Royalty Pharma falls after Novartis' cholesterol drug fails in study

** "We had previously estimated combined 2032 end-market sales of $1.6B (for pelacarsen and Amgen's olpasiran) and royalties of $80MM (1% of RPRX revenue). A missed opportunity, but the growth outlook is little changed" - Royalty Pharma

** RPRX reiterates "its 2030 Portfolio Receipts target of $4.7 billion or more"

** Including session's move, stock up 54.7% YTD

** RPRX says its $500 million funding agreement with NOVN's partner Ionis IONS.O was structured to limit risk with stable and predictable royalties in another drug Spinraza and potential gains from pelacarsen

** RPRX expects to recoup its total investment and earn a modest positive return despite pelacarsen's failure

** Shares of Royalty Pharma RPRX.O fall 6% to $60.14 in afternoon trade

** RPRX buys royalties of future drugs from academic labs and biotechs

** Swiss drugmaker Novartis' NOVN.S cholesterol drug pelacarsen fails in a closely watched study