Royalty Pharma: Busy Putting Capital To Work
Summary
- Royalty Pharma's stock has underperformed recently, down 7% year to date while the S&P500 has climbed 13%.
- In the company's latest Q2'24 results, Royalty Pharma reported a 12% increase in portfolio receipts, driven by sales growth from its cystic fibrosis franchise and other drugs.
- The company has also been active in acquiring new royalties and investing in various therapeutic areas and is on track to exceed deployment targets.
- Royalty Pharma is actively repurchasing shares and believes its intrinsic value exceeds the current stock price.
- At 6.8x this year's earnings, I think the valuation is attractive given the company’s expected earnings growth.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of RPRX 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.
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