•
Sep 30, 2023

Royalty Pharma Q3 2023 Earnings Report

Royalty Pharma reported solid Q3 2023 results, driven by growth in key royalties and strategic acquisitions.

Key Takeaways

Royalty Pharma reported a 7% increase in Adjusted Cash Receipts to $637 million, driven by strong performances of the CF franchise and Trelegy, and the addition of Spinraza. The company also announced transactions of up to $3.8 billion year-to-date, including $2.1 billion in upfront payments and raised its 2023 guidance for Adjusted Cash Receipts to $2,950 to $3,000 million.

Adjusted Cash Receipts increased by 7% to $637 million, driven by strong performance of the CF franchise and Trelegy, and the addition of Spinraza.

Net cash provided by operating activities grew 6% to $574 million.

The company announced transactions of up to $3.8 billion year-to-date, including $2.1 billion in upfront payments.

Royalty Pharma is raising 2023 guidance: Adjusted Cash Receipts expected to be $2,950 to $3,000 million.

Total Revenue
$536M
Previous year: $573M
-6.5%
EPS
$0.79
Previous year: $0.32
+146.9%
Gross Profit
$259M
Previous year: $268M
-3.4%
Cash and Equivalents
$936M
Previous year: $992M
-5.6%
Free Cash Flow
$578M
Total Assets
$15.9B
Previous year: $17.7B
-10.3%

Royalty Pharma

Royalty Pharma

Forward Guidance

Royalty Pharma provided its guidance for full-year 2023, excluding transactions announced after the date of this release.

Positive Outlook

  • Adjusted Cash Receipts(1) (non-GAAP) $2,950 million to $3,000 million
  • Payments for operating and professional costs 8% to 8.5% of Adjusted Cash Receipts(1)
  • Interest paid $170 million
  • Development-stage funding payments - upfront and milestone $50 million
  • This Adjusted Cash Receipts(1) guidance represents underlying growth of 9%(4) to 11%(4) prior to the Zavzpret milestone payment in the first quarter of 2023 and the payments related to the Biohaven Preferred Shares received in 2022.