Royalty Pharma Owns a Piece of 16 Blockbuster Drugs -- Is the Stock a Buy?
Investors are catching on to this rare gem among pharmaceutical stocks, but thanks to promising growth and a low valuation, further upside remains.
Overview
Whether it's biotech stocks or regular pharmaceutical stocks, when investors buy a particular name in healthcare, they are making a wager on a single company's pipeline. However, there is one unique name within this space that enables investors to gain more diversified exposure to current and potential future blockbuster drugs: Royalty Pharma (NASDAQ: RPRX).
Operating like both a biopharma company and a venture capital firm, Royalty provides capital to both for-profit drugmakers and nonprofit researchers, such as universities, in exchange for percentage ownership in their developed or underdeveloped drug candidates.
Details
With the stock trading at a relatively low valuation, despite owning royalty interests in 16 blockbuster drugs, not to mention a slew of promising drug candidates, much suggests this is a gem among healthcare stocks that's still getting discovered by the market.
Source
Originally published at www.fool.com.