Royalty Pharma's Acquisition of Imdelltra Royalties
Transaction Details: Royalty Pharma has acquired a royalty interest in Amgen’s Imdelltra for $885 million upfront, with an option for an additional $65 million in royalties over the next year.
Market Potential: Imdelltra, a new therapy for small cell lung cancer, is projected to generate over $2.8 billion in annual sales by 2035.
Strategic Alignment and Portfolio Expansion
Investment Focus: The acquisition aligns with Royalty Pharma’s strategy of investing in high-value, long-duration assets, particularly in oncology.
Ongoing Risks: Despite the portfolio expansion, the company faces uncertainties from a royalty dispute over Alyftrek, which may affect short-term revenue and earnings.
Leadership Changes and Future Outlook
Board Appointments: The recent appointments of Carole Ho and Elizabeth Weatherman are significant, bringing expertise in therapeutics and healthcare investing to navigate complex risks.
Financial Projections: Royalty Pharma projects $4.0 billion in revenue and $1.3 billion in earnings by 2028, requiring a 20% annual revenue growth and an increase in earnings from $1.0 billion.
Valuation and Market Sentiment
Fair Value Estimates: The company’s fair value is estimated at $43.27, indicating a 20% upside from its current price. Estimates from the Simply Wall St Community range from $28 to $181.
Investment Considerations: Investors are encouraged to weigh the potential for new royalties against ongoing legal uncertainties that could impact future performance.
Additional Investment Insights
Research Resources: A comprehensive analysis of Royalty Pharma is available, highlighting key rewards and risks that could influence investment decisions.
Market Trends: The article also discusses emerging sectors, including rare earth metals and quantum computing, providing insights into potential investment opportunities.
RPRX
$38.38+Infinity%1D
Analyst Views on RPRX
Wall Street analysts forecast RPRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RPRX is 43.80 USD with a low forecast of 38.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast RPRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RPRX is 43.80 USD with a low forecast of 38.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 38.530
Low
38.00
Averages
43.80
High
54.00
Current: 38.530
Low
38.00
Averages
43.80
High
54.00
TD Cowen
Marc Frahm
Buy
maintain
$42 -> $45
2025-12-11
Reason
TD Cowen
Marc Frahm
Price Target
$42 -> $45
2025-12-11
maintain
Buy
Reason
TD Cowen analyst Marc Frahm raised the firm's price target on Royalty Pharma to $45 from $42 and keeps a Buy rating on the shares. The firm raised its target as the company benefits from biopharma tailwinds but with fewer risks. It is the leader in biopharma royalty acquisitions with a track record that bolsters confidence in sustainable growth on the back of industry innovation and persistent funding needs.
TD Cowen
TD Cowen
Buy
to
Hold
downgrade
2025-11-17
Reason
TD Cowen
TD Cowen
Price Target
2025-11-17
downgrade
Buy
to
Hold
Reason
TD Cowen downgraded Royalty Pharma to Hold from Buy without a price target after the company agreed to be acquired by XenoTherapeutics for an estimated $1.82 per share. TD sees little risk to the deal closing.
Goldman Sachs
NULL
to
Buy
initiated
$42
2025-09-30
Reason
Goldman Sachs
Price Target
$42
2025-09-30
initiated
NULL
to
Buy
Reason
Goldman Sachs initiated coverage of Royalty Pharma with a Buy rating and $42 price target, which represents 20% upside. The company offers investors a way to gain exposure to a portfolio of biopharma royalty streams without incurring biotech's "volatility and binary risks," the analyst tells investors in a research note. The firm believes Royalty is in the early stages of a portfolio expansion that is underappreciated in the context of a large, growing total addressable market for royalty funding.
Citi
Buy
maintain
$40 -> $42
2025-07-22
Reason
Citi
Price Target
$40 -> $42
2025-07-22
maintain
Buy
Reason
Citi raised the firm's price target on Royalty Pharma to $42 from $40 and keeps a Buy rating on the shares as part of a Q2 earnings preview for the biotechnology group. The firm says Q2 is typically seasonally strong for the large biopharma names.
About RPRX
Royalty Pharma plc is a buyer of biopharmaceutical royalties and a funder of innovation across the biopharmaceutical industry. The Company collaborates with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to global pharmaceutical companies. It 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. Indirectly when it acquires existing royalties from the original innovators. Its 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, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 17 development-stage product candidates.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
