RPRX - Royalty Pharma Reports First Quarter 2024 Results | Benzinga

May, 09 2024 11:00 AM Royalty Pharma plc

Royalty Receipts growth of 14% driving Portfolio Receipts of $717 million
Net cash provided by operating activities of $665 million
Full year 2024 guidance confirmed: Portfolio Receipts expected to be $2,600 to $2,700 million
Commitment to grow dividend by mid-single digit percentage annually

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ:RPRX) today reported financial results for the first quarter of 2024 and confirmed full year 2024 guidance for Portfolio Receipts.

"We continued to execute on our strategy in the first quarter of 2024 and are on track to deliver our full year guidance," said Pablo Legorreta, Royalty Pharma's founder and Chief Executive Officer. "We achieved double-digit growth in Royalty Receipts driven by the strength of our diversified portfolio. With today's transaction to acquire royalties on Sanofi's frexalimab, a therapy with multi-blockbuster potential, we've increased our development-stage portfolio by five-fold to 15 medicines since our IPO. Looking ahead, 2024 is expected to be an event-rich year for our expanding development-stage pipeline with multiple potential regulatory and clinical events. Furthermore, we continue to be highly active in assessing attractive new royalty opportunities, reflecting the strong demand for capital to fund the ongoing wave of healthcare innovation. Based on the powerful fundamental tailwinds underpinning our business, we remain highly confident in our ability to deliver attractive, long-term compounding growth."

Strong Royalty Receipts growth; Portfolio Receipts growth impacted by a high base of comparison

Royalty Receipts grew 14% to $705 million, driven by strong portfolio performance, including royalties on Evrysdi, Trelegy and the cystic fibrosis franchise.
Portfolio Receipts declined to $717 million from $1,131 million, reflecting a $475 million Biohaven-related milestone payment received in the first quarter of 2023.

Capital Deployment of approximately $670 million, including cash expected to be paid for frexalimab

Announced transaction to acquire royalties on Sanofi's frexalimab, a potential multi-blockbuster in Phase 3 development for multiple sclerosis, for approximately $525 million including estimated transaction costs.
Financial capacity of >$3.5 billion (including cash and leverage capacity) to execute on value-creating transactions.

Development-stage portfolio growing to 15 therapies with potential significantly >$1 billion in peak royalties

11 of 15 therapies are in Phase 3 development or undergoing regulatory review.
Key events expected over next year: FDA filings for aficamten (cardiovascular), pelabresib (myelofibrosis); pivotal study results for seltorexant (depression), Tremfya (Crohn's disease); FDA action date for KarXT (schizophrenia).

Financial guidance for full year 2024 (excludes contribution from future transactions)

Royalty Pharma expects 2024 Portfolio Receipts to be between $2,600 million and $2,700 million.
2024 Portfolio Receipts guidance includes expected growth in Royalty Receipts of 5% to 9%.

Financial & Liquidity Summary


Three Months Ended March 31,

(unaudited)
*($ and shares in millions)*
2024
2023
Change
Portfolio Receipts
717
1,131
(37
)%
Net cash provided by operating activities
665
1,034
(36
)%
Adjusted EBITDA (non-GAAP)*
656
1,044
(37
)%
Portfolio Cash Flow (non-GAAP)*
584
977
(40
)%
Weighted average Class A ordinary shares outstanding - diluted
597
607
(2
)%

*See "Liquidity and Capital Resources" section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement.

Portfolio Receipts Highlights




Three Months Ended March 31,



(unaudited)
*($ in millions)*


2024
2023
Change
Products:
Marketers:
Therapeutic Area:



Cystic fibrosis franchise
Vertex
Rare disease
218
197
11
%
Trelegy
GSK
Respiratory
71
48
46
%
Tysabri
Biogen
Neuroscience
69
71
(2
)%
Imbruvica
AbbVie, J&J
Cancer
50
57
(12
)%
Evrysdi
Roche
Rare disease
45
18
156
%
Promacta
Novartis
Hematology
43
41
4
%
Xtandi
Pfizer, Astellas
Cancer
41
36
14
%
Tremfya
Johnson & Johnson
Immunology
36
32
15
%
Cabometyx/Cometriq
Exelixis, Ipsen, Takeda
Cancer
18
16
14
%
Trodelvy
Gilead
Cancer
10
7
57
%
Erleada
Johnson & Johnson
Cancer
9
6
57
%
Orladeyo
BioCryst
Rare disease
9
7
28
%
Spinraza
Biogen
Rare disease
7
—
n/a
Nurtec ODT/Zavzpret
Pfizer
Neuroscience
6
4
40
%
Other products⁽⁵⁾
73
78
(6
)%
Royalty Receipts
705
616
14
%
Milestones and other contractual receipts
12
515
(98
)%
Portfolio Receipts
717
1,131
(37
)%

Amounts shown in the table may not add due to rounding.

Portfolio Receipts were $717 million in the first quarter of 2024, a decrease of 37% compared to $1,131 million in the same period of 2023. The decrease was attributable to a high base of comparison in the first quarter of 2023 in milestones and other contractual receipts, which reflected a $475 million Zavzpret milestone payment and a $29 million Airsupra payment.

Royalty Receipts increased 14% to $705 million, primarily driven by strong growth in Trelegy and the cystic fibrosis franchise, and incremental royalties acquired on Evrysdi in October 2023.

Liquidity and Capital Resources

Royalty Pharma's liquidity and capital resources are summarized below:

As of March 31, 2024, Royalty Pharma had cash and cash equivalents of $843 million and total debt with principal value of $6.3 billion.

Liquidity Summary

Three Months Ended March 31,

(unaudited)

($ in millions)

2024

2023

Portfolio Receipts

717

1,131

Payments for operating and professional costs

(61)

(87)

Adjusted EBITDA (non-GAAP)

656

1,044

Interest paid, net

(73)

(67)

Portfolio Cash Flow (non-GAAP)

584

977

Adjusted EBITDA (non-GAAP) was $656 million in the first quarter of 2024. Adjusted ...

Full story available on Benzinga.com

Company Name:	Royalty Pharma plc
Stock Symbol:	RPRX
Market:	NASDAQ
Website:	royaltypharma.com

Twitter