Royalty Pharma (RPRX) Stock Price, News & Analysis

Company Overview

Royalty Pharma plc is a life sciences company that specializes in acquiring and managing pharmaceutical royalty interests. The company partners with biotechnology and pharmaceutical firms, academic institutions and inventors to provide upfront capital in exchange for future royalty streams generated by approved or late-stage drug candidates. This business model enables innovators to unlock the value of their research and development pipelines while retaining ownership and control of their programs.

Since its founding in 1996 by Pablo Legorreta, Royalty Pharma has built a diversified portfolio of royalty assets spanning a wide range of therapeutic areas, including oncology, immunology, neurology and rare diseases. The company’s holdings encompass marketed products and near-term launches, allowing it to benefit from established revenue streams as well as anticipated growth from recently approved therapies. By structuring transactions around royalties rather than equity, Royalty Pharma aligns its interests with the long-term commercial performance of each asset.

Headquartered in New York City, Royalty Pharma maintains a global presence with offices in Europe and Asia to support its relationships and deal flow. The company’s team of professionals conducts rigorous scientific, clinical and commercial analysis to evaluate potential acquisitions, manage existing assets and monitor emerging trends in the biopharmaceutical industry. Royalty Pharma’s operations are structured to provide flexible financing solutions that accommodate the unique capital needs of research institutions and drug developers worldwide.

Under the leadership of founder and Chief Executive Officer Pablo Legorreta, Royalty Pharma has grown into one of the largest holders of biopharmaceutical royalties. The company’s governance framework and experienced board of directors guide its strategic direction, ensuring disciplined investment decisions and transparent reporting. By combining financial expertise with scientific insight, Royalty Pharma continues to support innovation in drug development while delivering predictable cash flows for its shareholders.

Key Stats

• Today's Range: $35.81 to $36.33
• 50-Day Range: $32.11 to $36.33
• 52-Week Range: $24.05 to $36.56
• Volume: 1.99 million shs
• Average Volume: 3.70 million shs
• Market Capitalization: $20.38 billion
• P/E Ratio: 19.59
• Dividend Yield: 2.43%
• Price Target: $48.33
• Consensus Rating: Buy

Royalty Pharma Stock Analysis - MarketRank™

Royalty Pharma scored higher than 100% of companies evaluated by MarketBeat, and ranked 14th out of 939 stocks in the medical sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.6 / 5
• Analyst Rating: Buy

Consensus Rating

Royalty Pharma has received a consensus rating of Buy. The company's average rating score is 3.25, and is based on 3 buy ratings, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Royalty Pharma has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 8.24%

Earnings Growth

Earnings for Royalty Pharma are expected to grow by 8.24% in the coming year, from $4.49 to $4.86 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Royalty Pharma is 19.59, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 26.26.

Price to Earnings Ratio vs. Sector

The P/E ratio of Royalty Pharma is 19.59, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 28.69.

Price to Earnings Growth Ratio

Royalty Pharma has a PEG Ratio of 1.85. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Royalty Pharma has a P/B Ratio of 2.06. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

5.09% of the float of Royalty Pharma has been sold short.

Short Interest Ratio / Days to Cover

Royalty Pharma has a short interest ratio ("days to cover") of 3.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Royalty Pharma has recently decreased by 41.75%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Royalty Pharma pays a meaningful dividend of 2.46%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Royalty Pharma has been increasing its dividend for 5 years.

Dividend Coverage

The dividend payout ratio of Royalty Pharma is 47.57%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Royalty Pharma will have a dividend payout ratio of 18.11% next year. This indicates that Royalty Pharma will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.7 / 5
• Environmental Score: -2.25

Percentage of Shares Shorted

5.09% of the float of Royalty Pharma has been sold short.

Short Interest Ratio / Days to Cover

Royalty Pharma has a short interest ratio ("days to cover") of 3.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Royalty Pharma has recently decreased by 41.75%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.5 / 5
• News Sentiment: 1.36

News Sentiment

Royalty Pharma has a news sentiment score of 1.36. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.99 average news sentiment score of Medical companies.

News Coverage This Week

MarketBeat has tracked 9 news articles for Royalty Pharma this week, compared to 9 articles on an average week.

Search Interest

17 people have searched for RPRX on MarketBeat in the last 30 days. This is an increase of 89% compared to the previous 30 days.

