Royalty Pharma Announces $1.0 Billion Share Repurchase Program
March 27 2023 - 7:30AM
Royalty Pharma plc (Nasdaq: RPRX) today announced that the
company’s Board of Directors has authorized the repurchase of up to
$1.0 billion of the company’s Class A ordinary shares. Royalty
Pharma received shareholder approval for a share repurchase program
at its Annual General Meeting in June 2022. This approval is valid
through June 2027.
Additionally, Pablo Legorreta, Royalty Pharma’s founder and
Chief Executive Officer, has indicated that he intends to purchase
up to $50 million of the company’s Class A ordinary shares.
"The proposed repurchase of up to $1 billion of Royalty Pharma’s
Class A ordinary shares coupled with my personal intention to buy
more Class A ordinary shares reflects our confidence in Royalty
Pharma and its attractive outlook, including compounding long-term
growth, a strong balance sheet enhanced by the recent acceleration
of certain Biohaven related payments, and a highly cash-generative
business model," said Pablo Legorreta, Royalty Pharma’s Founder and
Chief Executive Officer. “This announcement is consistent with the
capital allocation framework we provided at the May 2022 Investor
Day, which balances our primary focus of acquiring royalties on
exciting new products with returning capital to shareholders, to
drive shareholder value creation. We continue to see tremendous
opportunities for investment in life sciences innovation, as
evidenced by our recently increased target for capital deployment
of $10 to $12 billion over a five-year period.”
The timing and actual number of Class A ordinary shares
repurchased will depend on a variety of factors, including price,
available liquidity, corporate and regulatory requirements and
market conditions and alternative investment opportunities.
Repurchases of Class A ordinary shares can be made from time to
time using a variety of methods, including but not limited to open
market purchases (including Rule 10b5-1 trading plans) and
privately negotiated transactions, all in compliance with the rules
and regulations of the U.S. Securities and Exchange Commission
(“SEC”) and other applicable legal requirements, including the
requirements of Rule 10b-18 under the Securities Exchange Act of
1934, as amended.
The share repurchase program and Mr. Legorreta’s statement of
intention to purchase Class A ordinary shares do not obligate
Royalty Pharma or Mr. Legorreta to acquire any specific dollar
amount or number of Class A ordinary shares, and the share
repurchase program and Mr. Legorreta’s purchases may be suspended
or discontinued at any time at Royalty Pharma's and Mr. Legorreta’s
discretion, respectively.
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 and Mr. Legorreta’s
intentions to purchase Royalty Pharma’s Class A ordinary shares as
well as 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 SEC by visiting EDGAR on the
SEC’s website at www.sec.gov.
Royalty Pharma Investor Relations and
Communications
+1 (212) 883-6772ir@royaltypharma.com
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