Royalty Pharma plc is a leading biopharmaceutical investment company that specializes in acquiring and managing royalty interests in pharmaceutical and biotechnology products. The company was founded in 1996 by Pablo Legorreta, an investment banker, and is headquartered in New York City, USA. Royalty Pharma's primary focus is to invest in high-quality, revenue-generating intellectual property assets in the biopharmaceutical industry.
The core business model of Royalty Pharma revolves around acquiring royalty interests in approved and marketed pharmaceutical products. When a pharmaceutical company develops and commercializes a drug, it may sell a portion of its future royalties to Royalty Pharma in exchange for an upfront payment. Royalty Pharma then collects ongoing royalty payments from the drug's sales, providing the pharmaceutical company with immediate funding to support further research and development initiatives.
The company's portfolio includes royalties from a wide range of therapeutic areas, including oncology, neurology, rare diseases, and more. Some of the well-known drugs in its portfolio include Humira, Imbruvica, and Tysabri, among others.
Royalty Pharma's unique business model allows it to generate a stable and predictable cash flow from royalties, making it an attractive investment option for investors seeking exposure to the pharmaceutical industry.