R&D Partnerships

How We Invest Directly In Innovation


I. ROYALTY PHARMA is the premier R&D partner for the biopharmaceutical industry.

II. R&D PARTNERSHIPS are a unique form of capital. They leverage a single, at-risk, development-stage program while still achieving a highly competitive cost of capital compared with equity and debt instruments that are typically tied to all assets in a company.


III. ROYALTY PHARMA shares the same multi-year investment perspective as our partners: we understand that positive investment returns require clinical, regulatory, and commercial success.

IV. WE PROVIDE compelling cost of capital for highly innovative development-stage products across all therapeutic areas and for companies of all sizes.


V. ROYALTY PHARMA can provide funding at scales relevant to both smaller, focused development programs as well as global pharmaceutical companies pursuing the largest, highest-complexity, and most capital-intensive development programs.

VI. WE PARTNER with small to medium-size companies looking to maximize value by retaining full global ownership of their pipeline through regulatory approval and launch.

VII. WE ACT as a passive partner for companies with full operational capabilities, or take a more active role when externalized funding and clinical trial execution are required.

Funding of late-stage pharmaceutical R&D is core to Royalty Pharma’s investment strategy. 

Case Study

Royalty​ ​Pharma​ ​and​ ​Pfizer: Research & Development Partnership for Breast Cancer Treatment

PARTNER: Pfizer’s Ibrance (palbociclib) is a CDK4/6 inhibitor approved by the U.S. Food and Drug administration in 2015 for the treatment of metastatic hormone receptor positive breast cancer.


TRANSACTION: In January 2016, Royalty Pharma and Pfizer signed a $300 million R&D partnership for the ongoing Phase III program of Ibrance in the adjuvant treatment of breast cancer. Royalty Pharma is providing fully at-risk funding for 100% of the expected program costs on a quarterly basis until the trial is completed. Upon approval for its adjuvant indication, Royalty Pharma will receive milestones and royalties on certain Ibrance sales.

RATIONALE: The Royalty Pharma-Pfizer relationship is representative of our approach to R&D partnerships: we take a long-term investment perspective on a high-priority pipeline asset, with creative structuring, a willingness to invest at a scale relevant to major Phase III programs, and genuine risk-sharing between partners.