Royalty Pharma plc (RPRX): Business Model Canvas [Dec-2025 Updated]

You're digging into how Royalty Pharma plc, the biggest buyer of biopharma royalties globally, actually makes its money, and honestly, it's a fascinating model built on predictable cash flows from proven medicines. As a former head analyst, I can tell you their engine is about acquiring streams from successful drugs-think about their guidance for 2025 Portfolio Receipts hitting $3.2 billion to $3.25 billion-which provides non-dilutive capital for their partners while they deploy capital, targeting $2.0 billion to $2.5 billion annually. We've mapped out the nine essential blocks of their business model, from their specialized deal-making expertise to how they structure those high-touch relationships with Big Pharma and smaller biotechs. If you want to see the precise mechanics behind this unique financial machine, keep reading below.

Royalty Pharma plc (RPRX) - Canvas Business Model: Key Partnerships

You're looking at the core of Royalty Pharma plc's value creation engine-the network of partners that feed its royalty acquisition pipeline. This isn't just about buying existing streams; it's about funding the next wave of science.

Royalty Pharma plc positions itself as the #1 Buyer of biopharma royalties, having deployed over >$25 billion in capital since its founding, executing over >80 royalty acquisitions. For 2025 alone, the company reported significant capital deployment, reaching $2.0 billion through the third quarter. This deployment strategy relies heavily on structuring deals with the innovators themselves.

The partnerships with biopharma companies are often structured as synthetic royalty funding agreements or loans, designed to give developers capital while securing a future revenue stream for Royalty Pharma plc. Here are some of the most significant recent collaborations:

• Partnered with Revolution Medicines in June 2025 for a funding arrangement up to $2 billion, which included a synthetic royalty on daraxonrasib.
• Announced a $275 million synthetic royalty funding agreement with Denali Therapeutics in December 2025 for tividenofusp alfa, with an initial payment of $200 million.
• Entered into a funding agreement on obexelimab with Zenas BioPharma for up to $300 million during the third quarter of 2025.
• Provided R&D funding of up to $250 million to Biogen for litifilimab in February 2025.

The acquisition side of partnerships is just as crucial, often involving established financial players. For instance, in late 2025, Royalty Pharma plc acquired a royalty interest in Alnylam's AMVUTTRA from funds managed by Blackstone Life Sciences for $310 million. This shows the depth of relationships across the financial ecosystem.

The company's portfolio is vast, which means its commercial partners are a who's who of global pharma. Royalty Pharma plc's current portfolio includes royalties on more than 35 commercial products and 18 development-stage product candidates as of April 2025. These partners are the ones generating the cash flow that flows back to Royalty Pharma plc.

Here's a look at some of the major pharmaceutical companies commercializing assets underlying Royalty Pharma plc's royalties:

To manage these complex transactions and maintain market visibility, Royalty Pharma plc engages with major investment banks and advisors. While these entities advise on market perception and valuation, they are key to deal sourcing and execution. As of September 2025, analysts from firms like J.P. Morgan, Goldman Sachs, and Morgan Stanley cover the stock. For the December 2025 Denali deal, Goodwin Procter and Maiwald acted as legal advisors to Royalty Pharma plc.

The structure of the Denali deal is a perfect example of the partnership terms you see: Royalty Pharma plc will receive a 9.25% royalty on worldwide net sales of tividenofusp alfa, which is set to cease upon reaching a multiple of 3.0x (or 2.5x if achieved by the first quarter of 2039). Finance: draft 13-week cash view by Friday.

Royalty Pharma plc (RPRX) - Canvas Business Model: Key Activities

You're looking at the core engine of Royalty Pharma plc (RPRX) as of late 2025-the activities that actually generate the cash flow and drive the growth you see in their guidance updates. It's all about disciplined capital deployment into high-quality assets, and the recent internalization of management was a major operational shift to support this.

Internalizing RP Management, completed in May 2025

This was a huge structural change, which you definitely need to note. Royalty Pharma plc completed the acquisition of its external manager, RP Management, LLC, on May 16, 2025. The transaction received overwhelming shareholder support, with 99.9% of votes cast in favor.

Here are the key financial and structural details of that activity:

• The total transaction value was approximately $1.1 billion, based on the January 8, 2025 stock price.
• Consideration involved approximately 24.5 million shares of Royalty Pharma equity and the assumption of $380 million of existing Manager debt, plus approximately $100 million in cash.
• The move simplifies the corporate structure and is expected to generate cumulative cash savings of greater than $1.6 billion over the next ten years.
• Royalty Pharma expects to save over $100 million annually by 2026 due to this internalization.
• All employees of RP Management became employees of Royalty Pharma plc, enhancing governance and alignment.

