Latest news with #RoyaltyPharma
Yahoo
6 days ago
- Business
- Yahoo
Morgan Stanley Maintains a Buy Rating on Royalty Pharma Plc (RPRX) With a $55 PT
Royalty Pharma Plc (NASDAQ:RPRX) is one of the top most undervalued biotech stocks to buy now. In a report released on August 7, Terence Flynn from Morgan Stanley maintained a Buy rating on Royalty Pharma Plc (NASDAQ:RPRX), setting a price target of $55.00. A scientist in a laboratory looking through a microscope, surrounded by petri dishes and beakers while researching new biopharmaceutical advances. The rating update came after Royalty Pharma Plc (NASDAQ:RPRX) reported its fiscal Q2 2025 results on August 6, with portfolio receipts for the quarter growing 20% to $727 million. Royalty receipts underwent an 11% growth, while net cash provided by operating activities reached $364 million. Royalty Pharma Plc (NASDAQ:RPRX) also raised its full-year 2025 guidance, and now expects portfolio receipts in the $3.05 billion to $3.15 billion range. Royalty Pharma Plc (NASDAQ:RPRX) is a funder of innovation in the biopharmaceutical industry and a buyer of biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies. The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators. Royalty Pharma Plc's (NASDAQ:RPRX) portfolio includes royalties in over 35 commercial products, including Johnson & Johnson's Tremfya, AbbVie and Johnson & Johnson's Imbruvica, Novartis' Promacta, Pfizer's Xtandi, Pfizer's Nurtec ODT, and others. While we acknowledge the potential of RPRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
Revolution Medicines Reports Second Quarter 2025 Financial Results and Update on Corporate Progress
Strong execution of two ongoing Phase 3 trials of daraxonrasib; for RASolute 302, company is winding down enrollment in U.S. and expects to complete enrollment of the trial this year FDA Breakthrough Therapy Designations granted for two RAS(ON) inhibitors, daraxonrasib and elironrasib Company entered into $2 billion flexible funding agreement with Royalty Pharma to support bold vision for global development and commercialization Revolution Medicines to hold webcast today at 4:30 p.m. Eastern Time REDWOOD CITY, Calif., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a late-stage clinical oncology company developing targeted therapies for patients with RAS-addicted cancers, today announced its financial results for the quarter ended June 30, 2025, and provided an update on corporate progress. The company continues to make meaningful progress on its near-term strategic priorities: Execute pivotal trials with daraxonrasib monotherapy in patients with previously treated metastatic pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC) RASolute 302, a global Phase 3 trial of daraxonrasib in patients with previously treated PDAC, continues to enroll well. The company is winding down enrollment in the U.S. while continuing to enroll patients outside the U.S. to support global registration. The company expects to complete enrollment in this trial this year to enable an expected data readout in 2026. The company recently announced that daraxonrasib received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for previously treated metastatic PDAC in patients with KRAS G12 mutations. In RASolve 301, a global Phase 3 trial of daraxonrasib in patients with previously treated NSCLC, the company continues enrolling patients in the U.S. and is now activating trial sites in Europe and Japan. Advance daraxonrasib into earlier line randomized pivotal trials in patients with PDAC and NSCLC The company remains on track to initiate a registrational trial this year with daraxonrasib as first line treatment for patients with metastatic PDAC; this is planned as a three-arm trial comparing daraxonrasib or daraxonrasib plus chemotherapy to chemotherapy. Later this year, the company expects to share the trial design and clinical combination data that informed this planned trial. The company also remains on track to initiate a registrational trial this year with daraxonrasib as adjuvant treatment for patients with resectable PDAC and expects to share the trial design later this year. Based on new clinical data disclosed by the company last quarter indicating that daraxonrasib can be combined productively with pembrolizumab with or without platinum doublet chemotherapy as a first line treatment of patients with RAS mutant NSCLC, the company expects to initiate a Phase 3 registrational trial in this indication in 2026. Generate sufficient data to inform development priorities for the mutant-selective inhibitors elironrasib and zoldonrasib and prepare to initiate one or more pivotal trials either as monotherapy or in a drug combination The company continues to study its mutant-selective inhibitors elironrasib and zoldonrasib as monotherapy and in drug combinations. The company recently reported an updated clinical data set from patients with previously treated KRAS G12C NSCLC treated with elironrasib as monotherapy that showed a highly competitive profile, including differentiated safety and tolerability along with a compelling objective response rate and progression-free survival. The company also showed clinical evidence that elironrasib can be combined productively with pembrolizumab in first line NSCLC patients with an acceptable safety and tolerability profile. Further, the company recently announced that elironrasib received FDA Breakthrough Therapy Designation for the