31/2025 to 2/5/2026 was primarily driven by a 106.8% change in the company's P/E Multiple.| (LTM values as of) | 1312025 | 2052026 | Change |
|---|---|---|---|
| Stock Price ($) | 30.80 | 44.10 | 43.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,266 | 2,350 | 3.7% |
| Net Income Margin (%) | 50.5% | 32.6% | -35.6% |
| P/E Multiple | 12.0 | 24.9 | 106.8% |
| Shares Outstanding (Mil) | 448 | 432 | 3.6% |
| Cumulative Contribution | 43.2% |
Market Drivers
1/31/2025 to 2/5/2026| Return | Correlation | |
|---|---|---|
| RPRX | 43.2% | |
| Market (SPY) | 13.6% | 30.3% |
| Sector (XLV) | 6.8% | 44.5% |
Fundamental Drivers
The 22.0% change in RPRX stock from 1/31/2023 to 2/5/2026 was primarily driven by a 44.3% change in the company's Net Income Margin (%).| (LTM values as of) | 1312023 | 2052026 | Change |
|---|---|---|---|
| Stock Price ($) | 36.14 | 44.10 | 22.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,247 | 2,350 | 4.6% |
| Net Income Margin (%) | 22.6% | 32.6% | 44.3% |
| P/E Multiple | 31.3 | 24.9 | -20.5% |
| Shares Outstanding (Mil) | 439 | 432 | 1.7% |
| Cumulative Contribution | 22.0% |
Market Drivers
1/31/2023 to 2/5/2026| Return | Correlation | |
|---|---|---|
| RPRX | 22.0% | |
| Market (SPY) | 72.9% | 22.2% |
| Sector (XLV) | 21.5% | 37.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RPRX Return | -19% | 1% | -27% | -6% | 55% | 13% | -2% |
| Peers Return | 19% | 6% | 15% | 20% | 27% | 4% | 130% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 83% |
Monthly Win Rates [3] | |||||||
| RPRX Win Rate | 50% | 50% | 33% | 42% | 67% | 100% | |
| Peers Win Rate | 57% | 55% | 52% | 57% | 63% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| RPRX Max Drawdown | -29% | -6% | -32% | -11% | 0% | 0% | |
| Peers Max Drawdown | -15% | -16% | -18% | -3% | -11% | -5% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: INVA, XOMA, LLY, JNJ, ABBV. See RPRX Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 2/5/2026 (YTD)
How Low Can It Go
| Event | RPRX | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -50.4% | -25.4% |
| % Gain to Breakeven | 101.5% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -30.7% | -33.9% |
| % Gain to Breakeven | 44.3% | 51.3% |
| Time to Breakeven | 90 days | 148 days |
Compare to INVA, XOMA, LLY, JNJ, ABBV
In The Past
Royalty Pharma's stock fell -50.4% during the 2022 Inflation Shock from a high on 1/26/2021. A -50.4% loss requires a 101.5% gain to breakeven.
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About Royalty Pharma (RPRX)
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies. Its portfolio consists of royalties on approximately 35 marketed therapies and 10 development-stage product candidates that address various therapeutic areas, such as rare disease, cancer, neurology, infectious disease, hematology, and diabetes. The company was founded in 1996 and is based in New York, New York.
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- Like a Hipgnosis Songs Fund, but for pharmaceutical royalties instead of music catalogs.
- Similar to a Real Estate Investment Trust (REIT) like Prologis or Simon Property Group, but it owns a portfolio of income-generating drug royalty streams instead of buildings.
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- Acquired Pharmaceutical Royalties: Royalty Pharma purchases existing royalty interests in approved biopharmaceutical products and late-stage product candidates.
- Drug Development Funding: It provides financing to biopharmaceutical companies and research institutions in exchange for future royalties on their drug development programs.
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Royalty Pharma (RPRX) operates a unique business model focused on acquiring biopharmaceutical royalties. Therefore, its "customers" are the pharmaceutical companies that market the underlying drugs and pay royalties to Royalty Pharma. Royalty Pharma sells primarily to other companies. Here are some of Royalty Pharma's major customers (i.e., the companies responsible for paying significant royalties on marketed products):- GSK PLC (Symbol: GSK) - Responsible for royalties on products like Trelegy Ellipta.