Deploying capital, targeting $2.0 billion to $2.5 billion annually

The annual deployment target is a key metric for assessing future growth potential. Royalty Pharma plc reaffirmed its annual capital deployment target of $2.0 billion to $2.5 billion. This activity is guided by their dynamic capital allocation framework.

Looking at the actual deployment through the first three quarters of 2025, the activity has been robust:

Announced transactions year-to-date (as of November 2025) reflect the pipeline feeding this deployment, totaling up to $3.8 billion.

Sourcing and underwriting new royalty acquisitions

Sourcing involves identifying high-potential assets, both commercial and development-stage. Royalty Pharma plc has been actively expanding its portfolio with specific, large-scale deals in 2025.

You can see the focus on high-value assets through these recent announced transactions:

The development-stage pipeline has also expanded, now covering 17 therapies, which represents the future sourcing activity.

Structuring complex synthetic royalty and debt deals

Royalty Pharma plc uses various structures to provide capital, including synthetic royalties which allow partners to retain operational control. This is a key part of their deal structuring activity.

The synthetic royalty structure is exemplified by the Revolution Medicines agreement, which is a funding agreement of up to $2.0 billion that includes a synthetic royalty component. Furthermore, a synthetic royalty deal for daraxonrasib is expected to generate peak annual royalties exceeding $170 million. This shows the complexity in structuring deals to maximize returns tied to commercial success.

Managing a diverse portfolio of over 35 commercial royalties

The management activity centers on overseeing the existing portfolio to ensure cash flow generation. Royalty Pharma plc manages a diverse portfolio that includes royalties on more than 35 commercial products. As of October 2025, the firm is an active investor with a portfolio spanning 58 companies, involving 54 funding rounds and 4 acquisitions.

The performance of this management activity is reflected in the raised guidance for 2025 Portfolio Receipts, which now stands between $3,200 million and $3,250 million, representing 14% to 16% growth year-over-year. The third quarter 2025 Portfolio Receipts alone were $814 million. The company also reported Return on Invested Capital (ROIC) of 15.7% and Return on Invested Equity (ROIE) of 22.9% for the last 12 months ending Q3 2025.

Royalty Pharma plc (RPRX) - Canvas Business Model: Key Resources

You're looking at the core assets that power Royalty Pharma plc's business model as of late 2025. These aren't just line items; they are the engine for their capital allocation strategy.

The foundation of Royalty Pharma plc's value lies in its diversified portfolio of royalties on more than 35 commercial products. This diversification helps smooth out revenue streams, which is key when you're dealing with the inherent volatility of drug performance. For instance, Q3 2025 royalty receipts of $811 million were driven by key products like Voranigo, Tremfya, and the cystic fibrosis franchise.

The company backs this portfolio with significant financial firepower, which is a major resource for deal-making. As of September 30, 2025, Royalty Pharma plc maintained investment grade debt of $9.2 billion. This large-scale debt access, coupled with a weighted-average cost of debt of just 3.75% on unsecured notes, provides a low-cost funding base for acquisitions. That's cheap money to deploy into life sciences assets.

Here's a look at the capital structure as of the end of Q3 2025:

This strong balance sheet, featuring $939 million in cash as of September 30, 2025, gives them immediate liquidity for opportunistic deals.

The expertise in financial and scientific deal-making is evidenced by their deployment activity and performance metrics. Royalty Pharma plc has completed over 80 royalty acquisitions since its founding and deployed over $25 billion in capital cumulatively. Their focus on late-stage assets yields results; they highlighted a development-stage success rate of approximately 90%. The company actively deployed capital, investing $1.013 billion in Q3 2025 alone.

The pipeline of future value is also substantial, though slightly different from the outline's figure. As of Q3 2025, the development-stage pipeline includes royalties on 17 product candidates. These assets are expected to generate over $36 billion in cumulative peak sales based on third-party estimates.

The effectiveness of their capital allocation is reflected in their returns:

• Return on Invested Capital (ROIC) for the last twelve months ending Q3 2025: 15.7%.
• Return on Invested Equity (ROIE) for the last twelve months ending Q3 2025: 22.9%.

Finance: draft 13-week cash view by Friday.