MarketBeat Follows

9 people have added Royalty Pharma to their MarketBeat watchlist in the last 30 days. This is an increase of 350% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Royalty Pharma insiders have not sold or bought any company stock.

Percentage Held by Insiders

18.90% of the stock of Royalty Pharma is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

54.35% of the stock of Royalty Pharma is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RPRX Stock Analysis - Frequently Asked Questions

How have RPRX shares performed this year?

Royalty Pharma's stock was trading at $25.51 at the start of the year. Since then, RPRX stock has increased by 42.1% and is now trading at $36.24.

How were Royalty Pharma's earnings last quarter?

Royalty Pharma PLC (NASDAQ:RPRX) released its quarterly earnings data on Thursday, May, 8th. The biopharmaceutical company reported $1.06 earnings per share for the quarter, beating analysts' consensus estimates of $0.99 by $0.07. The biopharmaceutical company earned $839 million during the quarter, compared to analysts' expectations of $724.69 million. Royalty Pharma had a trailing twelve-month return on equity of 24.71% and a net margin of 48.23%.
Read the conference call transcript.

When did Royalty Pharma IPO?

Royalty Pharma (RPRX) raised $1.9 billion in an initial public offering on Tuesday, June 16th 2020. The company issued 70,000,000 shares at a price of $25.00-$28.00 per share. J.P. Morgan, Morgan Stanley, BofA Securities, Goldman Sachs, Citigroup and UBS Investment Bank acted as the underwriters for the IPO and Evercore ISI, Cowen and SunTrust Robinson Humphrey were co-managers.

Who are Royalty Pharma's major shareholders?

Top institutional shareholders of Royalty Pharma include Wedge Capital Management L L P NC (0.22%), Cooper Investors PTY Ltd. (0.07%), Pallas Capital Advisors LLC (0.02%) and Pacific Capital Partners Ltd (0.02%). Insiders that own company stock include 1978 Sicaf Sif SA Gg, 1978 Sicaf Sif SA - Gg St Gg, Mario Germano Giuliani, Avara Management Ltd, Terrance P Coyne, James F Reddoch, Pablo G Legorreta, George W Lloyd, Marshall Urist and Rory B Riggs.
View institutional ownership trends.

How do I buy shares of Royalty Pharma?

Shares of RPRX stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Royalty Pharma own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Royalty Pharma investors own include Bristol Myers Squibb (BMY), Chevron (CVX), McKesson (MCK), Comcast (CMCSA), NVIDIA (NVDA), Charles Schwab (SCHW) and Invesco QQQ (QQQ).

Company Calendar

• Last Earnings: 5/08/2025
• Record date for 6/10 Dividend: 5/16/2025
• Ex-Dividend for 6/10 Dividend: 5/16/2025
• Dividend Payable: 6/10/2025
• Today: 7/14/2025
• Next Earnings (Estimated): 8/06/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Medical
• Industry: MED - BIOMED/GENE
• Sub-Industry: Pharmaceuticals
• Current Symbol: NASDAQ:RPRX
• CIK: 1802768
• Web: www.royaltypharma.com
• Phone: 212-883-0200
• Fax: N/A
• Employees: 80
• Year Founded: 1996

Price Target and Rating

• Average Price Target for Royalty Pharma: $48.33
• High Price Target: $54.00
• Low Price Target: $40.00
• Potential Upside/Downside: +33.4%
• Consensus Rating: Buy
• Rating Score (0-4): 3.25
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.85
• Trailing P/E Ratio: 19.59
• Forward P/E Ratio: 8.07
• P/E Growth: 1.85
• Net Income: $858.98 million
• Net Margins: 48.23%
• Pretax Margin: 78.11%
• Return on Equity: 24.71%
• Return on Assets: 13.87%

Debt

• Debt-to-Equity Ratio: 0.68
• Current Ratio: 1.56
• Quick Ratio: 1.56

Sales & Book Value

• Annual Sales: $2.26 billion
• Price / Sales: 9.00
• Cash Flow: $4.24 per share
• Price / Cash Flow: 8.54
• Book Value: $17.56 per share
• Price / Book: 2.06

Miscellaneous

• Outstanding Shares: 562,240,000
• Free Float: 455,977,000
• Market Cap: $20.38 billion
• Optionable: Optionable
• Beta: 0.50