- Pfizer Inc. (Symbol: PFE) and Astellas Pharma Inc. (not directly listed on a US exchange, but a major global pharmaceutical company) - Jointly responsible for royalties on Xtandi.
- Biogen Inc. (Symbol: BIIB) - Responsible for royalties on products like Spinraza and Tysabri.
- Novartis AG (Symbol: NVS) - Responsible for royalties on products like Promacta/Revolade.
- F. Hoffmann-La Roche Ltd (a private Swiss multinational healthcare company, often through its US subsidiary Genentech) - Responsible for royalties on products like Evrysdi.
- argenx SE (Symbol: ARGX) - Responsible for royalties on products like Vyvgart.
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- Vertex Pharmaceuticals Incorporated (Symbol: VRTX)
- AbbVie Inc. (Symbol: ABBV)
- Johnson & Johnson (Symbol: JNJ)
- Neurocrine Biosciences, Inc. (Symbol: NBIX)
- BioCryst Pharmaceuticals, Inc. (Symbol: BCRX)
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Pablo Legorreta Founder & Chief Executive Officer
Pablo Legorreta is the founder, CEO, and Chairman of Royalty Pharma plc, having established the company in 1996 and pioneering the royalty funding of life science innovation. Under his leadership, Royalty Pharma has deployed over $25 billion of capital to advance innovation in the biopharmaceutical industry. Legorreta is also a co-founder of Pharmakon Advisors, a leading provider of debt capital to the life sciences industry, and ProKidney, LLC, a biotech company. Prior to founding Royalty Pharma, he worked as an investment banker at Lazard Frères in Paris and New York. He led Royalty Pharma through a successful IPO in 2020.
Terrance Coyne Chief Financial Officer
Terrance Coyne joined Royalty Pharma in 2010. Before his tenure at Royalty Pharma, he served as a biotechnology analyst at JP Morgan and Rodman & Renshaw. He began his career at Wyeth Pharmaceuticals.
Marshall Urist, MD, PhD Head of Research & Investments
Dr. Marshall Urist joined Royalty Pharma in 2013. Prior to this, he was an executive director and the senior biotechnology analyst at Morgan Stanley. He holds a BA from Johns Hopkins University, and both a PhD and an MD from Columbia University.
George Lloyd Chief Legal Officer & Investments
George Lloyd joined Royalty Pharma in 2011, having previously represented the company on all transactional work since 2006. He is responsible for leading the legal and compliance functions, as well as focusing on transaction structuring and execution. Before joining Royalty Pharma, Lloyd was a partner in Goodwin Procter's Private Equity group and an associate at Davis, Polk & Wardwell. From 2002 to 2003, he served as the chief financial officer and general counsel for the Asian operations of one of his clients. His legal practice encompassed public and private mergers and acquisitions, leveraged buyouts, venture capital financing, and general corporate representation for private equity firms, corporations, entrepreneurs, and investment banks.
Christopher Hite Vice Chairman
Christopher Hite joined Royalty Pharma in 2020. He brings over 25 years of experience in advising biopharmaceutical companies on mergers and acquisitions and capital formation. Before Royalty Pharma, Hite was an investment banker at Citi for nearly 12 years, where he was the Global Head of Healthcare and later a Vice Chairman of Banking, Capital Markets and Advisory. Prior to Citi, he held the position of Global Head of Healthcare Investment Banking at Lehman Brothers. He advised on major healthcare M&A transactions, including the sale of Celgene to Bristol-Myers Squibb for $90 billion and Shire to Takeda Pharmaceuticals for $82 billion. Hite also served on the Board of Directors of Acceleron Pharma Inc. until its $11.5 billion acquisition by Merck.
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The key risks to Royalty Pharma's business include the following:
- Risks related to the sales and pricing of underlying biopharmaceutical products: Royalty Pharma's revenue streams are directly dependent on the sales performance of the biopharmaceutical products from which it receives royalties. This includes risks such as patent expirations, increased competition from generic or biosimilar drugs, adverse regulatory actions affecting product approvals or labeling, and political and regulatory pressures on drug pricing that could lead to reduced revenue.
- Challenges in acquiring new royalty assets: A core component of Royalty Pharma's growth strategy is the identification and acquisition of new royalty interests. There is a risk that the royalty market may not grow at historical rates, or that the company may face intensified competition for suitable assets, making it difficult to acquire a sufficient number of royalties, or royalties of sufficient scale, to sustain its growth strategy.
