Does Amgen’s Imdelltra Royalty Acquisition Reshape the Long-Term Thesis for Royalty Pharma (RPRX)?

• Royalty Pharma recently acquired a royalty interest in Amgen’s Imdelltra from BeOne Medicines for US$885 million upfront, with the opportunity to expand the stake further for up to US$65 million within the next year.
• This agreement gives Royalty Pharma exposure to a first-in-class oncology therapy that was FDA-approved in 2024 and is projected to achieve multi-billion dollar annual sales over time.
• We’ll explore how this acquisition of a major oncology royalty stream could influence Royalty Pharma’s long-term investment outlook.

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Royalty Pharma Investment Narrative Recap

To be a Royalty Pharma shareholder, you need to believe in the company's ability to acquire and scale high-value royalty streams in breakthrough therapies, particularly in oncology and rare diseases. The Imdelltra royalty purchase fits this model, providing exposure to a promising first-in-class cancer treatment, but does not materially change the key short-term catalyst: resolving the ongoing royalty dispute with Vertex over Alyftrek, which remains one of the largest near-term uncertainties for revenue and earnings.

Of recent disclosures, the $2 billion funding deal announced in June 2025 with Revolution Medicines is especially relevant. This initiative further highlights Royalty Pharma’s commitment to acquiring high-potential oncology assets and expanding its portfolio of blockbuster therapies, reinforcing the company's long-term catalysts tied to innovative drug pipelines and capital deployment.

Yet, while new deals support future growth, investors should be aware that unresolved disputes, like the one with Vertex, could...

Read the full narrative on Royalty Pharma (it's free!)

Royalty Pharma is forecast to reach $4.0 billion in revenue and $1.3 billion in earnings by 2028. Achieving this will require 20.0% annual revenue growth and a $0.3 billion increase in earnings from the current $1.0 billion.

Uncover how Royalty Pharma's forecasts yield a $43.27 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community stretch from US$28 to over US$181 per share, showing starkly different outlooks. With key risks such as competition for new royalty deals on the rise, it’s worth exploring several viewpoints on the company’s earnings runway.

Explore 5 other fair value estimates on Royalty Pharma - why the stock might be worth over 5x more than the current price!

Build Your Own Royalty Pharma Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Royalty Pharma research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Royalty Pharma research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Royalty Pharma's overall financial health at a glance.

No Opportunity In Royalty Pharma?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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