Healthcare Business

How Is Royalty Pharma Poised After Earnings?

Royalty Pharma PLC (NASDAQ: RPRX) had a big initial public offering this summer, and it also reported earnings on Wednesday morning. The firm posted a net income of $442 million and $511 million in revenue, compared with consensus estimates that called for $0.61 in earnings per share and $468.96 million in revenue.

Total Royalty Receipts were $585 million, an increase of 20% year over year on a pro forma basis. This was largely due to the performance of the cystic fibrosis franchise, Imbruvica, and the addition of new royalties, partially offset by a decrease in royalties for Lyrica and Letairis resulting from losses of exclusivity.

Recent royalty acquisitions include Prevymis (cytomegalovirus infection), IDHIFA (acute myeloid leukemia) and Evrysdi (spinal muscular atrophy), as well as an expanded funding agreement with Biohaven for Nurtec ODT and zavegepant, resulting in roughly $1.7 billion in announced transactions this year.

Also in its portfolio, FDA approvals were granted for Trodelvy (triple-negative breast cancer), Tazverik (follicular lymphoma) and Evrysdi.

On the books, cash, cash equivalents and marketable securities totaled $2.79 billion at the end of the quarter, up from $341 million at the end of the previous fiscal year.

Looking ahead to the 2020 full year, the company expects to see adjusted cash receipts (more or less revenue), excluding new transactions, in the range of $1.72 billion to $1.76 billion. Analysts are calling for earning of $2.34 per share and $458.11 million in revenue for the year.

Royalty Pharma stock traded down about 1% to $45.49 Wednesday morning, in a 52-week range of $39.90 to $56.50. The consensus price target is $52.29.