Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q2 2022 Financial Results
Royalty Pharma plc Q2 2022 Financial Results August 4, 2022 2
Slide 3: Forward Looking Statements & Non-GAAP Financial Information
Forward Looking Statements & Non-GAAP Financial Information This presentation has been prepared by Royalty Pharma plc (the “Company”), is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information set forth herein do
Slide 4: Agenda
Agenda Key Highlights Pablo Legorreta Founder & Chief Executive Officer Portfolio Update Marshall Urist EVP, Head of Research & Investments Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chief Executive Officer Pablo Legorreta Founder & Chief Execu
Slide 5: Key Highlights – Pablo Legorreta
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Q2 2022 – strong financial performance and deal activity
Q2 2022 – strong financial performance and deal activity 1 2 3 4 Double-digit Strong capital Positive portfolio Raising full-year growth deployment progress guidance Adjusted Cash Receipts Year-to-date transactions Pfizer announced acquisition of Adjusted Cash Receipts(1) (“top-line”)(1) and Adjuste
Slide 7: Q2 2022 – double-digit top-line and Adjusted EBITDA growth
Q2 2022 – double-digit top-line and Adjusted EBITDA growth Adjusted Cash Receipts(1) Adjusted EBITDA(1) Adjusted Cash Flow(1,2) ($ in millions) ($ in millions) ($ in millions, except per share amounts) 524 482 +10% 480 475 +10% +12% $0.79/share 436 429 $0.71/share Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2
Slide 8: Impressive track record of strong top-line growth since IPO
Impressive track record of strong top-line growth since IPO Adjusted Cash Receipts(1) ($ in millions, year/year growth) +15% +24% $605 $587 +12% +37% $543 +10% $524 $524 +9%(2) +3% +12%(2) +24%(2) $484 $472 $475 $462 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 1. 2. See slide 25 for definitions. Refer
Slide 9: Unique ability to add blockbuster therapies to portfolio
Unique ability to add blockbuster therapies to portfolio Leading exposure to current blockbusters(1) Consistently adding blockbusters(2) Advantages of blockbuster therapies (current portfolio) (current and future potential blockbusters added to portfolio since 2020) ~1.6x • Heightened focus and inve
Slide 10: Portfolio Update – Marshall Urist
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 10
Slide 11: Trelegy: leading triple combination therapy for COPD/asthma
Trelegy: leading triple combination therapy for COPD/asthma • Royalty Pharma acquired an upward tiering 6.5% - 10% 85 royalty on Trelegy sales(1) in exchange for: $1.31bn net upfront Up to $300m in potential sales milestones to 85% Theravance(2) and Innoviva • Trelegy expected to add at least $2
Slide 12: Robust growth trajectory expected to continue for Trelegy
Robust growth trajectory expected to continued for Trelegy Trelegy sales evolution(1) • Trelegy: first FDA approved triple combination therapy delivered ($ in millions) once-daily in a single device for COPD and asthma U.S. Non-U.S. ~16m COPD and >25m asthma patients in the U.S. +21% Trelegy sho
Slide 13: Gavreto: precision oncology therapy with long patent duration
Gavreto: precision oncology therapy with long patent duration Gavreto ex-U.S. sales evolution(1) • Acquired Blueprint Medicines’ royalty on Gavreto for up to $340m ($ in millions) $175m upfront and up to $165m in potential sales-based milestones +38% CAGR High-teens to mid-twenties percent royal
Slide 14: Biohaven acquisition accelerates Royalty Pharma returns
Biohaven acquisition accelerates Royalty Pharma returns Strong returns for Royalty Pharma shareholders(1) • Pfizer, a strong global marketer, is positioned to maximize the potential of Nurtec ODT and zavegepant ~1.8x potential cash >$6bn Doubling number of sales representatives detailing Nurtec OD
