Royalty Pharma (NASDAQ: RPRX) boosts 2026 receipts outlook on Q2 gains
Rhea-AI Filing Summary
Royalty Pharma plc reported second quarter 2026 results and raised full-year 2026 guidance for Portfolio Receipts. Portfolio Receipts were $773 million, up 6%, and Royalty Receipts were $768 million, up 14%, driven by Tremfya, Voranigo, Imdelltra and Evrysdi. Net cash provided by operating activities doubled to $728 million. Adjusted EBITDA and Portfolio Cash Flow each reached $736 million, reflecting payments for operating and professional costs at 4.8% of Portfolio Receipts.
The company now expects 2026 Portfolio Receipts of $3,400 million to $3,500 million, versus $3,325 million to $3,450 million previously, implying expected Royalty Receipts growth of 7% to 10%. Cash and cash equivalents were $812 million and total debt principal was $9.2 billion as of June 30, 2026; a $380 million term loan was repaid in July. Capital Deployment was $349 million in the quarter, including royalty funding for daraxonrasib and R&D funding for JNJ‑4804 and litifilimab. Net income attributable to Royalty Pharma plc was $18 million compared with $32 million a year earlier.
Positive
- Strong cash generation and receipts growth: Royalty Receipts rose 14% to $768 million and Portfolio Receipts rose 6% to $773 million in Q2 2026, while net cash provided by operating activities doubled to $728 million versus $364 million in Q2 2025.
- Guidance raised for 2026: 2026 Portfolio Receipts outlook increased to $3,400 million–$3,500 million from $3,325 million–$3,450 million, incorporating expected Royalty Receipts growth of 7% to 10% and a modest positive foreign exchange impact.
- Margin-supportive cost profile: Payments for operating and professional costs were 4.8% of Portfolio Receipts in Q2 2026, supporting Adjusted EBITDA and Portfolio Cash Flow of $736 million, key liquidity metrics used in the company’s credit agreement covenants.
- Capital deployment and shareholder returns: Capital Deployment was $349 million in Q2 2026, mainly for royalty funding and R&D, alongside $135 million in dividends and $45 million of share repurchases (0.9 million shares), indicating active portfolio investment and capital return.
Negative
- GAAP net income declined: consolidated net income was $81 million in Q2 2026 versus $93 million a year earlier, with net income attributable to Royalty Pharma plc falling to $18 million from $32 million as total operating expense, net, increased to $541 million from $369 million.
Filing Explained
The filing adds that Royalty Pharma acquired part of Neurimmune’s royalty interest in AstraZeneca’s cliramitug for up to
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Portfolio Receipts Q2 2026: $773 million
Royalty Receipts Q2 2026: $768 million
Net cash provided by operating activities: $728 million
+7 more
10 metrics
Portfolio Receipts Q2 2026
$773 million
Three months ended June 30, 2026; up 6% from $727 million in 2025
Royalty Receipts Q2 2026
$768 million
Three months ended June 30, 2026; 14% increase vs $672 million in 2025
Net cash provided by operating activities
$728 million
Q2 2026; 100% increase vs $364 million in Q2 2025
Adjusted EBITDA Q2 2026
$736 million
Non-GAAP; three months ended June 30, 2026; up 16% from $633 million
Portfolio Cash Flow Q2 2026
$736 million
Non-GAAP; three months ended June 30, 2026; up 15% from $641 million
2026 Portfolio Receipts guidance
$3,400 million to $3,500 million
Full year 2026 outlook provided August 5, 2026; raised from $3,325 million–$3,450 million
Cash and cash equivalents
$812 million
As of June 30, 2026
Total debt principal
$9.2 billion
Total debt with principal value as of June 30, 2026
Quarterly dividend per share
$0.235 per share
Q2 2026 dividend, equating to $135 million in dividends and distributions
Capital Deployment Q2 2026
$349 million
Three months ended June 30, 2026; mainly royalty funding for daraxonrasib and R&D funding
Key Terms
Portfolio Receipts, Adjusted EBITDA, Portfolio Cash Flow, development-stage funding payments, +2 more
6 terms
Portfolio Receipts financial
"Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones"
Portfolio receipts are tradable certificates that represent a claim on a pre-set basket of stocks, bonds, or other assets, similar to owning a single share that stands for many holdings at once. They let investors buy or sell instant diversification and target exposure without buying each underlying security, like buying a ticket that grants access to an entire concert instead of individual performers; they affect portfolio risk, liquidity and fees and may have distinct tax or regulatory rules.
