Royalty Pharma Reports $2.8 Billion Revenue for Fiscal Year 2024, Down 3.9%

Royalty Pharma plc reported a total revenue of $2.8 billion for the fiscal year ending December 31, 2024, a decrease of 3.9% from $2.35 billion in 2023. The decline was primarily attributed to a significant milestone payment received in 2023 related to Pfizer’s Zavzpret, which amounted to $475 million. Income from financial royalty assets also fell by 2.2% to $2.15 billion, while other royalty income decreased by 27.2% to $114 million. The company’s net income attributable to Royalty Pharma plc was $859 million, down 24.3% from $1.13 billion in the previous year.

In terms of operational developments, Royalty Pharma's portfolio includes royalties on over 35 marketed therapies and 14 development-stage product candidates. The company executed transactions with a total potential value of $2.8 billion in 2024, maintaining a strong market position with an estimated market share of approximately 51% of all royalty transactions from 2020 to 2024. The company also reported a significant increase in Portfolio Receipts, which rose by 13.1% to $2.77 billion, driven by strong performances from products like Vertex’s cystic fibrosis franchise and Roche’s Evrysdi.

Strategically, Royalty Pharma announced plans to acquire its management company, RP Management, LLC, for approximately $1.1 billion, a move expected to enhance corporate governance and align interests more closely with shareholders. This acquisition is anticipated to close in the second quarter of 2025, subject to shareholder approval. The company also continued to invest in new royalties, deploying $2.8 billion in 2024, which included significant acquisitions such as a synthetic royalty on Niktimvo for $350 million and a royalty interest in Voranigo for $905 million.

The company’s employee headcount remains stable, with RP Management employing 99 individuals as of December 31, 2024. Royalty Pharma's financial position is supported by a robust cash flow, with cash and cash equivalents totaling $929 million at year-end, up from $477 million in 2023. The company also reported a total debt of $7.8 billion, with a significant portion of its borrowings in the form of senior unsecured notes.

Looking ahead, Royalty Pharma anticipates continued growth driven by its diverse portfolio and strategic acquisitions. The company expects to maintain its focus on identifying and acquiring royalties on high-potential therapies, while also navigating the evolving landscape of the biopharmaceutical industry. The management remains optimistic about the long-term prospects, despite the challenges posed by market conditions and competition.