Royalty Pharma

Royalty Pharma plc (Royalty Pharma) buys royalties on drugs and funds the development of new drugs. It earns a share of the sales of drugs that other companies sell, such as the cystic fibrosis drugs of Vertex, Trelegy, Tremfya, Evrysdi, Tysabri, Voranigo and Xtandi. In Q3 2026, Portfolio Receipts were $890 million, of which Royalty Receipts were $883 million. The cystic fibrosis drugs of Vertex gave $225 million.

Royalty Pharma ended its management fee when it completed the internalization of its manager on May 16, 2025. Pablo Legorreta is Chief Executive Officer and Chairman. The company files annual reports on Form 10-K, and its Class A ordinary shares trade on the Nasdaq in US dollars. Its Class B ordinary shares, 128.3 million at October 30, 2026, do not trade, and their holders can exchange the matching interests one for one for Class A shares.

The market prices Royalty Pharma on how long its royalties last and on its large debt, more than on current cash flow, which is growing. Royalty Receipts grew 9% in Q3 2026, and the company raised its 2026 Portfolio Receipts guidance to $3,500 million to $3,550 million. But some royalties fall: Promacta receipts fell 75% after generic competition in the US, and Imbruvica fell 24%.

Debt has a principal of $8.8 billion, and the company expects to pay $350 million to $360 million of interest in 2026. For the price to rise, three things must be true. New and growing royalties, such as Tremfya, Voranigo, Evrysdi, Imdelltra, Amvuttra and Revolution Medicines' Rasonque, which the FDA approved in August 2026, must grow faster than the royalties that end.

The company must buy new royalties at prices that earn more than its cost of debt. The Class B interests must not weigh on the Class A price when holders exchange them. The next tests are the Q4 2026 report in February 2027, which shows if 2026 receipts reach the guidance, and the guidance for 2027.

1. Feb 10, 2027 · est.Pending

   Q4 2026 results and 2027 guidance2026 Portfolio Receipts inside or above the range of $3,500 million to $3,550 million, with growth in the 2027 guidance, passes; a result below the range fails.
2. 2027 · est.Pending

   New royalties replace ending royaltiesNew royalty purchases and approvals of royalty drugs raise Royalty Receipts after the fall of Promacta and Imbruvica, and this passes; a flat or lower total fails.

Every passed and failed checkpoint across all picks

• November 4, 2026Royalty Pharma reported Q3 2026 results and raised its guidance. Portfolio Receipts were $890 million, up 9%, and Royalty Receipts were $883 million, up 9%. Adjusted EBITDA was $840 million and Portfolio Cash Flow was $673 million. The company paid its $380 million term loan in July, so total debt fell to $8.8 billion from $9.2 billion at June 30. It paid a quarterly dividend of $0.235 per share and bought 1.5 million Class A shares for $87 million in the quarter.
• September 30, 2026In Q3 2026, Royalty Pharma bought a royalty on Zoryve for $100 million, a royalty on Mimrylo for $100 million, of which $50 million is due in a year, and part of a royalty on cliramitug for up to $425 million, of which $125 million was paid at the start. Announced transactions for 2026 were up to $1.9 billion at November 3.
• August 26, 2026The FDA approved Revolution Medicines' Rasonque (daraxonrasib) for metastatic pancreatic cancer. Royalty Pharma lists it among the drugs in its portfolio.

Last earnings

November 4, 2026 (8-K on sec.gov)

Next earnings

Expected about February 10, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 4, 2026 · rprx-20260930
• 8-KEarnings releaseFiled November 4, 2026 · Press release and exhibits
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 5, 2026 · rprx-20260630
• 8-KEarnings releaseFiled August 5, 2026 · Press release and exhibits
• 8-KShareholder vote resultsFiled June 4, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled May 28, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 6, 2026 · rprx-20260331
• 8-KEarnings releaseFiled May 6, 2026 · Press release and exhibits
• 8-KInvestor disclosureFiled April 13, 2026 · Read it on sec.gov
• 10-KAnnual report for the period ended Dec 31, 2025Filed February 11, 2026 · rprx-20251231

Every filing on SEC EDGAR (CIK 1802768)

• Royalties end when patents end or when generics arrive. Promacta receipts fell 75% in Q3 2026 after US generic competition, and Imbruvica fell 24%. New royalties must replace the lost cash flow.
• A few drugs give a large part of receipts. The cystic fibrosis drugs of Vertex gave $225 million of the $883 million of Royalty Receipts in Q3 2026, about one quarter. A new treatment or a pricing rule that cuts their sales would lower the cash flow.
• Debt is large. The principal was $8.8 billion at September 30, 2026, and the current part was $997.0 million at carrying value. The company must refinance, and the cost of debt limits the return on new royalties.
• The employee economic profit awards are a liability of $774.4 million, up from $577.9 million at December 31, 2025. The value rises when the portfolio is worth more and takes cash or shares from holders.
• Drug pricing rules in the US can lower the sales on which royalties are paid, and trials can fail for drugs that Royalty Pharma funds.
• Holders of 128.3 million Class B ordinary shares can exchange the matching interests for Class A shares. Sales of those shares could weigh on the price.

Royalty Pharma had cash and cash equivalents of $514 million and total debt with a principal of $8.8 billion at September 30, 2026. The carrying value of debt was $8,587.5 million, of which $997.0 million is current. Read more

Yield at the current rate

1.3% (current annual rate, at today’s price)

Dividend yield

1.3% (last 12 months, at today’s price of $70.01)

Paid per share

$0.925 in the last 12 months (4 payments)

Current annual rate

$0.94 ($0.235 × 4 a year)

Payout ratio

49% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

August 14, 2026, $0.235 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 24.0% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.