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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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