Royalty Pharma announces update on Novartis’ Phase 3 topline results for pelacarsen
Pelacarsen’s Phase 3 failure limits upside for Royalty Pharma, but Spinraza royalties and a capped 1.1x return support its 2030 receipts target.
Rhea-AI Summary
Royalty Pharma (RPRX) reported that Novartis’ Phase 3 HORIZON outcomes trial of pelacarsen in atherosclerotic cardiovascular disease with elevated Lp(a) did not meet its primary endpoint versus placebo.
Pelacarsen failed to reduce the composite risk of cardiovascular death, non-fatal myocardial infarction, non-fatal stroke and urgent coronary revascularization requiring hospitalization in the overall study population. Royalty Pharma’s $500 million 2023 funding agreement with Ionis was structured around purchasing stable Spinraza royalties with upside from pelacarsen. The company expects to recoup its total investment and generate a modest positive return despite the pelacarsen outcome. Of the $500 million, $150 million of value was ascribed to pelacarsen royalties and $350 million to Spinraza royalties. Royalty Pharma reiterates its 2030 Portfolio Receipts target of $4.7 billion or more. Under the agreement, it acquired 25% of Ionis’ Spinraza royalty payments through 2027, rising to 45% in 2028, on up to $1.5 billion in annual sales, with its Spinraza royalty interest reverting to Ionis after receiving $550 million in royalty payments, a 1.1x return on total funding.
Positive
- $500 million Ionis funding protected by focus on stable Spinraza royalties
- Company expects to recoup full investment and earn a modest positive return
- Royalty Pharma reiterates its 2030 Portfolio Receipts target of $4.7 billion+
- Spinraza royalty structure provides up to $550 million in receipts, a 1.1x return
- Spinraza royalties cover up to $1.5 billion in annual sales with rising share to 45% in 2028
Negative
- Pelacarsen Phase 3 HORIZON trial did not meet its primary cardiovascular endpoint
- No pelacarsen-related milestone payments to Ionis, reducing potential upside from that program
- Spinraza royalty interest reverts to Ionis once $550 million in royalties is reached, capping returns at 1.1x
News Explained
Based on the HORIZON results, Royalty Pharma does not anticipate milestone payments to Ionis, while its Spinraza royalty interest is set to revert to Ionis after royalty payments reach
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 12 | Funding agreement | Positive | -1.1% | Royalty Pharma funded Zealand Pharma’s rusfertide royalty rights for $100 million. |
| Aug 05 | Earnings report | Positive | +0.5% | Second-quarter results included higher receipts and raised 2026 Portfolio Receipts guidance. |
| Aug 03 | Leadership change | Neutral | -2.2% | Royalty Pharma appointed Greg Raskin as Senior Vice President, Head of Academic Initiatives. |
| Jul 22 | Royalty acquisition | Positive | +0.5% | Royalty Pharma agreed to acquire cliramitug royalty rights for up to $425 million. |
| Jul 17 | Dividend declaration | Positive | -1.5% | The board approved a third-quarter dividend of $0.235 per Class A share. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news reactions were mixed, with positive announcements followed by both gains and declines, including a -1.52% dividend reaction and a +0.51% acquisition reaction.
Key Terms
antisense oligonucleotide medical
lipoprotein(a) medical
primary endpoint medical
myocardial infarction medical
placebo medical
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Sept. 04, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced an update on Novartis’ Phase 3 results from the HORIZON outcomes trial for pelacarsen, an antisense oligonucleotide studied in patients with atherosclerotic cardiovascular (CV) disease and elevated lipoprotein(a), or Lp(a). The trial did not meet its primary endpoint of reducing the risk of cardiovascular events, a composite of cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, and urgent coronary revascularization requiring hospitalization in the overall study population, compared to placebo. Novartis intends to present the Lp(a) HORIZON trial data at an upcoming medical congress.
Royalty Pharma’s
Royalty Pharma reiterates its 2030 Portfolio Receipts target of
As part of its January 2023 funding agreement with Ionis,
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 17 development-stage product candidates. For more information, visit www.royaltypharma.com.
Royalty Pharma plc Forward-Looking Statements
The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof.
This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law.
Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source.
For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov.
Royalty Pharma Investor Relations and Communications
+1 (212) 883-6772
ir@royaltypharma.com
FAQ
What did Royalty Pharma (RPRX) announce about Novartis’ pelacarsen Phase 3 HORIZON trial?
Royalty Pharma announced that Novartis’ Phase 3 HORIZON outcomes trial of pelacarsen in atherosclerotic cardiovascular disease with elevated Lp(a) did not meet its primary endpoint of reducing major cardiovascular events versus placebo in the overall study population.
How does the pelacarsen trial result affect Royalty Pharma’s $500 million agreement with Ionis for RPRX?
The $500 million Ionis funding deal was structured around stable Spinraza royalties with pelacarsen as upside. Despite the pelacarsen failure, Royalty Pharma expects to recoup its total investment and earn a modest positive return under the agreement.
How was the $500 million Royalty Pharma–Ionis funding split between pelacarsen and Spinraza?
Of the $500 million funding agreement with Ionis, $150 million of value was ascribed to royalties acquired on pelacarsen and $350 million of value was ascribed to royalties acquired on Spinraza, according to the company.
What Spinraza royalty percentages did Royalty Pharma acquire in the Ionis deal for RPRX?
Royalty Pharma acquired 25% of Ionis’ Spinraza royalty payments through 2027, increasing to 45% of royalty payments in 2028, on up to $1.5 billion in annual Spinraza sales under the January 2023 agreement.
When does Royalty Pharma’s Spinraza royalty interest revert to Ionis in the RPRX agreement?
Based on the HORIZON results, Royalty Pharma does not anticipate making milestone payments to Ionis, and its Spinraza royalty interest will revert to Ionis after Royalty Pharma has received $550 million in royalty payments, representing a 1.1x return on the total amount funded.
Did Royalty Pharma change its 2030 Portfolio Receipts target after the pelacarsen Phase 3 failure?
No. Royalty Pharma reiterated its 2030 Portfolio Receipts target of $4.7 billion or more, indicating that the company’s long-term receipts outlook remains unchanged despite the pelacarsen trial outcome.
Will Ionis receive any milestone payments from Royalty Pharma after the pelacarsen HORIZON results?
Based on the HORIZON Phase 3 results, Royalty Pharma does not anticipate making any milestone payments to Ionis related to pelacarsen, and the company’s Spinraza royalty interest will end once it has received $550 million in royalties.