- Risks associated with development-stage product candidates: Royalty Pharma may acquire royalties on development-stage biopharmaceutical product candidates that have not yet received marketing approval or been commercialized. These investments carry additional risks and uncertainties, as there is no guarantee that such candidates will successfully complete clinical trials, receive regulatory approval, or achieve market acceptance, which could adversely affect the projected returns from these assets.
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The Inflation Reduction Act (IRA) in the U.S. and its provisions for drug price negotiation represent a clear emerging threat to Royalty Pharma's business model. The IRA empowers Medicare to negotiate drug prices for certain high-cost, long-marketed drugs, with the list of negotiable drugs expanding over time. Since Royalty Pharma's core business involves acquiring royalties based on the sales revenue of approved pharmaceutical products, any government-mandated reduction in drug prices directly impacts the revenue streams from which these royalties are paid. This ongoing regulatory shift reduces the potential value of future royalty acquisitions and could diminish the future income generated from its existing portfolio, fundamentally altering the economics of the pharmaceutical market that underpins Royalty Pharma's assets.
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Royalty Pharma (RPRX) holds royalty interests in a diverse portfolio of therapies across several major disease areas. The addressable markets for their main products or services are sized as follows:
-
HIV Drugs Market:
- The global HIV drugs market was valued at approximately USD 34.8 billion in 2024 and is projected to reach USD 53.5 billion by 2034. Other estimates for the global market include USD 36.22 billion in 2024, rising to USD 66.16 billion by 2034, and USD 32.85 billion in 2024, anticipated to reach USD 45.07 billion by 2033. Another forecast estimates the global market at USD 34.75 billion in 2024, growing to USD 52.95 billion by 2034. The global human immunodeficiency virus (HIV) market size was valued at USD 36.87 billion in 2024 and is projected to reach USD 59.66 billion by 2032.
- In the U.S., the HIV drugs market is estimated at USD 13.27 billion in 2025 and is projected to reach USD 23.23 billion by 2034.
- North America dominated the HIV drugs market in 2024, holding a significant share of over 45%.
-
Cystic Fibrosis (CF) Therapeutics Market:
- The global cystic fibrosis therapeutics market is estimated at USD 12.05 billion in 2025 and is expected to reach USD 21.11 billion by 2030. Other estimations place the global market size at USD 10.34 billion in 2024, growing to USD 11.81 billion in 2025, and projected to reach USD 39.15 billion by 2034. Another source anticipates the global market to reach $28.1 billion by 2033. The market for cystic fibrosis was estimated at USD 6.84 billion in 2024 and is projected to grow from USD 7.726 billion in 2025 to USD 26.12 billion by 2035. The cystic fibrosis therapeutics market was valued at $12.9 billion in 2024 and is estimated to reach $32.3 billion by 2034.
- North America dominated the global cystic fibrosis therapeutics market in 2024. It is considered the largest market, accounting for approximately 45% of the global market share.
-
Oncology/Cancer Drugs Market:
- The global oncology/cancer drugs market was valued at $167.0 billion in 2023 and is projected to reach $335.2 billion by 2033. Another report indicates the global oncology market size was calculated at US$ 225.05 billion in 2024, grew to US$ 251.01 billion in 2025, and is projected to reach around US$ 600.97 billion by 2034. The global oncology drugs market size was valued at USD 201.75 billion in 2023 and is projected to grow from USD 220.80 billion in 2024 to USD 518.25 billion by 2032. Global spending on cancer medicine increased to $223 billion in 2023 and is projected to reach $409 billion by 2028.
- North America held approximately a 43% share in the global oncology market in 2024. It dominated the oncology/cancer drugs market share in 2023.
- The U.S. oncology market is valued at US$ 81.34 billion in 2025 and is projected to reach US$ 211.78 billion by 2034. The U.S. cancer/oncology drugs market size was estimated at USD 48.66 billion in 2023 and is expected to be worth around USD 161.29 billion by 2034.
