Press release
Royalty Pharma Investor Day Highlights Stronger Growth Outlook and the Power of Its Unique Business Model to Drive Value for All Stakeholders
New capital deployment target of $10-12 billion over the next five yearsOutlook for 2020-2025 Adjusted Cash Receipts (1) (non-GAAP) CAGR raised to
About this update from Royalty Pharma Plc
[{"type":"text","content":"New capital deployment target of $10-12 billion over the next five yearsOutlook for 2020-2025 Adjusted Cash Receipts (1) (non-GAAP) CAGR raised to 11-14%Adjusted Cash Receipts (1) (non-GAAP) expected to grow 10% or more over this decade, positioning Royalty Pharma to be one of the fastest growing biopharma companiesDemand for capital to fund life sciences innovation to exceed $1 trillion in next decade NEW YORK, May 17, 2022 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) will host its inaugural Investor Day in New York City today. Royalty Pharma’s management team will provide an update on the company’s capital deployment opportunities and long-term outlook and the prospects for royalty funding in life sciences. “Royalty Pharma has made tremendous progress since our IPO in June 2020,” said Pablo Legorreta, Royalty Pharma’s founder and Chief Executive Officer. “We are the pioneers and leaders in the biopharmaceutical royalty market. Our unique and powerful business model drives tremendous opportunity for strong compounding growth in the coming years. And most importantly, by funding and accelerating the ‘golden age’ of life sciences innovation, we are helping to transform patients’ lives. Today, my team and I are excited to provide a deep review of our business and outlook - and ultimately why we believe we represent a uniquely attractive and straightforward investment proposition for investors seeking consistently strong growth and value creation.” Increasing Five-Year Forward Capital Deployment Target The rapid expansion of the royalty funding market and Royalty Pharma’s strengthened competitive position as a public company have resulted in the company’s ability to invest at a rate ahead of its initial plans. At the time of its IPO, Royalty Pharma provided a five-year forward capital deployment target of greater than $7 billion, which implied an average annual deployment on royalty acquisitions of around $1.5 billion. To reflect the company’s most up-to-date assessment, its new capital deployment target is $10 billion to $12 billion over the next five years, implying an average annual investment of $2 billion to $2.5 billion. Royalty Pharma expects that there will be year to year variations in its capital deployment, reflecting its disciplined and patient approach to investing. Over the longer-term, Royalty Pharma sees th...