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Royalty Pharma’s Long Game—Synthetic Royalties, Portfolio Resilience, and Scalable Returns!

Royalty Pharma reported a strong set of results for the fourth quarter and full year 2025, reflecting continued momentum in portfolio receipts, disciplined capital deployment, and progress following the internalization of its external manager. Portfolio receipts grew 16% for the year, while recurring royalty receipts increased 13%, supported primarily by established products such as Trelegy, Tremfya, Voranigo, and the cystic fibrosis franchise. Growth was achieved largely from the existing portfolio, with minimal contribution from new acquisitions completed during the year, highlighting the durability of the underlying assets. Cost efficiency improved meaningfully in the second half of the year as internalization benefits began to materialize, driving operating and professional costs lower as a percentage of portfolio receipts and reinforcing the company’s high cash conversion profile. Capital allocation remained active and balanced. Royalty Pharma announced $4.7 billion of transactions in 2025 and deployed $2.6 billion of capital, while simultaneously returning $1.