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    FDA’s MYQORZO Approval and New Royalties Might Change The Case For Investing In Royalty Pharma (RPRX)

    Simply Wall St·12/25/2025 12:27:49
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    • On December 19, 2025, the FDA approved MYQORZO for obstructive hypertrophic cardiomyopathy, triggering Royalty Pharma’s 4.5% royalty on up to US$5.00 billion in sales and activating additional structured funding rights with Cytokinetics.
    • This approval adds a fresh cardiovascular royalty stream and long-tail, 1.9x-repayment funding exposure, strengthening Royalty Pharma’s visibility on future cash flows.
    • We’ll now examine how this newly activated MYQORZO royalty stream could reshape Royalty Pharma’s investment narrative and long-term cash flow profile.

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    Royalty Pharma Investment Narrative Recap

    To own Royalty Pharma, you need to believe that a diversified, growing portfolio of drug royalties can compound cash flows over time, despite product and policy risks. The MYQORZO approval enhances visibility on future receipts, but it does not change the fact that the most important near term swing factor is still the Vertex Alyftrek royalty dispute, which could materially affect revenue and earnings depending on its eventual outcome.

    Among recent announcements, the US$2.0 billion senior unsecured notes issued in September 2025 stand out in light of the MYQORZO news. Together, they underline how Royalty Pharma is pairing new royalty exposures with additional balance sheet capacity, giving it more flexibility to fund future deals, refinance existing obligations, and manage through periods when key assets or disputes introduce volatility in cash flows.

    Yet investors should also be aware that if the Alyftrek royalty dispute drags on or resolves unfavorably, it could...

    Read the full narrative on Royalty Pharma (it's free!)

    Royalty Pharma's narrative projects $4.0 billion revenue and $922.7 million earnings by 2028. This requires 20.0% yearly revenue growth and an earnings decrease of about $77 million from $1.0 billion today.

    Uncover how Royalty Pharma's forecasts yield a $45.98 fair value, a 17% upside to its current price.

    Exploring Other Perspectives

    RPRX 1-Year Stock Price Chart
    RPRX 1-Year Stock Price Chart

    Four members of the Simply Wall St Community currently see fair value for Royalty Pharma anywhere between US$45.98 and US$172.05, highlighting how far opinions can spread. Against that backdrop, the MYQORZO approval and related funding terms bring the discussion back to how secure and diversified future royalty cash flows really are, and why it is worth weighing those against concentrated legal and product risks before you decide where you stand.

    Explore 4 other fair value estimates on Royalty Pharma - why the stock might be worth just $45.98!

    Build Your Own Royalty Pharma Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.