NASDAQ$RPRX

Royalty Pharma PLC · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year of 2023 and introduced full year 2024 guidance for Portfolio Receipts.

Royalty Pharma reported a decrease in Portfolio Receipts by 31% to $736 million for Q4 2023, which was due to accelerated Biohaven payments in Q4 2022. Royalty receipts increased by 10%, driven by cystic fibrosis franchise, Trelegy and Evrysdi, and the addition of new royalties on Spinraza.

  • Portfolio Receipts decreased 31% to $736 million in Q4 2023.
  • Royalty receipts increased 10% for the quarter.
  • Announced value of new transactions was $4.0 billion for full year 2023.
  • Transactions since 2020 expected to add approximately $1.2 billion to Portfolio Receipts in 2025.

Headline financials

Total Revenue

$596M

Previous: $566M+5.3%
EPS (adj)

$1.15

Previous: $1.56-26.3%
Capital Expenditures

-$1B

No prior period
Free Cash Flow

$777M

No prior period
Net Income

$718M

Previous: -$610M+217.7%
Operating Income

$613M

Previous: -$483M+226.9%
Gross Profit

$519M

Previous: $560M-7.2%
R&D Expense

$1M

No prior period
Stock-Based Comp

$617K

Previous: $583K+5.8%

Revenue & EPS history

Royalty Pharma · Revenue · Quarterly

$596M

Q4 2023+5.3%vs Q4 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 expects 2024 Portfolio Receipts to be between $2,600 million and $2,700 million, which includes expected royalty receipts growth of 5% to 9%.

Tailwinds

  • Portfolio Receipts between $2,600 million and $2,700 million
  • Expected royalty receipts growth of 5% to 9%
  • Guidance reflects a negligible estimated foreign exchange impact to Portfolio Receipts
  • Total interest paid is anticipated to be approximately $160 million in 2024.
  • Guidance assumes no major unforeseen adverse events

Headwinds

  • Excludes the contributions from transactions announced subsequent to the date of this press release.
  • Guidance may be amended in the event it engages in new royalty transactions which have a material near-term financial impact on the company.
  • Payments for operating and professional costs 8% to 9% of Portfolio Receipts
  • Interest Paid $160 million
  • Assumes no additional debt financing in 2024, including no drawdown on the revolving credit facility.

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 2023

Historical avgQ4 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

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