Royalty Pharma plc (RPRX) - Canvas Business Model: Value Propositions

You're a biopharma executive looking for a massive capital infusion without giving up the keys to your drug development. Royalty Pharma plc (RPRX) steps in with a value proposition centered on capital structure flexibility and risk mitigation. This isn't just about money; it's about the terms of that money.

Provides non-dilutive, flexible capital to fund R&D

Royalty Pharma plc (RPRX) structures its funding to ensure you get the cash without issuing equity, which is a huge win for existing shareholders. Executives surveyed ranked the top benefit of royalty funding as its non-dilutive structure (68%), and avoiding covenants or debt-like repayments was cited by 46% (Source 10). This flexibility is evident in their recent deals. For instance, Royalty Pharma announced a funding arrangement with Revolution Medicines for up to $2 billion, which included up to $1.25 billion as a synthetic royalty on daraxonrasib (Source 1, 4). Also, they provided $275 million in synthetic royalty funding to Denali Therapeutics for tividenofusp alfa, with $200 million paid at closing (Source 2, 6). The scale of capital deployed by Royalty Pharma plc (RPRX) since founding is >$25bn (Source 6).

Allows biopharma partners to retain operational control

A core component of the value proposition is that the funding mechanism is tied to future revenue, not board seats or operational mandates. The groundbreaking funding agreement with Revolution Medicines explicitly enables the partner to retain operational control over their pipeline development and global commercialization (Source 1). This retention of control was cited by 38% of surveyed executives as a key benefit of royalty funding (Source 10). You get the capital to advance your science while keeping your team in charge of execution. This is a defintely different approach than traditional venture debt or equity rounds.

Offers immediate monetization of future revenue streams

Royalty Pharma plc (RPRX) allows partners to convert uncertain future sales into immediate, usable cash today. This is achieved through the purchase of existing royalties or the creation of synthetic royalties. Royalty Pharma plc (RPRX) closed a transaction in January 2025 to monetize the remaining fixed payments on the MorphoSys Development Funding Bonds for $511 million in upfront cash (Source 4). Furthermore, their Q2 2025 Capital Deployment was $595 million (Source 5). The total announced value of transactions from 2020 to September 10, 2025, stands at $19 billion (Source 12). This immediate cash flow supports near-term needs, like Denali Therapeutics receiving $200 million upfront (Source 2).

Shares development and commercialization risk

By purchasing a royalty or synthetic royalty, Royalty Pharma plc (RPRX) takes on a portion of the risk associated with the product's ultimate success. The structure of the Denali deal illustrates this risk sharing: Royalty Pharma plc (RPRX) will pay an additional $75 million only upon EMA approval by December 31, 2029 (Source 2). The royalty stream on that deal is capped at a 3.0x multiple of payments, or 2.5x if reached by Q1 2039, which clearly defines the long-term payout limit and the maximum exposure for Royalty Pharma plc (RPRX) on that specific asset (Source 2, 6). This aligns incentives while limiting the partner's downside exposure if the product underperforms expectations.

Acts as a third-party validator for product potential

The willingness of Royalty Pharma plc (RPRX) to commit significant capital based on their internal diligence serves as a powerful external endorsement of a product's potential. Royalty Pharma plc (RPRX) is the world's largest buyer of biopharmaceutical royalties, holding more than 60% global market share among partners (Source 6). The company's portfolio as of mid-2025 included royalties on more than 35 commercial products and 18 development-stage product candidates (Source 5). The fact that Royalty Pharma plc (RPRX) raised its full-year 2025 Portfolio Receipts guidance to between $3,200 million and $3,250 million, representing expected growth of 14% to 16%, shows the success of their validation process (Source 9).

Here's a quick look at the scale of capital deployment supporting these value propositions:

The company's own financial strength, demonstrated by Q3 2025 Net cash provided by operating activities of $703 million, backs up their ability to deliver on these commitments (Source 9). Finance: draft the Q4 2025 capital deployment forecast by January 15, 2026.

Royalty Pharma plc (RPRX) - Canvas Business Model: Customer Relationships

You're looking at how Royalty Pharma plc builds and maintains its crucial relationships with the innovators it funds. It's not a transactional, one-off sale; it's deep, strategic engagement.

