Royalty Pharma Earnings: Recent Progress With Royalty Portfolio Underpins Long-Term Growth

Narrow-moat Royalty Pharma’s third-quarter results came in line with our expectations. We are maintaining our $47 fair value estimate. We are encouraged by the progress with the company’s high-quality portfolio, especially the approval of Bristol’s schizophrenia drug Cobenfy (formerly known as KarXT). We view Royalty Pharma’s shares as deeply undervalued and continue to think the market is underappreciating the long-term potential of its diversified portfolio.