Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q2 2024 Financial Results
Royalty Pharma plc Q2 2024 Financial Results August 8, 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 Voranigo (vorasidenib) Marshall Urist EVP, Head of Research & Investments Evrysdi, Cytokinetics Chris Hite EVP, Vice Chairman Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chi
Slide 5: Key Highlights - Pablo Legorreta
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Strong execution in Q2 2024
Strong execution in Q2 2024 1 2 3 4 Financial Capital allocation Portfolio Raising guidance Double-digit growth in Capital Deployment of Expanded portfolio with 6 Full-year Portfolio Receipts Portfolio Receipts (+12%) and approximately $2bn, therapies added (1 approved, expected to be $2,700m to Roy
Slide 7: Impressive track record of strong growth since IPO
Impressive track record of strong growth since IPO Royalty Receipts (year/year growth; $ in millions) +14% +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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 8: Clear leader in large royalty transactions
Clear leader in large royalty transactions Royalty transactions ≥$500m Market share of deals ≥$500m (announced value; $ in millions) (by count) Lead product Acquiror Post-IPO Transaction size Trikafta(1) 3,352 Tysabri 2,850 Trelegy(3) 1,653 Tremfya(4) 1,575 Evrysdi 1,500 Keytruda Other 1,297 Leqvio
Slide 9: Voranigo Transaction - Marshall Urist
Voranigo Transaction Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 9
Slide 10: Repeat transactions highlight value of Royalty Pharma partnership
Repeat transactions highlight value of Royalty Pharma partnership Voranigo, aficamten, omecamtiv, CK-586 , BCX10013 , BCX10013 $1.16bn total funding Up to $1.13bn total funding Up Upto to$2.15bn $325m total totalfunding funding Up to $325m total funding 2x 2020, 2024 3x 2017, 2022, 2024 3x 2x 2020,
Slide 11: Deploying substantial capital with repeat partners
Deploying substantial capital with repeat partners Multiple benefits to long-term partnerships Capital deployed with repeat partners (~$15bn of announced transaction value since 2020) Speed of Information execution edge Ability to transact Potentially in-depth quickly given strong access to product
Slide 12: Voranigo – potential blockbuster further diversifies portfolio
Voranigo – potential blockbuster further diversifies portfolio • Acquired a royalty interest in Servier’s Voranigo from Agios ▪ $905m upfront payment ▪ Entitled to 15% royalty on U.S. net sales up to $1bn and a 12% 15% royalty on U.S. sales of royalty on U.S. net sales greater than $1bn Voranigo by
Slide 13: Voranigo – a potentially transformative therapy for LGG
Voranigo – a potentially transformative therapy for LGG Market dynamics in low-grade glioma RP survey indicates high physician excitement ✓ ~1,500 ~10,000 88% Broad uptake High unmet need Incident U.S. Prevalent U.S. Of physicians agree Voranigo Broad uptake expected across with no approved patients
Slide 14: Evrysdi and Cytokinetics Transactions - Chris Hite
Evrysdi and Cytokinetics Transactions Chris Hite Executive Vice President Vice Chairman 14
Slide 15: Royalty Pharma partnership with PTC continues to flourish
Royalty Pharma partnership with PTC continues to flourish Multiple transactions to acquire Evrysdi royalties • Acquired additional royalties from PTC Therapeutics on Evrysdi in Date Cumulative royalties(4) Deal value June 2024 as part of joint option structure ▪ Purchase price of $242m(1) 3.4% on fi
Slide 16: May 2024 transaction – strengthening Cytokinetics partnership
May 2024 transaction – strengthening Cytokinetics partnership • RP has committed up to $1.13bn in funding across three deals(1) • Aficamten is a potential best-in-class therapy for HCM Royalty Pharma provides incremental royalty and ▪ Entitled to 4.5% royalty up to $5bn and 1.0% royalty above $5bn(
