Royalty Pharma plc (RPRX)

Price$63.96Cached quoteAs of 2026-09-05 05:06 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash generation is offset by a much richer market valuation.

At the observed market level, Royalty Pharma’s equity was valued near $35.3 billion, while enterprise value, meaning market value including net debt, was about $43.4 billion. Against roughly $2.98 billion of trailing operating cash flow, cash generated by business operations, that is about 12 times equity value and 14.6 times including debt. Management’s 2026 guidance implies roughly $2.84 billion-$2.94 billion of portfolio cash flow after operating costs and interest. Those multiples require continued high-single-digit growth and disciplined reinvestment, supporting a Fair-priced verdict rather than a clear bargain.

Big pictureRoyalty payments remain cash-rich and resilient, but individual medicines still face sharp product-cycle declines.

Operating cash flow was $2.49 billion in 2025 and about $2.98 billion over the latest four reported quarters, showing substantial cash durability despite uneven accounting earnings. In the second quarter of 2026, royalty receipts rose 14% and operating cash flow doubled year over year to $728 million. The business is less tied to ordinary economic cycles than most companies, but medicine life cycles matter: Promacta receipts fell 75% after generic competition, while Tremfya, Voranigo and Evrysdi grew 53%, 72% and 42%, respectively.

Business strengthA broad royalty portfolio supports stability, though high debt reduces the margin for investment mistakes.

Royalty Pharma had $812 million of cash and about $9.0 billion of balance-sheet debt at June 2026, leaving roughly $8.1 billion of net debt, meaning debt minus cash, or about 2.7 times trailing operating cash flow. Current assets were about 2.8 times current liabilities, and the company repaid a $380 million term loan in July. Diversification helps: it reports more than 35 approved products and roughly a 13-year portfolio duration. Still, debt-funded acquisitions create value only when future royalty returns comfortably exceed financing costs and product disappointments.

What could change the storyFuture returns hinge on buying royalties well, controlling dilution, and converting pipeline assets into cash.

Capital allocation is the swing factor. Royalty Pharma repurchased about $1.23 billion of shares in 2025, and its diluted Class A share count, including potential employee shares, fell 1% year over year in the latest quarter, partly offsetting sharply higher share-based employee compensation after manager internalization. The internalization is expected to save more than $100 million of cash in 2026, while related equity vests over five to nine years. The bull case strengthens if receipts track toward management’s $4.7 billion-or-more 2030 goal and debt falls; slower growth or rising debt would weaken today’s valuation.

AI: News

Guidance Raised AgainRoyalty Pharma raised its 2026 receipts outlook as core royalty collections kept growing quickly.

On August 5, Royalty Pharma reported second-quarter Portfolio Receipts of $773 million, up 6%, while Royalty Receipts rose 14% to $768 million and operating cash flow reached $728 million. It raised full-year Portfolio Receipts guidance to $3.4 billion-$3.5 billion from $3.325 billion-$3.45 billion, its second increase this year. Shares gained about 0.5% that session. The muted move suggests some good news was already expected; the timing alone does not prove the earnings release caused the price change.

Rusfertide Royalty PurchaseA new late-stage royalty added upside before a near-term regulatory decision with modest capital at risk.

On August 12, Royalty Pharma agreed to pay $100 million for Zealand Pharma’s economics in rusfertide, including a 1% royalty on potential global sales plus milestone rights. Half is due at closing and half one year later; Royalty Pharma keeps a 0.75% royalty on sales above $1.5 billion. The U.S. Food and Drug Administration had a third-quarter 2026 decision target. Shares rose about 2.5% that day, but the market move cannot be reliably attributed to this deal alone.

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Revenue

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2025

Net income

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2025

Free cash flow

No reported data

Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$2.38B	$2.26B	$2.35B	$2.24B	$2.29B	$2.12B	$1.81B	$1.79B
Research & development	$452.0M	$2.0M	$52.0M	$177.1M	$200.1M	$26.3M	$83.0M	$392.6M
Operating expenses	$818.7M	$971.1M	$862.4M	$1.93B	$858.7M	$527.0M	—	$430.4M
Operating income	$1.56B	$1.29B	$1.49B	$307.1M	$1.43B	$1.60B	$2.62B	$1.36B
Operating margin	65.58%	57.10%	63.37%	13.73%	62.49%	75.17%	144.59%	76.02%
EBITDA	$1.56B	$1.29B	$1.49B	$423.7M	—	—	—	—
EBITDA margin	65.74%	57.10%	63.37%	18.94%	—	—	—	—
Net income	$770.9M	$859.0M	$1.13B	$42.8M	$619.7M	$975.0M	$2.35B	$1.38B
Net profit margin	32.42%	37.95%	48.20%	1.91%	27.07%	45.94%	129.45%	76.76%
Basic EPSper basic share	$1.79	$1.92	$2.54	$0.10	$1.49	$1.32	—	—
Diluted EPSper diluted share	$1.78	$1.91	$2.53	$0.10	$1.49	$1.32	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

9.63%of listed shares

MORGAN STANLEY42.93M shares · Jun 30, 2026

View holders

Top 20 reported holders of RPRX
Holder	% owned
MORGAN STANLEY	9.63%42.93M shares
Capital International Investors	7.91%35.27M shares
BlackRock, Inc.	6.24%27.83M shares
FMR LLC	5.50%24.51M shares
STATE STREET CORP	2.77%12.34M shares
PRICE T ROWE ASSOCIATES INC /MD/	2.51%11.19M shares
Swedbank AB	2.41%10.73M shares
BAILLIE GIFFORD & CO	2.25%10.02M shares
Capital World Investors	2.14%9.52M shares
GEODE CAPITAL MANAGEMENT, LLC	1.81%8.06M shares
Caledonia (Private) Investments Pty Ltd	1.30%5.78M shares
NORGES BANK	1.20%5.34M shares
Legorreta Pablo G.	≈1.09%4.85M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.08%4.83M shares
NORTHERN TRUST CORP	1.06%4.72M shares
ROYAL LONDON ASSET MANAGEMENT LTD	0.97%4.32M shares
AQR CAPITAL MANAGEMENT LLC	0.97%4.31M shares
Invesco Ltd.	0.95%4.23M shares
BANK OF AMERICA CORP /DE/	0.93%4.15M shares
Legal & General Group Plc	0.85%3.8M shares

Percentages use 445.75M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)63$73.21M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4 · 10b5-1	Urist MarshallEVP, Research & Investments	SellClass A Ordinary Shares	9.1K	$55.18	$502.0K	9.1K
Jun 23, 2026Form 4 · 10b5-1	Hite ChristopherEVP & Chairman, Partnering	SellClass A Ordinary Shares · indirect	117.6K	$54.47	$6.41M	559.4K
Jun 23, 2026Form 4 · 10b5-1	Hite ChristopherEVP & Chairman, Partnering	SellClass A Ordinary Shares · indirect	32.4K	$54.11	$1.75M	677.0K
May 26, 2026Form 4 · 10b5-1	Coyne Terrance P.EVP & CFO	SellClass A Ordinary Shares · indirect	64.4K	$53.98	$3.48M	0
May 20, 2026Form 4 · 10b5-1	Urist MarshallEVP, Research & Investments	SellClass A Ordinary Shares	13.7K	$52.75	$721.8K	18.2K