- 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 ...