The company, which was founded in 1996 and went public in June last year, helps fund expensive clinical trials for a promising new drug in a typical transaction. In exchange, the drugmaker sends Royalty a predetermined slice of that drug's revenue in the years after it reaches the market.17 Aug 2021
Royalty Pharma has received a consensus rating of Buy. The company's average rating score is 2.67, and is based on 2 buy ratings, 1 hold rating, and no sell ratings.
How do royalties work in pharma?
How do pharmaceutical royalty rates work? Usually, a royalty rate is set as a percentage of sales revenue generated by the licensed intellectual property. If you agree a royalty rate of 5% on net revenue, then you are entitled to 5% of the net revenue generated by the use of your IP.