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Upturn AI SWOT - About
Royalty Pharma Plc (RPRX)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
07/17/2025: RPRX (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $41.52
1 Year Target Price $41.52
| 4 | Strong Buy |
| 2 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 2.26% | Avg. Invested days 44 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/17/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 20.02B USD | Price to earnings Ratio 14.53 | 1Y Target Price 41.52 |
Price to earnings Ratio 14.53 | 1Y Target Price 41.52 | ||
Volume (30-day avg) 8 | Beta 0.47 | 52 Weeks Range 23.73 - 36.89 | Updated Date 07/17/2025 |
52 Weeks Range 23.73 - 36.89 | Updated Date 07/17/2025 | ||
Dividends yield (FY) 2.44% | Basic EPS (TTM) 2.45 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 48.26% | Operating Margin (TTM) 94% |
Management Effectiveness
Return on Assets (TTM) 7.04% | Return on Equity (TTM) 18% |
Valuation
Trailing PE 14.53 | Forward PE 12.17 | Enterprise Value 21071545609 | Price to Sales(TTM) 8.84 |
Enterprise Value 21071545609 | Price to Sales(TTM) 8.84 | ||
Enterprise Value to Revenue 9.31 | Enterprise Value to EBITDA 10.46 | Shares Outstanding 421371008 | Shares Floating 368395938 |
Shares Outstanding 421371008 | Shares Floating 368395938 | ||
Percent Insiders 8.92 | Percent Institutions 79.64 |
Upturn AI SWOT
Royalty Pharma Plc
Company Overview
History and Background
Royalty Pharma was founded in 1996 by Pablo Legorreta. It pioneered the royalty model in biopharma, acquiring royalty interests in marketed and late-stage development products, thereby providing capital to innovators and investors.
Core Business Areas
- Acquisition of Royalties: Acquires royalty interests in marketed and late-stage biopharmaceutical products from academic institutions, research hospitals, and biotech companies.
- Funding Clinical Trials: Provides funding for clinical trials in exchange for future royalties on successful products.
- Investing in Approved Drugs: Investing in medicines once they are approved.
Leadership and Structure
Pablo Legorreta serves as Chairman and CEO. The company has a Board of Directors and operates with a functional organizational structure, encompassing investment, legal, finance, and other support functions.
Top Products and Market Share
Key Offerings
- Evrysdi: Spinal Muscular Atrophy (SMA) treatment, in collaboration with Roche and PTC Therapeutics. Competitors include Spinraza by Biogen and Zolgensma by Novartis. It is hard to get market share data or number of users or revenue from this one product, royalty revenue depends on the product sales made by another company.
- Tysabri: A treatment for multiple sclerosis. Royalty Pharma holds a royalty interest in sales. Competitors include Biogen's other MS drugs and Novartis' Gilenya. It is hard to get market share data or number of users or revenue from this one product, royalty revenue depends on the product sales made by another company.
- Spinraza: Spinal Muscular Atrophy (SMA) treatment, in collaboration with Ionis and Biogen. It is hard to get market share data or number of users or revenue from this one product, royalty revenue depends on the product sales made by another company. Competitors include Evrysdi by Roche and Zolgensma by Novartis
- Emgality: Migraine medication. Royalty Pharma holds a royalty interest in sales. It is hard to get market share data or number of users or revenue from this one product, royalty revenue depends on the product sales made by another company. Competitors include other migraine therapies by Amgen and Teva
Market Dynamics
Industry Overview
The biopharmaceutical industry is characterized by high R&D costs, long development timelines, and regulatory hurdles. Royalty Pharma operates in a niche segment, providing an alternative financing solution that de-risks investments for innovators.
Positioning
Royalty Pharma is a leading acquirer of biopharmaceutical royalties. Its competitive advantage lies in its established relationships, expertise in valuing royalties, and diversified portfolio of royalty streams.
Total Addressable Market (TAM)
The total addressable market is the entire pharmaceutical market, where Royalty Pharma's unique royalty structure covers innovative medicines. Projected to be over $1 trillion, Royalty Pharma is well-positioned within the TAM due to the increasing need for specialized financing.
Upturn SWOT Analysis
Strengths
- Diversified royalty portfolio
- Strong financial position
- Experienced management team
- Unique business model
- High barriers to entry
Weaknesses
- Dependence on the success of underlying drugs
- Limited control over drug development and commercialization
- Complexity in valuing royalties
- Potential for litigation
Opportunities
- Growing demand for biopharmaceutical financing
- Expansion into new therapeutic areas
- Acquisition of additional royalty interests
- Partnerships with pharmaceutical companies
- Expansion of innovative financing solutions
Threats
- Patent expirations
- Generic competition
- Regulatory changes
- Clinical trial failures
- Economic downturn
Competitors and Market Share
Key Competitors
- None - Royalty Pharma is the only one of its kind on the US stock market.
Competitive Landscape
Royalty Pharma has very few competitors, giving it a competitive advantage within the royalty space. It is unique in its business model of acquiring pharmaceutical royalties at scale.
Major Acquisitions
No Acquisition Data to display, as the company has more than 10 large acquisitions.
- Year: 2024
- Acquisition Price (USD millions): 0
- Strategic Rationale: Explain the strategic reasons behind the acquisition.
Growth Trajectory and Initiatives
Historical Growth: Royalty Pharma's historical growth has been driven by acquisitions of royalty interests and the success of the underlying drugs. The growth rate depends on the royalty payment year over year.
Future Projections: Future growth projections are positive, driven by continued innovation in the biopharmaceutical industry and increasing demand for royalty financing. Growth Projection depends on access to real-time data from financial sources.
Recent Initiatives: Recent initiatives include acquiring new royalty interests, expanding partnerships, and investing in innovative financing solutions.
Summary
Royalty Pharma is a unique player in the biopharmaceutical industry with a strong financial position and diversified royalty portfolio. Its business model provides attractive returns while mitigating risk compared to traditional drug development. The company's dependence on the success of underlying drugs and potential for regulatory changes remain key considerations. Despite potential threats, the company is in a strong and stable position and should continue to thrive with increased medicine innovation. The company should be wary of future patent expirations and clinical failures of the drugs that they invest in.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Royalty Pharma Investor Relations
- Company Filings (SEC)
- Industry Reports
- Analyst Reports
Disclaimers:
This analysis is based on available information and is not financial advice. Investment decisions should be made after consulting with a qualified financial advisor. Market share data and Financial Data may not be exact and may vary based on sources.
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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