Royalty Pharma Completes the Acquisition of Its External Manager
Royalty Pharma (RPRX) has completed the acquisition of its external manager, RP Management, LLC, with 99.9% shareholder approval. The internalization marks a significant shift from the company's previous external management model that had been in place since 1996. Under the former structure, Royalty Pharma paid quarterly fees of 6.5% of Portfolio Receipts and 0.25% of security investments value to RP Management.
The transaction integrates all RP Management employees into Royalty Pharma. Management team members (excluding CEO Pablo Legorreta) will receive about 50% of transaction equity, vesting through 2033. Legorreta's equity will vest over five years. The company will update its 2025 guidance to reflect this change in Q2 2025 results.
Royalty Pharma (RPRX) ha completato l'acquisizione del suo gestore esterno, RP Management, LLC, con l'approvazione del 99,9% degli azionisti. Questa internalizzazione rappresenta un cambiamento significativo rispetto al precedente modello di gestione esterna adottato dall'azienda dal 1996. In base alla struttura precedente, Royalty Pharma pagava a RP Management commissioni trimestrali pari al 6,5% dei ricavi del portafoglio e allo 0,25% del valore degli investimenti in titoli.
L'operazione integra tutti i dipendenti di RP Management all'interno di Royalty Pharma. I membri del team di gestione (escluso il CEO Pablo Legorreta) riceveranno circa il 50% delle azioni dell'operazione, con maturazione fino al 2033. Le azioni di Legorreta matureranno in cinque anni. L'azienda aggiornerà le proprie previsioni per il 2025 per riflettere questa modifica nei risultati del secondo trimestre 2025.
Royalty Pharma (RPRX) ha completado la adquisición de su gestor externo, RP Management, LLC, con la aprobación del 99,9% de los accionistas. La internalización representa un cambio significativo respecto al modelo de gestión externa que la empresa había mantenido desde 1996. Bajo la estructura anterior, Royalty Pharma pagaba trimestralmente a RP Management tarifas del 6,5% de los ingresos de la cartera y del 0,25% del valor de las inversiones en valores.
La transacción integra a todos los empleados de RP Management dentro de Royalty Pharma. Los miembros del equipo directivo (excepto el CEO Pablo Legorreta) recibirán aproximadamente el 50% del capital de la transacción, con derechos adquiridos hasta 2033. El capital de Legorreta se consolidará en cinco años. La empresa actualizará sus previsiones para 2025 para reflejar este cambio en los resultados del segundo trimestre de 2025.
Royalty Pharma (RPRX)는 99.9% 주주 승인으로 외부 매니저인 RP Management, LLC를 인수 완료했습니다. 이번 내부화는 1996년부터 유지해 온 외부 관리 모델에서의 중요한 전환을 의미합니다. 이전 구조에서는 Royalty Pharma가 포트폴리오 수익의 6.5%와 증권 투자 가치의 0.25%를 RP Management에 분기별 수수료로 지급했습니다.
이번 거래로 RP Management의 모든 직원이 Royalty Pharma에 통합됩니다. 경영진 멤버들(CEO Pablo Legorreta 제외)은 거래 지분의 약 50%를 2033년까지 권리가 확정되는 조건으로 받게 됩니다. Legorreta의 지분은 5년에 걸쳐 권리가 확정됩니다. 회사는 2025년 2분기 실적 발표 시 이 변화를 반영하여 2025년 가이던스를 업데이트할 예정입니다.
Royalty Pharma (RPRX) a finalisé l'acquisition de son gestionnaire externe, RP Management, LLC, avec l'approbation de 99,9% des actionnaires. Cette internalisation marque un changement important par rapport au modèle de gestion externe en place depuis 1996. Sous l'ancienne structure, Royalty Pharma versait des frais trimestriels de 6,5% des recettes du portefeuille et de 0,25% de la valeur des investissements en titres à RP Management.