-
Multiple Sclerosis (MS) Drugs Market:
- The global multiple sclerosis drugs market accounted for USD 21.26 billion in 2024 and is predicted to increase from USD 22.96 billion in 2025 to approximately USD 45.90 billion by 2034. Other estimates for the global market include USD 25.0 billion in 2024, growing to USD 5.0% from 2025 to 2034, and USD 28.28 billion in 2024, projected to grow to USD 39.39 billion by 2033. The global multiple sclerosis therapeutic market size was estimated at USD 27.39 billion in 2024 and is projected to reach USD 38.62 billion by 2030. The global multiple sclerosis drugs market size was valued at USD 21.33 billion in 2023 and is projected to grow from USD 21.16 billion in 2024 to USD 38.94 billion by 2032.
- North America dominated the global multiple sclerosis drugs market with the largest share of 49% in 2024. It held the largest market share in 2024. North America dominated the multiple sclerosis drugs market with a market share of 48.2% in 2023.
- The U.S. multiple sclerosis drugs market size was exhibited at USD 7.81 billion in 2024 and is projected to be worth around USD 17.15 billion by 2034.
-
Neuroscience/Neurology Drugs Market:
- The global neuroscience market (which includes diagnostics and other therapies, not just drugs) was valued at $612 billion in 2022 and is forecast to grow to $721 billion by 2026. Pharmacological interventions for neurological conditions specifically accounted for $60 billion in 2022 globally. The global neuroscience market size was estimated at USD 44.65 billion in 2023 and is projected to reach USD 65.22 billion by 2030. The global neurology drugs market size was valued at USD 82.47 billion in 2024 and is projected to grow from USD 87.26 billion in 2025 to USD 134.15 billion by 2032. The global neurological disorder drugs market size was valued at USD 94.30 billion in 2024 and is projected to reach USD 149.17 billion by 2032. The global Neurology Drug Market size was valued at USD 130 billion in 2024 and is projected to expand to USD 220 billion by 2032.
- North America accounted for the largest market share of 31.42% in the neuroscience market in 2022. It dominated the neurology drugs market with a market share of 50.96% in 2024. North America dominates the neurological disorder drugs market.
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Royalty Pharma (RPRX) is expected to drive future revenue growth over the next 2-3 years through several key factors:
- Continued Strong Performance of Diversified Royalty Portfolio: Royalty Pharma's existing portfolio, including key products like Voranigo, Tremfya, and the Cystic Fibrosis Franchise, continues to demonstrate robust performance and is a significant driver of revenue growth. These products contributed to an 11% increase in portfolio receipts in Q3 2025.
- Strategic Acquisition of New Royalty Interests: The company actively deploys capital to acquire new royalty interests, a core component of its growth strategy. In the first nine months of 2025, Royalty Pharma deployed $1.7 billion in attractive royalty deals, including recent acquisitions of royalties on Amgen's Imdelltra, a funding agreement for Zenas BioPharma's obexelimab, and Alnylam's Amvuttra.
- Progression and Commercialization of Development-Stage Pipeline Therapies: Royalty Pharma has expanded its development-stage pipeline to 17 therapies, with multiple pivotal readouts anticipated in the near future. Successful advancement and eventual commercialization of these therapies are expected to contribute to future revenue streams.
- Overall Growth of the Biopharma Royalty Market: The biopharma royalty market is experiencing rapid expansion, doubling over the past five years since Royalty Pharma's 2020 IPO. This growing market provides a favorable environment for Royalty Pharma to continue funding life sciences innovation and acquiring new royalty assets.
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Share Repurchases
- Royalty Pharma's Board of Directors approved a new $3.0 billion share repurchase program in January 2025, replacing the unused portion of a previous program, with the intention to repurchase $2.0 billion of shares in 2025.
- The company repurchased approximately $1.2 billion in shares during the first nine months of 2025.
- In 2023, Royalty Pharma repurchased approximately 10 million shares for $305 million under its then-active $1.0 billion share repurchase program.
Share Issuance
- In January 2025, Royalty Pharma's acquisition of its external manager, RP Management, LLC, involved the issuance of approximately 24.5 million shares of Royalty Pharma equity, vesting over 5 to 9 years, as part of the approximately $1.1 billion total transaction value.
- The company reported no material share-based compensation expense related to equity incentive plans in 2021, 2022, and 2023, indicating minimal share issuance for these purposes.
Outbound Investments
- Royalty Pharma deployed approximately $2.8 billion in royalty transactions during 2024, contributing to a total of roughly $15.5 billion in announced transactions since 2020.
- In 2023, the company invested $2.2 billion in royalties, milestones, and other contractual receipts, with new announced transactions totaling up to $4.0 billion.
