BUZZ-Royalty Pharma rises on $1.1 bln deal to acquire its external manager

Shares of Royalty Pharma RPRX.O gain 5.73% to $27.70 premarket

Co says it will pay about $1.1 billion to acquire RP Management, which manages the healthcare firm's operations, to simplify its corporate structure

RPRX buys royalties of future drugs from academic labs and biotechs

The acquisition will generate cash savings of greater than $100 million in 2026 and greater than $175 million in 2030 and drive cumulative savings of greater than $1.6 billion over 10 years, RPRX says

Co adds its board has also approved a new $3 billion share repurchase program

Co intends to repurchase $2 billion of shares in 2025, subject to market conditions

RPRX stock fell ~9% in 2024

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))