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3. Royalty Pharma plc (NASDAQ:RPRX)

Number of Hedge Fund Holders In Q3 2024: 33

Royalty Pharma plc (NASDAQ:RPRX) is a drug royalty company that earns license payments. The firm’s royalty revenue, which accounted for 95% of its H1 2024 sales depends primarily on six franchises. Out of these, its cystic fibrosis franchise makes up 39% of Royalty Pharma plc (NASDAQ:RPRX)’s financial royalty revenue. However, the firm benefits from its portfolio diversification, which includes drugs such as Imbruvica which are commercialized by big-ticket names such as AbbVie and Janssen Biotech. Since it depends on royalties to generate revenue, Royalty Pharma plc (NASDAQ:RPRX) has to ensure that it continues to invest in new drugs before the patents for its existing products expire. On this front, fortunately for the firm, its leading cystic fibrosis royalty is expected to expire by 2039 at the earliest, while its Xtandi royalties are expected to expire at the earliest in 2028.