Adjusted EBITDA financial
"Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Portfolio Cash Flow financial
"Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net"
Portfolio cash flow is the net movement of cash into and out of an investment portfolio over a given period, including dividends and interest received, proceeds from sales, new contributions, withdrawals, and fees. It matters to investors because it shows the portfolio’s real liquidity and funding needs—much like a household’s paycheck and bills reveal whether savings grow, whether income covers expenses, and how cash movements affect investment returns.
development-stage funding payments financial
"Development-stage funding payments | (98) | (301) | (123) | (351)"
Biologics License Application (BLA) medical
"Zenas BioPharma announced the submission of a Biologics License Application (BLA) to the FDA"
A biologics license application (BLA) is a formal request to a government agency seeking approval to sell a biological medicine, such as vaccines or gene therapies, in the market. It is similar to a detailed report that proves the product is safe, effective, and manufactured properly. For investors, a BLA signifies a critical step toward commercial availability, often impacting a company's valuation and market prospects.
PDUFA date medical
"Priority Review with a Prescription Drug User Fee Act (PDUFA) date of November 27, 2026"
PDUFA date is the deadline the U.S. Food and Drug Administration sets to complete its review of a drug or biologic application and decide whether to approve it. Investors watch it like a court verdict date: the decision can unlock sales and growth if approved or sharply reduce expected value if denied, so markets often move significantly as the date approaches or when the outcome is announced.
Earnings Snapshot
Portfolio Receipts: $773 million · Guidance included
Three months ended June 30, 2026
Portfolio Receipts
$773 million
6% increase vs $727 million in Q2 2025
Royalty Receipts
$768 million
14% increase vs $672 million in Q2 2025
Net cash provided by operating activities
$728 million
100% increase vs $364 million in Q2 2025
Adjusted EBITDA (non-GAAP)
$736 million
16% increase vs $633 million in Q2 2025
Portfolio Cash Flow (non-GAAP)
$736 million
15% increase vs $641 million in Q2 2025
Net income attributable to Royalty Pharma plc
$18 million
compared with $32 million in Q2 2025
Guidance
For full year 2026, Royalty Pharma expects Portfolio Receipts of $3,400 million to $3,500 million, incorporating expected Royalty Receipts growth of 7% to 10%, payments for operating and professional costs of 5.5% to 6.5% of Portfolio Receipts, and total interest paid of $350 million to $360 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Royalty Pharma (RPRX)’s key financial results for Q2 2026?
Royalty Pharma reported Portfolio Receipts of $773 million, up 6%, and Royalty Receipts of $768 million, up 14%. Net cash provided by operating activities doubled to $728 million. Adjusted EBITDA and Portfolio Cash Flow each were $736 million, while net income attributable to Royalty Pharma plc was $18 million.
How did Royalty Pharma (RPRX) change its 2026 financial guidance?
Royalty Pharma now expects 2026 Portfolio Receipts of $3,400–$3,500 million, raised from $3,325–$3,450 million. This guidance includes expected Royalty Receipts growth of 7%–10%, a roughly +1% foreign exchange impact, and assumes no additional 2026 debt financing or major unforeseen adverse events.
What drove Royalty Pharma (RPRX)’s Royalty Receipts growth in Q2 2026?
Royalty Receipts grew 14% to $768 million, primarily driven by Tremfya, Voranigo, Imdelltra and Evrysdi. Growth was partly offset by declines from Promacta, affected by U.S. generic competition, and from Imbruvica. Evrysdi also benefited from additional royalties acquired in December 2025.
What is Royalty Pharma (RPRX)’s liquidity and debt position as of June 30, 2026?
As of June 30, 2026, Royalty Pharma had $812 million in cash and cash equivalents and total debt with principal value of $9.2 billion. The balance sheet shows total assets of $19,820 million and total shareholders’ equity of $9,786 million, with a $380 million term loan repaid in July 2026.
What notable portfolio and regulatory developments affected Royalty Pharma (RPRX) in 2026?
