Royalty Pharma plc, founded in 1996, is a leading buyer of biopharmaceutical royalties and funds innovation across the biopharmaceutical sector. The company reported a strong start to 2025, showcasing a rise in performance across key financial metrics.

In the first quarter of 2025, Royalty Pharma’s Royalty Receipts grew 12% to $788 million, driven by solid performances from its cystic fibrosis franchise, Trelegy, and Xtandi. Portfolio Receipts, which encompass both Royalty Receipts and milestone payments, also increased significantly, escalating 17% to $839 million. This value was enhanced by a substantial $27 million milestone payment related to the product Airsupra.

Adjusted EBITDA for the quarter was reported at $738 million, a 12% uptick compared to $656 million in the same period last year. Portfolio Cash Flow amounted to $611 million, reflecting a 5% increase from $584 million in the prior-year quarter.

Royalty Pharma has also implemented a dynamic capital allocation framework, which facilitated $723 million in share repurchases during the quarter. This repurchase involved 23 million shares under a new program allowing up to $3 billion in share buybacks.

The company announced an increase in its quarterly dividend by approximately 5%, aligning with its commitment to shareholder returns. Additionally, Royalty Pharma raised its full-year 2025 guidance for Portfolio Receipts to a range of $2.975 billion to $3.125 billion, which reflects expected growth of 6% to 12%.

This guidance was bolstered by the ongoing development of its product pipeline, including a new R&D funding collaboration with Biogen for litifilimab, which is advancing in Phase III development for lupus. Royalty Pharma also confirmed major clinical and regulatory updates across its portfolio, notably the FDA and EC approvals of Tremfya for Crohn’s disease and ulcerative colitis.

Cash and cash equivalents as of March 31, 2025, totaled $1.1 billion, while total debt stood at $7.8 billion. The leverage ratio is approximately 3x total debt to EBITDA, with investments continuing to fuel substantial cash flow for further acquisitions or shareholder returns.

Overall, Royalty Pharma’s strong performance in the first quarter and its strategic capital allocation indicate a robust growth trajectory, with notable increases in key financial metrics reinforcing its stability in the biopharmaceutical sector.