Loading…
Buys royalty streams on approved and pipeline biopharma drugs, collecting a cut of sales without doing R&D itself.
Buys royalty streams on approved and pipeline biopharma drugs, collecting a cut of sales without doing R&D itself.
Pays upfront to buy a share of a drug's future sales, then collects a percentage of those sales for years, so income follows how well other companies' drugs sell. Its largest streams come from a few big drugs, notably the cystic fibrosis medicines sold by Vertex, a royalty it bought from the Cystic Fibrosis Foundation in 2014.
Moat: narrow (scale, distribution). Large capital base and industry relationships let it win bigger royalty deals than smaller rivals.
Headquarters: London, United Kingdom · Founded: 1996 · Employees: 100
Size Royalty Pharma (RPRX) is a United States Health Care company (Pharmaceuticals: Major) with a market value of $38.8B, the 304th largest of 3,117 United States companies the cockpit tracks. Shares closed at $67.30 on 6 Nov 2026.
Performance Over six months the shares gained 32.5%, against +17.1% for the median peer and -1.1% for the United States market (cap-weighted) — 5th highest of 21 in its peer set.
Growth Revenue grew 11.3% over the last twelve months (peer median +11.7%); the operating margin is 65.5% (peer median 17.8%).
Valuation It trades at 11.3× forward earnings against a peer median of 19.5× (2nd cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 10% a year for seven years (Req g). Recent delivered growth is +2%, so the hurdle is +8 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 0.9 points above its cost of capital (6.4% WACC).
Credit Royalty Pharma has 12 bonds outstanding ($8.80B), rated BBB by the agencies and trading like BBB+ at a weighted spread of 88 bp.
Short interest Short interest is 2.9% of the free float (15 Oct 2026).
Next results Next results expected around 16 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $2.62B | $2.38B | $2.26B | $2.35B | $2.24B |
| Revenue growth | — | +5% | -4% | +5% | — |
| Gross profit | $2.61B | $2.37B | n/a | n/a | $2.23B |
| EBITDA | $1.72B | $1.56B | $1.29B | $1.49B | $929M |
| Net income | $671M | $771M | $859M | $1.13B | $42.8M |
| Free cash flow | $2.99B | $2.59B | $2.79B | $3.03B | $2.14B |
| Capital expenditure | $1.72B | $1.70B | $2.52B | $2.12B | $1.76B |
| Total debt | $8.59B | $8.97B | $7.61B | $6.14B | $7.12B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Royalty Pharma RPRX | $38.8B | +33% | +11% | 66% | 11.3× | 9.9% |
| Ligand Pharmaceuticals LGND | $6.12B | +38% | +1% | 14% | 28.0× | 57.8% |
| Innoviva INVA | $1.38B | -17% | +18% | 36% | 9.4× | -15.4% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | RPRX | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +19.7% | +9.4% | 3rd highest of 21 |
| 6-month return | +32.5% | +17.1% | 5th highest of 21 |
| Distance from 52-week high | -3.5% | -9.6% | 6th highest of 21 |
| Revenue growth (TTM) | +11.3% | +11.7% | 10th lowest of 21 |
| Operating margin | 65.5% | 17.8% | highest of 21 |
| Forward P/E | 11.3× | 19.5× | 2nd cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 9.9% | 8.8% | 8th most demanding of 19 |
| Growth delivered (Del g) | +2.3% | +8.1% | 6th lowest of 19 |
| Hurdle (Req g minus delivered) | +7.6 pp | +0.2 pp | 7th most demanding of 19 |
| ROIC minus cost of capital | +0.9 pp | +4.6 pp | 7th lowest of 21 |
| EV / EBITDA | 29.0× | 14.6× | 4th most expensive of 17 |
| Net debt / EBITDA | 4.7× | 0.8× | most indebted of 17 |
| Bond spread | 88 bp | 93 bp | 5th tightest of 9 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Royalty Pharma RPRX | United States | $38.8B | +33% | +11% | 66% | 11.3× | 9.9% | +2.3% |
| Otsuka Hldgs 4578.T | Japan | $38.6B | +2% | +11% | 18% | 16.3× | 0.4% | +11.7% |
| Haleon HLN.L | United Kingdom | $40.1B | +1% | +1% | 23% | 16.3× | 4.6% | +2.2% |
| Biogen BIIB | United States | $36.7B | +28% | +2% | 17% | 16.8× | 9.4% | -5.1% |
| Sandoz SDZ.SW | Switzerland | $44.4B | +24% | +1% | 15% | 25.3× | 7.9% | +0.4% |
| BeOne Medicines 688235.SS | China | $45.8B | +19% | +28% | 15% | 74.5× | 23.3% | +79.3% |
| Zoetis ZTS | United States | $32.8B | -4% | +1% | 38% | 12.8× | -4.3% | +7.2% |
| Daiichi Sankyo 4568.T | Japan | $31.9B | +7% | +17% | 13% | 18.6× | 7.2% | +17.1% |
| Sun Pharmaceutical Industries SUNPHARMA.NS | India | $47.3B | +1% | +12% | 23% | 35.4× | 28.4% | +11.7% |
| Jiangsu Hengrui Pharmaceuticals 1276.HK | Hong Kong | $48.8B | -20% | +11% | 27% | 32.1× | 10.2% | +2.0% |
| Divi's Laboratories DIVISLAB.NS | India | $29.0B | +54% | +16% | 31% | 82.0× | 50.9% | +8.9% |
| Astellas Pharma 4503.T | Japan | $28.2B | +11% | +19% | 23% | 11.6× | -11.0% | +11.4% |
| Roivant Sciences ROIV | United States | $28.1B | +36% | -68% | -18,146% | n/a | n/a | n/a |
| Galderma GALD.SW | Switzerland | $54.8B | +17% | +16% | 19% | 48.1× | 18.4% | +6.4% |
| Hansoh Pharma 3692.HK | Hong Kong | $26.9B | -7% | +25% | 38% | 27.5× | 8.9% | +10.8% |
| Insmed INSM | United States | $25.1B | -16% | +240% | -42% | n/a | n/a | n/a |
| Bayer BAYN.DE | Germany | $61.2B | +46% | -2% | 14% | 12.3× | 2.1% | +1.9% |
| Incyte INCY | United States | $24.4B | +21% | +25% | 12% | 15.4× | 14.2% | +14.0% |
| Viatris VTRS | United States | $22.9B | +17% | +5% | 10% | 7.5× | 12.5% | +3.7% |
| Wuxi Apptec 2359.HK | Hong Kong | $66.3B | +40% | +38% | 44% | 20.4× | 8.7% | +20.4% |
| Takeda Pharmaceutical 4502.T | Japan | $66.4B | +24% | +6% | 18% | 42.1× | 3.0% | +7.1% |
Royalty Pharma has 12 bonds outstanding with $8.80B face value. The agencies rate it BBB; its bonds trade like BBB+. Weighted yield 5.80%, a spread of 88 bp over government bonds.