Royalty Pharma Q4 2022 Earnings Report
Key Takeaways
Royalty Pharma reported a strong Q4 2022, marked by a 96% increase in Adjusted Cash Receipts to $1,064 million and a 99% increase in Adjusted EBITDA to $983 million. The company executed nine deals for potentially transformative therapies and provided full year 2023 guidance, excluding new transactions.
Net cash from operating activities increased 16% to $570 million.
Adjusted Cash Receipts increased 96% to $1,064 million, driven by a $458 million payment from Pfizer's acquisition of Biohaven and strong portfolio performance.
Adjusted EBITDA increased 99% to $983 million.
Adjusted Cash Flow grew 146% to $946 million.
Royalty Pharma
Royalty Pharma
Forward Guidance
Royalty Pharma expects 2023 Adjusted Cash Receipts to be between $2,375 million and $2,475 million, excluding a potential $475 million milestone related to FDA approval of intranasal zavegepant and transactions announced subsequent to the date of this release.
Positive Outlook
- Adjusted Cash Receipts (non-GAAP) of $2,375 million to $2,475 million
- Payments for operating and professional costs 8% to 9% of Adjusted Cash Receipts
- Interest paid $170 million
- Development-stage funding payments - upfront and milestone $50 million
- This Adjusted Cash Receipts(1) guidance for 2023 represents underlying growth of 4% to 9% prior to payments related to the Biohaven Preferred Shares in 2022
Challenges Ahead
- Guidance excludes a potential $475 million milestone related to FDA approval of intranasal zavegepant for migraine.
- Guidance excludes contributions from transactions announced after the date of this release.
- Guidance may be amended in the event of new royalty transactions with a material near-term financial impact.
- Guidance is based on the company's most up-to-date view on its prospects and assumes no major unforeseen adverse events.
- Guidance reflects an estimated foreign exchange impact of approximately -1% to -2% for full year 2023 Adjusted Cash Receipts(1) growth, assuming current foreign exchange rates prevail for 2023.