Royalty Pharma Q3 receipts rise 9% to $890M
Full-year 2026 Portfolio Receipts guidance now stands at $3,500 million to $3,550 million, alongside expected Royalty Receipts growth of 10% to 11%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Royalty Pharma plc (RPRX) reported third-quarter 2026 Portfolio Receipts of $890 million, up 9% year over year, including Royalty Receipts of $883 million, also up 9%. Net cash provided by operating activities was $686 million, compared with $703 million a year earlier. Adjusted EBITDA, a non-GAAP liquidity measure, was $840 million, up 8%, and Portfolio Cash Flow was $673 million, up 2%.
The company raised full-year 2026 Portfolio Receipts guidance to $3,500 million to $3,550 million from $3,400 million to $3,500 million, excluding contributions from future transactions; expected Royalty Receipts growth is 10% to 11%. As of September 30, 2026, cash and cash equivalents were $514 million and total debt with principal value was $8.8 billion. A $380 million term-loan payment in July reduced total debt from $9.2 billion as of June 30, 2026.
Net income attributable to Royalty Pharma was $145 million, compared with $284 million a year earlier. The Phase 3 Lp(a)HORIZON trial of pelacarsen did not meet its primary endpoint; Royalty Pharma recorded a $150 million non-cash impairment charge related to pelacarsen. It acquired a Zoryve royalty for $100 million upfront and a Mimrylo royalty for $100 million, including $50 million upfront and $50 million payable on the first anniversary of closing.
3 points · 1 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 Portfolio Receipts guidance rose to $3,500 million to $3,550 million.
- Moderate pointPortfolio Receipts reached $890 million, up 9%.
- Moderate pointAdjusted EBITDA increased 8% to $840 million.
Negative
- Major pointPelacarsen missed its Phase 3 primary endpoint; impairment was $150 million.
- Moderate pointNet income attributable to Royalty Pharma was $145 million, versus $284 million.
Filing Explained
The first two hundred fifty million dollar loan tranche is funded; additional milestone-dependent financing remains optional, and the separate third royalty tranche was not exercised.
Royalty Pharma says it funded the first
Revolution may elect up to an additional
The release’s 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, or exhibit attachments filed with this report.
Key Figures
Portfolio Receipts: $890 million
Royalty Receipts: $883 million
Net cash provided by operating activities: $686 million
+4 more
7 metrics
Portfolio Receipts
$890 million
Three months ended September 30, 2026; up 9% from $814 million in 2025.
Royalty Receipts
$883 million
Three months ended September 30, 2026; up 9% from $811 million in 2025.
Net cash provided by operating activities
$686 million
Three months ended September 30, 2026; compared with $703 million in 2025, a 2% decrease.
Adjusted EBITDA
$840 million
Non-GAAP liquidity measure for the third quarter of 2026; up 8% from $779 million in 2025.
Portfolio Cash Flow
$673 million
Non-GAAP liquidity measure for the third quarter of 2026; up 2% from $657 million in 2025.
Net income attributable to Royalty Pharma plc
$145 million
Three months ended September 30, 2026, compared with $284 million in 2025.
2026 Portfolio Receipts guidance
$3,500 million to $3,550 million
Raised from the previous range of $3,400 million to $3,500 million; excludes contributions from future transactions.
Key Terms
Portfolio Receipts, Royalty Receipts, Adjusted EBITDA, Portfolio Cash Flow, +1 more
5 terms
Portfolio Receipts financial
"Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts."
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.
Royalty Receipts financial
"Royalty Receipts includes variable payments based on sales of products"
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
"Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures"
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.
non-cash impairment charge financial
"Royalty Pharma recorded a non-cash impairment charge of $150 million related to pelacarsen."
A non-cash impairment charge is an accounting write-down that lowers the recorded value of an asset on a company’s books when that asset is judged to be worth less than before. It reduces reported profit for the period without using any cash — like lowering the listed price of a used car in your records — and matters to investors because it can shrink earnings, change valuation metrics, and signal potential problems that might affect future cash flow or credit terms.
