Royalty Pharma Set for Upcoming Dividend Payment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Should l Buy RPRX?
Source: NASDAQ.COM
- Dividend Payment Overview: Royalty Pharma plc is set to go ex-dividend on February 20, 2026, with a dividend of $0.235 per share, which is expected to attract investor attention and potentially drive the stock price higher.
- Historical Performance Analysis: In the last four dividend payments, RPRX's stock price increased by $5.01 in the two weeks leading up to the ex-dividend date, indicating the potential effects of a Dividend Run and reflecting investor confidence in the stock.
- Investment Strategy Discussion: Investors have varying views on the timeframe for capturing Dividend Run effects, with some opting to buy and hold for two weeks before the ex-dividend date, while others prefer to sell the day before to maximize capital gains.
- Yield Expectations: With an implied annualized yield of 2.15%, RPRX stands out as an attractive option for dividend-focused investors, especially in the current market environment where stable dividend payments may draw more capital inflows.
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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 46.50 USD with a low forecast of 45.00 USD and a high forecast of 48.00 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.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 43.680
Low
45.00
Averages
46.50
High
48.00
Current: 43.680
Low
45.00
Averages
46.50
High
48.00
About RPRX
Royalty Pharma plc is a buyer of biopharmaceutical royalties and a funder of innovation across the biopharmaceutical industry. It collaborates with innovators from academic institutions, research hospitals and non-profits from 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 and Alyftrek, Johnson & Johnson’s Tremfya, GSK’s Trelegy, Roche’s Evrysdi, Servier’s Voranigo, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, and Gilead’s Trodelvy, among others, and 20 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.
Royalty Pharma Set for Upcoming Dividend Payment
- Dividend Payment Overview: Royalty Pharma plc is set to go ex-dividend on February 20, 2026, with a dividend of $0.235 per share, which is expected to attract investor attention and potentially drive the stock price higher.
- Historical Performance Analysis: In the last four dividend payments, RPRX's stock price increased by $5.01 in the two weeks leading up to the ex-dividend date, indicating the potential effects of a Dividend Run and reflecting investor confidence in the stock.
- Investment Strategy Discussion: Investors have varying views on the timeframe for capturing Dividend Run effects, with some opting to buy and hold for two weeks before the ex-dividend date, while others prefer to sell the day before to maximize capital gains.
- Yield Expectations: With an implied annualized yield of 2.15%, RPRX stands out as an attractive option for dividend-focused investors, especially in the current market environment where stable dividend payments may draw more capital inflows.
See More
Wall Street's Latest Rating Changes Overview
- GE Vernova Upgrade: Guggenheim upgraded GE Vernova from Neutral to Buy with a price target of $910, indicating that the market may be underestimating its cash generation potential and capital returns, suggesting further margin improvements in its electrification segment.
- Apple Remains Bullish: Bank of America reiterated its Buy rating on Apple, forecasting that iPhone upgrades will exceed expectations by 2026, while gross margins continue to rise despite commodity pressures, showcasing the company's robust performance across multiple sectors.
- Western Digital Price Target Raised: Morgan Stanley increased Western Digital's price target from $260 to $306, emphasizing the market's underappreciation of its sustainable pricing tailwinds and margin flow-through, reflecting a strong demand outlook.
- Spotify Rating Upgrade: Citi upgraded Spotify from Neutral to Buy, citing attractive valuation and beatable consensus estimates, with several positive catalysts expected to drive stock price increases.
See More
Teva and Royalty Pharma Strike $500 Million Funding Agreement
- Funding Agreement: Teva and Royalty Pharma have established a funding agreement of up to $500 million to accelerate the clinical development of TEV-‘408, which is expected to significantly advance treatment options for immune-mediated diseases.
- Clinical Trial Progress: Preliminary data from the ongoing Phase 1b study of TEV-‘408 in vitiligo supports IL-15 as a potential therapeutic target, with results expected to be shared in 2026, potentially offering new therapies for various autoimmune conditions.
- Future Outlook: Teva anticipates flat to slightly declining sales in 2026 compared to 2025, but expects low-single digit growth in 2027 and mid-single digit CAGR by 2030, indicating long-term growth potential.
- Credit Rating Upgrade: In December 2025, S&P upgraded Teva's long-term issuer credit rating from BB to BB+ with a stable outlook, while Moody's affirmed its Ba1 rating and revised the outlook to positive, reflecting market confidence in Teva's future development.
