Royalty Pharma IPO

Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. The company purchases royalty interests in approved and late-stage development drugs from academic institutions, research hospitals, and other entities that developed or funded the underlying research. This model provides upfront capital to institutions while giving Royalty Pharma exposure to drug revenues.

The company's portfolio includes royalties on some of the world's best-selling drugs across multiple therapeutic areas including immunology, oncology, and rare diseases. Royalty Pharma went public in 2020 in one of the largest biotech IPOs ever, raising $2.2 billion. Their business model is particularly attractive because it provides exposure to pharmaceutical upside while avoiding the binary risks of drug development, as they typically invest in drugs that have already achieved regulatory approval or are in late-stage trials.