La transaction intègre tous les employés de RP Management au sein de Royalty Pharma. Les membres de l'équipe de direction (à l'exception du PDG Pablo Legorreta) recevront environ 50% des actions de la transaction, avec une acquisition progressive jusqu'en 2033. Les actions de Legorreta seront acquises sur cinq ans. La société mettra à jour ses prévisions pour 2025 afin de refléter ce changement dans les résultats du deuxième trimestre 2025.
Royalty Pharma (RPRX) hat die Übernahme seines externen Managers, RP Management, LLC, mit 99,9% Aktionärszustimmung abgeschlossen. Die Internalisierung markiert eine bedeutende Abkehr vom bisherigen externen Managementmodell, das seit 1996 bestand. Nach der früheren Struktur zahlte Royalty Pharma vierteljährliche Gebühren in Höhe von 6,5% der Portfolioerlöse und 0,25% des Wertes der Wertpapieranlagen an RP Management.
Die Transaktion integriert alle Mitarbeiter von RP Management in Royalty Pharma. Mitglieder des Managementteams (mit Ausnahme des CEO Pablo Legorreta) erhalten etwa 50% des Transaktionskapitals, das bis 2033 vestet. Legorretas Anteile vesten über fünf Jahre. Das Unternehmen wird seine Prognose für 2025 im zweiten Quartal 2025 aktualisieren, um diese Änderung widerzuspiegeln.
- Significant cash savings expected through elimination of external management fees
- Enhanced corporate governance and transparency through simplified structure
- Strong shareholder alignment with management through equity vesting schedules
- Overwhelming shareholder support with 99.9% approval
- Extended vesting period for management equity (until 2033) may impact retention
- Short-term costs associated with the integration of RP Management
Insights
Royalty Pharma's acquisition of its external manager improves governance, eliminates fee structure, and should enhance long-term shareholder value.
Royalty Pharma has completed a transformative internalization of its management structure by acquiring RP Management, LLC—a significant corporate restructuring that eliminates the external management model that had been in place since the company's founding in 1996. This internalization received nearly unanimous shareholder approval with an impressive
The elimination of the external management arrangement discontinues the previous fee structure where Royalty Pharma paid quarterly fees of
The transaction also represents a significant evolution in corporate governance. Previously, the external manager was owned by CEO Pablo Legorreta (as sole owner until 2024) and recently by other senior management members. Now, all employees of the former external manager have been integrated as direct employees of Royalty Pharma, which creates stronger accountability to shareholders.
Particularly noteworthy is the equity distribution approach: management (excluding Legorreta) will receive approximately
The simplified corporate structure removes potential conflicts of interest inherent in external management arrangements and creates clearer lines of accountability. Investors should watch for updated 2025 guidance in the upcoming Q2 results to understand the full financial impact of this structural change.
NEW YORK, May 16, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has successfully closed the acquisition of its external manager, RP Management, LLC (“RP Management”). The acquisition received overwhelming support from Royalty Pharma’s shareholders, with
“The completion of the internalization marks an exciting new chapter for Royalty Pharma,” said Pablo Legorreta, founder and Chief Executive Officer. “It reinforces our commitment to transparency, accountability and long-term growth, while better positioning us to fund the significant capital needs and exciting innovation happening in the life sciences industry.”
This transaction represents a significant milestone in Royalty Pharma’s evolution and is expected to enhance long-term shareholder value through a simplified corporate structure, strengthened shareholder alignment, enhanced governance, significant cash savings and increased economic return on investments. The company will update its full-year 2025 guidance to reflect the internalization when it reports its second quarter 2025 financial results.
Background on the Manager
Since its founding in 1996, Royalty Pharma had operated under an external management model, relying on a separate Manager, owned by Pablo Legorreta and other members of senior management, for all operations and personnel. The company paid quarterly fees to the Manager equal to
About Royalty Pharma
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, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 15 development-stage product candidates. For more information, visit www.royaltypharma.com.
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 cash savings, 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 “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “target,” “forecast,” “guidance,” “goal,” “predicts,” “project,” “potential” or “continue,” 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, including because the internalization transaction is subject to shareholder approval. 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 Royalty Pharma’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. Royalty Pharma 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. 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) 883-6637
ir@royaltypharma.com
FAQ
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