Royalty Pharma delivered a weak financial performance and missed out on revenue as well as earnings expectations of Wall Street as a result of significant headwinds from the foreign exchange. It has announced transactions of $3 billion, which includes the company’s new R&D funding in collaboration with Merck. Among key updates, Royalty Pharma bought a royalty interest in siRNA (small interfering ribonucleic acid) therapy of Amgen, olpasiran, for the upfront payment of $250 million from Arrowhead Pharmaceuticals. Moreover, the company’s overall portfolio of royalties continued to perform well. The company delivered a decent growth of the adjusted cash receipts in spite of headwinds that particularly impacted this quarter which includes two of its top royalties ending DPP-IV and HIV. The acquisition of Biohaven by Pfizer that closed recently accelerated the value creation to the shareholders of Royalty Pharma. The company had agreed to offer up to $425 million for cofounding the clinical development of the MK-8189, the oral PDE 10A inhibitor in development for schizophrenia of phase 2b. The pipeline is continuing to grow as it invests in both developments and approved-stage medicines in the coming years. We provide the stock of Royalty Pharma with a ‘Hold’ rating and a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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