By
Godfrey Benjamin
May 13th, 2024
Royalty Pharma’s IPO has become the biggest this year. Moreover, it is the second-largest pharmaceutical public listing ever, just behind Zoetis Inc’s $2.2 billion IPO back in 2013. RPRX shares today were 12.75% up, trading at $49.61.
Royalty Pharma Plc (NASDAQ: RPRX), the New York-based buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, has run the U.S. biggest initial public offering (IPO) of this year. The company sold 77.7 million shares priced at $28.00 and raised as much as $2.2 billion. Following the news, its stock skyrocketed.
Royalty Pharma’s IPO was underwritten by 13 banks. JPMorgan Chase, Morgan Stanley, Goldman Sachs, Citigroup and UBS Investment Bank were among them. The IPO has become the biggest this year. Moreover, it is the second-largest pharmaceutical public listing ever, just behind Zoetis Inc’s IPO back in 2013.
In its IPO documents, the company said:
“We expect the initial public offering price for our Class A ordinary shares to be between $25.00 and $28.00 per share.”
According to the company, it initially announced 70 million Class A ordinary shares. However, it offered 60 million Class A ordinary shares. The selling shareholders provided 17,681,670 Class A ordinary shares as well.
Late Monday, Royalty Pharma priced its IPO. Starting from June 16, its Class A ordinary shares began trading on the Nasdaq Global Select Market under the ticker symbol “RPRX.”
Royalty Pharma Stock Surged
On Tuesday, after Royalty Pharma shares appeared on the Nasdaq market, the rally began. On its first day of public trading, shares of Royalty Pharma jumped by 65%, climbing from $28 to $46.27 per share. The stock ended at $44.00.
Renaissance Capital, the leading provider of pre-IPO institutional research, commented:
“Royalty Pharma is highly profitable and generates strong cash flow, and it intends to pay a dividend with 2.3% yield at the midpoint.”
Today, Royalty Pharma stock opening price made up $44.10 per share. During the session RPRX shares were 12.75% up, trading at $49.61.
Renewal in Board of Directors
In addition to conducting an IPO, Royalty Pharma has also announced the appointment of Dr. Bonnie L. Bassler, Ph.D. to its Board of Directors. According to Royalty Pharma CEO Pablo Legorreta, Dr. Bassler “brings a valuable combination of deep expertise in molecular biology and Board-level experience across academia and the biopharma industry.”
Earlier this year, the company also welcomed Chris Hite as Executive Vice President and Vice-Chairman. Previously, Hite served as Global Head of Healthcare Investment Banking at Lehman Brothers.
Pablo Legorreta said:
“Royalty Pharma’s growth has accelerated in recent years and having someone with Chris’ experience and relationships in the biopharmaceutical industry will allow us to address even larger and more complex opportunities as we embark on the next phase of our business. We are honored that Chris has chosen Royalty Pharma for the next chapter in his already highly accomplished career.”
Founded in 1996, Royalty Pharma acquirуы pharmaceutical royalties. Its portfolio includes royalty interests in over 50 approved products including AbbVie and J&J’s Imbruvica, Astellas, Pfizer’s Xtandi, Gilead’s HIV franchise, and more. Besides, Royalty Pharma leads in pre-approval royalties. Since 2011, it has invested over $5.6 billion in royalties on pre-approval products as well as contributed over $1.2 billion to direct R&D funding in exchange for royalties.