Royalty Pharma plc (NASDAQ: RPRX) Releases Q2 2021 Financial Results and Raises Full-Year Outlook

Royalty Pharma plc (NASDAQ: RPRX) announced its Q2 2021 financial results and raised its full-year 2020 adjusted cash receipts guidance.

Royalty Pharma reports Q2 2021 results 

The company’s net cash from operating activities increased to $532 million, will net cash from investing activities was up to $126 million. On the other hand, net cash used in financing activities dropped to $224 million. Royalty Pharma’s total income plus other revenues were up 9% to around $555 million, attributed mainly to the newly acquired assets. 

Non-GAAP financial results indicate growing business momentum with adjusted cash receipts increasing 3% to around $475 million attributed to the CF fr4anchise royalty receipts, royalty acquisitions, and  Biohaven payments which were partially counterbalanced by mature product royalty expirations.

CEO Pablo Legorreta said, “I am particularly excited by our recent strategic funding partnership with MorphoSys, which demonstrates the breadth of our funding capabilities and exemplifies the unique role that Royalty Pharma can play in M&A. We applied a similarly innovative approach to strengthening our balance sheet with our recent $1.3 billion debt offering, which includes our first-ever social bond, positioning us well to advance our mission of funding the development of innovative therapies. Lastly, we delivered solid financial performance in the second quarter of 2021 and are delighted to raise our full-year financial guidance.”

Total royalty receipts were $588 in Q2 2021

Total royalty receipts were around $588 million in Q2, growing by $3 million from the same period a year ago attributed to the performance of Biohaven fixed payments, cystic fibrosis franchise, and addition of new royalties. However, this was offset by royalty receipts decrease from the HIV franchise because of Truvada and Atripia exclusivity loss.

For the full year, the company anticipates adjusted cash receipts to be between  $1.08 billion and $2.12 billion minus new transactions announced ahead of the release of the results. The figures reflect royalty transactions and net payment of $37 million related to Soliqua in Q3.