Royalty Pharma to Showcase Achievements and Share Business Update at J.P. Morgan Healthcare Conference
Royalty Pharma plc today provided an update on its business performance, including recent key accomplishments. Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board, will discuss these updates on January 13, 2026 as part of a webcast presentation to be held at 12:45 p.m. Eastern Time / 9:45 a.m. Pacific Time at the 44th Annual J.P. Morgan Healthcare Conference.
“2025 was a landmark year for Royalty Pharma. We are on track to deliver our full-year guidance for 14%-16% top-line growth, as discussed on our third quarter 2025 earnings call, maintaining our track record of double-digit growth,” said Pablo Legorreta, Royalty Pharma’s founder and Chief Executive Officer. “We strengthened our business through internalizing our external manager and we announced $4.7 billion in royalty transactions. This progress comes at a time when the royalty market reached $10 billion for the first time, underscoring the life sciences industry’s growing recognition of the benefits of royalty funding, including the increasing use of innovative synthetic royalties.
Looking ahead to 2026, we expect these favorable industry tailwinds to continue, supported by a robust pipeline of potential transactions. We also anticipate several important milestones across our development-stage portfolio, including pivotal readouts for multiple potential blockbuster therapies. We continue to be confident in our ability to drive sustainable and attractive returns, consistent with our goal to be the premier capital allocator in life sciences with consistent, compounding growth.”
Record year for royalty funding, powered by synthetic royalty transactions
The announced total value of royalty funding market transactions reached a record high of $10 billion in 2025. This represents an approximately 40% increase over the average value of $7.1 billion per year over the prior five years (2021 to 2025). The rapid expansion of the royalty funding market reflects growing recognition in the life sciences industry of the benefits of royalty funding. Increasing capital needs, industry fragmentation and scientific innovation have resulted in royalties becoming an increasingly accepted component of biopharma companies’ capital structures.
These powerful fundamental tailwinds were underscored in Deloitte’s September 2025 report on the biopharma royalty market (“Role of Royalties in Funding Biopharma Innovation”) which surveyed more than 110 biopharma leaders (link here). Notably, the report highlighted the attractiveness of newly-created, or synthetic, royalties – an innovation pioneered by Royalty Pharma. Consistent with their growing recognition, the total market value of announced synthetic royalty transactions increased to $4.7 billion in 2025, accounting for almost half of the growth in the royalty market.
Against this strong industry backdrop, Royalty Pharma maintained its leadership in the industry, announcing $4.7 billion in transactions in 2025 (Capital Deployment of $2.6 billion), representing a market share of approximately 40%1. This transaction activity included four synthetic deals for a value of $2.075 billion, more than double its previous record of $925 million in 2024.
Strong 2025 financial performance and long-term outlook
Royalty Pharma continued to deliver on its strategic and financial priorities in 2025. The successful internalization of its external manager is already bringing multiple benefits to shareholders, including significant operating and professional cost savings, strengthened shareholder alignment and enhanced governance. Furthermore, the company is confident in meeting its full year 2025 guidance for Portfolio Receipts (its ”top line”) of $3,200 to $3,250 million, representing 14%-16% growth year-over-year, as discussed on its third quarter 2025 earnings call.
Royalty Pharma also expects to maintain strong returns on its royalty portfolio, well above its cost of capital: the company disclosed with its third quarter 2025 results that, on a trailing twelve-month basis, it achieved a Return on Invested Capital of 15.7% and Return on Invested Equity of 22.9%.
As announced at its September 2025 Investor Day, Royalty Pharma’s goal is to deliver at least $4.7 billion of Portfolio Receipts in 2030, consistent with the target it announced in 2022 and implying growth of 9% or greater over the 2025-2030 period and double-digit growth over the decade. This is expected to result in Portfolio Cash Flow, a non-GAAP liquidity measure, of approximately $4.0 billion in 2030. Based on this outlook, Royalty Pharma expects to deliver at least a mid-teens average total shareholder return over 2025-2030.
Multiple milestones anticipated for development-stage pipeline in 2026
Royalty Pharma’s pipeline of royalties on 20 development-stage therapies achieved important milestones in 2025, including U.S. Food and Drug Administration (“FDA”) approval of Myqorzo (in symptomatic obstructive hypertrophic cardiomyopathy) and positive Phase 3 readouts for ecopipam (Tourette’s syndrome), TEV-‘749 (schizophrenia) and deucrictibant (hereditary angioedema). Each of these opportunities is anticipated to have the potential to achieve more than $1 billion in peak annual sales, helping to power Royalty Pharma’s top-line growth beyond 2030.
In 2026, Royalty Pharma anticipates multiple additional milestones for its development-stage pipeline, including pivotal readouts for potential blockbuster therapies daraxonrasib (pancreatic cancer), litifilimab (lupus) and pelacarsen (cardiovascular disease). Additionally, the company anticipates FDA approval and launch of several of the therapies noted above as well as for zidesamtinib (ROS1 mutation-positive non-small cell lung cancer), which has a Prescription Drug User Fee Act date of September 18, 2026.
Taken together, these pending readouts and approvals could unlock significant value and contribute to Royalty Pharma sustaining attractive growth and returns through 2030 and beyond. Based on sell-side analysts’ consensus sales forecasts and marketer guidance, the therapies in Royalty Pharma’s late-stage pipeline have the combined potential to achieve non-risk adjusted peak sales in excess of $43 billion per year, which could translate to greater than $2.1 billion annually in new royalties to Royalty Pharma.
Webcast of J.P. Morgan Healthcare Conference
Royalty Pharma will present at the 44th Annual J.P. Morgan Healthcare Conference at 12:45 p.m. ET / 9:45 a.m. PT on January 13, 2026. The webcast will be accessible from Royalty Pharma’s “Events” page at www.royaltypharma.com/investors/news-and-events/events. The webcast will be archived for a minimum of thirty days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators.
Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 20 development-stage product candidates.
Source Link: https://www.royaltypharma.com/
