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Royalty Pharma’s Internalization Strategy: Navigating Risks and Uncertainties Ahead of 2025 Transition

Royalty Pharma’s Internalization Strategy: Navigating Risks and Uncertainties Ahead of 2025 Transition

Royalty Pharma PLC (RPRX) has disclosed a new risk, in the Regulation category.

The planned internalization of Royalty Pharma LLC by RP Holdings, set for January 10, 2025, faces significant risks, including potential delays or failures in obtaining necessary regulatory approvals. Even if the acquisition proceeds, there is uncertainty surrounding the realization of expected benefits as RP Holdings would assume full responsibility for compensation and operating expenses, potentially increasing general and administrative costs. Furthermore, despite efforts to involve Mr. Legorreta in reviewing future Equity Performance Awards, existing and future awards could persist on current terms, leading to unforeseen financial burdens. These factors collectively pose a substantial risk to the anticipated cost savings and operational efficiencies of the internalization strategy.

The average RPRX stock price target is $41.00, implying 26.78% upside potential.

To learn more about Royalty Pharma PLC’s risk factors, click here.

Questions or Comments about the article? Write to editor@tipranks.com

Questions or Comments about the article? Write to editor@tipranks.com
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