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Sep 30, 2020

Royalty Pharma Q3 2020 Earnings Report

Royalty Pharma's third quarter results demonstrated strong growth and strategic advancements.

Key Takeaways

Royalty Pharma reported a strong third quarter with a 17% increase in net cash from operating activities and a 12% increase in adjusted cash receipts. The company also increased its 2020 guidance for adjusted cash receipts and announced $2.3 billion in new acquisitions for the year.

Net cash provided by operating activities increased by 17% to $509 million.

Adjusted Cash Receipts increased by 12% to $472 million.

Adjusted Cash Flow grew by 27% to $394 million.

$2.3 billion of new acquisitions were announced in 2020, including $1.1 billion in the third quarter.

Total Revenue
$538M
Previous year: $464M
+15.9%
EPS
$0.48
Previous year: $1.15
-58.3%
Gross Profit
$533M
Previous year: $342M
+55.9%
Cash and Equivalents
$1.55B
Total Assets
$16B

Royalty Pharma

Royalty Pharma

Forward Guidance

Royalty Pharma updated guidance for full-year 2020, expecting Adjusted Cash Receipts (non-GAAP) excluding new transactions announced after the date of this release to be $1,780 million to $1,800 million. They also expect that payments for operating and professional costs will be approximately 10% of Adjusted Cash Receipts in 2020.