Royalty Pharma provides business update, outlook

Royalty Pharma provided an update on its business performance, including recent key accomplishments and the full year 2022 outlook for Net cash provided by operating activities and Adjusted Cash Receipts. "Royalty Pharma delivered outstanding performance in 2022," said Pablo Legorreta, Royalty Pharma’s founder and Chief Executive Officer. "We deployed substantial capital and added royalties on six new therapies, ranging from an approved, growing blockbuster to exciting development-stage therapies in areas of high unmet patient need. Further, we hosted our inaugural Investor Day, highlighting our talented team, the unique strength of our business model, and our strategy to drive long-term, compounding growth. Lastly, we expect to achieve the upper end of our 2022 financial guidance, putting us in a strong position to accelerate innovation in life sciences and transform patient lives globally." Strong 2022 Financial Performance. Based on preliminary unaudited fourth quarter 2022 results, Royalty Pharma expects Net cash provided by operating activities to be approximately $2.140B to $2.150B for full year 2022. Additionally, Royalty Pharma now expects to deliver Adjusted Cash Receipts for full year 2022 of approximately $2.785B to $2.790B, which is towards the upper end of its guidance range of $2.750B to $2.800B and represents growth of 31% year-over-year. This strong double-digit growth in Adjusted Cash Receipts reflects the strong performance of Royalty Pharma’s diversified royalty portfolio as well as the acceleration of payments related to Pfizer’s acquisition of Biohaven. Importantly, the growth in Adjusted Cash Receipts was achieved despite a significant decline in two of Royalty Pharma’s largest royalties in previous years, the HIV and DPP-IV franchises, highlighting the resilience of the business model with a unique ability to grow through royalty expirations.