treatment of adult patients with KRAS G12C-mutated locally advanced or metastatic NSCLC who have received prior chemotherapy and immunotherapy but have not been previously treated with a KRAS G12C inhibitor. The company believes this designation is a recognition of the significant unmet medical need and elironrasib's potential to serve these patients. Currently there are no RAS-targeted inhibitors with full FDA approval for treating patients with KRAS G12C NSCLC. For zoldonrasib, clinical data presented in April demonstrated acceptable tolerability and encouraging initial antitumor activity in patients with previously treated KRAS G12D NSCLC, which follows encouraging data reported previously in patients with KRAS G12D PDAC. The company expects to initiate one or more pivotal combination trials in 2026 that incorporate either zoldonrasib or elironrasib. Progress earlier stage pipeline, including advancing next-generation innovations from the company's highly productive discovery organization Clinical development of RMC-5127, a RAS(ON) G12V-selective inhibitor, remains on track to reach a clinic-ready stage in 2025 to enable an expected Phase 1 initiation in 2026. The company also continues to invest in collaborations designed to enhance its discovery efforts, recently announcing a drug discovery collaboration with Iambic Therapeutics, in which Iambic will use its cutting-edge AI capabilities to generate customized models through training with Revolution Medicines' proprietary data. This collaboration aims to enhance Revolution Medicines' lead discovery and optimization processes directed against both current and new drug targets to ensure the company continues building a highly impactful and sustainable pipeline. Grow global commercialization and operational capabilities and advance launch readiness The company recently announced a partnership with Royalty Pharma, which provides $2 billion in committed capital to Revolution Medicines upon achievement of agreed-upon milestones through a flexible mix of synthetic royalty and debt instruments. This flexible funding agreement provides the company with strategic agility and ability to secure the resources needed to advance its ambitious global clinical development and commercialization plans. The company continues to grow its commercial and operational capabilities and increase activities in support of a potential launch. 'As we advance our innovative RAS(ON) inhibitors through late-stage development and prepare for potential commercialization, we are scaling the effort to meet the ever-growing opportunities afforded by our pipeline,' said Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines. 'With our maturing pipeline, organizational capabilities and recently bolstered financial wherewithal, we are on a path toward becoming a fully integrated, global oncology company with an industry-leading franchise of targeted therapies for patients with RAS-addicted cancers.' Other Corporate Updates Building on recently disclosed clinical data supporting combinations of its RAS(ON) inhibitors with pembrolizumab, a leading PD-1 antibody, the company announced that it had entered into a clinical collaboration with Summit Therapeutics in multiple solid tumor settings to evaluate the safety and efficacy of Revolution Medicines' clinical-stage RAS(ON) inhibitors in combination with Summit Therapeutics' ivonescimab, an innovative PD-1 / VEGF bispecific antibody. Financial Highlights Second Quarter Results Cash Position: Cash, cash equivalents and marketable securities were $2.1 billion as of June 30, 2025. This balance includes receipt of the first $250 million royalty monetization tranche from Royalty Pharma. R&D Expenses: Research and development expenses were $224.1 million for the quarter ended June 30, 2025, compared to $134.9 million for the quarter ended June 30, 2024. The increase in expenses was primarily due to increases in clinical trial expenses and manufacturing expenses for daraxonrasib, zoldonrasib and elironrasib, and personnel-related expenses and stock-based compensation expense related to additional headcount. G&A Expenses: General and administrative expenses were $40.6 million for the quarter ended June 30, 2025, compared to $21.7 million for the quarter ended June 30, 2024. The increase was primarily due to increases in personnel-related expenses and stock-based compensation expense associated with additional headcount, and an increase in commercial preparation activities. Net Loss: Net loss was $247.8 million for the quarter ended June 30, 2025, compared to net loss of $133.2 million for the quarter ended June 30, 2024. Financial GuidanceRevolution Medicines is projecting full year 2025 GAAP net loss guidance of between $1.03 billion and $1.09 billion, which includes estimated non-cash stock-based compensation expense of between $115 million and $130 million. WebcastRevolution Medicines will host a webcast this afternoon, August 6, 2025, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). To listen to the live webcast, or access the archived webcast, please visit: Following the live webcast, a replay will be available on the company's website for at least 14 days. About Revolution Medicines, Inc. Revolution Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with RAS-addicted cancers. The company's R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins. The company's RAS(ON) inhibitors daraxonrasib (RMC-6236), a RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), a RAS(ON) G12C-selective inhibitor; and zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor, are currently in clinical development. The company anticipates that RMC-5127, a RAS(ON) G12V-selective inhibitor, will be its next RAS(ON) inhibitor to enter clinical development. Additional development opportunities in the company's pipeline focus on RAS(ON) mutant-selective inhibitors, including RMC-0708 (Q61H) and RMC-8839 (G13C). For more information, please visit and follow us on LinkedIn. