09:39 AM EST, 01/29/2025 (MT Newswires) -- Royalty Pharma ( RPRX ) said Wednesday it closed a deal to monetize the remaining fixed payments on MorphoSys' development funding bonds for $511 million in upfront cash.

The company said the latest payment, plus payments received previously, results in cash proceeds of $530 million on the $300 million investment made in September 2022.

Royalty Pharma ( RPRX ) said it will use these proceeds to buy back its shares and acquire new royalties.

"While Royalty Pharma ( RPRX ) does not generally sell royalty investments, Novartis' acquisition of MorphoSys created a unique opportunity to convert a fixed stream of long-term payments with no potential for outperformance into a large cash inflow today at an attractive return for shareholders," said Royalty Pharma ( RPRX ) Chief Executive Pablo Legorreta.

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