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Mar 31, 2023
Royalty Pharma Q1 2023 Earnings Report
Royalty Pharma reported strong financial results for Q1 2023, driven by the Zavzpret milestone and a diversified portfolio.
Key Takeaways
Royalty Pharma reported strong Q1 2023 results, with total income and other revenues increasing by 22% to $684 million. Adjusted Cash Receipts increased by 87% to $1,131 million, driven by the Zavzpret milestone and strong portfolio performance. The company reaffirmed its 2023 Adjusted Cash Receipts guidance of $2,850 to $2,950 million.
Net cash provided by operating activities grew 125% to $1,034 million, benefiting from a $475 million Zavzpret milestone.
Adjusted Cash Receipts increased 87% to $1,131 million, driven by the Zavzpret milestone and strong portfolio performance.
Transactions of up to $1.6 billion were announced, including $600 million in upfront payments, to acquire royalties on three innovative therapies.
A multi-year share repurchase program of up to $1.0 billion was announced, reflecting confidence in Royalty Pharma’s outlook.
Royalty Pharma
Royalty Pharma
Royalty Pharma Revenue by Segment
Revenue by Segment
Cystic Fibrosis Franchise Revenue
CapyFin.comTrelegy Revenue
CapyFin.comTysabri Revenue
CapyFin.comEvrysdi Revenue
CapyFin.comXtandi Revenue
CapyFin.comImbruvica Revenue
CapyFin.comPromacta Revenue
CapyFin.comTremfya Revenue
CapyFin.comCabometyx/Cometriq Revenue
CapyFin.comTrodelvy Revenue
CapyFin.comErleada Revenue
CapyFin.comOther Products Revenue
CapyFin.com Forward Guidance
Royalty Pharma reaffirmed its 2023 Adjusted Cash Receipts guidance of $2,850 million to $2,950 million, excluding transactions announced after the date of this release.
Positive Outlook
- 2023 Adjusted Cash Receipts are expected to be between $2,850 million and $2,950 million.
- Guidance reflects the $475 million accelerated milestone payment related to FDA approval of Pfizer’s Zavzpret.
- Guidance represents underlying growth of 4% to 9% prior to the Zavzpret milestone payment in 2023.
- The projection assumes no incremental debt financing in 2023.
- Royalty Pharma may amend its guidance in the event it engages in new royalty transactions which have a material near-term financial impact on the company.
Challenges Ahead
- Guidance excludes contributions from transactions announced subsequent to the date of this release.
- Guidance reflects an estimated foreign exchange impact of approximately -1% to -2% for full year 2023 Adjusted Cash Receipts growth.
- Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes.
- This guidance assumes no major unforeseen adverse events.
- Royalty Pharma has not reconciled its non-GAAP 2023 guidance to the most directly comparable GAAP measure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income