Key updates included FDA and EC approvals expanding indications for Trodelvy, FDA approval of Jideytro, EC approval of Imdelltra, and FDA/EMA review progress for daraxonrasib. Royalty Pharma also acquired a royalty interest in AstraZeneca’s cliramitug for up to $425 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2026
(Exact Name of Registrant as Specified in its Charter)
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| (Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: (212) 883-0200
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 5, 2026, Royalty Pharma plc issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | Press release issued by Royalty Pharma plc, dated August 5, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ROYALTY PHARMA PLC | |||||||||||
| Date: August 5, 2026 | By: | /s/ Terrance Coyne | |||||||||
| Terrance Coyne | |||||||||||
| Chief Financial Officer | |||||||||||
 | Press Release August 5, 2026 | ||||
Royalty Pharma reports second quarter 2026 results
Portfolio Receipts growth of 6% to $773 million; Royalty Receipts growth of 14% | ||
Net cash provided by operating activities of $728 million | ||
Raised full year 2026 guidance: Portfolio Receipts expected to be $3,400 million to $3,500 million | ||
NEW YORK, NY, August 5, 2026 — Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the second quarter of 2026 and raised full year 2026 guidance for Portfolio Receipts.
“Royalty Pharma delivered strong second quarter results with Royalty Receipts growth of 14%,” said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. “Our transaction pipeline remains exciting and we continued to bolster our development-stage pipeline in recent months, bringing total Capital Deployment to over $1 billion so far in 2026. Following our acquisition of a royalty on AstraZeneca’s cliramitug, our development-stage pipeline now totals 19 potential therapies. Lastly, our strong financial performance has allowed us to raise our top-line guidance for the second time this year, driven by the strength of our diversified portfolio. The fundamental tailwinds supporting our business are compelling and we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.” | ||
Double-digit growth in Royalty Receipts in the second quarter of 2026
•Royalty Receipts grew 14% to $768 million, driven by Tremfya, Voranigo, Imdelltra and Evrysdi.
•Portfolio Receipts increased by 6% to $773 million, reflecting lower milestones and other contractual receipts.
Strong transaction activity
•Acquired royalty on AstraZeneca’s cliramitug for transthyretin amyloidosis with cardiomyopathy in July 2026.
•Announced value of transactions of $1.7 billion and Capital Deployment of $1.1 billion as of August 4, 2026.
Positive portfolio updates
•Revolution Medicines’ NDA for daraxonrasib in pancreatic cancer accepted for review by FDA and the EMA has started its accelerated review; Gilead’s Trodelvy received FDA and EC approval for first-line metastatic triple-negative breast cancer; GSK’s Jideytro received FDA approval for ROS1+ non-small cell lung cancer; Amgen’s Imdelltra received EC approval for small cell lung cancer.
•GSK completed the acquisition of Nuvalent (Jideytro and neladalkib for lung cancer); Teva completed the acquisition of Emalex Biosciences (ecopipam for Tourette syndrome).
Raising financial guidance for full year 2026 (excludes contribution from future transactions)
•Royalty Pharma now expects 2026 Portfolio Receipts to be between $3,400 million and $3,500 million (previously $3,325 million to $3,450 million), representing expected Royalty Receipts growth of 7% to 10%.
Financial & Liquidity Summary
| Three Months Ended June 30, | |||||||||||
($ and shares in millions; unaudited) | 2026 | 2025 | Change | ||||||||
| Portfolio Receipts | 773 | 727 | 6% | ||||||||
| Net cash provided by operating activities | 728 | 364 | 100% | ||||||||
| Adjusted EBITDA (non-GAAP)* | 736 | 633 | 16% | ||||||||
| Portfolio Cash Flow (non-GAAP)* | 736 | 641 | 15% | ||||||||
| Weighted average Class A ordinary shares outstanding - diluted | 557 | 562 | (1)% | ||||||||
*See “Liquidity and Capital Resources” section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement.
Royalty Pharma Press Release | August 5, 2026 | 1 | ||||
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2026 Financial Outlook
Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the date of this release, as follows:
Provided August 5, 2026 | Previous | |||||||
| Portfolio Receipts | $3,400 million to $3,500 million | $3,325 million to $3,450 million | ||||||
| Payments for operating and professional costs | 5.5% to 6.5% of Portfolio Receipts | 5.5% to 6.5% of Portfolio Receipts | ||||||
| Interest paid | $350 million to $360 million | $350 million to $360 million | ||||||
Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above Portfolio Receipts guidance provided on August 5, 2026 includes expected Royalty Receipts growth of 7% to 10% in 2026.
Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026.
Payments for operating and professional costs in 2026 are expected to decrease as a percentage of Portfolio Receipts, compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the internalization transaction on May 16, 2025.
Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the quarterly interest payment schedules for the term loan assumed as part of the internalization transaction and borrowings under our revolving credit facility. In 2026, Royalty Pharma anticipates interest paid to be approximately $350 million to $360 million. Interest paid in the third quarter of 2026 is anticipated to be approximately $175 million, with a de minimis amount anticipated in the fourth quarter of 2026. These projections reflect repayment of the $380 million term loan in July 2026 and assume no additional debt financing in 2026. In the second quarter of 2026, Royalty Pharma collected interest of $5 million on its cash and cash equivalents, which partially offset interest paid.
Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.
Royalty Pharma Press Release | August 5, 2026 | 2 | ||||
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Portfolio Receipts Highlights
| Three Months Ended June 30, | |||||||||||||||||
($ in millions; unaudited) | 2026 | 2025 | Change | ||||||||||||||
| Products: | Marketers: | Therapeutic Area: | |||||||||||||||
| Cystic fibrosis franchise | Vertex | Rare disease | 194 | 194 | 0% | ||||||||||||
| Tysabri | Biogen | Neuroscience | 67 | 56 | 19% | ||||||||||||
| Trelegy | GSK | Respiratory | 58 | 57 | 3% | ||||||||||||
| Tremfya | Johnson & Johnson | Immunology | 57 | 37 | 53% | ||||||||||||
| Evrysdi | Roche | Rare disease | 47 | 33 | 42% | ||||||||||||
| Voranigo | Servier | Oncology | 46 | 26 | 72% | ||||||||||||
| Xtandi | Pfizer, Astellas | Oncology | 44 | 42 | 6% | ||||||||||||
| Imbruvica | AbbVie, Johnson & Johnson | Oncology | 36 | 44 | (16)% | ||||||||||||
| Cabometyx/Cometriq | Exelixis, Ipsen, Takeda | Oncology | 23 | 20 | 12% | ||||||||||||
| Imdelltra | Amgen | Oncology | 17 | — | n/a | ||||||||||||
| Trodelvy | Gilead | Oncology | 14 | 10 | 36% | ||||||||||||
| Spinraza | Biogen | Rare disease | 11 | 12 | (11)% | ||||||||||||
| Amvuttra | Alnylam | Rare disease | 9 | — | n/a | ||||||||||||
| Promacta | Novartis | Hematology | 8 | 33 | (75)% | ||||||||||||
Other products(5) | 139 | 109 | 28% | ||||||||||||||
| Royalty Receipts | 768 | 672 | 14% | ||||||||||||||
| Milestones and other contractual receipts | 5 | 56 | (91)% | ||||||||||||||
| Portfolio Receipts | 773 | 727 | 6% | ||||||||||||||
Amounts shown in the table may not add due to rounding.
Royalty Receipts was $768 million in the second quarter of 2026, an increase of 14% compared to $672 million in the second quarter of 2025. The increase was primarily driven by Tremfya, Voranigo, Imdelltra and Evrysdi, partially offset by declines from Promacta due to U.S. generic competition and from Imbruvica. Royalty Receipts from Evrysdi included the benefit of the additional royalties acquired in December 2025.
Portfolio Receipts was $773 million in the second quarter of 2026, an increase of 6% compared to $727 million in the second quarter of 2025, primarily driven by the same Royalty Receipts increases noted above, partially offset by lower Milestones and other contractual receipts due to a one-time distribution received in the prior year period.
Royalty Pharma Press Release | August 5, 2026 | 3 | ||||
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Liquidity and Capital Resources
Royalty Pharma’s liquidity and capital resources are summarized below:
As of June 30, 2026, Royalty Pharma had cash and cash equivalents of $812 million and total debt with principal value of $9.2 billion. In July 2026, Royalty Pharma repaid the $380 million term loan upon maturity.
In the second quarter of 2026, Royalty Pharma paid a quarterly dividend of $0.235 per share, equating to $135 million in dividends and distributions.
Royalty Pharma repurchased approximately 0.9 million Class A ordinary shares for $45 million in the second quarter and two million Class A ordinary shares for $96 million for the first six months of 2026. The weighted-average number of diluted Class A ordinary shares outstanding for the second quarter of 2026 was 557 million, a decline of 1% as compared to 562 million for the second quarter of 2025.
