Royalty Pharma (RPRXN) Q3 2026 Earnings Report

The call was strongly positive. Royalty Receipts and Portfolio Receipts grew 9% in the quarter, year-to-date Royalty Receipts grew 12%, returns remained attractive, guidance was raised for the third consecutive quarter, and the company reported substantial clinical, regulatory, pipeline, capital allocation, and business-development momentum. The principal negatives were the pelacarsen Phase III failure and $150 million noncash impairment, product declines in Promacta and Imbruvica, and lower expected milestone receipts, but management emphasized protective deal structures and continued portfolio growth.

Royalty Pharma now expects 2026 Portfolio Receipts to be in the range of $3.5 billion to $3.55 billion, up from $3.4 billion to $3.5 billion previously, with growth in Royalty Receipts of around 10% to 11% compared with 7% to 10% previously; milestones and other contractual receipts are expected to decrease from $128 million in 2025 to approximately $65 million in 2026, operating and professional costs are expected to be in the range of 5.5% to 6% of portfolio receipts, and interest paid is expected to be around $350 million to $360 million, with interest paid anticipated to be a de minimis amount in Q4. The company expects to deploy around $2.5 billion per year over the long-term, deliver strong low volatility top and bottom line growth through 2030 and beyond, and generate an IRR and return on invested capital in the mid-teens and return on invested equity in the 20%-plus range; its development stage pipeline has the potential to add peak royalties of more than $1.7 billion, while Mimrylo has peak annual sales of between $1 billion and $2 billion and an expected unlevered IRR in the low double-digit percentage range, and Zoryve is expected to grow by more than 40% in 2026 to over $0.5 billion, with Arcutis’ peak sales estimate of $2.3 billion to $3 billion.