Canada's DRI Healthcare Q3 cash receipts and adjusted EBITDA rise

Overview

• Canada pharmaceutical royalty investor's Q3 Normalized Total Cash Receipts and Adjusted EBITDA each rose 9% yr/yr

• Adjusted Cash Earnings per Unit for Q3 slipped to $0.53 from $0.55 a year earlier

• Company acquired Juvmo royalty rights for $316 mln and exercised Ekterly put option for $178.2 mln

Outlook

• Adjusted EBITDA for 2026 expected to exceed previous guidance high end of $162 mln

• Company says it is tracking above previously communicated aspirational targets for 2026–2030

• DRI Healthcare expects first Juvmo royalty receipt after initial U.S. commercial sale

Result Drivers

• EKTERLY DISPOSITION - Co exercised its put option on Ekterly, receiving $178.2 mln and ceasing further royalty participation in the product

• ZEJULA IMPAIRMENT - Co recorded a non-cash impairment of $14.6 mln on the Zejula royalty asset during the quarter

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Dri Healthcare Trust is C$25.00, about 34.9% above its November 3 closing price of C$18.53

Reuters Recommended Reads

• Nov 4 - Royalty Pharma Q3 adjusted EBITDA beats estimates; raises 2026 guidance

• Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

• Nov 4 - BioCryst Q3 revenue rises 13% on ORLADEYO sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)