Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — J.P. Morgan Healthcare Conference 2025
26 slides from Royalty Pharma's conference presentation, Jan 14, 2025
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference January 14, 2025 2
Slide 3: Forward Looking Statements
Forward Looking Statements 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 does not purport to be complete or
Slide 4: Key achievements reflect strong business momentum
Achievements Internalization Capital Deployment Returns Capital Allocation Key achievements reflect strong business momentum • 2024 Portfolio Receipts expected to be ~$2.8bn, at high end of previous guidance range(1) Financial • 2024 Royalty Receipts growth expected to be ~13% • Added royalties on e
Slide 5: Internalizing the Manager is the next step in our evolution
Achievements Internalization Capital Deployment Returns Capital Allocation Internalizing the Manager is the next step in our evolution Royalty Pharma evolution (1996 to present) Externally Integrated public managed company Expanded public investment company Ongoing scope business Fund Internalizing
Slide 6: Internalization expected to result in significant cash savings
Achievements Internalization Capital Deployment Returns Capital Allocation Internalization expected to result in significant cash savings Acquiring the Manager for ~$1.1bn total consideration Benefits include significant savings expected to grow over time Cumulative cash savings >$1.6bn and growing
Slide 7: Multiple benefits from internalizing the Manager
Achievements Internalization Capital Deployment Returns Capital Allocation Multiple benefits from internalizing the Manager Benefits Cash savings are expected to be >$100m in 2026 and >$175m in 2030, compared to status quo, with cumulative savings of Savings >$1.6bn over ten years Financial Returns
Slide 8: Announced $2.8 billion of royalty transactions in 2024
Achievements Internalization Capital Deployment Returns Capital Allocation Announced $2.8 billion of royalty transactions in 2024 2024 Royalty Pharma investment activity >440 initial reviews 153 CDAs signed 99 in-depth reviews 42 proposals submitted Executed 8 transactions for $2.8bn Maintained stro
Slide 9: Strong early performance of recent transactions
Achievements Internalization Capital Deployment Returns Capital Allocation Strong early performance of recent transactions(1) Percent change in 2025 consensus sales(2) since acquisition Development-stage therapies (Transactions since 2020; approved therapies) (Transactions since 2020; select events)
Slide 10: Significant growth and diversity of development-stage pipeline
Achievements Internalization Capital Deployment Returns Capital Allocation Significant growth and diversity of development-stage pipeline Pipeline evolution since IPO Strong diversity of pipeline Annual Capital Deployment (by number of therapies) (by number of therapies)(1) (~$25bn in cumulative Cap
Slide 11: Big products with world class marketers and large royalties
Achievements Internalization Capital Deployment Returns Capital Allocation Big products with world class marketers and large royalties Potential first- or Potential peak sales Potential peak Expected Therapy Lead indication Marketer best-in-class (non risk adjusted)(1) royalties launch year(2) frexa
Slide 12: New funding paradigm emerging for biopharma
Achievements Internalization Capital Deployment Returns Capital Allocation New funding paradigm emerging for biopharma Company % capital raised Total Significant benefits of diversified capital ~$3.8bn(1) Financial flexibility tailored to company’s needs 30% Scale of capital needed may only be avail
Slide 13: Synthetic royalties are an attractive funding modality
Achievements Internalization Capital Deployment Returns Capital Allocation Synthetic royalties are an attractive funding modality Benefits to biopharma partner Royalty Debt Equity Non-dilutive to equity / preserves equity upside Customized and tailored funding solutions Independent validation of the
Slide 14: Synthetic royalty opportunity is large and rapidly growing
Achievements Internalization Capital Deployment Returns Capital Allocation Synthetic royalty opportunity is large and rapidly growing ~$290bn biopharma industry funding(1,2) Record year for RP synthetic royalty transactions (2020-2024) (Announced value)(3) ~2.5x Convertible Debt Existing royalties S
Slide 15: Deploying substantial capital with repeat partners
Achievements Internalization Capital Deployment Returns Capital Allocation Deploying substantial capital with repeat partners Multiple benefits to long-term partnerships Capital deployed with repeat partners (~$15.5bn of announced transaction value since 2020) Speed of Information execution edge Abi
Slide 16: Consistently attractive returns amplified by conservative leverage
Achievements Internalization Capital Deployment Returns Capital Allocation Consistently attractive returns amplified by conservative leverage Royalty Pharma target returns Leverage benefit to target returns 25 High teens to low 20s % 20 Low teens Benefit of Teens % blended % conservative Low teens %
Slide 17: Authorized new $3 billion share repurchase program
Achievements Internalization Capital Deployment Returns Capital Allocation Authorized new $3 billion share repurchase program Royalty Pharma’s Royalty Pharma’scapital allocationframework capital allocation framework • Rigorous framework for capital allocation, weighing More attractive royalty opport
Slide 18: Balancing acquiring royalties and increasing return of capital
Achievements Internalization Capital Deployment Returns Capital Allocation Balancing acquiring royalties and increasing return of capital Capital Deployment Share repurchases Dividend • Capital Deployment guidance of $2.0- • Board authorized new $3bn share • Current dividend of $0.88 annually, $2.5b
Slide 19: Focus on value creation to drive compounding growth
Focus on value creation to drive compounding growth The Our Delivering opportunity unique strong model returns Golden age of life Industry pioneer and partner 13% top-line CAGR sciences innovation of choice (~56% market share)(1) (2010-2020)(3) >$1tn of capital needed to fund biopharma Model, scale
Slide 20: Footnotes
Footnotes (1) To aid in comparability, 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 (“Prospectus”)) and i
Slide 21: Appendix
Appendix ROYALTY PHARMA
Slide 22: Internalization savings drives increased Portfolio Cash Flow
Internalization savings drives increased Portfolio Cash Flow % Portfolio $ in millions FY 2024(1) Receipts Internalization impact Portfolio Receipts ~2,800 No impact Reduction to approximately 4-5% of Portfolio Receipts, compared to Payments for operating and professional costs (230-240) ~8.4% initi
Slide 23: Royalty Pharma to acquire RP Management for attractive value
Royalty Pharma to acquire RP Management for attractive value Comparable Multiples: Alternative Asset Managers vs RP Management • Peer group for RP Management is leading Alternative Asset Manager Alternative Asset Manager RP Management alternative asset managers, many of which Trading Multiples Trans
Slide 24: On track to meet or exceed 5-year capital deployment target
On track to meet or exceed 5-year capital deployment target Investing in approved and development-stage royalties 5-year capital deployment target(2,3) (Transactions announced since January 1, 2022) (Transaction value; since January 1, 2022) 12 ~$10.2bn Approved $10-12bn target 10 Transaction value
Slide 25: Unique business model powering strong growth since IPO
Unique business model powering strong growth since IPO Royalty Receipts (year/year growth; $ in millions) +15% +12% +8% ~+13% +15% ~+12% +14% $732 ~$730 +9% +10% $705 +6% +11% +16% +9% +12% $637 $651 $616 $605 +14% +10% $584 $593 +7% $581 +11% +11% +35% $545 +12% +4% $537 $530 +19% $500 $511 $472 $4
Slide 26: Important milestones expected in 2025
Important milestones expected in 2025 2025 Select expected upcoming events Q1 Q2 Q3 Q4 trontinemab Phase 1/2b results for Alzheimer’s disease(1) TEV-‘749 Phase 3 safety results for schizophrenia (SOLARIS)(2) Cobenfy Phase 3 results in adjunctive schizophrenia (ARISE)(3) Clinical Trodelvy Phase 3 res
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