See More
Teva Pharmaceuticals Secures $500M Deal with Royalty Pharma for TEV-408 Development
- Funding Agreement: Teva has entered into a funding agreement with Royalty Pharma for up to $500 million, including an initial $75 million to support a Phase 2b study in vitiligo, aiming to accelerate the development of TEV-408 to address significant unmet medical needs.
- Clinical Progress: TEV-408 is currently in Phase 1b for vitiligo and Phase 2a for celiac disease, having received Fast Track designation from the FDA, indicating its potential to provide new treatment options for autoimmune diseases and possibly generate new revenue streams for Teva.
- Market Expectations: Teva anticipates revenues in the lower end of the $16.8–$17.0 billion range for 2025, with flat to slightly lower revenues in 2026 and low-single-digit growth in 2027, reflecting a strategic focus on stable growth in the coming years.
- Market Reaction: Despite a more than 6% pre-market gain in TEVA stock, retail sentiment on Stocktwits turned ‘bearish’, indicating cautious investor sentiment regarding the company's long-term growth potential amidst mixed market reactions.
See More
Royalty Pharma (RPRX) Secures $500M Funding Agreement with Teva for TEV-'408 Development
- Funding Agreement: Royalty Pharma has established a funding agreement of up to $500 million with Teva to support the clinical development of TEV-'408 for vitiligo, including $75 million in R&D co-funding for a Phase 2b study expected to commence in 2026.
- Clinical Trial Progress: TEV-'408 is currently undergoing a Phase 1b trial for vitiligo and a Phase 2a trial for celiac disease, with results anticipated this year, which could significantly impact future market potential and investor interest.
- Subsequent Investment Opportunity: Should the Phase 2b results for vitiligo be positive, Royalty Pharma has the option to invest an additional $425 million to co-fund the Phase 3 development program, thereby enhancing Teva's competitive position in the market.
- Market Context: Vitiligo is a chronic autoimmune skin disease with limited treatment options, where Incyte's Opzelura is currently the only approved topical therapy, presenting a substantial market opportunity for the successful development of TEV-'408.
See More
Teva (TEVA) and Royalty Pharma (RPRX) Announce $500M Funding Agreement for TEV-'408 Development
- Funding Collaboration: Teva Pharmaceutical and Royalty Pharma have signed a funding agreement worth up to $500 million to accelerate the development of TEV-'408, an anti-IL-15 antibody targeting vitiligo.
- Trial Phase Initiation: Royalty Pharma will initially provide $75 million to co-fund a Phase 2b vitiligo clinical trial planned for 2026, with an option for an additional $425 million if results support further advancement.
- Milestone Payment Structure: Upon approval and launch of TEV-'408, Teva will pay Royalty Pharma a milestone payment along with royalties based on global net sales, enhancing the financial collaboration between the two companies.
- Strategic Partnership Continuation: This agreement marks the second collaboration between Teva and Royalty Pharma, emphasizing funding for high-need autoimmune therapies and reflecting a long-term strategic alignment in the biopharmaceutical sector.
See More
Royalty Pharma Set for Upcoming Dividend Payment
- Dividend Payment Overview: Royalty Pharma plc is set to go ex-dividend on February 20, 2026, with a dividend of $0.235 per share, which is expected to attract investor attention and potentially drive the stock price higher.
- Historical Performance Analysis: In the last four dividend payments, RPRX's stock price increased by $5.01 in the two weeks leading up to the ex-dividend date, indicating the potential effects of a Dividend Run and reflecting investor confidence in the stock.
- Investment Strategy Discussion: Investors have varying views on the timeframe for capturing Dividend Run effects, with some opting to buy and hold for two weeks before the ex-dividend date, while others prefer to sell the day before to maximize capital gains.
- Yield Expectations: With an implied annualized yield of 2.15%, RPRX stands out as an attractive option for dividend-focused investors, especially in the current market environment where stable dividend payments may draw more capital inflows.
See More
Wall Street's Latest Rating Changes Overview
- GE Vernova Upgrade: Guggenheim upgraded GE Vernova from Neutral to Buy with a price target of $910, indicating that the market may be underestimating its cash generation potential and capital returns, suggesting further margin improvements in its electrification segment.
- Apple Remains Bullish: Bank of America reiterated its Buy rating on Apple, forecasting that iPhone upgrades will exceed expectations by 2026, while gross margins continue to rise despite commodity pressures, showcasing the company's robust performance across multiple sectors.