Slide 15: Important milestones expected over next 12-18 months
Important milestones expected over next 12-18 months 2022 2023 Select year-to-date and expected upcoming events Q2 Q3 Q4 FY Cabometyx, Opdivo, Yervoy Phase 3 results for 1L renal cell carcinoma (COSMIC 313)(1) PFS met, trial continuing for OS Xtandi Phase 3 results for nmCSPC (EMBARK)(2) Otilimab Ph
Slide 16: Financial Results – Terrance Coyne
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 16
Slide 17: Total royalty receipts growth of 8% in Q2 2022
Total royalty receipts growth of 8% in Q2 2022 Selected products Q2 2022 Royalty receipts(1) Growth $ in millions % year/year CF Franchise 182 17 93 1 80 -8 (2) 52 45 DPP-IV Franchise 36 -9 Other DPP-IVs 35 7 (3) 19 12 18 n/a Other 118 -8 Total 633 8 1. Amounts may not add due to rounding. 2. Includ
Slide 18: Strong top-line leads to double-digit Adjusted EBITDA increase
Strong top-line leads to double-digit Adjusted EBITDA increase YoY % $ in millions (except per share amount) Q2 2022 change % ACR Comments Royalty receipts 633 8% Distributions to non-controlling interests Decline primarily reflects end of HIV -109 -3% royalty term Adjusted Cash Receipts (non-GAAP)(
Slide 19: Significant financial firepower for future royalty acquisitions
Significant financial firepower for future royalty acquisitions Cash, cash equivalents & marketable securities ($ millions) • $2.4bn of cash, cash equivalents and marketable securities as of June 30, 2022 1,036 -84 -439 • Pro forma(1) cash, cash equivalents and -238 marketable securities of $1.1bn 2
Slide 20: Raising full-year 2022 guidance
Raising full-year 2022 guidance(1,2) May 5, 2022 August 4, 2022 Comments • Strong portfolio performance, partially offset by Imbruvica Adjusted Cash Receipts (non-GAAP) $2,225m - $2,300m $2,275m - $2,350m • Acquisition of Trelegy royalties excluding transactions announced (~+5% to 8% year/year) (~+7
Slide 21: Strong 2022 performance expected despite FX and LOE headwinds
Strong 2022 performance expected despite FX and LOE headwinds Adjusted Cash Receipts (non-GAAP)(1) 2022 Guidance (excluding future investments)(5) ($ in millions) ILLUSTRATIVE ~+7% to 10% 0 growth 2,275-2,350 Drivers: + Trelegy 2,129 Drivers: + Cystic Fibrosis + Xtandi + Tremfya + Evrysdi Headwinds:
Slide 22: Conclusion – Pablo Legorreta
Conclusion Pablo Legorreta Founder & Chief Executive Officer 22
Slide 23: Clear strategic plan to drive robust and value-enhancing growth
Clear strategic plan to drive robust and value-enhancing growth 1 2 3 Existing royalties Synthetic royalties / Launch & R&D funding development capital(1) Acquire existing royalties on market- Acquire newly-created royalties on Additional funding in exchange leading or late-stage development approve
Slide 24: Delivering on all elements of our strategic plan
Delivering on all elements of our strategic plan FY 2021 YTD 2022 1 Cabometyx/Cometriq (GSK) Oxlumo (Dicerna) Trelegy (Theravance, Innoviva) Existing royalties seltorexant (Minerva) Gavreto (Blueprint Medicines) Tremfya, gantenerumab, otilimab 2 BCX9930 (BioCryst) Synthetic royalties/ aficamten (Cyt
Slide 25: Footnotes
Footnotes 1) To aid in comparability, quarter-over-quarter growth in 2020 is calculated based on pro forma 2019 results, which adjusts certain cash flow line items as if Royalty Pharma’s Reorganization Transactions (as described in the Company’s final prospectus filed with the SEC on June 17, 2020 (
Slide 26: Appendix
Appendix ROYALTY PHARMA 26
Slide 27: Distributions to non-controlling interests (NCI)
Distributions to non-controlling interests (NCI) Second quarter 2022 NCI as a Products % of royalty receipts • Royalty Pharma includes several non-controlling Cystic fibrosis franchise(1) 17.6% interests in our financial statements. Tysabri 17.6% Imbruvica 17.6% • The largest of these impacting the