NASDAQ$RPRX

Royalty Pharma PLC · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong financial and operational results, driven by strategic transactions and robust growth in key royalty assets.

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.

Headline financials

Total Revenue

$566M

Previous: $576M-1.7%
EPS (adj)

$1.56

Previous: $0.80+95.0%
Portfolio Receipts

$1.06B

Previous: $543M+95.9%
Net Income

-$610M

Previous: $54M-1229.6%
Operating Income

-$483M

Previous: $153M-415.7%
Gross Profit

$560M

No prior period
Cash & Equivalents

$1.71B

Previous: $1.54B+11.0%
Total Assets

$16.8B

No prior period
Stock-Based Comp

$583K

No prior period

Revenue & EPS history

Royalty Pharma · Revenue · Quarterly

$566M

Q4 2022-1.7%vs Q4 2021
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Royalty Pharma · $641M total across 12 segments · Q4 2022

  • Cystic Fibrosis Franchise
    $219M+11.7%
  • Tysabri
    $88M-6.4%
  • Imbruvica
    $71M-20.2%
  • Other Products
    $50M+2.0%
  • Promacta
    $49M+0.0%
  • Trelegy
    $47M
  • Xtandi
    $46M+12.2%
  • Tremfya
    $29M+52.6%
  • Cabometyx/Cometriq
    $15M+25.0%
  • Evrysdi
    $14M+133.3%
  • Trodelvy
    $7M+40.0%
  • Erleada
    $6M+50.0%

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.

Tailwinds

  • 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

Headwinds

  • 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.

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 Q4 2022

Historical avgQ4 2022

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro