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Upturn AI SWOT - About
Royalty Pharma Plc (RPRX)
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Upturn Advisory Summary
04/01/2025: RPRX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -15.05% | Avg. Invested days 39 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 17.97B USD | Price to earnings Ratio 16.32 | 1Y Target Price 40.92 |
Price to earnings Ratio 16.32 | 1Y Target Price 40.92 | ||
Volume (30-day avg) 4825033 | Beta 0.47 | 52 Weeks Range 23.89 - 34.20 | Updated Date 04/1/2025 |
52 Weeks Range 23.89 - 34.20 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.83% | Basic EPS (TTM) 1.91 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 37.95% | Operating Margin (TTM) 60.9% |
Management Effectiveness
Return on Assets (TTM) 4.67% | Return on Equity (TTM) 13.03% |
Valuation
Trailing PE 16.32 | Forward PE 10.01 | Enterprise Value 19326501043 | Price to Sales(TTM) 7.94 |
Enterprise Value 19326501043 | Price to Sales(TTM) 7.94 | ||
Enterprise Value to Revenue 8.54 | Enterprise Value to EBITDA 12.42 | Shares Outstanding 433324992 | Shares Floating 378296975 |
Shares Outstanding 433324992 | Shares Floating 378296975 | ||
Percent Insiders 9.83 | Percent Institutions 76.62 |
Analyst Ratings
Rating 4.38 | Target Price 40.66 | Buy 3 | Strong Buy 4 |
Buy 3 | Strong Buy 4 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Royalty Pharma Plc
Company Overview
History and Background
Royalty Pharma was founded in 1996 by Pablo Legorreta. It pioneered the royalty financing model in the biopharmaceutical industry, acquiring royalty interests in blockbuster drugs and therapies. The company went public in June 2020.
Core Business Areas
- Royalty Acquisitions: Acquires royalty interests in marketed and late-stage development biopharmaceutical products.
- Funding of Clinical Trials: Provides funding for late-stage clinical trials in exchange for future royalties.
Leadership and Structure
Pablo Legorreta is the Founder and CEO. The company operates with a team of investment professionals, scientists, and legal experts.
Top Products and Market Share
Key Offerings
- Tysabri: Royalty on sales of Tysabri (natalizumab), a multiple sclerosis drug. Competitors include other MS drugs like those from Biogen and Novartis. Revenue from Tysabri is significant, but specific market share of royalty income is not publicly disclosed as a direct product.
- Januvia/Janumet: Royalty on sales of Januvia/Janumet (sitagliptin), a diabetes medication. Faces competition from other diabetes drugs from companies like Novo Nordisk and Eli Lilly. Specific royalty revenue share is not publicly available as a distinct product market share.
- Emgality: Royalty stream on Emgality, a migraine treatment from Eli Lilly. Competitors include other migraine medications like those from Amgen and Teva Pharmaceuticals. Specific Royalty Revenue data is not publicly disclosed.
Market Dynamics
Industry Overview
The biopharmaceutical royalty market is growing, driven by innovation in drug development and the need for alternative financing solutions. It provides upfront capital for R&D in return for royalty income on approved drugs.
Positioning
Royalty Pharma is a leader in the royalty acquisition space, with a large portfolio of royalty interests. It has a competitive advantage due to its scale, experience, and established relationships with biopharmaceutical companies.
Total Addressable Market (TAM)
The TAM for biopharma royalty financing is estimated to be billions of dollars annually, driven by the increasing costs and risks of drug development. Royalty Pharma is well-positioned to capture a significant portion of this market.
Upturn SWOT Analysis
Strengths
- Diversified portfolio of royalty interests
- Strong financial position
- Experienced management team
- Established relationships with biopharmaceutical companies
Weaknesses
- Dependence on the success of underlying drugs
- Potential for generic erosion of royalty streams
- Exposure to regulatory risks
- Relatively high levels of debt
Opportunities
- Expanding into new therapeutic areas
- Acquiring additional royalty interests
- Funding late-stage clinical trials
- Geographic expansion
Threats
- Patent expirations
- Regulatory changes
- Competition from other royalty investors
- Economic downturns
Competitors and Market Share
Key Competitors
- DRI
- OMP
Competitive Landscape
Royalty Pharma has a larger, more diversified portfolio than many of its competitors. However, smaller, more specialized players may focus on specific therapeutic areas or investment strategies.
Major Acquisitions
Biohaven Pharmaceutical Holding Company Ltd.
- Year: 2022
- Acquisition Price (USD millions): 1122
- Strategic Rationale: Acquisition of Biohaven enabled Royalty Pharma to acquire royalties on Nurtec ODT, a migraine medication.
Growth Trajectory and Initiatives
Historical Growth: Royalty Pharma has grown significantly since its founding through acquisitions and strategic investments.
Future Projections: Analyst estimates project continued growth for Royalty Pharma, driven by its diversified portfolio and the growing demand for royalty financing.
Recent Initiatives: Recent initiatives include acquiring new royalty interests, funding clinical trials, and expanding into new therapeutic areas.
Summary
Royalty Pharma is a well-established leader in the royalty acquisition market, offering a diversified portfolio and strong financial position. Its success hinges on the performance of the underlying drugs it has royalty interests in. Potential threats include patent expirations and competitive pressures. Overall, Royalty Pharma maintains a strong presence and is positioned to benefit from the increasing need for biopharmaceutical financing.
Similar Companies
- DRI
- OMP
- ABBV
- PFE
- MRK
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Analyst Reports
- Industry Publications
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Royalty Pharma Plc
Exchange NASDAQ | Headquaters New York, NY, United States | ||
IPO Launch date 1993-03-25 | Founder, Chairman of the Board & CEO Mr. Pablo Gerardo Legorreta | ||
Sector Healthcare | Industry Biotechnology | Full time employees - | Website https://www.royaltypharma.com |
Full time employees - | Website https://www.royaltypharma.com | ||
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 14 development-stage product candidates that address various therapeutic areas, such as rare disease, cancer, neuroscience, infectious disease, hematology, and diabetes. The company was founded in 1996 and is based in New York, New York.
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