Warren Buffet takes a stake in this biotechnological share; Pop Actions


Warren Buffet led Berkshire Hathaway (BRKA) added more than 13 million shares of Royalties pharmacy (RPRX), leading RPRX stock to explode on Tuesday.


Royalty Pharma is a partnership machine. It partners with companies to fund advanced-stage studies and new product launches in return for future royalties. The biotech company also acquires existing royalties from the original companies. Royalties matter AbbVie (ABBV), Johnson & johnson (JNJ), Biogen (BIIB) and others among its partners.

And, now Berkshire Hathaway owns a 2.2% stake in RPRX shares.

In the morning, trading on today’s stock market, RPRX stock jumped 3% to near 42.90. This decision helped stocks to settle well above their 200 day line, according to MarketSmith.com. Shares also hit their highest level since June.

RPRX Stock Pops on Berkshire Add

In addition to purchasing 13.15 million shares of Royalty Pharma, Berkshire Hathaway sold shares of other drugmakers, including AbbVie and Bristol Myers Squibb (BMY). He completely left his positions in Merck (MRK) and Organon (OGN).

The healthcare sector has been a minefield for investors amid the peaks and traps of the pandemic.

Royalty Pharma recorded strong growth in the third quarter. According to FactSet, both sales and revenue have exceeded expectations by stock analysts at RPRX. Revenue increased more than 24% to $ 587 million. Adjusted earnings jumped 52% to 73 cents per share.

For the year, Royalty Pharma said it signed deals worth up to $ 2.8 billion, including $ 2.1 billion in upfront payments.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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