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not historical facts may be considered 'forward-looking statements,' including without limitation statements regarding the company's financial projections and guidance; the company's development opportunities, plans and timelines and its ability to build or advance its portfolio and R&D pipeline; progression of clinical studies and findings from these studies, including the tolerability, safety, and potential efficacy of the company's candidates being studied; the company's expectations regarding timing of clinical trial initiation, enrollment and data readouts or disclosures and clinical trial designs; collaborations, including the aims and expected benefits of the Company's collaboration with Iambic; sources of capital, including the availability of capital under the Royalty Pharma arrangement and whether the company achieves the milestones associated with certain payments thereunder. Forward-looking statements are typically, but not always, identified by the use of words such as 'aims,' 'anticipate,' "believe," "estimate," "expect," "plan," 'potential,' 'project,' 'up to,' "will" and other similar terminology indicating future results. Such forward-looking statements are subject to substantial risks and uncertainties that could cause the company's development programs, future results, performance, or achievements to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include without limitation risks and uncertainties inherent in the drug development process, including the company's programs' development stages, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, the company's ability to successfully establish, protect and defend its intellectual property, other matters that could affect the sufficiency of the company's capital resources to fund operations, reliance on third parties for manufacturing and development efforts, changes in the competitive landscape, and the effects on the company's business of the global events, such as international conflicts or global pandemics. For a further description of the risks and uncertainties that could cause actual results to differ from those anticipated in these forward-looking statements, as well as risks relating to the business of Revolution Medicines in general, see Revolution Medicines' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the 'SEC') on August 6, 2025, and its future periodic reports to be filed with the SEC. Except as required by law, Revolution Medicines undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances, or to reflect the occurrence of unanticipated events. Revolution Medicines Media & Investor Contact:media@ investors@ REVOLUTION MEDICINES, CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating expenses: Research and development $ 224,134 $ 134,932 $ 429,883 $ 252,953 General and administrative 40,580 21,711 75,591 44,549 Total operating expenses 264,714 156,643 505,474 297,502 Loss from operations (264,714 ) (156,643 ) (505,474 ) (297,502 ) Other income (expense), net: Interest income 22,404 21,487 47,319 45,247 Interest and other income (expense), net (899 ) 16 (909 ) (2,793 ) Change in fair value of warrant liabilities and contingent earn-out shares (4,578 ) 1,907 (2,139 ) 5,812 Total other income, net 16,927 23,410 44,271 48,266 Loss before income taxes (247,787 ) (133,233 ) (461,203 ) (249,236 ) Net loss $ (247,787 ) $ (133,233 ) $ (461,203 ) $ (249,236 ) Net loss per share attributable to common stockholders, basic and diluted $ (1.31 ) $ (0.81 ) $ (2.45 ) $ (1.51 ) Weighted-average common shares used to compute net loss per share, basic and diluted 188,583,288 165,141,936 188,365,805 164,935,542 REVOLUTION MEDICINES, CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, unaudited) June 30, 2025 December 31, 2024 Cash, cash equivalents and marketable securities $ 2,137,171 $ 2,289,299 Working capital (1) 1,991,905 2,163,718 Total assets 2,429,568 2,558,301 Total liabilities 564,199 293,097 Total stockholders' equity 1,865,369 2,265,204 (1) Working capital is defined as current assets less current in to access your portfolio
Yahoo
06-08-2025
- Business
- Yahoo
Royalty Pharma (NASDAQ:RPRX) Misses Q2 Revenue Estimates