Earnings Snapshot
Portfolio Receipts: $890 million · Guidance included
Third quarter of 2026
Portfolio Receipts
$890 million
Up 9% year over year
Royalty Receipts
$883 million
Up 9% year over year
Net cash provided by operating activities
$686 million
Down 2% from 2025
Adjusted EBITDA
$840 million
Up 8% year over year
Portfolio Cash Flow
$673 million
Up 2% year over year
Net income attributable to Royalty Pharma plc
$145 million
Compared with $284 million in 2025
Guidance
Full-year 2026 Portfolio Receipts of $3,500 million to $3,550 million, excluding contributions from future transactions; expected Royalty Receipts growth of 10% to 11%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much were RPRX's Portfolio Receipts in Q3 2026?
Portfolio Receipts were $890 million for the three months ended September 30, 2026, up 9% from $814 million in the same quarter of 2025. Royalty Receipts were $883 million, an increase of 9% from $811 million.
What is RPRX's 2026 Portfolio Receipts guidance?
Royalty Pharma expects Portfolio Receipts of $3,500 million to $3,550 million for full-year 2026, compared with its previous $3,400 million to $3,500 million range. The guidance excludes contributions from future transactions and includes expected Royalty Receipts growth of 10% to 11%.
What happened with pelacarsen in RPRX's third quarter?
The Phase 3 Lp(a)HORIZON trial did not meet its primary endpoint of reducing cardiovascular-event risk in the overall study population compared with placebo. Royalty Pharma recorded a $150 million non-cash impairment charge related to pelacarsen in the third quarter of 2026.
How much capital did RPRX deploy in Q3 2026?
Capital Deployment was $362 million in the third quarter of 2026, consisting primarily of R&D funding for JNJ-4804 and upfront payments for cliramitug, Zoryve and Mimrylo.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 4, 2026
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Identification No.) | ||||||
| (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 November 4, 2026, Royalty Pharma plc issued a press release announcing its financial results for the quarter ended September 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 November 4, 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: November 4, 2026 | By: | /s/ Terrance Coyne | |||||||||
| Terrance Coyne | |||||||||||
| Chief Financial Officer | |||||||||||
 | Press Release November 4, 2026 | ||||
Royalty Pharma reports third quarter 2026 results
Portfolio Receipts growth of 9% to $890 million; Royalty Receipts growth of 9% | ||
Net cash provided by operating activities of $686 million | ||
Raised full year 2026 guidance: Portfolio Receipts expected to be $3,500 million to $3,550 million | ||
NEW YORK, NY, November 4, 2026 — Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the third quarter of 2026 and raised full year 2026 guidance for Portfolio Receipts.
“Royalty Pharma delivered excellent third quarter 2026 results and we again raised our financial guidance,” said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. “We delivered 9% growth in Royalty Receipts for the quarter and double-digit growth year-to-date. We continued to strengthen our portfolio by adding royalties on three innovative therapies in the third quarter. We have also seen tremendous clinical and regulatory progress across our portfolio, including FDA approvals of Revolution Medicines’ Rasonque and Teva’s Weltruza and positive Phase 3 results for Amgen’s Imdelltra. Lastly, we remain excited by the potential for R&D co-funding with global biopharma - where we have announced $1 billion of transactions so far this year - which represents an important new opportunity for our business. Looking ahead, with a robust deal pipeline and strong fundamental tailwinds supporting our business, we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.” | ||
Strong growth in Royalty Receipts in the third quarter of 2026
•Royalty Receipts grew 9% to $883 million, driven by Tremfya, Voranigo, Evrysdi and Imdelltra.
•Portfolio Receipts increased by 9% to $890 million, reflecting higher milestones and other contractual receipts.
Continued healthy transaction activity
•Acquired a royalty on Arcutis Biotherapeutics’ Zoryve for $100 million and on Takeda’s Mimrylo for $100 million.
•Announced value of transactions of $1.9 billion and Capital Deployment of $1.6 billion as of November 3, 2026.
Positive regulatory and clinical updates across royalty portfolio
•FDA approvals for Revolution Medicines’ Rasonque (daraxonrasib) for metastatic pancreatic cancer, Teva’s Weltruza (olanzapine LAI) for schizophrenia and Jazz and BeOne’s Ziihera for HER2+ metastatic gastric cancer.
•Positive Phase 3 results for Amgen’s Imdelltra as a first-line maintenance therapy for small cell lung cancer and Pharvaris’ deucrictibant XR for prophylaxis of hereditary angioedema attacks.