High-touch, long-term, and partnership-driven

Royalty Pharma plc positions itself as the premier capital allocator in life sciences, which demands a relationship style that goes beyond simple financing. They are the world's largest buyer of biopharmaceutical royalties and a leading funder of innovation, which means their customer base includes everyone from academic institutions and research hospitals to small- and mid-cap biotechnology companies and leading global pharmaceutical companies. This breadth requires a high-touch approach to keep all these partners engaged over the long haul.

The company emphasizes its role as a partner of choice, citing its unique capabilities to provide tailored funding solutions and customize win-win partnerships. This is reflected in their market standing:

• Global market share in royalty funding: more than 60%.
• Capital deployed on new royalty transactions since IPO (2020): around $14 billion.
• Expected average total shareholder return (TSR) over 2025-2030: at least a mid-teens percentage.

This focus on long-term value creation is central to their relationship pitch.

Customized deal structuring for unique funding needs

Honestly, the core of the relationship is structuring a deal that fits the innovator's specific need-they don't push a one-size-fits-all product. Royalty Pharma funds innovation both directly, by co-funding late-stage trials or product launches for future royalties, and indirectly, by acquiring existing royalties. Executives cited the ability to customize deal terms as a key benefit of using royalty financing.

Here's a look at how customized these structures can be, based on recent 2025 transactions:

These deals show flexibility, sometimes including debt alongside the royalty component, which helps partners achieve a specific quantum of cash without necessarily maximizing the royalty rate upfront.

Direct engagement with C-suite executives and research heads

The sourcing, engagement, diligence, and execution of these multi-million dollar transactions require direct, high-level interaction. Senior leaders like Sara Klymkowsky and Brienne Kugler, both promoted to Senior Vice President, Research & Investments, have been key in leading these efforts.

The level of engagement with the decision-makers is clear from a market study Royalty Pharma shared:

• Biotech executives surveyed by Deloitte: over 100.
• Percentage of surveyed executives who were CEOs: about 1/3.
• Percentage of surveyed executives who were CFOs: almost half.

This confirms that the relationship management starts and stays at the very top of the originating companies.

Investor Day events to communicate strategy to the market

Royalty Pharma plc uses its Investor Day events to clearly articulate its value proposition and growth trajectory to the broader financial community, which indirectly reinforces its credibility with potential partners. The Investor Day in September 2025 was a key touchpoint for this communication.

Key strategic numbers communicated at the September 2025 Investor Day include:

• Projected Portfolio Receipts CAGR for 2025-2030: 11-14%.
• Portfolio Receipts goal for 2030: at least $4.7 billion.
• Top-line CAGR achieved over 2020 to 2025 period: approximately 12%.

They also highlighted strong internal returns, showing the quality of their deal flow and diligence process.

Transaction-based, requiring significant due diligence

Every relationship culminates in a transaction, which necessitates rigorous due diligence to support the expected returns. The company's execution track record speaks to the effectiveness of this process. They have a clear path to deliver value, which is what keeps the pipeline of potential partners flowing.

The financial results underscore the transaction-heavy nature of the business:

Furthermore, a major 2025 relationship event was the internalization of the external manager, RP Management, for approximately $1.1 billion, which is expected to generate cumulative cash savings of greater than $1.6 billion over ten years. This move itself was a strategic transaction designed to enhance governance and economic returns, showing their commitment to optimizing their own structure to better serve external partners long-term.

Royalty Pharma plc (RPRX) - Canvas Business Model: Channels

Royalty Pharma plc (RPRX) uses several distinct channels to source and execute its royalty acquisitions and funding arrangements, reflecting its position as the world's largest buyer of biopharmaceutical royalties. The firm operates at the intersection of science, medicine, and investing, utilizing a mix of direct engagement and established financial networks to source deals.

Direct outreach and negotiation with biopharma companies

This channel involves Royalty Pharma plc directly partnering with innovators to co-fund late-stage clinical trials and new product launches in exchange for future royalties. This direct funding approach is a key part of its strategy to fund innovation. For example, Royalty Pharma plc announced a groundbreaking funding agreement with Revolution Medicines in June 2025, providing up to $2 billion in long-term funding, anchored by a synthetic royalty on daraxonrasib, which is in Phase 3 development. Also in 2025, Royalty Pharma plc entered into a Phase 3 R&D funding collaboration with Biogen for its litafilimab program. More recently, in December 2025, the company announced a $275 million synthetic royalty funding agreement with Denali Therapeutics, Inc..