- Western Digital Price Target Raised: Morgan Stanley increased Western Digital's price target from $260 to $306, emphasizing the market's underappreciation of its sustainable pricing tailwinds and margin flow-through, reflecting a strong demand outlook.
- Spotify Rating Upgrade: Citi upgraded Spotify from Neutral to Buy, citing attractive valuation and beatable consensus estimates, with several positive catalysts expected to drive stock price increases.
See More
Teva and Royalty Pharma Strike $500 Million Funding Agreement
- Funding Agreement: Teva and Royalty Pharma have established a funding agreement of up to $500 million to accelerate the clinical development of TEV-‘408, which is expected to significantly advance treatment options for immune-mediated diseases.
- Clinical Trial Progress: Preliminary data from the ongoing Phase 1b study of TEV-‘408 in vitiligo supports IL-15 as a potential therapeutic target, with results expected to be shared in 2026, potentially offering new therapies for various autoimmune conditions.
- Future Outlook: Teva anticipates flat to slightly declining sales in 2026 compared to 2025, but expects low-single digit growth in 2027 and mid-single digit CAGR by 2030, indicating long-term growth potential.
- Credit Rating Upgrade: In December 2025, S&P upgraded Teva's long-term issuer credit rating from BB to BB+ with a stable outlook, while Moody's affirmed its Ba1 rating and revised the outlook to positive, reflecting market confidence in Teva's future development.
See More
Teva Pharmaceuticals Secures $500M Deal with Royalty Pharma for TEV-408 Development
- Funding Agreement: Teva has entered into a funding agreement with Royalty Pharma for up to $500 million, including an initial $75 million to support a Phase 2b study in vitiligo, aiming to accelerate the development of TEV-408 to address significant unmet medical needs.
- Clinical Progress: TEV-408 is currently in Phase 1b for vitiligo and Phase 2a for celiac disease, having received Fast Track designation from the FDA, indicating its potential to provide new treatment options for autoimmune diseases and possibly generate new revenue streams for Teva.
- Market Expectations: Teva anticipates revenues in the lower end of the $16.8–$17.0 billion range for 2025, with flat to slightly lower revenues in 2026 and low-single-digit growth in 2027, reflecting a strategic focus on stable growth in the coming years.
- Market Reaction: Despite a more than 6% pre-market gain in TEVA stock, retail sentiment on Stocktwits turned ‘bearish’, indicating cautious investor sentiment regarding the company's long-term growth potential amidst mixed market reactions.
See More
Royalty Pharma (RPRX) Secures $500M Funding Agreement with Teva for TEV-'408 Development
- Funding Agreement: Royalty Pharma has established a funding agreement of up to $500 million with Teva to support the clinical development of TEV-'408 for vitiligo, including $75 million in R&D co-funding for a Phase 2b study expected to commence in 2026.
- Clinical Trial Progress: TEV-'408 is currently undergoing a Phase 1b trial for vitiligo and a Phase 2a trial for celiac disease, with results anticipated this year, which could significantly impact future market potential and investor interest.
- Subsequent Investment Opportunity: Should the Phase 2b results for vitiligo be positive, Royalty Pharma has the option to invest an additional $425 million to co-fund the Phase 3 development program, thereby enhancing Teva's competitive position in the market.
- Market Context: Vitiligo is a chronic autoimmune skin disease with limited treatment options, where Incyte's Opzelura is currently the only approved topical therapy, presenting a substantial market opportunity for the successful development of TEV-'408.
See More
Teva (TEVA) and Royalty Pharma (RPRX) Announce $500M Funding Agreement for TEV-'408 Development
- Funding Collaboration: Teva Pharmaceutical and Royalty Pharma have signed a funding agreement worth up to $500 million to accelerate the development of TEV-'408, an anti-IL-15 antibody targeting vitiligo.
- Trial Phase Initiation: Royalty Pharma will initially provide $75 million to co-fund a Phase 2b vitiligo clinical trial planned for 2026, with an option for an additional $425 million if results support further advancement.
- Milestone Payment Structure: Upon approval and launch of TEV-'408, Teva will pay Royalty Pharma a milestone payment along with royalties based on global net sales, enhancing the financial collaboration between the two companies.
- Strategic Partnership Continuation: This agreement marks the second collaboration between Teva and Royalty Pharma, emphasizing funding for high-need autoimmune therapies and reflecting a long-term strategic alignment in the biopharmaceutical sector.
See More
