BUZZ-Royalty Pharma rises on $1.1 bln deal to acquire its external manager

Reuters
01-10

** Shares of Royalty Pharma gain 5.73% to $27.70 premarket

** Co says it will pay about $1.1 billion to acquire RP Management, which manages the healthcare firm's operations, to simplify its corporate structure

** RPRX buys royalties of future drugs from academic labs and biotechs

** The acquisition will generate cash savings of greater than $100 million in 2026 and greater than $175 million in 2030 and drive cumulative savings of greater than $1.6 billion over 10 years, RPRX says

** Co adds its board has also approved a new $3 billion share repurchase program

** Co intends to repurchase $2 billion of shares in 2025, subject to market conditions

** RPRX stock fell ~9% in 2024

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))

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