Royalty Pharma, which buys royalty interests in marketed and late-stage biopharmas, filed last Friday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $2 billion.
The company's portfolio consists of royalties on more than 45 marketed therapies and four development-stage product candidates, addressing therapeutic areas such as rare diseases, oncology, neurology, HIV, cardiology, and diabetes.
The New York, NY-based company was founded in 1996 and booked $1.9 billion in revenue for the 12 months ended March 31, 2020. It plans to list on the Nasdaq but has not selected a ticker yet. Royalty Pharma filed confidentially on February 13, 2020. J.P. Morgan, Morgan Stanley, BofA Securities, Goldman Sachs, Citi, and UBS Investment Bank are the joint bookrunners on the deal. No pricing terms were disclosed.