Liquidity Summary
| Three Months Ended June 30, | ||||||||
($ in millions; unaudited) | 2026 | 2025 | ||||||
| Portfolio Receipts | 773 | 727 | ||||||
| Payments for operating and professional costs | (37) | (94) | ||||||
| Adjusted EBITDA (non-GAAP) | 736 | 633 | ||||||
| Interest (paid)/received, net | (0) | 8 | ||||||
| Portfolio Cash Flow (non-GAAP) | 736 | 641 | ||||||
Amounts may not add due to rounding.
•Adjusted EBITDA (non-GAAP) was $736 million in the second quarter of 2026. Payments for operating and professional costs were 4.8% of Portfolio Receipts. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs.
•Portfolio Cash Flow (non-GAAP) was $736 million in the second quarter of 2026. Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases, or utilized for other discretionary investments.
Refer to Table 4 for Royalty Pharma’s reconciliation of each non-GAAP measure to the most directly comparable GAAP financial measure, net cash provided by operating activities.
Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $349 million in the second quarter of 2026, consisting primarily of royalty funding for daraxonrasib and R&D funding for JNJ‑4804 and litifilimab.
The table below details Capital Deployment by category:
Capital Deployment
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
($ in millions; unaudited) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Purchases of available for sale debt securities | — | (75) | — | (75) | ||||||||||
| Acquisitions of financial royalty assets | (251) | (1) | (703) | (2) | ||||||||||
| Development-stage funding payments | (98) | (301) | (123) | (351) | ||||||||||
| Milestone payments | — | (219) | (50) | (269) | ||||||||||
| Contributions from legacy non-controlling interests - R&D | — | 0 | — | 0 | ||||||||||
| Capital Deployment | (349) | (595) | (877) | (696) | ||||||||||
Amounts may not add due to rounding.
Royalty Pharma Press Release | August 5, 2026 | 4 | ||||
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Royalty Transactions
As of August 4, 2026, Royalty Pharma has announced new transactions of up to $1.7 billion, which reflects the entire amount of potential capital committed for new transactions, including potential future milestones.
•In July 2026, Royalty Pharma acquired a portion of Neurimmune AG’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront. Cliramitug is a Phase 3 first-in-class transthyretin (TTR)-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy, a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart.
The information in this section should be read together with Royalty Pharma’s reports and documents filed with the SEC at www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors section of Royalty Pharma’s website at www.royaltypharma.com.
Key Developments Relating to the Portfolio
The key developments related to Royalty Pharma’s royalty interests are discussed below based on disclosures from the marketers of the products.
daraxonrasib | In July 2026, Revolution Medicines announced that the U.S. Food and Drug Administration (FDA) accepted for review the company’s New Drug Application (NDA) for daraxonrasib, an oral RAS(ON) multi-selective inhibitor, for previously treated metastatic pancreatic ductal adenocarcinoma. In July 2026, Revolution Medicines announced that the European Medicines Agency (EMA) started an accelerated assessment of daraxonrasib. In April 2026, Revolution Medicines announced positive Phase 3 results from the RASolute-302 trial evaluating daraxonrasib in patients with previously treated metastatic pancreatic cancer. | ||||
Jideytro (zidesamtinib) and neladalkib | In July 2026, GSK announced that the FDA approved Jideytro (zidesamtinib), a ROS proto-oncogene 1 (ROS1)-selective inhibitor, for the treatment of adult patients with locally advanced or metastatic ROS1-positive non-small cell lung cancer who have received a prior ROS1 kinase inhibitor. In July 2026, GSK announced that it completed the acquisition of Nuvalent for approximately $10.6 billion, including Jideytro (zidesamtinib) and neladalkib, two highly selective ROS1 and anaplastic lymphoma kinase inhibitors for the treatment of non-small cell lung cancer. In May 2026, Nuvalent announced the FDA accepted its NDA for neladalkib for filing and granted the application Priority Review with a Prescription Drug User Fee Act (PDUFA) date of November 27, 2026. | ||||
TEV-’408 | In July 2026, Teva Pharmaceuticals (Teva) announced plans to advance TEV-’408 into a Phase 2b study in patients with non-segmental vitiligo, following positive Phase 1b results. | ||||
deucrictibant | In July 2026, Pharvaris announced that the FDA accepted its NDA for deucrictibant immediate-release for the on-demand treatment of hereditary angioedema attacks and assigned a PDUFA date of April 23, 2027. | ||||
Trodelvy | In June 2026, Gilead announced that the FDA approved Trodelvy for the first-line treatment of certain patients with metastatic triple-negative breast cancer. In June 2026, Gilead announced that the European Commission (EC) approved Trodelvy as a first-line treatment for certain patients with metastatic triple-negative breast cancer who are not candidates for PD-L1 inhibitors. In June 2026, Gilead announced the discontinuation of the Phase 3 KEYNOTE-D46/EVOKE-03 study evaluating Trodelvy in combination with Keytruda for patients with previously untreated metastatic non-small cell lung cancer. | ||||
