Royalty Pharma plc hosted an Investor Day on September 11, 2025, where senior executives provided an update on the company’s plans to drive shareholder value creation. The company set a goal to deliver at least $4.7 billion of Portfolio Receipts in 2030, consistent with its 2022 target, representing double-digit growth from 2020 to 2030. This is expected to result in Portfolio Cash Flow of approximately $4.0 billion in 2030, with both targets more than 10% ahead of current analyst consensus.
Royalty Pharma is on track to meet or exceed its five-year Capital Deployment target (from January 1, 2022) of $10 billion to $12 billion, having announced transactions totaling $14 billion and deployed $9 billion to date. The company expects to achieve an unlevered Internal Rate of Return (IRR) on its post-IPO investments in the mid-teens, with returns on approved products trending to the low double-digit range and development-stage products in the teens.
The company also reported historical performance metrics, including a Return on Invested Capital (ROIC) of approximately 15% and a Return on Invested Equity (ROIE) of approximately 21% since 2019. Royalty Pharma targets at least a mid-teens average annual total shareholder return (TSR) through 2030, driven by double-digit Portfolio Cash Flow growth and its commitment to growing its dividend by a mid-single-digit percentage annually.
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