Royalty Pharma today released its financial results for the second quarter of 2024 and announced an increase in its full-year guidance for Portfolio Receipts.
We achieved double-digit growth in Portfolio Receipts during the second quarter of 2024, surpassing our quarterly forecast, and are pleased to raise our full-year guidance,” stated Pablo Legorreta, Founder and CEO of Royalty Pharma. “Our first-half performance underscores our continued strong growth trajectory since our IPO. This quarter, we actively deployed over $2 billion across six therapies, expanding partnerships with Cytokinetics, PTC Therapeutics, and Agios. Reflecting our solid outlook, we continued repurchasing Class A ordinary shares as part of our balanced capital allocation strategy. Additionally, 2024 is shaping up to be an eventful year for our development-stage pipeline, with positive updates on two key therapies. Looking ahead, we have a robust deal pipeline and remain confident in our ability to deliver sustained, attractive growth.”
Key Financial Highlights for Q2 2024
- Royalty Receipts: Increased by 11% to $605 million, driven by strong performance from the cystic fibrosis franchise, Trelegy, Tremfya, and additional royalties from Evrysdi.
- Portfolio Receipts: Rose by 12% to $608 million, reflecting the growth in Royalty Receipts.
Capital Deployment
- Invested approximately $2 billion in 2024, including:
- Acquisition of royalties on Servier’s Voranigo, a novel therapy for IDH-mutant glioma.
- Purchase of incremental royalties on Roche’s Evrysdi for spinal muscular atrophy.
- Investment in Cytokinetics, adding an incremental royalty on aficamten for hypertrophic cardiomyopathy.
Development-Stage Pipeline Updates
- Johnson & Johnson reported positive Phase 3 results for seltorexant in major depressive disorder with insomnia and for Tremfya in Crohn’s disease, showing superiority over Stelara.
Updated Financial Guidance for Full-Year 2024
- Portfolio Receipts: Expected to be between $2,700 million and $2,775 million, up from the previous range of $2,600 million to $2,700 million.
- Royalty Receipts Growth: Projected year-over-year growth of 9% to 12%, an increase from the prior guidance of 5% to 9%.
Liquidity and Capital Resources
- As of June 30, 2024, Royalty Pharma held cash and cash equivalents of $1.8 billion and total debt of $7.8 billion.
- Issued $1.5 billion in senior unsecured notes in June 2024, with a weighted average coupon rate of 5.5%. The first interest payment is due March 2, 2025. The total debt has a weighted-average duration of approximately 13 years and a weighted-average cost of debt of 3.1%.
- In Q2 2024, repurchased approximately three million Class A ordinary shares for $84 million. Year-to-date (through August 7, 2024), repurchased around four million Class A ordinary shares for $115 million. The weighted-average number of diluted Class A ordinary shares outstanding for Q2 2024 was 597 million, compared to 606 million in Q2 2023.