ecopipam | In June 2026, Teva announced the completion of its acquisition of Emalex Biosciences for up to $900 million, including $700 million at closing, which added ecopipam and other neuroscience therapies to its portfolio. Furthermore, Teva announced the submission of an NDA to the FDA for ecopipam for the treatment of pediatric Tourette syndrome. | ||||
Imdelltra | In June 2026, the EC approved Imdelltra for the treatment of adult patients with extensive-stage small cell lung cancer. | ||||
Erleada | In May 2026, Johnson & Johnson announced that the Phase 3 PROTEUS study evaluating Erleada in combination with androgen deprivation therapy before and after radical prostatectomy, in patients with high-risk localized or locally advanced prostate cancer, met its primary endpoints. | ||||
Royalty Pharma Press Release | August 5, 2026 | 5 | ||||
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obexelimab | In May 2026, Zenas BioPharma announced the submission of a Biologics License Application (BLA) to the FDA for obexelimab for the treatment of Immunoglobulin G4-related disease. | ||||
Tremfya | In May 2026, Johnson & Johnson announced that the FDA approved a supplemental BLA for Tremfya to include the inhibition of progression of structural joint damage in adults with active psoriatic arthritis. | ||||
TEV-’749 | In May 2026, Teva announced that the EMA accepted for review its Marketing Authorization Application for TEV-’749 for the treatment of schizophrenia in adults. | ||||
Myqorzo | In May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal Phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. The study met both dual primary endpoints, demonstrating statistically significant improvements from baseline to week 36 versus placebo. | ||||
Ziihera | In April 2026, Jazz Pharmaceuticals announced that the FDA accepted for filing a supplemental BLA for Ziihera, in combination regimens for the first-line treatment of adult patients with human epidermal growth factor receptor 2 (HER2)-positive metastatic gastroesophageal adenocarcinoma, and granted Priority Review, with a PDUFA date of August 25, 2026. | ||||
Financial Results Call
Royalty Pharma will host a conference call and simultaneous webcast to discuss its second quarter of 2026 results today at 8:00 a.m., Eastern Time. Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company’s website for at least 30 days.
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’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates.
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.
Royalty Pharma Press Release | August 5, 2026 | 6 | ||||
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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.
Portfolio Receipts
Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from Royalty Pharma’s portfolio investments, the primary source of capital that is deployed to make new portfolio investments. Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. Royalty Receipts includes variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to Royalty Pharma.
Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed contractual receipts, net of contractual payments to legacy non-controlling interests, that are attributed to Royalty Pharma. Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are not central to Royalty Pharma’s fundamental business strategy. 2025 Portfolio Receipts does not include the $511 million of proceeds from the sale of the MorphoSys Development Funding Bonds, as the transaction was treated as an asset sale.
Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships.
Use of Non-GAAP Measures
Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP.
The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity.
Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities.
The company has provided reconciliations of these non-GAAP liquidity measures to the most directly comparable GAAP financial measure, being net cash provided by operating activities in Table 4.
Royalty Pharma Investor Relations and Communications
+1 (212) 883-6772
ir@royaltypharma.com
Royalty Pharma Press Release | August 5, 2026 | 7 | ||||
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Royalty Pharma plc
Condensed Consolidated Statements of Operations(7) (unaudited)
Table 1
| Three Months Ended June 30, | ||||||||
| ($ in millions) | 2026 | 2025 | ||||||
| Income and other revenues | ||||||||
| Income from financial royalty assets | 638 | 550 | ||||||
| Other royalty income and revenues | 36 | 28 | ||||||
| Total income and other revenues | 674 | 579 | ||||||
| Operating expense/(income) | ||||||||
| Provision for changes in expected cash flows from financial royalty assets | 268 | (204) | ||||||
| Provision for credit losses on unfunded commitments | 13 | 93 | ||||||
| Research and development funding expense | 98 | 301 | ||||||
General and administrative expenses (includes 107 and 91 of share-based compensation expense for the three months ended June 30, 2026 and 2025, respectively) | 162 | 180 | ||||||
| Total operating expense, net | 541 | 369 | ||||||
| Operating income | 133 | 210 | ||||||
| Other (income)/expense | ||||||||
| Equity in earnings of equity method investees | (4) | (3) | ||||||
| Interest expense | 94 | 69 | ||||||
Other (income)/expense, net | (38) | 51 | ||||||
| Total other expense, net | 52 | 117 | ||||||
| Consolidated net income before tax | 81 | 93 | ||||||
| Income tax expense | — | — | ||||||
| Consolidated net income | 81 | 93 | ||||||
| Net income attributable to non-controlling interests | 64 | 60 | ||||||
| Net income attributable to Royalty Pharma plc | 18 | 32 | ||||||
Amounts may not add due to rounding.
