Management and incentives

Royalty Pharma plc RPRX

Royalty Pharma pays Pablo Legorreta a $1,500,000 salary, no bonus, and 20% of the profit on the royalties the company buys, an entitlement its own proxy values at $454.0 million as of December 31, 2025. He owns and controls the entities that hand that 20% out, and 2025 was the first year in the company's life that it paid anything.

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Royalty Pharma plc RPRXThe bet you're really making is that the drugs Royalty Pharma owns a slice of keep selling, above all Vertex's cystic fibrosis pills, which throw off about a third of the cash. You're betting management keeps buying new royalty streams faster than the old drugs fade, and keeps the debt, near $9 billion, from getting ahead of the checks that come in. Right now the cash is fine and the accounting looks awful: revenue hit a record $674 million, up 16.5%, while reported profit fell to $18 million, four cents a share, on a paper writedown of future royalties. You pay 23.7 times earnings, the middle of where the stock has traded for a decade, a bit above what rival financiers fetch. Company reportSep 6 Halozyme Therapeutics, Inc. HALOOn December 9, 2025 Halozyme granted chief executive Helen Torley a one-time performance share award with a target grant-date fair value of $10,000,012 that pays nothing unless the share price reaches and holds $115, an 86% increase over the price on the grant date. The last price in a filing read this run was $107.55 on September 11, 2026, and in May the board authorized $1.0B of repurchases running through 2028. Management and incentivesSep 20 Rigel Pharmaceuticals, Inc. RIGLThe bet you're really making is that Rigel keeps selling more of its three specialist pills, TAVALISSE, REZLIDHIA and GAVRETO, to the same blood and cancer doctors, and keeps the cash it throws off. You're betting the base business, about $290 million of sales this year, holds while a fourth drug it just launched and one experimental drug still in testing add upside you are not paying much for. Right now it is going well: first-half profit of $26 million, cash back up to $61 million, debt paid down. You pay about 17 times this year's earnings, near where it sat in 2024, the only clean year of profit it has ever posted. Company reportSep 7 Axsome Therapeutics, Inc. AXSMThe bet you're really making is that Auvelity, Axsome's fast-acting depression pill combining dextromethorphan and bupropion, keeps winning patients from older SSRIs, and that a migraine tablet and a coming narcolepsy drug turn one product into a family. You're betting the company earns its first real profit around 2028, because today it still loses money on every quarter of record sales. Right now it is going well, with one thing to watch: sales grew 46% to $218 million last quarter, while the loss ran wider than Wall Street expected for the fourth quarter straight. You pay about 16 times the profit analysts pencil in for 2028, on a company that has never earned a dollar to measure against. Company reportSep 7