If discovering blockbuster drugs is the pinnacle of pharmaceutical industry success, then the next best thing is getting rich by earning pennies from every pill sold. For 24 years, that is exactly what a little known Wall Street investor named Pablo Legorreta has been doing. Few have heard of him, but millions have benefited from the top selling drugs his company Royalty Pharma draws income from. Names like Humira for sufferers of Crohn’s disease, Lyrica, the most successful anti-epileptic remedy and blood cancer treatment Imbruvica. The giant companies behind these drugs, names like Pfizer, Johnson & Johnson and AbbVie, do all the heavy lifting, more info
The patent-cliff nature of its business meant that Legorreta really could not sell Royalty Pharma’s assets and cash-out his investors, or even himself. In order to make way for the current IPO, Legorreta and a few of his senior partners borrowed billions in loans from a Wall Street bank as a pledge against a big chunk of their equity in the Royalty Pharma investment partnerships.
The planned $2 billion initial public offering, which could take place as soon as next week, will restructure his investment partnerships by folding their assets into a new Royalty Pharma corporation that will soon be listed on Nasdaq. Some of Legorreta’s long-term investors, like the endowments of Boston University and the University of Connecticut, plan to sell some of their shares in the IPO, which will leave Legorreta and his investors with a liquid asset. For escorts in Japan.