Royalty Pharma Press Release | August 5, 2026 | 8 | ||||
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Royalty Pharma plc
Selected Balance Sheet Data (unaudited)
Table 2
| ($ in millions) | As of June 30, 2026 | As of December 31, 2025 | ||||||
| Cash and cash equivalents | 812 | 619 | ||||||
| Total current and non-current financial royalty assets, net | 17,082 | 17,063 | ||||||
| Total assets | 19,820 | 19,621 | ||||||
| Current portion of long-term debt | 380 | 380 | ||||||
| Long-term debt, net of current portion | 8,582 | 8,571 | ||||||
| Total liabilities | 10,034 | 9,906 | ||||||
| Total shareholders’ equity | 9,786 | 9,715 | ||||||
Royalty Pharma Press Release | August 5, 2026 | 9 | ||||
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Royalty Pharma plc
Condensed Consolidated Statements of Cash Flows (unaudited)
Table 3
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Cash collections from financial royalty assets | 815 | 727 | 1,730 | 1,556 | ||||||||||
| Cash collections from intangible royalty assets | 0 | 0 | 4 | 0 | ||||||||||
| Other royalty cash collections | 32 | 24 | 66 | 56 | ||||||||||
| Distributions from equity method investees | 21 | — | 25 | 13 | ||||||||||
| Interest received | 5 | 9 | 11 | 21 | ||||||||||
| Development-stage funding payments | (98) | (301) | (123) | (351) | ||||||||||
| Payments for operating and professional costs | (37) | (94) | (73) | (196) | ||||||||||
| Payments for Employee EPAs | (5) | (0) | (14) | (0) | ||||||||||
| Interest paid | (5) | (1) | (179) | (140) | ||||||||||
| Net cash provided by operating activities | 728 | 364 | 1,447 | 960 | ||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Acquisition of businesses, net of cash acquired | — | (74) | — | (74) | ||||||||||
| Distributions from equity method investees | (13) | 63 | 29 | 99 | ||||||||||
| Purchases of equity securities | (5) | — | (28) | (4) | ||||||||||
| Proceeds from equity securities | 36 | — | 36 | — | ||||||||||
| Purchases of available for sale debt securities | — | (75) | — | (75) | ||||||||||
| Proceeds from available for sale debt securities | 4 | 3 | 9 | 15 | ||||||||||
| Proceeds from sales of available for sale debt securities | — | — | — | 511 | ||||||||||
| Acquisitions of financial royalty assets | (251) | (1) | (703) | (2) | ||||||||||
| Milestone payments | — | (219) | (50) | (269) | ||||||||||
| Other | (0) | (9) | (0) | (9) | ||||||||||
| Net cash (used in)/provided by investing activities | (230) | (312) | (708) | 192 | ||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Distributions to legacy non-controlling interests - Portfolio Receipts | (86) | (89) | (164) | (174) | ||||||||||
| Distributions to continuing non-controlling interests | (35) | (39) | (74) | (92) | ||||||||||
| Dividends to shareholders | (105) | (93) | (209) | (189) | ||||||||||
| Repurchases of Class A ordinary shares | (45) | (292) | (95) | (1,000) | ||||||||||
| Contributions from legacy non-controlling interests - R&D | — | 0 | — | 0 | ||||||||||
| Contributions from non-controlling interests - other | — | 5 | — | 6 | ||||||||||
| Debt issuance costs and other | (2) | — | (2) | — | ||||||||||
| Other | (0) | — | (1) | — | ||||||||||
| Net cash used in financing activities | (273) | (508) | (546) | (1,449) | ||||||||||
| Net change in cash and cash equivalents | 226 | (456) | 193 | (297) | ||||||||||
| Cash and cash equivalents, beginning of period | 586 | 1,088 | 619 | 929 | ||||||||||
| Cash and cash equivalents, end of period | 812 | 632 | 812 | 632 | ||||||||||
EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma Press Release | August 5, 2026 | 10 | ||||
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Royalty Pharma plc
GAAP to Non-GAAP Reconciliation (unaudited)
Table 4
Three Months Ended June 30, | ||||||||
| ($ in millions) | 2026 | 2025 | ||||||
