Royalty Pharma PLC
NASDAQ:RPRX

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Royalty Pharma PLC
NASDAQ:RPRX
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Price: 37.06 USD 1.06% Market Closed
Market Cap: 20.8B USD

Net Margin
Royalty Pharma PLC

48.3%
Current
27%
Average
5%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
48.3%
=
Net Income
1.1B
/
Revenue
2.3B

Net Margin Across Competitors

Royalty Pharma PLC
Glance View

Royalty Pharma PLC operates within a unique niche of the pharmaceutical industry, using a business model that might seem more akin to financial engineering than traditional drug development. Founded by Pablo Legorreta in 1996, the company has carved out a role as a specialized investment entity, acquiring pharmaceutical royalties from innovative biopharmaceutical companies. Essentially, Royalty Pharma provides capital to these firms upfront or participates in funding their development projects, and in return, it earns a slice of the future sales of the companies' drugs. This strategy makes Royalty Pharma a distinct player that benefits indirectly from the pharmaceutical market's successes while largely sidestepping the substantial risks associated with drug development. The company thrives on a diversified portfolio of royalties spanning numerous therapeutic areas, including rare diseases, oncology, and neurology, among others. This diversification mitigates risk and offers a stable cash flow pattern, as the success of one drug can offset challenges faced by another. Notably, Royalty Pharma’s earnings are impacted by the performance of highly successful drugs like Vertex’s cystic fibrosis therapies and Janssen’s cancer drug Imbruvica. By tapping into the promising prospects of life-saving and high-demand pharmaceutical innovations, it has created a profitable loop of continuous royalty accrual, translating clinical triumphs into financial well-being. Through this model, Royalty Pharma positions itself as a kingmaker, enabling biopharma to reach groundbreaking milestones while collecting revenue as these therapies transform the healthcare landscape.

RPRX Intrinsic Value
66.04 USD
Undervaluation 44%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
48.3%
=
Net Income
1.1B
/
Revenue
2.3B
What is the Net Margin of Royalty Pharma PLC?

Based on Royalty Pharma PLC's most recent financial statements, the company has Net Margin of 48.3%.

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