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Mar 31, 2025
Royalty Pharma Q1 2025 Earnings Report
Royalty Pharma reported strong financial results for the first quarter of 2025, driven by double-digit growth in Portfolio Receipts and strategic capital allocation.
Key Takeaways
Royalty Pharma delivered a robust first quarter in 2025, with Portfolio Receipts growing 17% to $839 million and Royalty Receipts increasing 12% to $788 million. The company repurchased $723 million in Class A ordinary shares and raised its full-year 2025 guidance for Portfolio Receipts.
Portfolio Receipts grew 17% to $839 million, demonstrating strong financial performance.
Royalty Receipts increased 12% to $788 million, primarily due to strong performance from the cystic fibrosis franchise, Trelegy, and Xtandi.
The company repurchased 23 million Class A ordinary shares for $723 million under its $3 billion authorization, reflecting a dynamic capital allocation strategy.
Royalty Pharma raised its full-year 2025 guidance for Portfolio Receipts to between $2,975 million and $3,125 million.
Revenue by Segment
Forward Guidance
Royalty Pharma raised its full-year 2025 guidance for Portfolio Receipts, expecting growth of 6% to 12%, and anticipates updating guidance for operating costs and interest paid after the internalization transaction closes.
Positive Outlook
- Raised full year 2025 Portfolio Receipts guidance to $2,975 million to $3,125 million.
- Expected Portfolio Receipts growth of 6% to 12% year-over-year.
- Negligible estimated foreign exchange impact to Portfolio Receipts.
- Anticipated total interest paid of approximately $260 million in 2025.
- Guidance based on the most up-to-date view of prospects, excluding unforeseen adverse events or changes in foreign exchange rates.
Challenges Ahead
- Guidance for payments for operating and professional costs does not reflect the impact of the internalization transaction.
- Guidance for interest paid does not reflect the impact of the internalization transaction.
- Guidance will be updated following the closing of the internalization transaction, expected in Q2 2025.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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