Royalty Pharma Earnings: Impressive Portfolio Growth and Share Repurchases Instill Confidence

Narrow-moat Royalty Pharma delivered another strong quarter that was in line with our expectations. Portfolio receipts grew 17% year over year to $839 million, and the company raised their 2025 guidance for annual growth in portfolio receipts to a range of 6%-12%, up from the previous 4%-9% growth expectation. We maintain our $47 fair value estimate, and shares are trading in 5-star territory, presenting an attractive opportunity for long-term investors.