Royalty Pharma plc (RPRX)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$2.5B

Revenue growth

10.0%

Net income, last twelve months

$815.0M

Earnings per share

$1.87

Operating margin

59.6%

Net margin

32.1%

Return on equity

8.3%

Market value

$36.1B

Price to earnings

34.7x

Dividend yield

1.4%

Cash

$812.0M

Debt

$9.0B

Debt to equity

0.92

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 5 August 2026.

• Royalty Receipts rose 14%. Royalty Receipts were $768 million, up from $672 million in the second quarter of 2025, driven by Tremfya, Voranigo, Imdelltra and Evrysdi.
• Portfolio Receipts rose 6%. Portfolio Receipts were $773 million, up from $727 million. Milestones and other contractual receipts offset part of the Royalty Receipts gain.
• Operating cash flow reached $728 million. Net cash provided by operating activities was $728 million, compared with $364 million in the second quarter of 2025.
• Adjusted EBITDA rose to $736 million. Adjusted EBITDA (non-GAAP) was $736 million, up from $633 million. It equals Portfolio Receipts less payments for operating and professional costs.
• Tremfya, Evrysdi and Voranigo grew. Tremfya receipts rose 53% to $57 million, Evrysdi 42% to $47 million and Voranigo 72% to $46 million, per the portfolio highlights table.
• Evrysdi included December royalty benefit. Evrysdi receipts include the benefit of additional royalties acquired in December 2025, the company stated.
• Imdelltra and Trodelvy added receipts. Imdelltra receipts were $17 million with no prior-year amount. Trodelvy receipts rose 36% to $14 million.
• Cystic fibrosis royalties flat. The cystic fibrosis franchise, marketed by Vertex, produced $194 million in receipts, unchanged from the prior-year quarter.
• Operating costs at 4.8% of receipts. Payments for operating and professional costs were $37 million, down from $94 million, equal to 4.8% of Portfolio Receipts.
• Management fee ended with internalization. The 2026 cost ratio is expected to fall from 8.9% in 2025, mainly because the management fee ended with the internalization.
• Development funding expense fell. Research and development funding expense was $98 million, down from $301 million. General and administrative expenses were $162 million, including $107 million of share-based compensation.
• Expected cash flow provision charged. The provision for changes in expected cash flows from financial royalty assets was $268 million, compared with a $204 million benefit in the prior-year quarter.
• Net income to shareholders lower. Net income attributable to Royalty Pharma plc was $18 million, against $32 million. Consolidated net income was $81 million, against $93 million.
• Capital Deployment of $349 million. Capital Deployment was $349 million, against $595 million a year earlier, mostly royalty funding for daraxonrasib and R&D funding for two programs.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2025

Company events

The newest 8-K filings of 79 held.

Every filing

The newest filings with the SEC of 182 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

694 funds held it at 30 Jun 2026: 377 added and 177 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Eli Lilly & Co. (LLY): revenue $79.7B, market value $1.21T
• Johnson & Johnson (JNJ): revenue $99.3B, market value $652.9B
• AbbVie Inc. (ABBV): revenue $64.4B, market value $506.1B
• Merck & Co., Inc. (MRK): revenue $66.6B, market value $348.1B
• Novartis AG (NVS): revenue $54.5B, market value $297.8B
• AstraZeneca PLC (AZN): revenue $58.7B, market value $263.1B
• Abbott Laboratories (ABT): revenue $46.6B, market value $177.7B
• Novo Nordisk A/S (NVO): revenue $46.8B, market value $171.0B
• Pfizer Inc. (PFE): revenue $63.7B, market value $168.0B
• Vertex Pharmaceuticals Inc. (VRTX): revenue $12.6B, market value $134.2B

What the company does

Royalty Pharma plc buys royalties on biopharmaceutical products. A royalty is the contractual right to a percentage of a product's top-line sales. The company calls itself the largest buyer of biopharmaceutical royalties. Its portfolio includes royalties on more than 35 commercial products and 20 development-stage product candidates. Its predecessor was founded in 1996, and the plc was incorporated in England and Wales on 6 February 2020, with principal executive offices in New York. It had 100 employees at 31 December 2025.

