Royalty Pharma Raises $2.2 Billion in Initial Public Offering

The buyer of biopharmaceutical royalties records the biggest IPO of the year to date.
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Royalty Pharma  (RPRX)  priced its initial public offering Monday at $28 a share, the top end of its price range. 

The buyer of biopharmaceutical royalties sold 77.7 million shares to raise $2.2 billion, making it the biggest IPO so far this year, coming in ahead of Warner Music Group Corp.'s  (WMG) - Get Report recent deal that raised $1.9 billion.

The IPO comes in behind Zoetis  (ZTS) - Get Report as the largest pharma IPO of all time, according to data provider Dealogic.

"We expect the initial public offering price for our Class A ordinary shares to be between $25.00 and $28.00 per share," Royalty Pharma said in its IPO documents. 

"Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies," the company said in its IPO document.

Royal Pharma said the therapies in its portfolio address "therapeutic areas such as rare diseases, oncology, neurology, HIV, cardiology and diabetes, and are delivered to patients across both primary and specialty care settings."

"We have assembled a portfolio of royalties which entitles us to payments based directly on the top-line sales of many of the industry’s leading therapies, including Imbruvica, Januvia, Kalydeco, Trikafta, Truvada, Tysabri and Xtandi," the company said.

Global prescription pharmaceutical sales are expected to grow from about $875 billion in 2019 to roughly $1.2 trillion in 2024, the company said, representing a CAGR of 7%, according to EvaluatePharm, despite nearly $100 billion in cumulative sales being lost to expected patent expiries during the same period. 

Royal Pharma said the coronavirus outbreak or future outbreaks of any other highly infectious or contagious diseases could "materially and adversely affect our results of operations, financial condition and cash flows."