Raising financial guidance for full year 2026 (excludes contribution from future transactions)
•Royalty Pharma now expects 2026 Portfolio Receipts to be between $3,500 million and $3,550 million (previously $3,400 million to $3,500 million), representing expected Royalty Receipts growth of 10% to 11%.
Financial & Liquidity Summary
| Three Months Ended September 30, | |||||||||||
($ and shares in millions; unaudited) | 2026 | 2025 | Change | ||||||||
| Portfolio Receipts | 890 | 814 | 9% | ||||||||
| Net cash provided by operating activities | 686 | 703 | (2)% | ||||||||
| Adjusted EBITDA (non-GAAP)* | 840 | 779 | 8% | ||||||||
| Portfolio Cash Flow (non-GAAP)* | 673 | 657 | 2% | ||||||||
| Weighted average Class A ordinary shares outstanding - diluted | 557 | 560 | (0)% | ||||||||
*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 | November 4, 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 November 4, 2026 | Previous | |||||||
| Portfolio Receipts | $3,500 million to $3,550 million | $3,400 million to $3,500 million | ||||||
| Payments for operating and professional costs | 5.5% to 6.0% 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 November 4, 2026 includes expected Royalty Receipts growth of 10% to 11% 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 is anticipated to be a de minimis amount in the fourth quarter of 2026. These projections assume no additional debt financing in 2026. In the third quarter of 2026, Royalty Pharma collected interest of $6 million on its cash and cash equivalents, which partially offset interest paid.
Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.
Royalty Pharma Press Release | November 4, 2026 | 2 | ||||
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Portfolio Receipts Highlights
| Three Months Ended September 30, | |||||||||||||||||
($ in millions; unaudited) | 2026 | 2025 | Change | ||||||||||||||
| Products: | Marketers: | Therapeutic Area: | |||||||||||||||
| Cystic fibrosis franchise | Vertex | Rare disease | 225 | 222 | 1% | ||||||||||||
| Trelegy | GSK | Respiratory | 89 | 96 | (6)% | ||||||||||||
| Tremfya | Johnson & Johnson | Immunology | 80 | 49 | 61% | ||||||||||||
| Evrysdi | Roche | Rare disease | 71 | 52 | 38% | ||||||||||||
| Tysabri | Biogen | Neuroscience | 67 | 68 | (1)% | ||||||||||||
| Voranigo | Servier | Oncology | 55 | 33 | 65% | ||||||||||||
| Xtandi | Pfizer, Astellas | Oncology | 51 | 50 | 3% | ||||||||||||
| Imbruvica | AbbVie, Johnson & Johnson | Oncology | 31 | 41 | (24)% | ||||||||||||
| Cabometyx/Cometriq | Exelixis, Ipsen, Takeda | Oncology | 24 | 21 | 13% | ||||||||||||
| Imdelltra | Amgen | Oncology | 19 | — | n/a | ||||||||||||
| Trodelvy | Gilead | Oncology | 16 | 12 | 30% | ||||||||||||
| Spinraza | Biogen | Rare disease | 14 | 14 | 0% | ||||||||||||
| Amvuttra | Alnylam | Rare disease | 10 | — | n/a | ||||||||||||
| Promacta | Novartis | Hematology | 9 | 38 | (75)% | ||||||||||||
Other products(5) | 121 | 114 | 6% | ||||||||||||||
| Royalty Receipts | 883 | 811 | 9% | ||||||||||||||
| Milestones and other contractual receipts | 7 | 3 | 138% | ||||||||||||||
| Portfolio Receipts | 890 | 814 | 9% | ||||||||||||||
Amounts shown in the table may not add due to rounding.
Royalty Receipts was $883 million in the third quarter of 2026, an increase of 9% compared to $811 million in the third quarter of 2025. The increase was primarily driven by Tremfya, Voranigo, Evrysdi and Imdelltra, 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 $890 million in the third quarter of 2026, an increase of 9% compared to $814 million in the third quarter of 2025, primarily driven by the same Royalty Receipts increases noted above, in addition to higher Milestones and other contractual receipts.