The types of partners engaged through this direct channel include:

• Small and mid-cap biotechnology companies
• Leading global pharmaceutical companies
• Academic institutions and research hospitals

Investment banking and advisory firm networks

While direct outreach is key, established financial networks, including investment banks, are crucial for sourcing existing royalty interests or large-scale funding opportunities. Royalty Pharma plc has a history of large transactions that often involve structured financing, which typically utilizes these intermediary networks. The announced value of transactions from 2020 through September 10, 2025, totals $19 billion. The company plans to deploy between $2 to $2.5 billion annually in capital allocation.

The following table summarizes significant capital deployment and transaction activity in 2025, which flows through these sourcing channels:

Industry conferences and scientific forums

While not explicitly detailed as a primary deal-sourcing channel in the same vein as direct negotiation, Royalty Pharma plc actively participates in industry events to maintain visibility and network. The company announced it would participate in upcoming investor conferences during December 2025. The CEO discussed updates at the 43rd Annual J.P. Morgan Healthcare Conference in January 2025. These forums are essential for maintaining relationships with potential partners and staying current on scientific developments that drive deal flow.

Investor Relations and corporate website for transparency

The corporate website and Investor Relations function serve as the primary channel for communicating with the investment community and maintaining transparency, which is vital for a firm managing complex, long-term assets. The company directs readers to its website for all SEC filings and press releases. Royalty Pharma plc held an Investor Day on September 11, 2025, to share details on its long-term outlook. The company also reported its Q3 2025 financial results via press release and a results call.

Legal and financial advisors facilitating complex deals

The execution of complex deals, such as the internalization of its external manager, relies heavily on internal and external legal and financial expertise. The internalization transaction, which closed in May 2025, was valued at approximately $1.1 billion and involved the assumption of $380 million of existing Manager debt. The deal structure included approximately 24.5 million shares of Royalty Pharma equity and approximately $100 million in cash (less management fees paid through closing). The deal team for Royalty Pharma plc includes Research & Investments, Investments & Capital Strategies, Strategy & Analytics, and Legal teams. The internalization is expected to generate cumulative cash savings of greater than $1.6 billion over ten years.

The firm's focus on rigorous diligence, led by decision-makers, is a key component of this channel, ensuring the quality of assets sourced through all avenues. The deal team structure is described as having a flat structure with no organizational silos.

Royalty Pharma plc (RPRX) - Canvas Business Model: Customer Segments

You're looking at the counterparties that provide Royalty Pharma plc with its asset base-the royalty streams and funding opportunities. Honestly, the customer segments are best viewed as the partners who sell or grant these rights, which fall into distinct categories based on company size and asset maturity.

Royalty Pharma plc is the #1 Buyer of biopharma royalties and has deployed >$25bn in capital since its founding, with >80 royalty acquisitions since founding, showing the breadth of its engagement across the ecosystem.

The primary interactions are with companies that own the underlying intellectual property, which can be categorized as follows:

• Large multinational pharmaceutical companies (Big Pharma): These partners provide access to royalties on established, blockbuster commercial products.
• Small and mid-cap biotechnology companies: These partners often seek non-dilutive capital to fund late-stage development or commercialization efforts, typically through synthetic royalty or loan arrangements.
• Academic institutions and research hospitals: While not always direct counterparties for the final transaction, their research is the origin point for many assets Royalty Pharma acquires, often via licensing deals with the developing biotech.
• Original inventors and former royalty holders: These are the entities or individuals who originally held the rights and are selling them for an upfront cash payment, such as the sale of a royalty interest from Blackstone Life Sciences.
• Non-profit organizations funding medical research: These organizations may hold rights or be involved in the early-stage funding that eventually leads to a commercial asset Royalty Pharma invests in, though direct transaction data for this segment is less explicit in public filings.

The scale of engagement with the two most visible segments-Big Pharma and Biotech-is substantial, as evidenced by the portfolio composition and recent deal flow in 2025.

Here's a look at the scale of Royalty Pharma plc's engagement with its key partners, based on late 2025 data:

The focus on synthetic royalty deals, like the $2 billion arrangement with Revolution Medicines in June 2025, shows a strong commitment to funding the smaller, innovative biotech segment. Royalty Pharma expects its full-year 2025 Portfolio Receipts to be between $3.05 billion and $3.15 billion.

For instance, Q2 2025 Portfolio Receipts grew 20% year-over-year to $727 million, driven by the performance of assets partnered with these various entities. Also, as of October 2025, Royalty Pharma is an active investor with a portfolio of 58 companies, involving 54 funding rounds and 4 acquisitions. That's a lot of partners. Finance: draft 13-week cash view by Friday.

