Royalty Pharma Announces Pricing of Secondary Offering of Class A Ordinary Shares by Selling Shareholders

Rhea-AI Summary

Royalty Pharma plc (Nasdaq: RPRX) has priced a secondary offering of 17,343,037 Class A ordinary shares at $42.00 per share, with selling shareholders and an option for underwriters to purchase an additional 2,601,455 shares. The company will not receive any proceeds from this sale. The offering is expected to close on October 20, 2020. Major banks such as J.P. Morgan and Morgan Stanley are leading the underwriting process. This offering comes as part of Royalty Pharma's strategy, positioning the company within the biopharmaceutical sector, focusing on royalties and innovation funding.

Positive

• Pricing of 17,343,037 shares at $42.00 indicates strong investor interest.
• Potential to raise additional funds through the underwriters' option for 2,601,455 extra shares.

Negative

• Company will not benefit financially as it does not receive proceeds from the share sale.

NEW YORK, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Royalty Pharma plc (the “Company”) (Nasdaq: RPRX) announced today the pricing of the secondary offering of 17,343,037 shares of its Class A ordinary shares by selling shareholders in an underwritten public offering pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (“SEC”) at a price to the public of $42.00 per share. The selling shareholders have granted the underwriters an option to purchase up to 2,601,455 additional Class A ordinary shares. The Company will not receive any of the proceeds from the sale of its Class A ordinary shares by the selling shareholders. The offering is expected to close on October 20, 2020, subject to customary closing conditions.

J.P. Morgan, Morgan Stanley, BofA Securities, Goldman Sachs & Co. LLC and Citigroup are acting as joint lead book-running managers and as representatives of the underwriters for the proposed offering. Cowen, Evercore ISI, Truist Securities and UBS Investment Bank are also acting as joint book-running managers for the offering. BBVA, DNB Markets, Scotiabank, TD Securities, Academy Securities, AmeriVet Securities, Blaylock Van, LLC, Cabrera Capital Markets LLC, R. Seelaus & Co., LLC, Ramirez & Co., Inc., Siebert Williams Shank and Tigress Financial Partners are acting as co-managers for the offering.

This offering is being made only by means of a prospectus. Copies of the final prospectus relating to the public offering may be obtained, when available, from: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-866-803-9204 or by email at prospectus-eq_fi@jpmchase.com or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014 or by email at prospectus@morganstanley.com.

A registration statement on Form S-1 relating to these securities has been filed with, and was declared effective by, the SEC. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Royalty Pharma

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly - directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 45 commercial products, including AbbVie and J&J’s Imbruvica, Astellas and Pfizer’s Xtandi, Biogen’s Tysabri, Gilead’s HIV franchise, Merck’s Januvia, Novartis’ Promacta, and Vertex’s Kalydeco, Symdeko and Trikafta, and three development-stage product candidates.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of our strategies, financing plans, growth opportunities and market growth. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the Company. However, these forward-looking statements are not a guarantee of our performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the Company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The Company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law.

Royalty Pharma Investor Relations and Communications
+1 (212) 883-0200
ir@royaltypharma.com 

FAQ

What is the price for the Royalty Pharma secondary offering?

The secondary offering is priced at $42.00 per share.

When is the Royalty Pharma offering expected to close?

The offering is expected to close on October 20, 2020.

Who are the underwriters for the Royalty Pharma secondary offering?

The underwriters include J.P. Morgan, Morgan Stanley, BofA Securities, Goldman Sachs, and Citigroup.

How many shares are being offered in the Royalty Pharma secondary offering?

A total of 17,343,037 shares are being offered, with an option for an additional 2,601,455 shares.

Will Royalty Pharma receive proceeds from the secondary offering?

No, Royalty Pharma will not receive any proceeds from the sale of shares by the selling shareholders.