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Royalty Pharma PLC Class A RPRX

Morningstar Rating
$28.11 +0.13 (0.46%)
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Company Report

Royalty Pharma's Diverse Portfolio Supports Long-Term Growth

Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. The company makes lump-sum payments in exchange for future cash flows linked to those products’ sales revenue, which differentiates it from other biotech companies that are exposed to high R&D and/or manufacturing costs. Its uniqueness also lies in the diversity of royalties across different therapeutic areas. This stands in contrast to a typical biotech firm’s focus on developing specialized therapies targeting certain diseases.

Price vs Fair Value

RPRX is trading at a 47% discount.
Price
$27.82
Fair Value
$69.00
Uncertainty
Medium
1-Star Price
$77.60
5-Star Price
$52.60
Economic Moat
Rypcct
Capital Allocation
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Bulls Say, Bears Say

Bulls

Royalty Pharma’s portfolio includes market-leading therapies for a wide range of diseases, enabling stable future royalty streams and high returns on investments over the next decade.

Bears

Underperformance of key portfolio products due to major regulatory changes could put pressure on Royalty Pharma’s cash flows.

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News

Trading Information

Previous Close Price
$27.98
Day Range
$27.6528.21
52-Week Range
$25.9235.76
Bid/Ask
$27.55 / $28.92
Market Cap
$12.56 Bil
Volume/Avg
3.3 Mil / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
16.95
Price/Sales
7.20
Dividend Yield (Trailing)
2.88%
Dividend Yield (Forward)
2.99%
Total Yield
5.33%

Company Profile

Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Mid Value
Total Number of Employees
89

Competitors

Valuation

Metric
RPRX
VRTX
PFE
Price/Earnings (Normalized)
16.9526.1313.73
Price/Book Value
1.925.831.60
Price/Sales
7.2010.502.44
Price/Cash Flow
5.6827.2413.11
Price/Earnings
RPRX
VRTX
PFE

Financial Strength

Metric
RPRX
VRTX
PFE
Quick Ratio
7.873.600.58
Current Ratio
7.903.990.91
Interest Coverage
9.7086.380.74
Quick Ratio
RPRX
VRTX
PFE

Profitability

Metric
RPRX
VRTX
PFE
Return on Assets (Normalized)
−4.87%19.46%4.98%
Return on Equity (Normalized)
−13.28%25.47%10.90%
Return on Invested Capital (Normalized)
−4.22%21.34%7.28%
Return on Assets
RPRX
VRTX
PFE
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