NASDAQ$RPRX

Royalty Pharma PLC · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Royalty Pharma reported strong financial results for Q1 2023, driven by the Zavzpret milestone and a diversified portfolio.

Royalty Pharma reported strong Q1 2023 results, with total income and other revenues increasing by 22% to $684 million. Adjusted Cash Receipts increased by 87% to $1,131 million, driven by the Zavzpret milestone and strong portfolio performance. The company reaffirmed its 2023 Adjusted Cash Receipts guidance of $2,850 to $2,950 million.

  • Net cash provided by operating activities grew 125% to $1,034 million, benefiting from a $475 million Zavzpret milestone.
  • Adjusted Cash Receipts increased 87% to $1,131 million, driven by the Zavzpret milestone and strong portfolio performance.
  • Transactions of up to $1.6 billion were announced, including $600 million in upfront payments, to acquire royalties on three innovative therapies.
  • A multi-year share repurchase program of up to $1.0 billion was announced, reflecting confidence in Royalty Pharma’s outlook.

Headline financials

Total Revenue

$684M

Previous: $562M+21.7%
EPS (adj)

$1.60

Previous: $0.60+166.7%
Portfolio Receipts

$1.13B

No prior period
Free Cash Flow

$341M

Previous: $51.8M+558.3%
Net Income

$341M

Previous: $51.8M+558.3%
Operating Income

$479M

Previous: $220M+118.0%
Gross Profit

$558M

Previous: $512M+8.8%
Cash & Equivalents

$1.98B

Previous: $1.79B+10.3%
Total Assets

$17.1B

Previous: $17.4B-1.8%
Stock-Based Comp

$573K

Previous: $496K+15.5%

Revenue & EPS history

Royalty Pharma · Revenue · Quarterly

$684M

Q1 2023+21.7%vs Q1 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Royalty Pharma · $716M total across 12 segments · Q1 2023

  • Cystic Fibrosis Franchise
    $217M+7.4%
  • Other Products
    $121M+36.0%
  • Tysabri
    $86M-11.3%
  • Imbruvica
    $69M-20.7%
  • Promacta
    $50M+4.2%
  • Trelegy
    $48M
  • Xtandi
    $44M+2.3%
  • Tremfya
    $32M+14.3%
  • Evrysdi
    $18M+100.0%
  • Cabometyx/Cometriq
    $16M+23.1%
  • Trodelvy
    $8M+60.0%
  • Erleada
    $7M+40.0%

Forward guidance

Royalty Pharma reaffirmed its 2023 Adjusted Cash Receipts guidance of $2,850 million to $2,950 million, excluding transactions announced after the date of this release.

Tailwinds

  • 2023 Adjusted Cash Receipts are expected to be between $2,850 million and $2,950 million.
  • Guidance reflects the $475 million accelerated milestone payment related to FDA approval of Pfizer’s Zavzpret.
  • Guidance represents underlying growth of 4% to 9% prior to the Zavzpret milestone payment in 2023.
  • The projection assumes no incremental debt financing in 2023.
  • Royalty Pharma may amend its guidance in the event it engages in new royalty transactions which have a material near-term financial impact on the company.

Headwinds

  • Guidance excludes contributions from transactions announced subsequent to the date of this release.
  • Guidance reflects an estimated foreign exchange impact of approximately -1% to -2% for full year 2023 Adjusted Cash Receipts growth.
  • Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes.
  • This guidance assumes no major unforeseen adverse events.
  • Royalty Pharma has not reconciled its non-GAAP 2023 guidance to the most directly comparable GAAP measure.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.6%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.9%

Avg return

30 days after

43%

10 / 23 earnings

Positive

+6.8%

Q3 2025

Best reaction

-8.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%+2.4%+10.7%
Q4 2025+0.1%+2.2%+3.3%
Q3 2025+6.8%+1.8%+5.0%
Q1 2025+0.9%+0.2%+3.1%
Q4 2024+1.7%+2.0%+3.0%
Q3 2024-3.7%-4.3%-5.9%
Q2 2024-3.6%-1.4%+5.3%
Q1 2024+0.4%+0.3%-1.9%
Q4 2023+2.1%+3.4%+2.7%
Q3 2023-0.5%-1.6%+3.7%
Q2 2023-0.9%-1.1%-6.4%
Q1 2023-4.7%-2.7%-2.8%
Q4 2022-2.0%-0.4%-8.8%
Q3 2022+1.6%+3.7%-0.1%
Q2 2022-0.9%+1.9%-1.8%
Q1 2022-8.1%-12.8%-6.2%
Q4 2021+3.6%+0.8%+1.7%
Q3 2021+1.5%+5.3%-4.6%
Q2 2021+2.7%+5.0%+5.6%
Q1 2021-2.2%-1.8%+12.4%
Q4 2020-2.1%+1.1%-1.5%
Q3 2020-1.6%+2.8%+10.3%
Q2 2020-3.0%-4.2%-5.9%
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012

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