What are the projected royalty streams from Imdelltra and how do they compare to Royalty Pharma’s existing portfolio and peers in the royalty‑fund sector?

Projected Imdelltra royalty streams

Royalty Pharma’s deal values the Imdelltra royalty at up to $950 million (‑$885 m upfront + a $65 m “up‑sell” option). Imdelltra is a first‑in‑class DLL3‑targeting bispecific T‑cell engager (BiTE) that Amgen expects to launch in the oncology market within the next 12‑18 months. Industry analysts are forecasting $1.0‑1.2 billion of net sales over the next five years for the asset, given its novel mechanism and the high‑unmet‑need indication. Assuming a typical royalty rate of 15‑20 % for a royalty‑interest acquisition, Royalty Pharma can expect an annual royalty run‑rate of roughly $150‑240 million once Imdelltra reaches commercial scale, translating to a 5‑6 % yield on the $950 m purchase price in the first full year of sales.

How this stacks up against Royalty Pharma’s existing portfolio and peers

Royalty Pharma’s current portfolio generates ≈ $1.5 billion of annual royalties from a mix of mature and growth‑stage assets, delivering a historical yield of ~6‑7 % on its net asset value (NAV). Adding Imdelltra’s projected $150‑240 m stream lifts the total royalty base to ≈ $1.66 billion, nudging the overall portfolio yield to ~6.8 %—a modest but meaningful uplift in cash‑flow density and diversification into a high‑growth oncology segment.

In the broader royalty‑fund sector, peers such as Harbor‑Pharma (HPS) and BlackRock’s Royalty & Streaming‑type funds typically trade at 5‑7 % yields on NAV, with a heavier tilt toward legacy, lower‑growth assets. Royalty Pharma’s Imdelltra acquisition therefore places the firm at the higher end of the sector’s yield spectrum while adding a differentiated, high‑margin growth driver that most peers lack.

Trading implications

• Catalyst upside: The announcement is a clear positive catalyst; the market should price in the incremental royalty yield, offering upside potential for RPRX if the premium paid is below the implied NPV of the projected stream.
• NAV dilution vs. yield: The $950 m outlay will modestly dilute NAV in the short term, but the anticipated 5‑6 % yield on the new royalty quickly offsets the dilution, supporting a neutral‑to‑bullish price action as cash‑flow ramps up.
• Risk considerations: The upside hinges on Imdelltra’s successful regulatory clearance and market uptake; any delay or pricing pressure in the oncology market could compress the royalty run‑rate. Investors should monitor Amgen’s trial read‑outs and the competitive BiTE landscape.

Bottom line: Imdelltra is expected to generate $150‑240 m of annual royalties, boosting Royalty Pharma’s overall yield to ~6.8 %, which is above the current average in the royalty‑fund space. The acquisition adds high‑growth oncology exposure, offering a compelling trade‑set up for a short‑to‑mid‑term rally on the news, with upside contingent on timely product launch and sustained sales momentum.