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Jun 30, 2022

Royalty Pharma Q2 2022 Earnings Report

Royalty Pharma reported financial results and raised full-year 2022 guidance for Adjusted Cash Receipts.

Key Takeaways

Royalty Pharma reported a decrease in total income and other revenues by 3% to $536 million. However, Adjusted Cash Receipts increased by 10% to $524 million, driven by the cystic fibrosis franchise, Xtandi, and Tremfya. The company also announced transactions of up to $2.5 billion year-to-date and raised full-year 2022 guidance for Adjusted Cash Receipts to $2,275 to $2,350 million.

Net cash provided by operating activities increased 8% to $575 million.

Adjusted Cash Receipts increased 10% to $524 million, driven by a double-digit increase in royalties from the cystic fibrosis franchise, Xtandi and the addition of Tremfya.

Adjusted EBITDA grew 10% to $480 million, driven by strong growth in Adjusted Cash Receipts.

Adjusted Cash Flow increased 12% to $482 million.

Total Revenue
$536M
Previous year: $555M
-3.4%
EPS
$0.7
Previous year: $0.73
-4.1%
Gross Profit
$430M
Previous year: $549M
-21.7%
Cash and Equivalents
$2.11B
Previous year: $1.14B
+84.6%
Total Assets
$17.7B
Previous year: $16.5B
+7.4%

Royalty Pharma

Royalty Pharma

Forward Guidance

Royalty Pharma anticipates full-year 2022 Adjusted Cash Receipts to be between $2,275 million and $2,350 million (+7% to 10% year/year), excluding transactions announced subsequent to the date of this release.

Challenges Ahead

  • Guidance reflects an estimated foreign exchange impact of approximately -3% to -4% (-$65 million to -$85 million) for full-year 2022 year/year Adjusted Cash Receipts growth, assuming current exchange rates prevail for the balance of 2022.