Royalty Pharma Press Release | November 4, 2026 | 3 | ||||
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Liquidity and Capital Resources
Royalty Pharma’s liquidity and capital resources are summarized below:
As of September 30, 2026, Royalty Pharma had cash and cash equivalents of $514 million and total debt with principal value of $8.8 billion. The reduction in total debt from $9.2 billion as of June 30, 2026 reflects payment of the $380 million term loan in July 2026.
In the third 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 1.5 million Class A ordinary shares for $87 million in the third quarter and 3.5 million Class A ordinary shares for $183 million during the first nine months of 2026. The weighted-average number of diluted Class A ordinary shares outstanding for the third quarter of 2026 was 557 million as compared to 560 million for the third quarter of 2025.
Liquidity Summary
| Three Months Ended September 30, | ||||||||
($ in millions; unaudited) | 2026 | 2025 | ||||||
| Portfolio Receipts | 890 | 814 | ||||||
| Payments for operating and professional costs | (50) | (34) | ||||||
| Adjusted EBITDA (non-GAAP) | 840 | 779 | ||||||
| Interest paid, net | (167) | (123) | ||||||
| Portfolio Cash Flow (non-GAAP) | 673 | 657 | ||||||
Amounts may not add due to rounding.
•Adjusted EBITDA (non-GAAP) was $840 million in the third quarter of 2026. Payments for operating and professional costs were 5.6% of Portfolio Receipts. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs.
•Portfolio Cash Flow (non-GAAP) was $673 million in the third 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 $362 million in the third quarter of 2026, consisting primarily of R&D funding for JNJ‑4804 and upfront payments for cliramitug, Zoryve and Mimrylo (see 'Royalty Transactions'). Capital Deployment was $1.2 billion for the nine months ended September 30, 2026, with the announced value of transactions of $1.9 billion.
The table below details Capital Deployment by category:
Capital Deployment
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
($ in millions; unaudited) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Purchases of available for sale debt securities | — | — | — | (75) | ||||||||||
| Acquisitions of financial royalty assets | (279) | (962) | (982) | (964) | ||||||||||
| Development-stage funding payments | (70) | (51) | (193) | (402) | ||||||||||
| Milestone payments | (13) | — | (63) | (269) | ||||||||||
| Contributions from legacy non-controlling interests - R&D | — | (0) | — | 0 | ||||||||||
| Capital Deployment | (362) | (1,013) | (1,239) | (1,709) | ||||||||||
Amounts may not add due to rounding.
Royalty Pharma Press Release | November 4, 2026 | 4 | ||||
| |||||
Royalty Transactions
As of November 3, 2026, Royalty Pharma has announced new transactions of up to $1.9 billion, which reflects the entire amount of potential capital committed for new transactions, including potential future milestones. In the third quarter of 2026, the following transactions were announced:
•In September 2026, Royalty Pharma acquired a royalty interest in Zoryve from AstraZeneca for $100 million upfront. Zoryve, marketed by Arcutis Biotherapeutics, is a topical phosphodiesterase type 4 (PDE4) inhibitor approved for atopic dermatitis, seborrheic dermatitis and plaque psoriasis.
•In August 2026, Royalty Pharma acquired a royalty interest in Mimrylo, formerly known as rusfertide, from Zealand Pharma for $100 million, consisting of $50 million paid upfront and the remaining $50 million payable on the first anniversary of the closing. Marketed by Takeda, Mimrylo is a first-in-class therapy approved for polycythemia vera, a rare and chronic blood disorder.
•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.
