Royalty Pharma is the largest buyer of biopharmaceutical royalties. Rather than discovering, developing, or selling drugs, Royalty Pharma acquires the right to receive a percentage of net sales from drugs that others develop and market. It has built a portfolio of royalties on more than 35 approved drugs and 20 development-stage candidates, spanning rare disease, respiratory, neuroscience, oncology, immunology, and hematology. Key royalties include Vertex's cystic fibrosis franchise, GSK's Trelegy, Biogen's Tysabri, Roche's Evrysdi, and Xtandi. Royalty Pharma acquires royalties from academic institutions, biotech companies, and biopharma companies directly — the latter through "synthetic royalties," where Royalty Pharma provides capital in exchange for a newly created royalty on future drug sales. The business model is capital-light: Royalty Pharma bears no R&D, manufacturing, or commercial costs, resulting in a portfolio cash flow margin around 84%. Royalties are structured as a percentage of net sales, sometimes tiered or capped, and collected over the life of a drug's exclusivity period. The company deploys capital upfront and collects cash over roughly 13 years on average. Royalty Pharma targets unlevered returns in the low-to-mid teens, enhanced through conservative leverage. Free cash flow is redeployed into new royalty acquisitions, share repurchases, and dividends. Synthetic royalties are a growing focus, with over $2B deployed in FY25, including a landmark deal with Revolution Medicines for its cancer drug daraxonrasib.