Update shared on04 Sep 2025
Analysts maintain a positive outlook for Royalty Pharma, citing resilience amid sector underperformance, limited exposure to policy and macroeconomic risks, and anticipated seasonal strength, with the consensus price target unchanged at $43.27.
Analyst Commentary
- Bullish analysts expect Q2 to be seasonally strong for large biopharma companies, supporting near-term performance.
- Raised price targets reflect ongoing resilience in Royalty Pharma's business despite sector-wide underperformance year-to-date.
- Positive outlook maintained even with continued macroeconomic and policy uncertainties, including drug pricing pressures.
- Expectations that Royalty Pharma is less exposed to tariff and transfer pricing risks relative to peers.
- Anticipation that potential changes in FDA staffing will have minimal near-term impact on Royalty Pharma's core business model.
What's in the News
- Acquired a royalty interest in Amgen's Imdelltra from BeOne Medicines for $885 million upfront, with an option to acquire additional royalties for up to $65 million; royalty expected to extend through 2038-2041.
- Imdelltra received accelerated FDA approval for extensive-stage small cell lung cancer and is expected to generate over $2.8 billion in annual sales by 2035.
- Repurchased 8,499,000 shares for $276.9 million, completing a total repurchase of 31,154,000 shares (7.08% of shares outstanding) for $1 billion under the current buyback program.
- Dropped from the Russell 1000 Value-Defensive and Russell 1000 Defensive Indexes.
Valuation Changes
Summary of Valuation Changes for Royalty Pharma
- The Consensus Analyst Price Target remained effectively unchanged, at $43.27.
- The Future P/E for Royalty Pharma has significantly fallen from 22.17x to 16.43x.
- The Consensus Revenue Growth forecasts for Royalty Pharma remained effectively unchanged, at 20.0% per annum.
Disclaimer
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