pelabresib | In October 2026, Novartis announced that the regulatory submission for pelabresib in myelofibrosis was completed in the European Union, based on the positive Phase 3 MANIFEST-2 study. | ||||
Rasonque (daraxonrasib) | In October 2026, Revolution Medicines announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) had adopted a positive opinion of Rasonque for the treatment of adult patients with metastatic pancreatic adenocarcinoma who have received at least one prior systemic therapy. In October 2026, Royalty Pharma funded the required first $250 million tranche of the up to $750 million senior secured term loans to Revolution Medicines. Additionally, Revolution Medicines elected not to exercise its option for the third royalty funding tranche (which was up to $250 million). Up to an additional $500 million may be available at Revolution Medicines’ option under each of the senior secured term loan and royalty funding agreement, based on the achievement of certain milestones. In August 2026, Revolution Medicines announced that the U.S. Food and Drug Administration (FDA) approved Rasonque for the treatment of adults with metastatic pancreatic adenocarcinoma who have received at least one prior systemic therapy or who are not candidates for multiagent systemic therapy. | ||||
Niktimvo | In October 2026, Syndax Pharmaceuticals (Syndax) announced that the Phase 2 MAXPIRe trial of Niktimvo in idiopathic pulmonary fibrosis (IPF) did not meet its primary endpoint. Syndax does not plan to move forward with further development in IPF. The results do not affect ongoing trials of Niktimvo in other indications. | ||||
Weltruza (TEV-’749) | In October 2026, Teva Pharmaceuticals (Teva) announced that the FDA approved Weltruza for extended-release injectable suspension, a new, once-monthly, subcutaneous long-acting injectable (LAI) for the treatment of schizophrenia in adults. | ||||
trontinemab | In September 2026, Roche announced that Phase 3 studies of trontinemab in early Alzheimer’s disease have fully enrolled, with data expected in the first half of 2028. | ||||
Imdelltra | In September 2026, Amgen announced positive results from the Phase 3 DeLLphi-305 study of Imdelltra in combination with Imfinzi as first-line maintenance treatment for extensive-stage small cell lung cancer. The study met its primary endpoint at a pre-specified interim analysis, demonstrating a statistically significant and clinically meaningful improvement in overall survival, and also met secondary endpoints of progression-free survival and objective response rate. | ||||
Royalty Pharma Press Release | November 4, 2026 | 5 | ||||
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deucrictibant | In September 2026, Pharvaris announced positive results from the CHAPTER-3 pivotal Phase 3 study evaluating deucrictibant extended-release for the prevention of hereditary angioedema (HAE) attacks. The primary endpoint and all secondary efficacy endpoints were met with statistical significance. In July 2026, Pharvaris announced that the FDA accepted its New Drug Application (NDA) for deucrictibant immediate-release for the on-demand treatment of HAE attacks and assigned a Prescription Drug User Fee Act (PDUFA) date of April 23, 2027. | ||||
pelacarsen | In September 2026, Novartis announced that the Phase 3 Lp(a)HORIZON trial of pelacarsen did not meet its primary endpoint of reducing the risk of cardiovascular events in the overall study population compared to placebo. In the third quarter of 2026, Royalty Pharma recorded a non-cash impairment charge of $150 million related to pelacarsen. | ||||
TEV-’408 | In September 2026, Teva announced positive topline results from an ongoing Phase 2a study of TEV-’408, an anti-IL-15 antibody, in adults with celiac disease. The study met its primary endpoint, demonstrating statistically significant and clinically meaningful prevention of gluten-induced intestinal damage versus placebo at week 8, and was well tolerated, with no safety signals observed to date. In July 2026, Teva announced plans to advance TEV-’408 into a Phase 2b study in patients with non-segmental vitiligo, following positive Phase 1b results. | ||||
Mimrylo (rusfertide) | In August 2026, Takeda announced that the FDA approved Mimrylo, a hepcidin mimetic peptide, for the treatment of erythrocytosis in adults with polycythemia vera. | ||||
Ziihera | In August 2026, Jazz Pharmaceuticals announced that the FDA approved Ziihera in combination with chemotherapy, with or without tislelizumab, for the first-line treatment of adults with metastatic human epidermal growth factor receptor 2 (HER2)-positive gastroesophageal adenocarcinoma. | ||||
Trodelvy | In August 2026, Gilead announced that the European Commission approved Trodelvy in combination with Keytruda as a first-line treatment for PD-L1-positive metastatic triple-negative breast cancer. | ||||
ecopipam | In August 2026, Teva announced that the FDA accepted its NDA for ecopipam for the treatment of pediatric Tourette syndrome and granted the application Priority Review with a PDUFA date late in the first quarter of 2027. | ||||
obexelimab | In August 2026, Zenas BioPharma announced that the FDA accepted for review its Biologics License Application for obexelimab for the treatment of immunoglobulin G4-related disease (IgG4-RD) and assigned a PDUFA target action date of May 27, 2027. | ||||
Jideytro (zidesamtinib) and neladalkib | In July 2026, GSK announced that the FDA approved Jideytro, a ROS proto-oncogene 1 (ROS1)-selective inhibitor, for the treatment of adult patients with 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 and neladalkib, two highly selective ROS1 and anaplastic lymphoma kinase inhibitors for the treatment of non-small cell lung cancer. | ||||
Financial Results Call
Royalty Pharma will host a conference call and simultaneous webcast to discuss its third 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 16 development-stage product candidates.