Royalty Pharma plc (RPRX) - Canvas Business Model: Cost Structure

You're looking at the cost side of Royalty Pharma plc's business model as of late 2025, post-internalization. The structure has definitely shifted, moving away from external management fees toward more direct, integrated operational costs and debt servicing.

The most significant cost components revolve around financing the portfolio through debt and managing the day-to-day operations now that the external manager is fully integrated. Here's the quick math on the key expected expenditures for the 2025 fiscal year.

The internalization transaction, which closed in May 2025, was designed to directly tackle compensation and general administrative overhead previously paid as management fees.

• Elimination of the external management fee, previously 6.5% of Portfolio Receipts.
• Projected annual cash savings starting in 2026 are greater than $100 million.
• Projected annual cash savings by 2030 are over $175 million.
• Cumulative cash savings over ten years are anticipated to surpass $1.6 billion.

Legal and due diligence costs are embedded within the operating and professional costs structure, which is now expected to be lower than prior guidance. The cost of the internalization itself involved significant upfront components that are not recurring operational expenses but represent a cost of structuring the business for the future.

The cost to acquire the external manager, RP Management, LLC, was approximately $1.1 billion in total value, structured as:

• Approximately 24.5 million shares of Royalty Pharma equity vesting over 5 to 9 years.
• Approximately $100 million in cash (net of management fees paid from January 1, 2025, through closing).
• Assumption of $380 million of existing Manager debt.

For the ongoing operational structure, the guidance for operating and professional costs is tight, expected to be between 9% and 9.5% of Portfolio Receipts for the full year 2025. This is an improvement from the prior 10% guidance, showing the immediate benefit of the integrated structure, defintely. Finance: draft 13-week cash view by Friday.

Royalty Pharma plc (RPRX) - Canvas Business Model: Revenue Streams

You're looking at the core cash generation engine for Royalty Pharma plc as of late 2025. The entire business model hinges on the predictable, high-margin cash flow derived from its diversified portfolio of pharmaceutical royalties. This isn't about selling a product; it's about owning the right to a percentage of someone else's successful sales.

The primary revenue component is Royalty Receipts from sales of commercial products. These are the recurring, variable payments based on the net sales of underlying drugs. Key drivers for this stream continue to be major products like the cystic fibrosis franchise, Trelegy, Evrysdi, and Tremfya, alongside the performance of newer assets like Voranigo. Royalty Receipts for the third quarter of 2025 specifically reached $811 million, marking an 11% increase compared to the third quarter of 2024.

Royalty Pharma plc has demonstrated strong momentum, leading to multiple upward revisions of its financial outlook. The latest full-year 2025 guidance for Portfolio Receipts-which is the sum of Royalty Receipts and Milestones-was raised to $3.2 billion to $3.25 billion. This updated guidance represents an expected year-over-year growth rate of approximately 14% to 16%.

Beyond the recurring sales-based royalties, the company captures value through contractual triggers:

• Milestone and other contractual receipts are now expected to be around $125 million for 2025, an increase from the previous expectation of $110 million.
• These receipts include sales-based or regulatory milestone payments and other fixed contractual receipts.
• For context, in the second quarter of 2025, the company received a one-time payment of approximately $50 million in milestones and other contractual receipts.

The table below summarizes the key forward-looking guidance figures for the full fiscal year 2025, based on the latest reports from late 2025:

The revenue model also incorporates less predictable, but potentially significant, streams related to its capital allocation strategy. Income from financial royalty assets is a component that reflects changes in the expected cash flows from these assets. For example, in the second quarter of 2025, this income was reported at $550.4 million, showing a 7.3% rise from the prior year period. What this estimate hides, though, is the impact of any large, non-recurring asset sales or significant write-downs, like the negative provision seen in Q2 2025.

Finally, Royalty Pharma plc is increasingly using its capital to fund development, which generates synthetic royalty payments from funded development programs. A prime example is the groundbreaking collaboration with Revolution Medicines, involving up to $2 billion of funding anchored by a synthetic royalty on daraxonrasib. While specific 2025 revenue from this stream isn't itemized in the latest guidance, the structure suggests future, high-potential revenue. The development-stage pipeline has expanded to 17 therapies, which represents the future inventory for this revenue stream.

Finance: draft 13-week cash view by Friday.