Royalty Pharma expands board with Biohaven CEO appointment

NEW YORK - Royalty Pharma plc (NASDAQ:RPRX), a prominent player in biopharmaceutical royalty acquisitions with a market capitalization of $17.7 billion and strong financial health according to InvestingPro metrics, announced today that Dr. Vlad Coric, Chairman and CEO of Biohaven, has joined its Board of Directors. Dr. Coric's extensive experience in the biopharmaceutical industry and his previous interactions with Royalty Pharma through royalty funding transactions are expected to bolster the company's strategic direction.

Pablo Legorreta, Royalty Pharma's founder and CEO, expressed confidence in Dr. Coric's ability to contribute to the company's growth, citing his entrepreneurial spirit and leadership skills. Dr. Coric's background includes leading Biohaven to the successful FDA approval and market launch of Nurtec ODT for migraine treatment, as well as the progression of a second drug candidate, zavegepant.

With a career spanning over 20 years, Dr. Coric has held roles at Yale School of Medicine and Bristol-Myers Squibb, focusing on drug discovery and clinical development across various therapeutic areas. His educational credentials include a medical degree from Wake Forest University School of Medicine and a Bachelor of Science from the University of Connecticut.

Royalty Pharma, established in 1996, is recognized as the industry's largest buyer of biopharmaceutical royalties. The company's business model includes partnering with innovators, from academic institutions to global pharmaceutical firms, to fund late-stage clinical trials and new product launches in exchange for future royalties. With a robust gross profit margin of 68% and consistent dividend growth over the past five years, Royalty Pharma's portfolio boasts royalties on over 35 commercial products and 15 development-stage candidates. InvestingPro analysis reveals additional growth indicators and financial metrics available to subscribers.

The appointment of Dr. Coric is seen as a strategic move to leverage his scientific insights and industry expertise, with the aim of further cementing Royalty Pharma's role as a leading funder of life sciences innovation. With analysts projecting continued profitability and the stock showing a strong return over the past three months, the company appears well-positioned for future growth. For detailed analysis and comprehensive valuation metrics, investors can access the full Pro Research Report available on InvestingPro. This news is based on a press release statement from Royalty Pharma.

In other recent news, Royalty Pharma reported its Q4 2024 earnings, revealing an earnings per share (EPS) of $0.3531, which fell short of the forecasted $0.9849. The company also reported revenue of $594 million, missing the expected $614.83 million. Despite the earnings miss, the company achieved strong portfolio receipts for 2024, reaching $2.8 billion, which was at the high end of its guidance. Royalty Pharma plans a $2 billion share repurchase in 2025, signaling confidence in its long-term strategy.

On the analyst front, UBS maintained a Neutral rating on Royalty Pharma with a price target of $33, while Citi reiterated a Buy rating with a $40 target. Citi analysts noted that Royalty Pharma's established tax structure in Ireland is not subject to the Pillar Two global minimum tax rate, reinforcing their positive outlook. The company's management reassured Citi that its current tax strategy is secure and not affected by new global tax regulations.

Royalty Pharma's earnings announcement comes amid broader concerns in the biopharmaceutical sector regarding tariff impacts and international tax policies. The company has been navigating these challenges while maintaining strong financial performance, as evidenced by the 13% growth in royalty receipts, surpassing initial guidance. The internalization of management is expected to save over $100 million annually by 2026, further strengthening Royalty Pharma's financial position.

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