ROYALTY PHARMA OA DL-0001

At the Morgan Stanley Healthcare Conference, Royalty Pharma said its business has evolved well beyond pure royalties. The company reached its five‑year capital deployment target of $10–12bn earlier than planned, is expanding an R&D co‑funding business with partners such as Biogen, Teva Pharm and Johnson & Johnson, and is expanding into China. Royalty Pharma is also investing heavily in data science and AI for due diligence; portfolio returns remain attractive while management factors in development failures. » More on de.investing.com

Novartis’s Phase 3 HORIZON study of pelacarsen missed its primary endpoint for reducing cardiovascular events versus placebo. Royalty Pharma expects, based on its $500 million financing agreement with Ionis, to recover its invested capital and achieve a moderate positive return without making milestone payments to Ionis. The agreement covers investments in pelacarsen and Spinraza royalties; the claim on Spinraza revenues yields roughly a 1.1× return under current terms. The company reaffirmed its goal of generating at least $4.7 billion in portfolio revenue by 2030. » More on de.investing.com

Royalty Pharma’s stock rose to a new record high of $62.48 and is currently trading at $62.58, implying a market capitalization of $35.87 billion. Year to date the shares are up 69.78%. For Q2 2026 the company reported licensing revenue of $768 million (+14% year over year) and portfolio revenue of $773 million (+6%), after which BofA raised its price target from $62.00 to $63.00 and kept its rating at "Buy." However, an analysis by InvestingPro classifies the stock as overvalued relative to its fair value. » More on de.investing.com