Healthcare Royalty Partners

Investment decisions are led by the two Co-Founders and Managing Partners, Todd Davis and Clarke Futch. Both previously built and led Paul Capital Partners' healthcare royalty group before spinning out to form HCRx in 2006. The senior investment team below them includes principals with backgrounds in structured finance, biopharma R&D, and healthcare banking.

HCRx sources royalty interests directly from academic medical centers, research universities, and biotech companies that hold intellectual property on approved drugs or late-stage clinical assets. The firm also acquires royalty positions from inventors and early-stage life-science investors who want liquidity before a drug's full commercial ramp. Its long track record and relationship network with tech-transfer offices give it proprietary access to off-market royalty opportunities.

No. HCRx purchases contractual rights to a percentage of future revenues on specific drugs or diagnostic products, typically after FDA approval or in late-stage development. It does not take equity stakes, board seats, or clinical development risk, which structurally separates it from both biotech venture capital and traditional healthcare private equity firms.

The firm targets products that are already approved and generating revenue, or in late-stage development with a clear path to commercialization. By focusing on revenue-stage or near-revenue assets, HCRx avoids the binary risk of early-phase clinical trials.

HCRx typically deploys $25 million to $200 million per royalty acquisition, depending on the product's revenue profile and remaining patent life. The firm builds diversified portfolios across multiple therapeutic areas and royalty counter-parties within each fund.