NASDAQ$RPRX

Royalty Pharma PLC · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$536M

Previous: $573M-6.5%
EPS (adj)

$0.79

Previous: $0.32+146.9%
Portfolio Receipts

$637M

Previous: $597M+6.7%
Capital Expenditures

-$451M

No prior period
Free Cash Flow

$72.1M

Previous: $143M-49.4%
Net Income

$72.1M

Previous: $143M-49.4%
Operating Income

$151M

Previous: $192M-21.2%
Gross Profit

$228M

Previous: $150M+52.0%
Cash & Equivalents

$936M

Previous: $992M-5.6%
Total Assets

$15.9B

Previous: $17.7B-10.3%
R&D Expense

$50.5M

No prior period
Stock-Based Comp

$581K

Previous: $582K-0.2%

Revenue & EPS history

Royalty Pharma · Revenue · Quarterly

$536M

Q3 2023-6.5%vs Q3 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Royalty Pharma · $687M total across 13 segments · Q3 2023

  • Cystic Fibrosis Franchise
    $238M+14.4%
  • Tysabri
    $87M-4.4%
  • Imbruvica
    $62M-16.2%
  • Trelegy
    $58M+34.9%
  • Promacta
    $54M+8.0%
  • Xtandi
    $47M+2.2%
  • Other Products
    $46M-37.0%
  • Tremfya
    $27M+28.6%
  • Cabometyx/Cometriq
    $17M+13.3%
  • Evrysdi
    $16M+60.0%
  • Spinraza
    $15M
  • Trodelvy
    $11M+83.3%
  • Erleada
    $9M+50.0%

Forward guidance

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

Tailwinds

  • 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.

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 Q3 2023

Historical avgQ3 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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