Royalty Pharma simplifies corporate structure with $1.1 bln deal (updated)

Royalty Pharma

10/01/2025 12:51

(Adds share movement in paragraph 2, background on old
structure in paragraphs 3-5)
       Jan 10 (Reuters) - Royalty Pharma  RPRX.O  said on
Friday it would pay about $1.1 billion to acquire RP Management,
an organization that manages the healthcare firm's operations,
as it seeks to simplify its corporate structure.
    Royalty Pharma buys royalties of future drugs from academic
labs and biotechnology companies, which in turn use the cash to
fund their research. Its shares were up 3.8% in premarket
trading.
    RP Management has externally controlled and managed the
operations of Royalty Pharma since it was founded in 1996. The
firm did not recruit employees of its own and relied on RP
Management's staff to run its business in exchange of a
quarterly fee.
    After the deal closes, Royalty Pharma will operate as an
integrated company, with all the current employees of RP
Management becoming employees of the New York-based firm.
    Royalty Pharma's board also authorized a $3 billion share
repurchase program.
    "We expect these actions to drive shareholder value creation
over the long term," said Henry Fernandez, lead independent
director of Royalty Pharma's board.    

 (Reporting by Bhanvi Satija and Christy Santhosh in Bengaluru;
Editing by Shilpi Majumdar)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))