The IPOX® Watch: Royalty Pharma
Company Description
Founded in 1996, Royalty Pharma is a biopharmaceutical royalties buyer, headquartered in New York, NY. The company collaborates with academic institutions, research hospitals, non-for-profits, small and mid-cap biotechnology companies, and leading global pharmaceutical companies to fund innovation and acquire biopharmaceutical royalties. Royalty Pharma currently has 45 approved and development-stage products.
Business Model
Royalty Pharma generates revenue from financial and intangible royalty assets, and royalty income arising from successful commercialization of products developed through joint research and development funding arrangements.
IPO History
On 06/16/2020, Royalty Pharma began trading on the Nasdaq Global Select Market led by J.P. Morgan. The biopharmaceutical royalties acquirer offered 77,681,670 shares (including 17,681,670 from selling shareholders), upsized from the originally planned 70 million shares, at $28.00 per share, top of its expected price range ($25 - $28). Royalty Pharma was valued at ca. $10.14 billion at offer with the 15% over-allotment option fully exercised. The shares opened at $44.00 and closed the first day higher at $44.50 (+58.93%).
Royalty Pharma was included in the IPOX® 100 U.S. Index (ETF: FPX US, FPX LN) on 06/20/2022, and currently weighs ca. 0.59% of the portfolio.
Historical Performance
*includes re-invested dividends
