Royalty Pharma plc (Nasdaq: RPRX) today announced that it has
received a $475 million accelerated milestone payment from Pfizer,
following the U.S. Food and Drug Administration (FDA) approval of
Zavzpret (zavegepant), a calcitonin gene-related peptide (CGRP)
receptor antagonist nasal spray for the acute treatment of
migraine. As a result, Royalty Pharma is raising its full year 2023
Adjusted Cash Receipts (non-GAAP) guidance to between $2,850
million and $2,950 million (from between $2,375 million and $2,475
million), excluding transactions announced subsequent to the date
of this release.
“We are pleased that Zavzpret was approved by the U.S. FDA,
which provides another important new treatment option for migraine
patients,” said Pablo Legorreta, founder and Chief Executive
Officer of Royalty Pharma. “Furthermore, this accelerated return on
our Zavzpret R&D funding provides additional capital that can
be redeployed to create long-term shareholder value.”
Royalty Pharma will now receive royalties on net sales of both
Nurtec ODT and Zavzpret.
Royalty Pharma today provides this guidance based on its most
up-to-date view on its prospects. This guidance assumes no major
unforeseen adverse events and excludes the contributions from
transactions announced subsequent to the date of this press
release. Furthermore, 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.
Royalty Pharma has not reconciled its non-GAAP 2023 guidance to
the most directly comparable GAAP measure, net cash provided by
operating activities, at this time due to the inherent difficulty
in accurately forecasting and quantifying certain amounts that are
necessary for such reconciliation, including, primarily, payments
for operating and professional costs, distributions from equity
method investees and interest received. Royalty Pharma is not able
to forecast on a GAAP basis with reasonable certainty all
adjustments needed in order to project net cash provided by
operating activities at this time.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of
biopharmaceutical royalties and a leading funder of innovation
across the biopharmaceutical industry, collaborating with
innovators from academic institutions, research hospitals and
non-profits through small and mid-cap biotechnology companies to
leading global pharmaceutical companies. Royalty Pharma has
assembled a portfolio of royalties which entitles it to payments
based directly on the top-line sales of many of the industry’s
leading therapies. Royalty Pharma funds innovation in the
biopharmaceutical industry both directly and indirectly - directly
when it partners with companies to co-fund late-stage clinical
trials and new product launches in exchange for future royalties,
and indirectly when it acquires existing royalties from the
original innovators. Royalty Pharma’s current portfolio includes
royalties on more than 35 commercial products, including Vertex’s
Trikafta, Kalydeco, Orkambi and Symdeko, Biogen’s Tysabri, AbbVie
and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s
Xtandi, GSK’s Trelegy, Novartis’ Promacta, Pfizer’s Nurtec ODT,
Johnson & Johnson’s Tremfya, Roche’s Evrysdi, Gilead’s
Trodelvy, and 11 development-stage product candidates.
Forward-Looking Statements
The information set forth herein does not purport to be complete
or to contain all of the information you may desire. Statements
contained herein are made as of the date of this document unless
stated otherwise, and neither the delivery of this document at any
time, nor any sale of securities, shall under any circumstances
create an implication that the information contained herein is
correct as of any time after such date or that information will be
updated or revised to reflect information that subsequently becomes
available or changes occurring after the date hereof. This document
contains statements that constitute “forward-looking statements” as
that term is defined in the United States Private Securities
Litigation Reform Act of 1995, including statements that express
the company’s opinions, expectations, beliefs, plans, objectives,
assumptions or projections regarding future events or future
results, in contrast with statements that reflect historical facts.
Examples include discussion of Royalty Pharma’s strategies,
financing plans, growth opportunities and market growth. In some
cases, you can identify such forward-looking statements by
terminology such as “may,” “might,” “will,” “should,” “expects,”
“plans,” “anticipates,” “believes,” “estimates,” “target,”
“forecast,” “guidance,” “goal,” “predicts,” “project,” “potential”
or “continue,” the negative of these terms or similar expressions.
Forward-looking statements are based on management’s current
beliefs and assumptions and on information currently available to
the company. However, these forward-looking statements are not a
guarantee of Royalty Pharma’s performance, and you should not place
undue reliance on such statements. Forward-looking statements are
subject to many risks, uncertainties and other variable
circumstances, and other factors. Such risks and uncertainties may
cause the statements to be inaccurate and readers are cautioned not
to place undue reliance on such statements. Many of these risks are
outside of Royalty Pharma’s control and could cause its actual
results to differ materially from those it thought would occur. The
forward-looking statements included in this document are made only
as of the date hereof. Royalty Pharma does not undertake, and
specifically declines, any obligation to update any such statements
or to publicly announce the results of any revisions to any such
statements to reflect future events or developments, except as
required by law. Certain information contained in this document
relates to or is based on studies, publications, surveys and other
data obtained from third-party sources and Royalty Pharma’s own
internal estimates and research. While Royalty Pharma believes
these third-party sources to be reliable as of the date of this
document, it has not independently verified, and makes no
representation as to the adequacy, fairness, accuracy or
completeness of, any information obtained from third-party sources.
In addition, all of the market data included in this document
involves a number of assumptions and limitations, and there can be
no guarantee as to the accuracy or reliability of such assumptions.
Finally, while the company believes its own internal research is
reliable, such research has not been verified by any independent
source. For further information, please reference Royalty Pharma’s
reports and documents filed with the U.S. Securities and Exchange
Commission (“SEC”) by visiting EDGAR on the SEC’s website at
www.sec.gov.
Notes
(1) Adjusted Cash Receipts is a measure calculated with inputs
directly from the statements of cash flows and includes (1) total
royalty receipts: (i) cash collections from royalty assets
(financial assets and intangible assets), (ii) Other royalty cash
collections, (iii) Distributions from equity method investees, plus
(2) Proceeds from available for sale debt securities, and less (1)
Distributions to legacy non-controlling interests – royalty
receipts, which represent contractual distributions of royalty
receipts and proceeds from available for sale debt securities to
the Legacy Investors Partnerships and Royalty Pharma Select Finance
Trust (RPSFT). See Royalty Pharma’s Annual Report on Form 10-K
filed with the SEC on February 15, 2023 for additional
discussion.
Royalty Pharma Investor Relations and
Communications
+1 (212) 883-6772ir@royaltypharma.com
Royalty Pharma (NASDAQ:RPRX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Royalty Pharma (NASDAQ:RPRX)
Historical Stock Chart
From Jul 2023 to Jul 2024