- During 2025, Royalty Pharma announced new transactions of up to $3.8 billion, including significant investments such as a royalty interest in Amgen's Imdelltra for up to $950 million, a funding agreement on obexelimab with Zenas BioPharma for up to $300 million, and a royalty interest in Alnylam's Amvuttra for $310 million.
Capital Expenditures
- Royalty Pharma consistently reports a lack of material capital expenditures, attributing this to its business model which contributes to a strong financial profile, high operating leverage, and strong cash flow conversion.
- Financial reports indicate negligible capital expenditures, with $0.00 reported across several annual and quarterly statements within the last 3-5 years.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 131.56 |
| Mkt Cap | 203.2 |
| Rev LTM | 30,885 |
| Op Inc LTM | 7,949 |
| FCF LTM | 4,421 |
| FCF 3Y Avg | 1,998 |
| CFO LTM | 9,234 |
| CFO 3Y Avg | 6,050 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.8% |
| Rev Chg 3Y Avg | 4.6% |
| Rev Chg Q | 8.5% |
| QoQ Delta Rev Chg LTM | 2.1% |
| Op Mgn LTM | 43.8% |
| Op Mgn 3Y Avg | 31.7% |
| QoQ Delta Op Mgn LTM | 1.1% |
| CFO/Rev LTM | 39.2% |
| CFO/Rev 3Y Avg | 31.7% |
| FCF/Rev LTM | 37.8% |
| FCF/Rev 3Y Avg | 27.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 203.2 |
| P/S | 7.3 |
| P/EBIT | 14.9 |
| P/E | 23.8 |
| P/CFO | 21.1 |
| Total Yield | 6.3% |
| Dividend Yield | 1.3% |
| FCF Yield 3Y Avg | 5.3% |
| D/E | 0.2 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 3.5% |
| 3M Rtn | 6.8% |
| 6M Rtn | 18.7% |
| 12M Rtn | 20.2% |
| 3Y Rtn | 63.9% |
| 1M Excs Rtn | 5.6% |
| 3M Excs Rtn | 14.6% |
| 6M Excs Rtn | 12.0% |
| 12M Excs Rtn | 9.2% |
| 3Y Excs Rtn | -4.5% |
Segment Financials
Revenue by Segment| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Cystic fibrosis franchise | 852 | 809 | 763 | 612 | 423 |
| Other products | 629 | 630 | 508 | 521 | 297 |
| Imbruvica | 173 | 311 | 385 | 396 | 349 |
| Tysabri | 168 | 207 | 211 | 218 | 227 |
| Other royalty income and revenues | 157 | 75 | 53 | 19 | 20 |
| Tremfya | 150 | 110 | 17 | ||
| Trelegy | 128 | 58 | |||
| Evrysdi | 98 | ||||
| Revenue from intangible royalty assets | 37 | 171 | 143 | 146 | |
| Zavzpret | 0 | ||||
| Promacta | 73 | 53 | |||
| Xtandi | 108 | 103 | 100 | ||
| Tazverik | 56 | ||||
| HIV franchise | 254 | ||||
| Total | 2,355 | 2,237 | 2,289 | 2,122 | 1,814 |
Price Behavior
Price Behavior
| Market Price | $44.10 | |
| Market Cap ($ Bil) | 19.0 | |
| First Trading Date | 06/16/2020 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $39.85 | $36.49 |
| DMA Trend | up | up |
| Distance from DMA | 10.7% | 20.9% |
| 3M | 1YR | |
| Volatility | 21.2% | 22.9% |
| Downside Capture | 29.90 | 30.76 |
| Upside Capture | 77.08 | 64.04 |
| Correlation (SPY) | 23.1% | 30.7% |
RPRX Betas & Captures as of 1/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.74 | 0.85 | 0.48 | 0.31 | 0.37 | 0.35 |
| Up Beta | 1.53 | 1.42 | 0.92 | 0.24 | 0.35 | 0.31 |
| Down Beta | 0.33 | 0.28 | -0.24 | -0.15 | 0.23 | 0.25 |
| Up Capture | 158% | 125% | 103% | 61% | 51% | 14% |
| Bmk +ve Days | 11 | 22 | 34 | 71 | 142 | 430 |
