Royalty Pharma Offers A Unique Long-Term Investment Opportunity

Mar. 01, 2022 9:58 AM ETRoyalty Pharma plc (RPRX) StockRPRX16 Comments

Summary

  • Royalty Pharma is one of a handful of healthcare companies that I was interested in since they announced their IPO. The company is profitable and offers a dividend.
  • Unlike other biopharma IPOs, Royalty's business is to buy biopharmaceutical royalties rather than take the money to develop a technology or push a drug through the FDA.
  • Royalty is achieving success by simply buying the rights to royalties and recuperating the costs in the coming years.
  • I was a bit skeptical at first, but the company has been in business with this model since 1999. I have confidence the company will continue to grow in the coming years with its current portfolio of royalties.
  • I discuss the company’s valuation and risks. In addition, I reveal my investment strategy for RPRX as we move deeper into 2022.
  • Looking for a portfolio of ideas like this one? Members of Compounding Healthcare get exclusive access to our model portfolio. Learn More »

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Royalty Pharma (NASDAQ:RPRX) is one of a handful of healthcare companies that I was interested in since they announced their IPO. Typically, I steer clear of biotech and pharma IPOs because they are often looking to tap

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This article was written by

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Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RPRX, JNJ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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