Net cash provided by operating activities (GAAP) | 728 | 364 | ||||||
| Adjustments: | ||||||||
Proceeds from available for sale debt securities(6) | 4 | 3 | ||||||
Distributions from equity method investees(6) | (13) | 63 | ||||||
Interest paid/(received), net(6) | 0 | (8) | ||||||
| Development-stage funding payments | 98 | 301 | ||||||
Distributions to legacy non-controlling interests - Portfolio Receipts(6) | (86) | (89) | ||||||
| Payments for Employee EPAs | 5 | 0 | ||||||
Adjusted EBITDA (non-GAAP) | 736 | 633 | ||||||
Interest (paid)/received, net(6) | (0) | 8 | ||||||
Portfolio Cash Flow (non-GAAP) | 736 | 641 | ||||||
EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma Press Release | August 5, 2026 | 11 | ||||
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Royalty Pharma plc
Description of Approved Indications for Select Portfolio Therapies
Table 5
Cystic fibrosis franchise | Cystic fibrosis | ||||
Tysabri | Relapsing forms of multiple sclerosis | ||||
Trelegy | Chronic obstructive pulmonary disease and asthma | ||||
Tremfya | Plaque psoriasis, psoriatic arthritis, ulcerative colitis and Crohn’s disease | ||||
Evrysdi | Spinal muscular atrophy | ||||
Voranigo | Low-grade glioma | ||||
Xtandi | Prostate cancer | ||||
Imbruvica | Hematological malignancies and chronic graft versus host disease | ||||
Cabometyx/Cometriq | Kidney, liver and thyroid cancer | ||||
| Imdelltra | Small cell lung cancer | ||||
Trodelvy | Breast cancer | ||||
Spinraza | Spinal muscular atrophy | ||||
| Amvuttra | Transthyretin amyloidosis | ||||
Promacta | Chronic immune thrombocytopenia purpura and aplastic anemia | ||||
Royalty Pharma Press Release | August 5, 2026 | 12 | ||||
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Notes
(1)Portfolio Receipts is defined above in the section entitled “Portfolio Receipts.”
(2)Adjusted EBITDA is defined under the credit agreement as Portfolio Receipts minus payments for operating and professional costs. Operating and professional costs reflect Payments for operating and professional costs from the GAAP condensed consolidated statements of cash flows. See GAAP to Non-GAAP reconciliation in Table 4.
(3)Portfolio Cash Flow is defined under the credit agreement as Adjusted EBITDA minus interest paid or received, net. See GAAP to Non-GAAP reconciliation in Table 4. Portfolio Cash Flow reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases or utilized for other discretionary investments.
(4)Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other financial assets, Milestone payments, Development-stage funding payments less Contributions from legacy non-controlling interests - R&D.
(5)Other products primarily include Royalty Receipts on the following products: Crysvita, Erleada, Farxiga/Onglyza, Nesina, Niktimvo, Nurtec ODT, Orladeyo, Prevymis and distributions from the Legacy SLP Interest, which is presented as Distributions from equity method investees on the GAAP condensed consolidated statements of cash flows.
(6)The table below shows the line item for each adjustment and the direct location for such line item on the GAAP condensed consolidated statements of cash flows.
Reconciling Adjustment | Statements of Cash Flows Classification | ||||
Interest (paid)/received, net | Operating activities (Interest paid less Interest received) | ||||
Distributions from equity method investees | Investing activities | ||||
Proceeds from available for sale debt securities | Investing activities | ||||
Distributions to legacy non-controlling interests - Portfolio Receipts | Financing activities | ||||
(7)The condensed consolidated statement of operations for 2025 has been recast to reflect the adoption of ASU 2025-07 by removing the losses previously recognized on derivative.
Royalty Pharma Press Release | August 5, 2026 | 13 | ||||