Slide 17: Multiple important events expected over next 12 months
Multiple important events expected over next 12 months 2024 2025 Select recent and expected upcoming events Q2 Q3 Q4 Tremfya Phase 3 results for Crohn’s disease(1) TEV-‘749 Phase 3 results for schizophrenia (SOLARIS)(2) Long-term safety results Trodelvy Phase 3 results for 2L+ metastatic urothelial
Slide 18: Big products with world class marketers and large royalties
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) frexalimab multiple sclerosis Sanofi >$5bn >$400m 2028 olpasiran cardiovascular
Slide 19: Financial Results - Terrance Coyne
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 19
Slide 20: Efficient model generates substantial cash flow to reinvest
Efficient model generates substantial cash flow to reinvest % Portfolio $ in millions Q2 2024 Receipts Comments Royalty Receipts(1) 605 +11% YoY Recurring cash inflows of our royalty portfolio Milestones & other contractual receipts(1) 3 n/a More variable cash receipts Portfolio Receipts 608 +12% Yo
Slide 21: Significant financial capacity for future royalty acquisitions
Significant financial capacity for future royalty acquisitions Cash and cash equivalents ($ in millions) • Pro forma cash and cash equivalents of $860m ▪ Includes expected $905m of cash to acquire Voranigo royalties >2,100 ~3,000 • $7.8bn investment grade debt outstanding, including $1.5bn of notes
Slide 22: 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 ~$9.4bn since 2022 • Repurchased ~14m sha
Slide 23: Raising full-year 2024 guidance
Raising full-year 2024 guidance(1,2) May 9, 2024 August 8, 2024 Comments • Strong portfolio performance and incremental Evrysdi royalties, partially offset by Imbruvica and Tysabri Portfolio Receipts • Milestones and other contractual receipts expected to excluding transactions announced $2,600m - $
Slide 24: Conclusion - Pablo Legorreta
Conclusion Pablo Legorreta Founder & Chief Executive Officer 24
Slide 25: Participating in most important waves of biopharma innovation
Participating in most important waves of biopharma innovation frexalimab - MS pelacarsen/olpasiran - CV disease Next exciting wave KarXT - schizophrenia of biopharma innovation Voranigo - brain cancer aficamten - oHCM trontinemab - AD Trikafta - cystic fibrosis Xtandi Tremfya - immunology Trikafta C
Slide 26: 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 27: Appendix
Appendix ROYALTY PHARMA 27
Slide 28: Strong Royalty Receipts growth and base business performance
Strong Royalty Receipts growth and base business performance Q2 2024 Portfolio Receipts ($ in millions) 0 +12% Recurring cash receipts +11% 12 (13) 61 605 3 608 Drivers: 545 0 545 + Evrysdi 2 Drivers: + Cystic Fibrosis + Trelegy + Tremfya Headwinds: - Imbruvica Portfolio Receipts Milestones and Roya
Slide 29: Potential royalties on ~40 projects in late-stage development
Potential royalties on ~40 projects in late-stage development Phase 2 Phase 3 Registration MK-8189 trontinemab aficamten pelacarsen olpasiran KarXT Initial indication Schizophrenia Alzheimer’s disease oHCM Cardiovascular disease Cardiovascular disease Schizophrenia CK-586(1) tulmimetostat (CPI-0209)
Slide 30: Detailed modeling assumptions for Evrysdi royalties
Detailed modeling assumptions for Evrysdi royalties Royalties shown as they are accrued and do not reflect PR(1); Cash royalty receipts are received on a one-quarter lag Extrapolated Using Median Actuals Visible Alpha Mean Consensus Growth Rates of Available Brokers(3) ($m) 2020 (2) 2021(2) 2022(2)
Slide 31: Detailed Cytokinetics partnership overview
Detailed Cytokinetics partnership overview Remaining capital $ in USD millions Tranche Capital drawn(1) Key details Funding timing Other available • 4.5% up to $5.0bn aficamten(2) -- -- $150 • Funded • 1.0% on over $5.0bn 1 -- $50 • Funded 4 $75 -- • Available until Q2’25 • 1.90x funded amount • 1.9