Royalty Pharma rises on $1.1 bln deal to acquire its external manager

Royalty Pharma

10/01/2025 13:05

** Shares of Royalty Pharma  RPRX.O  gain 5.73% to $27.70
premarket
    ** Co says it will pay about $1.1 billion to acquire RP
Management, which manages the healthcare firm's operations, to
simplify its corporate structure
    ** RPRX buys royalties of future drugs from academic labs
and biotechs
     ** The acquisition will generate cash savings of greater
than $100 million in 2026 and greater than $175 million in 2030
and drive cumulative savings of greater than $1.6 billion over
10 years, RPRX says
    ** Co adds its board has also approved a new $3 billion
share repurchase program
    ** Co intends to repurchase $2 billion of shares in 2025,
subject to market conditions
    ** RPRX stock fell ~9% in 2024

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))