How it makes money

The company is paid a share of sales that other companies make. It does not run its own research, manufacturing or sales operations. Its payments track the top-line sales of each therapy, so they do not depend on a product's profitability. The company uses Portfolio Receipts as its main measure of operating performance. This is the sum of Royalty Receipts and milestones and other contractual receipts. For most royalties, receipts lag product sales by one quarter. Most royalties are accounted for as financial assets, with income recognised under the effective interest method.

What is in the portfolio

The largest holding is the Vertex cystic fibrosis franchise, which covers Kalydeco, Orkambi, Symdeko/Symkevi, Trikafta/Kaftrio and Alyftrek. Vertex accounted for 35% of total income and other revenues in 2025.

- Trelegy (GSK) - - Evrysdi (Roche) - - - Imbruvica (AbbVie and Johnson & Johnson) - - -

The products span rare disease, oncology, neuroscience, immunology, respiratory, hematology and diabetes. No single product accounted for more than 26% of Portfolio Receipts in 2025. The company estimates the weighted average duration of the portfolio at approximately 13 years. Some royalties, such as Tysabri and Trodelvy, are perpetual. Others have estimated end dates, which the filing says may change.

How it adds royalties

The company says it acquires royalties in three ways:

- Third-party royalties: existing royalties on approved or late-stage therapies. These make up the majority of the portfolio. - Synthetic royalties: newly created royalties on approved or late-stage therapies, in exchange for funding. - Other funding: senior unsecured debt, direct equity investments, and launch and development capital in exchange for fixed long-term payments.

It is not tied to any therapeutic area or treatment modality. Its team does its own primary market research and builds its own financial models. Examples of funding arrangements include a synthetic royalty and term loan with Revolution Medicines tied to daraxonrasib, seven funding tranches with Cytokinetics, and development funding with Biogen for litifilimab.

The company estimates it held about 48% of royalty transactions from 2020 through 2025. It also says it executed 13 of the 21 large transactions of that period, an estimated 69% of those by value.

Who it competes with

For royalty acquisitions, the company competes with biopharmaceutical companies that market the underlying products, investment vehicles, financial institutions, and institutional investors such as sovereign wealth and pension funds. Some may be larger and better capitalised. It also competes with equity, debt and licensing as ways for drug developers to raise money.

The products behind its royalties face their own competition. The filing lists safety, price and reimbursement, generics and biosimilars, and intellectual property exclusivity among the factors. In 2025 a generic version of Promacta launched in the United States, and a biosimilar to Tysabri was launched there.

Structure and people

Royalty Pharma plc is a holding company. Its principal asset is a controlling equity interest in Royalty Pharma Holdings Ltd, through which it conducts its business. Until May 2025 it was managed externally by RP Management, LLC, for which it paid Management Fees. On 16 May 2025 it completed the acquisition of that manager, which the filing calls the Internalization. The manager's employees became employees of Royalty Pharma, LLC, a wholly-owned subsidiary of RP Holdings, and the Management Fees ended. None of the 100 employees is covered by a collective bargaining agreement.

The founder, Pablo Legorreta, is chief executive officer and chairman. Through the RP Holdings Class C Special Interest he is entitled to Equity Performance Awards. These equal 20% of the Net Economic Profit from investments made in each two-year investment period.

The company says it intends to stay outside the United States Investment Company Act. It relies on Section 3(c)(5)(A) and on an SEC staff no-action letter dated 13 August 2010, which treats royalties on biopharmaceutical sales as qualifying assets.

*From Royalty Pharma's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1802768/000180276826000003/rprx-20251231.htm)*

From the company's 10-K.