Royalty Pharma Completes the Acquisition of Its External Manager

NEW YORK, May 16, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has successfully closed the acquisition of its external manager, RP Management, LLC (“RP Management”). The acquisition received overwhelming support from Royalty Pharma’s shareholders, with 99.9% of votes cast in favor of the transaction.

“The completion of the internalization marks an exciting new chapter for Royalty Pharma,” said Pablo Legorreta, founder and Chief Executive Officer. “It reinforces our commitment to transparency, accountability and long-term growth, while better positioning us to fund the significant capital needs and exciting innovation happening in the life sciences industry.”

This transaction represents a significant milestone in Royalty Pharma’s evolution and is expected to enhance long-term shareholder value through a simplified corporate structure, strengthened shareholder alignment, enhanced governance, significant cash savings and increased economic return on investments. The company will update its full-year 2025 guidance to reflect the internalization when it reports its second quarter 2025 financial results.

Background on the Manager

Since its founding in 1996, Royalty Pharma had operated under an external management model, relying on a separate Manager, owned by Pablo Legorreta and other members of senior management, for all operations and personnel. The company paid quarterly fees to the Manager equal to 6.5% of Portfolio Receipts and 0.25% of the value of security investments. Following the closing of the internalization transaction, Royalty Pharma is no longer externally managed, and all employees of the Manager have become employees of Royalty Pharma. Prior to 2024, Pablo Legorreta was the sole owner of the Manager. In early 2024, equity interests in the Manager were granted to 35 team members to support long-term succession planning and enhance alignment; these shares will vest over 10 years. Management (excluding Pablo Legorreta) will receive approximately 50% of the equity issued in the transaction, which will continue to vest through 2033. Pablo Legorreta agreed to have his equity vest over five years, despite no prior vesting requirement.