Jim Cramer Talked About These 8 Stocks

6. Royalty Pharma plc (NASDAQ:RPRX)

Number of Hedge Fund Holders: 33

While Cramer expressed disappointment with Royalty Pharma plc (NASDAQ:RPRX), he suggested holding on to the stock.

“Disappointing stock, man, I can’t believe it. Really well run, but disappointing. I don’t know what to say. I don’t know what gets it going. It’s healthcare with a great earning stream and it just doesn’t seem to matter. I want you to stick with it. I would not get rid of the stock here. It’s too good a company.”

Royalty Pharma (NASDAQ:RPRX) specializes in purchasing biopharmaceutical royalties and funding innovations within the industry, focusing on identifying, evaluating, and acquiring royalties for various therapies. Currently, 15 of the products in its portfolio generate over $1 billion in annual sales. The company has remained highly active in acquiring new royalties, and its pipeline continues to show strong potential. As of the third quarter, its capital deployment had reached approximately $2.6 billion.

In the third quarter, the company expanded its portfolio by acquiring royalties on three innovative therapies. This included synthetic royalties for two approved products: Syndax and Incyte’s Niktimvo, which treats chronic graft-versus-host disease, and Ascendis’ Yorvipath, a treatment for hypoparathyroidism. The company’s solid performance over the first nine months of 2024 prompted it to raise its full-year guidance. The strong results were attributed to the growth of its diversified portfolio, which continues to show momentum.

Royalty Pharma (NASDAQ:RPRX) now expects its Portfolio Receipts to range between $2.75 billion and $2.8 billion, an increase from the previous guidance. This update reflects an anticipated growth in Royalty Receipts of around 11% to 13%, surpassing the earlier expectation of 9% to 12%. Royalty receipts represent the company’s recurring cash inflows, which are driven by its high-quality portfolio of over 35 commercial products. Meanwhile, portfolio receipts are an important performance indicator that reflects its capacity to generate cash from portfolio investments.