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Secondary offering for Royalty
Posted on Wednesday, 14 October 2020 12:39
Shareholders of Royalty Pharma are taking cash off the table via a secondary offering potentially worth as much as USD 884.14 million.

Rory Riggs, Rosewood, Groton Restricted, Memorial Sloan-Kettering Cancer Center, Atlantic Security and New York Foundling are among the sellers.

A total of 17.34 million class A stocks are on the block alongside an overallotment option for a further 2.60 million existing scrips.

The nine joint bookrunning managers for the offering include JPMorgan, Morgan Stanley, BofA Securities and Goldman Sachs.

Shares in Royalty closed 0.9 per cent higher yesterday at USD 44.81 and a capitalisation of USD 27.20 billion.

The company raised USD 2.50 billion in its initial public offering of 89.33 million class A stocks at USD 28.00 apiece in June 2020.

Royalty, which is incorporated in the UK and keeps its principal office in the US, claims to be the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry.

The group has assembled a portfolio entitling it to payments based directly on the top-line sales of many of the industry’s top therapies, including Imbruvica, Januvia, Kalydeco, Trikafta, Truvada, Tysabri and Xtandi.

Since its founding in 1996 through August 31, 2020, it has deployed a total of USD 19.00 billion of cash to acquire biopharmaceutical royalties.

Royalty’s portfolio consists of payments on more than 45 marketed therapies and three development-stage product candidates across rare diseases, oncology, neurology, cardiology and diabetes, among others.

In 2019, a total of 22 drugs each generated 2019 end-market sales of more than USD 1.00 billion, including seven that each had over USD 3.00 billion.

Royalty had total income and other revenues of USD 1.01 billion and net profit attributable shareholders of USD 306.75 million in the six months ended 30th June 2020.

Zephyr, the M&A database published by Bureau van Dijk, shows eight secondary offerings targeting the pharmaceuticals, biotechnology and life sciences sectors have been announced in 2020 to date.

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