| Stock +ve Days | 13 | 22 | 33 | 71 | 146 | 384 |
| Down Capture | 11% | 95% | 43% | 48% | 47% | 70% |
| Bmk -ve Days | 9 | 19 | 27 | 54 | 109 | 321 |
| Stock -ve Days | 7 | 19 | 27 | 52 | 101 | 354 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RPRX | |
|---|---|---|---|---|
| RPRX | 44.8% | 22.8% | 1.55 | - |
| Sector ETF (XLV) | 6.7% | 17.3% | 0.22 | 44.6% |
| Equity (SPY) | 13.6% | 19.3% | 0.54 | 30.3% |
| Gold (GLD) | 69.7% | 24.7% | 2.11 | -3.3% |
| Commodities (DBC) | 7.1% | 16.6% | 0.24 | -4.5% |
| Real Estate (VNQ) | 4.4% | 16.5% | 0.09 | 30.4% |
| Bitcoin (BTCUSD) | -26.6% | 40.5% | -0.66 | 8.3% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RPRX | |
|---|---|---|---|---|
| RPRX | 1.0% | 24.8% | 0.03 | - |
| Sector ETF (XLV) | 7.7% | 14.4% | 0.35 | 40.5% |
| Equity (SPY) | 14.4% | 17.0% | 0.67 | 32.8% |
| Gold (GLD) | 20.8% | 16.9% | 1.01 | 6.4% |
| Commodities (DBC) | 11.7% | 18.9% | 0.50 | 8.4% |
| Real Estate (VNQ) | 5.2% | 18.8% | 0.18 | 35.4% |
| Bitcoin (BTCUSD) | 16.0% | 57.4% | 0.49 | 15.1% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RPRX | |
|---|---|---|---|---|
| RPRX | 1.1% | 27.2% | 0.10 | - |
| Sector ETF (XLV) | 10.8% | 16.5% | 0.54 | 37.7% |
| Equity (SPY) | 15.5% | 17.9% | 0.74 | 32.2% |
| Gold (GLD) | 15.4% | 15.5% | 0.83 | 4.8% |
| Commodities (DBC) | 7.9% | 17.6% | 0.37 | 9.4% |
| Real Estate (VNQ) | 6.0% | 20.7% | 0.26 | 32.7% |
| Bitcoin (BTCUSD) | 69.0% | 66.5% | 1.08 | 13.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/5/2025 | 6.8% | 3.5% | 5.6% |
| 8/6/2025 | -2.1% | -5.4% | -2.1% |
| 5/8/2025 | 1.1% | -1.4% | 3.8% |
| 2/11/2025 | 1.7% | 3.6% | 4.3% |
| 11/6/2024 | -3.3% | -5.6% | -3.4% |
| 8/8/2024 | -4.0% | -2.2% | 6.1% |
| 5/9/2024 | -0.1% | 0.8% | -1.2% |
| 2/15/2024 | 3.2% | 6.6% | 3.4% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 10 | 10 | 12 |
| # Negative | 12 | 12 | 10 |
| Median Positive | 1.4% | 3.5% | 4.7% |
| Median Negative | -1.0% | -2.0% | -3.3% |
| Max Positive | 6.8% | 7.3% | 11.7% |
| Max Negative | -5.6% | -11.3% | -7.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/12/2025 | 10-K |
| 09/30/2024 | 11/06/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/09/2024 | 10-Q |
| 12/31/2023 | 02/15/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/15/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 02/15/2022 | 10-K |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Coyne, Terrance P | EVP & CFO | TPC RP 2021, LLC | Sell | 1062026 | 38.42 | 65,832 | 2,528,982 | 17,703,030 | Form |
| 2 | Coyne, Terrance P | EVP & CFO | TPC RP EPA1 LLC | Sell | 1062026 | 38.42 | 3,750 | 144,059 | 1,527,408 | Form |
| 3 | Urist, Marshall | EVP, Research & Investments | Sandy Lamm LLC | Sell | 1062026 | 38.48 | 20,000 | 769,650 | 3,078,600 | Form |
| 4 | Urist, Marshall | EVP, Research & Investments | Sandy Lamm LLC | Sell | 12292025 | 39.32 | 20,000 | 786,380 | 3,931,900 | Form |
| 5 | Urist, Marshall | EVP, Research & Investments | Sandy Lamm LLC | Sell | 12222025 | 38.38 | 20,000 | 767,582 | 4,605,492 | Form |
Industry Resources
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.