Here’s Why Royalty Pharma plc (RPRX) Led This Week’s Rally

We recently published an article titled These 10 Firms Led This Week’s Rally. In this article, we are going to take a look at where Royalty Pharma plc (NASDAQ:RPRX) stands against the other stocks.

Ten companies finished stronger this week, outpacing the broader market thanks to a series of catalysts that lifted investor sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

Despite a lackluster performance from Wall Street’s major indices, 10 companies demonstrated notable resilience. In this article, we will look at their past week’s performance and the reasons that fueled their rally.

To come up with this week’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A scientist in a laboratory looking through a microscope, surrounded by petri dishes and beakers while researching new biopharmaceutical advances.

Royalty Pharma plc (NASDAQ:RPRX)

Royalty Pharma plc (NASDAQ:RPRX) saw its share price increase by 14.26 percent to end at $29.49 apiece versus the $25.81 posted the week prior, following news that it was set to acquire its external manager RP Management, as it seeks to simplify its corporate structure.

On a financial basis, the acquisition plan was expected to generate cash savings for the company of up to $100 million in 2026, more than $175 in 2030, and drive cumulative savings worth at least $1.6 billion over ten years.

Royalty Pharma plc (NASDAQ:RPRX) said its decision followed investors’ feedback that the current structure made it difficult to invest in the healthcare firm, and shifting to internal management could enhance the company’s valuation over time.

Overall RPRX ranks 8th on our list of the firms that led this week’s rally. While we acknowledge the potential of RPRX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RPRX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.