Royalty Pharma Reaffirms FY23 Guidance Post Mixed Q1 Performance

  • Royalty Pharma PLC RPRX reported Q1 2023 total income and other revenues increase of 22% Y/Y to $684 million, missing the consensus of $852.9 million
  • Adjusted EBITDA increased 88% Y/Y to $1.04 billion. Adjusted cash receipts were up 87% Y/Y to $1.13 billion, led by Pfizer Inc's PFE Zavzpret milestone and improved portfolio performance. 
  • Adjusted EPS of $1.60 beat the analysts' expectation of $1.27. 
  • Net cash provided by operating activities rose 125% Y/Y to $1.03 billion, led by payment receipt related to the FDA approval of Zavzpret, strong portfolio performance and payment linked to commercialization of Airsupra in the U.S. by AstraZeneca PLC AZN.
  • As of March 31, 2023, cash, cash equivalents and marketable securities stood at $2.0 billion. 
  • In March, the company's Board of Directors approved a share buyback program of up to $1.0 billion through June 2027.
  • 2023 Outlook Reaffirmed: RPRX expects adjusted cash reciepts of $2.85 billion to $2.95 billion, reflecting payment of $475 million related to FDA approval of Zavzpret.
  • "We announced transactions of up to $1.6 billion to acquire royalties on three innovative therapies, which further diversified our portfolio. In addition, we announced a multi-year share repurchase program of up to $1.0 billion. This reflects our confidence in Royalty Pharma's attractive outlook for compounding growth and our disciplined capital allocation strategy to create shareholder value," stated Pablo Legorreta, founder and CEO.
  • Price Action: RPRX shares are trading lower by 3.05% at $34.44 on the last check Tuesday.
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