Royalty Pharma Press Release | November 4, 2026 | 6 | ||||
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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.
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.
Royalty Pharma Press Release | November 4, 2026 | 7 | ||||
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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 | November 4, 2026 | 8 | ||||
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Royalty Pharma plc
Condensed Consolidated Statements of Operations(7) (unaudited)
Table 1
| Three Months Ended September 30, | ||||||||
| ($ in millions) | 2026 | 2025 | ||||||
| Income and other revenues | ||||||||
| Income from financial royalty assets | 648 | 579 | ||||||
| Other royalty income and revenues | 42 | 30 | ||||||
| Total income and other revenues | 690 | 609 | ||||||
| Operating (income)/expense | ||||||||
| Provision for changes in expected cash flows from financial royalty assets | (88) | 12 | ||||||
| Provision for credit losses on unfunded commitments | 4 | 1 | ||||||
| Research and development funding expense | 63 | 51 | ||||||
General and administrative expenses (includes 105 and 73 of share-based compensation expense for the three months ended September 30, 2026 and 2025, respectively) | 150 | 119 | ||||||
| Financial royalty asset impairment | 150 | — | ||||||
| Total operating expense, net | 279 | 182 | ||||||
| Operating income | 411 | 427 | ||||||
| Other (income)/expense | ||||||||
| Equity in earnings of equity method investees | (9) | (16) | ||||||
| Interest expense | 90 | 80 | ||||||
| Other expense/(income), net | 63 | (77) | ||||||
| Total other expense/(income), net | 144 | (13) | ||||||
| Consolidated net income before tax | 267 | 440 | ||||||
| Income tax expense | — | — | ||||||
| Consolidated net income | 267 | 440 | ||||||
| Net income attributable to non-controlling interests | 122 | 156 | ||||||
| Net income attributable to Royalty Pharma plc | 145 | 284 | ||||||
Amounts may not add due to rounding.
Royalty Pharma Press Release | November 4, 2026 | 9 | ||||
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Royalty Pharma plc
Selected Balance Sheet Data (unaudited)
Table 2
| ($ in millions) | As of September 30, 2026 | As of December 31, 2025 | ||||||
| Cash and cash equivalents | 514 | 619 | ||||||
| Total current and non-current financial royalty assets, net | 17,079 | 17,063 | ||||||
| Total assets | 19,461 | 19,621 | ||||||
| Current portion of long-term debt | 997 | 380 | ||||||
| Long-term debt, net of current portion | 7,591 | 8,571 | ||||||
| Total liabilities | 9,666 | 9,906 | ||||||
| Total shareholders’ equity | 9,795 | 9,715 | ||||||
Royalty Pharma Press Release | November 4, 2026 | 10 | ||||
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Royalty Pharma plc
Condensed Consolidated Statements of Cash Flows (unaudited)
Table 3
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Cash collections from financial royalty assets | 930 | 882 | 2,660 | 2,439 | ||||||||||
| Cash collections from intangible royalty assets | 0 | 0 | 4 | 1 | ||||||||||
| Other royalty cash collections | 38 | 29 | 104 | 85 | ||||||||||
| Distributions from equity method investees | 8 | — | 33 | 13 | ||||||||||
| Interest received | 6 | 7 | 18 | 28 | ||||||||||
| Development-stage funding payments | (70) | (51) | (193) | (402) | ||||||||||
| Payments for operating and professional costs | (50) | (34) | (123) | (230) | ||||||||||
| Payments for Employee EPAs | (3) | (2) | (18) | (2) | ||||||||||
| Interest paid | (173) | (130) | (352) | (270) | ||||||||||
| Net cash provided by operating activities | 686 | 703 | 2,133 | 1,663 | ||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Acquisition of businesses, net of cash acquired | — | (0) | — | (74) | ||||||||||
| Distributions from equity method investees | 1 | 1 | 30 | 100 | ||||||||||
| Purchases of equity securities | — | — | (28) | (4) | ||||||||||
