After the FDA gave Revolution Medicines’ RASONQUE, a metastatic pancreatic cancer drug, breakthrough therapy designation, Motley Fool argues Royalty Pharma offers exposure to it alongside investments in 35 approved products and 17 drugs in development.
The designation could help speed RASONQUE toward market. Royalty Pharma gives drugmakers cash upfront in exchange for a share of drug sales and invests in marketed medicines as well as development candidates, which may fail.
Royalty Pharma estimates RASONQUE could generate up to $11 billion in peak sales and $340 million in royalties. Its dividend yield is about 1.6%, while Revolution Medicines pays no dividend. Over the past year, Royalty Pharma shares rose about 60%, compared with Revolution Medicines’ 330% gain.
