Royalty Pharma S-1 メモ
Prospectus summary
Overview
- largest buyer of biopharmaceutical royalities.
- founded 1996
- fund innovation in the biopharmaceutical industry both directly and indirectly
(directly) when we partner with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalites
(indirectly) when we acquire existing royalities from the original innvators.
Royalities in biopharmaceutical industry (value chain of drug development)
1. Academia conduct basic research and license new technologies to industry.
2. Biotechnology companies typically in-license these new technologies, add value through applied research and early-stage clinical development, and then either commercialize the products.
3. or out-license the resulting development-stage product candidates to (3) large biopharmaceutical companies for late-stage clinical development and commercialization
-> as new drugs are transffered along this value chain, royalties are created.
The development of a single new drug can lead to the creation of multiple royalties.
We acquire royalties on approved products, often in the early stages of their comercial launches, and development-stage product candidates with strong proof of cencept data, mitigating development risk and expanding our opportunity set.
Our strength
- portfolio provides direct exposure to a broad array of blockbuster therapies.
22 royalites sales > $1B (7 therapies > $3B).
- portofolio is highly diversified across products, therapeutic areas and marketers.
45 marketed therapies (oncology, neurology, HIV, cardiology and diabetes)
no individual therapy accounted for more than 16% of royalty receipts.
- the ley growth-driving royalties are protected by long patent lives.
weight average duration is 15 years.
- a long track record of identifying and acquiring royalties on blockbuster therapies and growing our royalty receipts.
- simple and highly efficient operating model which generates substantial cash flow for reinvestment in new biopharmaceutical rpyalties.
capital-efficient operating model: no material capital investment in fixed assets or infrastructure.
- Our business model captures many of the most attractive aspects of the biopharmaceutical industry, but with reduced exposure to many common industry challenges.
(attractive) long product life cycles, significant barriers to entry and non-cyclical revenues.
- unique role in the biopharmaceutical ecosystem positions us to benefit from multiple compounding growth drivers.
- we have the ability to capitalize on innovation from across the biopharmaceutical ecosystem.
- We have a talented, long-tenured team with deep relevant experience.
Our opportunuity
- academic institutions, research hospitals and not-for-profits – acquire existing royalities, typically in order to facilitate the diversification of asset portfolio and/or to provide funds for the support of ongoing scientific research or major capital projects.
- small and mid-sized biotechnology companies – acquire existing royalities, new synthetic royalities or the funding of clinial trials.
- Global bioparmaceutical companies – acquire non-strategic, passive royalities, or provide funding for clinical trials.
Risk factors
- Biopharmaceutical products are subject to sales risks.
- the royalty market may not grow at the same rate as it has in the pasts.
- Acquisitions of royalties from development-stage biopharmaceutical product candidates are subject to a number of uncertainties.
- Our failure to realize expected benefits of such acquisitions or our incurrence of unanticipated liabilities, could adversely affect our share price, operating results and results of operations.
- We use leverage in connection with our capital deployment, which magnifies the potential for loss if the royalties acquired do not generate sufficient income to us.
- We have no employees and are entirely dependent upon the Manager for all the services we require.
- The success of our business depends upon key members of the Manager’s senior advisory team who may not continue to work for the Manager.
- Our business is subject to interest rate and foreign exchange risk.
- The insolvency of a marketer could adversely affect our receipt of cash flows on the related royalties that we hold.
