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Royalty Pharma (MEX:RPRX) Moat Score : 7/10 (As of Jul. 06, 2025)


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What is Royalty Pharma Moat Score?

Royalty Pharma has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Royalty Pharma has Wide Moat: Royalty Pharma PLC has a wide moat due to its unique business model, strong intellectual property portfolio, and significant regulatory barriers. Its ability to secure exclusive licenses and strong pricing power supports its durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Royalty Pharma might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.


Competitive Comparison of Royalty Pharma's Moat Score

For the Biotechnology subindustry, Royalty Pharma's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Royalty Pharma's Moat Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Royalty Pharma's Moat Score distribution charts can be found below:

* The bar in red indicates where Royalty Pharma's Moat Score falls into.


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Royalty Pharma  (MEX:RPRX) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Royalty Pharma Moat Score Related Terms

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Royalty Pharma Business Description

Traded in Other Exchanges
Address
110 East 59th Street, New York, NY, USA, 10022
Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.