Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Q1 2022 Earnings Presentation
19 slides from Royalty Pharma's earnings presentation, May 5, 2022
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q1 2022 Financial Results
Royalty Pharma plc Q1 2022 Financial Results May 5, 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: Key Highlights and Financial Results
Key Highlights and Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 4
Slide 5: Q1 2022 – strong financial performance
Q1 2022 – strong financial performance Double-digit top-line growth(1) Robust deal pipeline; Q1 2022 transactions announced of $450m(2) Portfolio progress; Vydura EC marketing authorization(3), Kaftrio label expansion in Europe(4) Reaffirming full-year guidance for Adjusted Cash Receipts (excluding
Slide 6: Q1 2022 – double-digit top-line growth, bottom-line impacted by non-GAAP update
Q1 2022 – double-digit top-line growth, bottom-line impacted by update of non-GAAP presentation Adjusted Cash Receipts(1) Adjusted EBITDA(1) Adjusted Cash Flow(1,2,3) ($ in millions) ($ in millions) ($ in millions, except per share amount) 605 $100m impact ($0.16/share) to +15% 556 ACF from inclusio
Slide 7: Impressive double-digit top-line growth since IPO
Impressive double-digit top-line growth since IPO Adjusted Cash Receipts(1) ($ in millions, year/year growth) $2.1bn (+18%) +15% +24% $605 $587 +12% +37% $543 $524 +9%(2) +3% +12%(2) +24%(2) $484 $472 $475 $462 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 1. 2. See slide 17 for definitions. Refer to Royal
Slide 8: Total royalty receipts growth of 9% in Q1 2022
Total royalty receipts growth of 9% in Q1 2022 Selected products Q1 2022 Royalty receipts(1) Growth $ in millions % year/year CF Franchise 202 21 97 12 87 -2 48 9 43 6 DPP-IV Franchise 36 (0) Other DPP-IVs 28 n/a (2) 20 23 Other 149 -12 Total 711 9 1. Amounts may not add due to rounding. 8 2. Nurtec
Slide 9: Existing portfolio powered 15% growth in Q1 2022
Existing portfolio powered 15% growth in Q1 2022 Q1 2022 Adjusted Cash Receipts (non-GAAP)(1) ($ in millions) 0 +15% (4) 116 605 524 (35) Key drivers: Cystic Fibrosis Tysabri Tremfya Cabometyx (2) Q1 2021 Adjusted Cash Receipts Royalty Expiries Base Business (3) Q1 2022 Adjusted Cash Receipts (non-G
Slide 10: Adjusted Cash Flow primarily impacted by update to non-GAAP financial measures
Adjusted Cash Flow(1) primarily impacted by update to non-GAAP financial measures $ in millions (except per share amount) Q1 2022 % change % ACR Comments Royalty receipts 711 9% Distributions to non-controlling interests Declining NCI primarily due to end of HIV -106 -15% royalty term Adjusted Cash
Slide 11: Update to presentation of non-GAAP financial measures
Update to presentation of non-GAAP financial measures(1) Update to Adjusted Royalty acquisition Cash Flow ($ in millions) 2020 Royalty Amount BCX9930 ($6) ACF (prior) $1,483 ACF (modified) $1,477 Third-party royalty Synthetic royalty Synthetic royalty Change (%) -0.4% (approved / development-stage)
Slide 12: Significant financial firepower for future royalty acquisitions
Significant financial firepower for future royalty acquisitions Cash, cash equivalents & marketable securities • $2.3 billion of cash, cash equivalents and ($ in millions) marketable securities as of March 31, 2022 -87 -199 • Capital deployed of $199 million in Q1 2022 556 -117 • $7.3 billion of inv
Slide 13: Well positioned for the current market environment
Well positioned for the current market environment Cost of debt funding Lower biotech valuations Ability to maintain returns • $7.3bn debt portfolio with 2.24% fixed- • Increases attractiveness of royalties • Asset prices should reflect a rising rate rate weighted average coupon and ~13 versus other
Slide 14: Multiple important milestones expected in 2022
Multiple important milestones expected in 2022 Select expected upcoming events 2022 Q1 Q2 Q3 Q4 Trodelvy Phase 3 results for 3L+ HR+/HER2 mBC(1) PFS met, OS trend at interim Tremfya Phase 2b results for ulcerative colitis (QUASAR)(2) Cabometyx, Opdivo, Yervoy Phase 3 results for 1L RCC (COSMIC 313
Slide 15: Full-year 2022 guidance reaffirmed
Full-year 2022 guidance reaffirmed(1,2) May 5, 2022 Comments • Residual impact from end of HIV royalty term in 2021 Adjusted Cash Receipts (non-GAAP) $2,225m - $2,300m • DPP-IV royalty receipt to substantially end in Q2 2022 excluding new transactions(1,2) (+~5% to 8% year/year) • ~$30-$40 million u
Slide 16: Royalty Pharma inaugural Investor Day on May 17, 2022
Royalty Pharma inaugural Investor Day on May 17, 2022 Outlook for royalty funding in life sciences Capital deployment opportunities Long-term growth targets 16
Slide 17: 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 18: Appendix
Appendix ROYALTY PHARMA 18
Slide 19: Distributions to non-controlling interests (NCI)
Distributions to non-controlling interests (NCI) First quarter 2022 NCI as a Products % of Royalty Receipts • Royalty Pharma includes several non-controlling Cystic fibrosis franchise(1) 9.9% interests in our financial statements. Tysabri 17.6% Imbruvica 17.6% • The largest of these impacting the no