Healthcare royalties company Royalty Pharma (NASDAQ:RPRX) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 7.8% year on year to $579 million. Its GAAP profit of $0.16 per share was in line with analysts' consensus estimates. Is now the time to buy Royalty Pharma? Find out in our full research report. Royalty Pharma (RPRX) Q2 CY2025 Highlights: Revenue: $579 million vs analyst estimates of $590 million (7.8% year-on-year growth, 1.9% miss) EPS (GAAP): $0.16 vs analyst estimates of $0.17 (in line) Adjusted EBITDA: $633 million vs analyst estimates of $606.6 million (109% margin, 4.4% beat) Free Cash Flow was $364 million, up from -$138.6 million in the same quarter last year Market Capitalization: $15.97 billion 'We delivered excellent second quarter 2025 results, as the strength of our diversified portfolio drove 20% growth in Portfolio Receipts, and raised our full year guidance,' said Pablo Legorreta, Royalty Pharma's founder and Chief Executive Officer. Company Overview Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ:RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Royalty Pharma's sales grew at a tepid 3.6% compounded annual growth rate over the last five years. This wasn't a great result compared to the rest of the healthcare sector, but there are still things to like about Royalty Pharma. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Royalty Pharma's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.2% annually. We can better understand the company's revenue dynamics by analyzing its most important segment, Portfolio Receipts. Over the last two years, Royalty Pharma's Portfolio Receipts revenue averaged 11.8% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company's performance. This quarter, Royalty Pharma's revenue grew by 7.8% year on year to $579 million, missing Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 26.4% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will catalyze better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Royalty Pharma has been a well-oiled machine over the last five years. It demonstrated elite profitability for a healthcare business, boasting an average operating margin of 54.3%. Looking at the trend in its profitability, Royalty Pharma's operating margin rose by 31.9 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company's margin has increased by 84.1 percentage points on a two-year basis. in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Royalty Pharma, its EPS declined by 17.3% annually over the last five years while its revenue grew by 3.6%. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings. Diving into the nuances of Royalty Pharma's earnings can give us a better understanding of its performance. A five-year view shows Royalty Pharma has diluted its shareholders, growing its share count by 58.8%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Royalty Pharma reported EPS at $0.16, in line with the same quarter last year. This print missed analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from Royalty Pharma's Q2 Results We struggled to find many positives in these results. Its EPS missed and its revenue fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 1.7% to $37.25 immediately after reporting. Royalty Pharma underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
20-07-2025
- Business
- Yahoo
Morgan Stanley Raises Royalty Pharma (RPRX) Price Target, Maintains Overweight Rating
Royalty Pharma plc (NASDAQ:RPRX) is one of the high-margin pharma stocks to buy now. Royalty Pharma plc (NASDAQ:RPRX) received a vote of confidence from Morgan Stanley this week as analyst Terence Flynn raised the firm's price target to $54 from $51 while maintaining an Overweight rating. The adjustment reflects a favorable outlook on the company's cash flow durability and its ability to weather broader industry headwinds. A scientist in a laboratory looking through a microscope, surrounded by petri dishes and beakers while researching new biopharmaceutical advances. Flynn noted in a client note that large-cap pharmaceutical and biotech names have struggled to gain traction this year, weighed down by macroeconomic pressures and lingering regulatory uncertainty. Challenges such as evolving drug pricing frameworks, international tariff exposure, and ongoing personnel shifts within the FDA have all contributed to investor caution across the healthcare space. Despite this backdrop, Royalty Pharma continues to distinguish itself through its unique business model, which centers on acquiring royalty streams tied to established and emerging therapies. The company's portfolio, anchored by revenue from blockbuster drugs such as Tysabri, Imbruvica, and Trelegy, has offered a more stable earnings profile than many of its industry peers. Flynn's upward revision suggests Royalty Pharma remains well-positioned in a sector facing ongoing volatility, with defensive qualities that appeal to investors seeking income and resilience in a complex policy and economic environment. While we acknowledge the potential of RPRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Best Industrial Automation Stocks to Buy for the Next Decade Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
18-07-2025
- Business
- Globe and Mail
Royalty Pharma Declares Third Quarter 2025 Dividend
NEW YORK, July 18, 2025 (GLOBE NEWSWIRE) -- The board of directors of Royalty Pharma plc (Nasdaq: RPRX) has approved the payment of a dividend for the third quarter of 2025 of $0.22 per Class A ordinary share. The dividend will be paid on September 10, 2025, to shareholders of record at the close of business on August 15, 2025. About Royalty Pharma Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry's leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma's current portfolio includes royalties on more than 35 commercial products, including Vertex's Trikafta, GSK's Trelegy, Roche's Evrysdi, Johnson & Johnson's Tremfya, Biogen's Tysabri and Spinraza, AbbVie and Johnson & Johnson's Imbruvica, Astellas and Pfizer's Xtandi, Novartis' Promacta, Pfizer's Nurtec ODT and Gilead's Trodelvy, and 16 development-stage product candidates. For more information, visit