| Proceeds from equity securities | — | — | 36 | — | ||||||||||
| Purchases of available for sale debt securities | — | — | — | (75) | ||||||||||
| Proceeds from available for sale debt securities | 6 | 3 | 14 | 18 | ||||||||||
| Proceeds from sales of available for sale debt securities | — | — | — | 511 | ||||||||||
| Acquisitions of financial royalty assets | (279) | (962) | (982) | (964) | ||||||||||
| Milestone payments | (13) | — | (63) | (269) | ||||||||||
| Other | (0) | — | (1) | (9) | ||||||||||
| Net cash used in investing activities | (286) | (958) | (993) | (766) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Distributions to legacy non-controlling interests - Portfolio Receipts | (93) | (102) | (257) | (276) | ||||||||||
| Distributions to continuing non-controlling interests | (33) | (34) | (108) | (127) | ||||||||||
| Dividends to shareholders | (105) | (95) | (315) | (284) | ||||||||||
| Repurchases of Class A ordinary shares | (86) | (146) | (181) | (1,147) | ||||||||||
| Contributions from legacy non-controlling interests - R&D | — | (0) | — | 0 | ||||||||||
| Contributions from non-controlling interests - other | — | 0 | — | 6 | ||||||||||
| Proceeds from revolving credit facility | 50 | 1,275 | 50 | 1,275 | ||||||||||
| Repayment of revolving credit facility | (50) | (1,275) | (50) | (1,275) | ||||||||||
| Repayment of long-term debt | (380) | (1,000) | (380) | (1,000) | ||||||||||
| Proceeds from issuance of long-term debt, net of discount | — | 1,954 | — | 1,954 | ||||||||||
| Debt issuance costs and other | 0 | (14) | (2) | (14) | ||||||||||
| Other | (1) | — | (2) | — | ||||||||||
| Net cash (used in)/provided by financing activities | (699) | 563 | (1,245) | (886) | ||||||||||
| Net change in cash and cash equivalents | (298) | 307 | (105) | 10 | ||||||||||
| Cash and cash equivalents, beginning of period | 812 | 632 | 619 | 929 | ||||||||||
| Cash and cash equivalents, end of period | 514 | 939 | 514 | 939 | ||||||||||
EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma Press Release | November 4, 2026 | 11 | ||||
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Royalty Pharma plc
GAAP to Non-GAAP Reconciliation (unaudited)
Table 4
Three Months Ended September 30, | ||||||||
| ($ in millions) | 2026 | 2025 | ||||||
Net cash provided by operating activities (GAAP) | 686 | 703 | ||||||
| Adjustments: | ||||||||
Proceeds from available for sale debt securities(6) | 6 | 3 | ||||||
Distributions from equity method investees(6) | 1 | 1 | ||||||
Interest paid, net(6) | 167 | 123 | ||||||
| Development-stage funding payments | 70 | 51 | ||||||
Distributions to legacy non-controlling interests - Portfolio Receipts(6) | (93) | (102) | ||||||
| Payments for Employee EPAs | 3 | 2 | ||||||
Adjusted EBITDA (non-GAAP) | 840 | 779 | ||||||
Interest paid, net(6) | (167) | (123) | ||||||
Portfolio Cash Flow (non-GAAP) | 673 | 657 | ||||||
EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma Press Release | November 4, 2026 | 12 | ||||
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Royalty Pharma plc
Description of Approved Indications for Select Portfolio Therapies
Table 5
Cystic fibrosis franchise | Cystic fibrosis | ||||
Trelegy | Chronic obstructive pulmonary disease and asthma | ||||
Tremfya | Plaque psoriasis, psoriatic arthritis, ulcerative colitis and Crohn’s disease | ||||
Evrysdi | Spinal muscular atrophy | ||||
Tysabri | Relapsing forms of multiple sclerosis | ||||
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 | November 4, 2026 | 13 | ||||
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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 and 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, IDHIFA, Niktimvo, Nurtec ODT, Orladeyo, Prevymis, Skytrofa, Yorvipath 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, 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 gains previously recognized on derivative.
Royalty Pharma Press Release | November 4, 2026 | 14 | ||||