10 Overlooked Healthcare Stocks to Invest in

5. Royalty Pharma plc (NASDAQ:RPRX)

Number of Hedge Fund Holders: 30 

Royalty Pharma plc (NASDAQ:RPRX) is a leading buyer of biopharmaceutical royalties, holding interests in over 35 commercial products, including Trikafta, Trelegy, Evrysdi, and Tremfya. The company also co-funds late-stage clinical trials and product launches in exchange for future royalties, supporting innovation in the biopharma industry.

In Q2 2025, Royalty Pharma plc (NASDAQ:RPRX) reported Portfolio Receipts of $727 million, up 20% year-over-year, with Royalty Receipts increasing 11% to $672 million. Growth was driven by top-performing products such as Voranigo, Trelegy, Evrysdi, and Tremfya. The business also completed the acquisition of its external manager, RP Management, LLC, creating an integrated structure and marking a key milestone in its evolution.

The corporation further strengthened its portfolio through a funding agreement with Revolution Medicines, providing up to $2 billion to support clinical development while securing a synthetic royalty of up to $1.25 billion on daraxonrasib, a Phase 3 candidate for RAS-addicted cancers. In August 2025, the firm acquired a royalty interest in Amgen’s Imdelltra, a bispecific T-cell engager (BiTE) targeting DLL3, for approximately $885 million, underscoring its strategy of investing in high-impact biopharmaceutical assets.

Looking ahead, Royalty Pharma plc (NASDAQ:RPRX) expects 2025 Portfolio Receipts to grow 9–12%, continuing its dynamic capital allocation strategy through share repurchases and new royalty investments. The company is preparing for its upcoming Investor Day to provide further insights into its growth strategy and pipeline developments.