- Portfolio Receipts of $742 million in Q4 2024 and $2,801 million for FY 2024
- Royalty Receipts growth of 12% in Q4 2024 and 13% for FY 2024
- Net cash provided by operating activities of $743 million in Q4 2024 and $2,769 million for FY 2024
- Full year 2025 guidance: Portfolio Receipts expected to be $2,900 to $3,050 million excluding future transactions
"We had an incredibly successful 2024, delivering double-digit growth in Royalty Receipts, which was significantly above our initial guidance, and deploying $2.8 billion of capital on value-enhancing royalties” said Pablo Legorreta, Royalty Pharma's founder and Chief Executive Officer. "We are very excited for the opportunities ahead as the fundamentals of our business have never been stronger. Additionally, we have already taken two major steps at the start of 2025 to enhance shareholder value, announcing the acquisition of our external manager, which is expected to result in multiple financial and strategic benefits, and a new $3 billion share repurchase program, which highlights the confidence we have in our business and the attractive value we see in our shares. With a robust transaction pipeline and significant financial flexibility, I am confident that Royalty Pharma is well positioned to deliver attractive, compounding growth over the long term.”
Strong Royalty Receipts growth; Portfolio Receipts growth impacted by a high base of comparison
- Royalty Receipts grew 12% to $729 million in the fourth quarter and 13% to $2,771 million for full year 2024, driven by strong performance from Evrysdi, the CF franchise, Trelegy, Tremfya and new royalty acquisitions.
- Portfolio Receipts increased 1% to $742 million in the fourth quarter of 2024; Portfolio Receipts decreased 8% from $3,049 million to $2,801 million for full year 2024, largely reflecting $525 million in Biohaven-related milestone payments received in 2023.
- Record year for synthetic royalty transactions for Royalty Pharma with $925 million announced in 2024.
- Significantly expanded development-stage portfolio by acquiring royalties on four potential new therapies.
- Royalty Pharma to benefit in 2025 from new product launches, including Servier's Voranigo, Bristol Myers Squibb's Cobenfy, Ascendis' Yorvipath, Syndax and Incyte's Niktimvo and Geron's Rytelo.
- Royalty Pharma expects 2025 Portfolio Receipts to be between $2,900 million and $3,050 million, representing expected growth of 4% to 9%.
| Three Months Ended
December 31, | Twelve Months Ended
December 31, | |||||||
| (unaudited) | ||||||||
| ($ and shares in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||
| Portfolio Receipts | 742 | 736 | 1% | 2,801 | 3,049 | (8)% | ||
| Net cash provided by operating activities | 743 | 773 | (4)% | 2,769 | 2,988 | (7)% | ||
| Adjusted EBITDA (non-GAAP)* | 669 | 682 | (2)% | 2,565 | 2,806 | (9)% | ||
| Portfolio Cash Flow (non-GAAP)* | 678 | 687 | (1)% | 2,452 | 2,708 | (9)% | ||
| Weighted average Class A ordinary shares outstanding - diluted | 589 | 598 | (1)% | 594 | 603 | (1)% | ||
Portfolio Receipts Highlights
| Three Months Ended December 31, | |||||
| (unaudited) | |||||
| ($ in millions) | 2024 | 2023 | Change | ||
| Products: | Marketers: | Therapeutic Area: | |||
| Cystic fibrosis franchise | Vertex | Rare disease | 237 | 207 | 14% |
| Trelegy | GSK | Respiratory | 74 | 60 | 23% |
| Tysabri | Biogen | Neuroscience | 61 | 68 | (11)% |
| Evrysdi | Roche | Rare disease | 56 | 20 | 182% |
| Xtandi | Pfizer, Astellas | Cancer | 46 | 38 | 20% |
| Imbruvica | AbbVie, J&J | Cancer | 46 | 50 | (10)% |
| Promacta | Novartis | Hematology | 44 | 44 | (1)% |
| Tremfya | Johnson & Johnson | Immunology | 39 | 35 | 11% |
| Cabometyx/Cometriq | Exelixis, Ipsen, Takeda | Cancer | 20 | 18 | 11% |
| Spinraza | Biogen | Rare disease | 15 | 17 | (13)% |
| Orladeyo | BioCryst | Rare disease | 11 | 8 | 36% |
| Trodelvy | Gilead | Cancer | 11 | 10 | 10% |
| Erleada | Johnson & Johnson | Cancer | 11 | 9 | 25% |
| Nurtec ODT/Zavzpret | Pfizer | Neuroscience | 7 | 5 | 49% |
| Other products(5) | 54 | 63 | (14)% | ||
| Royalty Receipts | 729 | 651 | 12% | ||
| Milestones and other contractual receipts | 13 | 84 | (85)% | ||
| Portfolio Receipts | 742 | 736 | 1% | ||
Royalty Receipts was $729 million in the fourth quarter of 2024, an increase of 12% as compared to $651 million in the fourth quarter of 2023. The increase was primarily driven by strong growth from Evrysdi, the cystic fibrosis franchise, Trelegy, Xtandi and Tremfya. Royalty receipts from Evrysdi included the benefit of the additional royalties acquired in October 2023 and June 2024.
Portfolio Receipts was $742 million in the fourth quarter of 2024, an increase of 1% as compared to $736 million in the fourth quarter of 2023. The increase was primarily driven by the same Royalty Receipts increases noted above, offset by a decrease in milestones and other contractual receipts, which reflected a $50 million payment related to the oral formulation of zavegepant in the prior period.
Liquidity and Capital Resources
Royalty Pharma's liquidity and capital resources are summarized below:
As of December 31, 2024, Royalty Pharma had cash and cash equivalents of $929 million and total debt with principal value of $7.8 billion.
During the fourth quarter of 2024, Royalty Pharma repurchased approximately two million Class A ordinary shares for $50 million. For full year 2024, Royalty Pharma repurchased approximately eight million Class A ordinary shares for $230 million. The weighted-average number of diluted Class A ordinary shares outstanding for the fourth quarter of 2024 was 589 million as compared to 598 million for the fourth quarter of 2023. The weighted-average number of diluted Class A ordinary shares outstanding for full year 2024 was 594 million as compared to 603 million for full year 2023.
In January 2025, Royalty Pharma's Board of Directors authorized a new share repurchase program under which Royalty Pharma may repurchase up to $3.0 billion of its Class A ordinary shares. Royalty Pharma intends to repurchase $2.0 billion of its shares in 2025, subject to market conditions. The total value of shares repurchased will depend on the discount to the intrinsic value at which its Class A ordinary shares are trading. This new share repurchase program replaces the unused $465 million of the company's original $1.0 billion share repurchase program that was announced in March 2023.
Liquidity Summary
| Three Months Ended
December 31, | Twelve Months Ended December 31, | |||||||
| (unaudited) | ||||||||
| ($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
| Portfolio Receipts | 742 | 736 | 2,801 | 3,049 | ||||
| Payments for operating and professional costs | (72) | (54) | (236) | (243) | ||||
| Adjusted EBITDA (non-GAAP) | 669 | 682 | 2,565 | 2,806 | ||||
| Interest received/(paid), net | 8 | 5 | (113) | (98) | ||||
| Portfolio Cash Flow (non-GAAP) | 678 | 687 | 2,452 | 2,708 | ||||
- Adjusted EBITDA (non-GAAP) was $669 million in the fourth quarter of 2024. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs.
- Portfolio Cash Flow (non-GAAP) was $678 million in the fourth quarter of 2024. Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty Pharma's business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases, or utilized for other discretionary investments.
Capital Deployment was $522 million in the fourth quarter of 2024, consisting primarily of the acquisitions of royalties on Niktimvo and Rytelo. Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $2.8 billion for full year 2024.
The table below details Capital Deployment by category:
Capital Deployment
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
| (unaudited) | ||||||||
| ($ in millions) | 2024 | 2023 | 2024 | 2023 | ||||
| Acquisitions of financial royalty assets | (496) | (1,002) | (2,506) | (2,116) | ||||
| Development-stage funding payments - upfront and milestone | - | - | - | (50) | ||||
| Development-stage funding payments - ongoing | (1) | (1) | (2) | (2) | ||||
| Purchases of available for sale debt securities | - | - | (150) | - | ||||
| Milestone payments | (25) | - | (75) | (12) | ||||
| Investments in equity method investees | - | (2) | (11) | (13) | ||||
| Acquisitions of other financial assets | - | - | (18) | - | ||||
| Contributions from legacy non-controlling interests - R&D | 0 | 0 | 1 | 1 | ||||
| Capital Deployment | (522) | (1,005) | (2,761) | (2,192) | ||||
In January 2025, Royalty Pharma announced the sale of the MorphoSys Development Funding Bonds for $511 million in upfront cash (press release). This payment, combined with payments previously received, results in total cash proceeds of $530 million on the $300 million investment that was made in September 2022. The proceeds strengthen Royalty Pharma's balance sheet and provide added flexibility to pursue its disciplined capital allocation strategy.
Royalty Transactions
For full year 2024, Royalty Pharma announced new transactions of up to approximately $2.8 billion. The announced transactions amount reflects the entire amount of capital committed for new transactions during the year, including potential future milestones.
Recent transactions include:
- In November 2024, Royalty Pharma acquired a synthetic royalty on Rytelo from Geron Corporation for an upfront payment of $125 million (press release). Rytelo is approved for the treatment of certain adult patients with low- to intermediate-1 risk myelodysplastic syndromes with transfusion-dependent anemia. Following the acquisition, Royalty Pharma is entitled to receive tiered royalties on U.S. net sales on Rytelo.
- In November 2024, Royalty Pharma acquired a synthetic royalty on Niktimvo from Syndax Pharmaceuticals, Inc. for an upfront payment of $350 million (press release). Niktimvo is approved for the treatment of chronic graft-versus-host disease and will be co-commercialized by Incyte. Following the acquisition, Royalty Pharma is entitled to receive royalties on U.S. net sales on Niktimvo.
Internalization Transaction