Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q3 2024 Financial Results
Royalty Pharma plc Q3 2024 Financial Results November 6, 2024 2
Slide 3: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP Measures 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 purpor
Slide 4: Agenda
Agenda Key Highlights Pablo Legorreta Founder & Chief Executive Officer Portfolio Update Marshall Urist EVP, Head of Research & Investments Synthetic Royalties Chris Hite EVP, Vice Chairman Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chief Execu
Slide 5: Key Highlights
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Strong execution in Q3 2024
Strong execution in Q3 2024 1 2 3 4 Financial Capital allocation Portfolio Raising guidance +15% year/year growth in Q3 Capital Deployment of $1.2bn Acquired synthetic royalties on Full-year Portfolio Receipts 2024 Portfolio Receipts and in Q3 (~$2.6bn year-to-date)(1) Incyte and Syndax’s Niktimvo e
Slide 7: Unique business model powering strong growth since IPO
Unique business model powering strong growth since IPO Royalty Receipts (year/year growth; $ in millions) +14% YTD +15% +14% $732 +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 $482 $462 $445 -7% $371 Q
Slide 8: Portfolio Update
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 8
Slide 9: Niktimvo – addressing significant unmet need in cGvHD
Niktimvo – addressing significant unmet need in cGvHD • Acquired a synthetic royalty on Syndax/Incyte’s Niktimvo for cGvHD $350 million upfront payment to Syndax 13.8% royalty on U.S. sales Entitled to 13.8% royalty on U.S. sales of Niktimvo Expected royalty duration to 2038(1) Projected IRR
Slide 10: Niktimvo – addressing significant unmet need in cGvHD
Niktimvo – addressing significant unmet need in cGvHD Attractive cGvHD U.S. market dynamics • Significant need for new medicines in cGvHD Estimated to develop in ~42% of transplant recipients(1) Nearly 50% of patients require at least three lines of therapy(1) ~17,000 ~4,000-5,000 • Niktimvo: di
Slide 11: Deploying capital on additional attractive therapies
Deploying capital on additional attractive therapies Transaction size $150 million ~$145 million(1) Transaction type Synthetic Pre-existing Seller Ascendis BRAIN Biotech AG Marketer Ascendis Pharvaris Therapy Yorvipath Deucrictibant Indication Hypoparathyroidism Hereditary angioedema Royalty acquire
Slide 12: Synthetic Royalties
Synthetic Royalties Chris Hite Executive Vice President Vice Chairman 12
Slide 13: Synthetic royalties are an attractive funding modality
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 therapy’s value to patients Share risk of development and/or commercialization
Slide 14: Synthetic royalties are a rapidly growing funding modality
Synthetic royalties are a rapidly growing funding modality >$280bn biopharma industry funding(1,2) Record year for RP synthetic royalty transactions (2019-2023) (Announced value)(3) >2x Convertible Debt Existing royalties Synthetic Royalties $800m (3%) $775m Licensing deals (upfront) $664m $375m $29
Slide 15: Financial Results
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 15
Slide 16: Efficient model generates substantial cash flow to reinvest
Efficient model generates substantial cash flow to reinvest % Portfolio $ in millions Q3 2024 Receipts Comments Royalty Receipts(1) 732 +15% YoY Recurring cash inflows of our royalty portfolio Milestones & other contractual receipts(1) 3 n/a More variable cash receipts Portfolio Receipts 735 +15% Yo
Slide 17: Significant financial capacity for future royalty acquisitions
Significant financial capacity for future royalty acquisitions Cash and cash equivalents ($ in millions) • $950m of cash and cash equivalents as of September 30, 2024 1,492 -2,239 • $7.8bn investment grade debt outstanding >2,000 ~3,000 Total leverage of 3.0x(1) Net leverage of 2.7x(2) Undrawn
Slide 18: Capital allocation strategy to drive shareholder value creation
Capital allocation strategy to drive shareholder value creation $20 billion in projected 2022-2026 capacity to reinvest and return to shareholders Royalty acquisitions Share repurchases $10-$12bn 5-year target(1) Up to $1bn (announced March 2023) • Announced ~$10.1bn since 2022 • Repurchased ~16m sh
Slide 19: Raising full-year 2024 guidance
Raising full-year 2024 guidance(1,2) August 8, 2024 November 6, 2024 Comments Portfolio Receipts • Strong portfolio performance • Milestones and other contractual receipts expected to excluding transactions announced $2,700m - $2,775m $2,750m - $2,800m decline from $599m in 2023 to ~$30m in 2024 sub
Slide 20: Strong Royalty Receipts growth and base business performance
Strong Royalty Receipts growth and base business performance 2024 Portfolio Receipts ($ in millions) 0 ~-9% Recurring cash receipts ~+11-13% 3,049 599 2,720-2,770 ~30 2,750-2,800 2,449 Drivers: Drivers: + Trelegy + Evrysdi 2(2) + CF franchise + Tremfya + Evrysdi Headwinds: - Imbruvica Portfolio Rece
Slide 21: Conclusion
Conclusion Pablo Legorreta Founder & Chief Executive Officer 21
Slide 22: 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 $10-12bn target Approved ~$10.1bn 10 Transaction value
Slide 23: 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 24: Appendix
Appendix ROYALTY PHARMA 24
Slide 25: Multiple important events expected over next 12 months
Multiple important events expected over next 12 months 2024 2025 Select recent and expected upcoming events Q3 Q4 trontinemab Phase 1/2b results for Alzheimer’s disease(1) Trodelvy Phase 3 results for 1L metastatic triple-negative breast cancer (ASCENT-03)(2) Clinical TEV-‘749 Phase 3 safety results
Slide 26: Potential royalties on >40 projects in late-stage development
Potential royalties on >40 projects in late-stage development Phase 2 Phase 3 Registration CK-586 trontinemab omecamtiv mecarbil pelacarsen olpasiran Vanzacaftor/tezacaftor/deutivacaftor Cystic fibrosis Initial indication Heart failure Alzheimer’s disease Heart failure Cardiovascular disease Cardiov