Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Q1 2024 Earnings Presentation
31 slides from Royalty Pharma's earnings presentation, May 9, 2024
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q1 2024 Financial Results
Royalty Pharma plc Q1 2024 Financial Results May 9, 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 Development-stage Pipeline Chris Hite EVP, Vice Chairman Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chie
Slide 5: Key Highlights: Pablo Legorreta
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Business momentum continues in Q1 2024
Business momentum continues in Q1 2024 1 2 3 4 Financial Capital allocation Portfolio Full year guidance Royalty Receipts grew +14% Announced transaction to Exciting development-stage Portfolio Receipts expected to with Portfolio Receipts acquire royalties on Sanofi’s portfolio with potential to be
Slide 7: Impressive track record of strong growth since IPO
Impressive track record of strong growth since IPO Portfolio Receipts (year/year growth) +87% +96% -31% -37% +14% +7% +15% +2% +10% +24% +9% +6% +12% +16% +9% +12% +4% +37% +10% +14% +7% +9% +3% +10% +24% +12% +35% +11% +12% +11% +4% +19% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020(1) 2021
Slide 8: Portfolio Update
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 8
Slide 9: Frexalimab - potential blockbuster in immune-mediated diseases
Frexalimab - potential blockbuster in immune-mediated diseases Frexalimab peak sales projections (non-risk adjusted) • Announced transaction to acquire royalty interest in Sanofi’s frexalimab from ImmuNext (private biotech) Other indications Total ▪ ~$525m in cash including estimated transaction cos
Slide 10: Frexalimab - potential next generation I&I therapy with clear PoC
Frexalimab - potential next generation I&I therapy with clear PoC Sanofi’s frexalimab: potential pipeline-in-a-product(2) • Frexalimab – novel MoA (anti-CD40L) in Phase 3 development with broad potential in immune-mediated diseases Status Eligible Indication Ph.1 Ph.2 Ph.3 Filed population Next mile
Slide 11: Frexalimab - deep analysis supports our confidence
Frexalimab - deep analysis supports our confidence Strong efficacy Novel mechanism Data translatability World Class Marketer Unmet need Phase 2 data Differentiated Positive Phase 2 in Sanofi has a deep RP claims analysis demonstrate mechanism of immune MS highly predictive history in MS and a projec
Slide 12: Frexalimab – clearly aligned with product selection framework
Frexalimab – clearly aligned with product selection framework Royalty Pharma product selection framework frexalimab Strong scientific rationale Evidence suggests key role of CD40/CD40L in MS Maximizing Significant impact on patients/caregivers Potential high-efficacy, non-lymphocyte depleting MS the
Slide 13: Development-stage Pipeline
Development-stage Pipeline Chris Hite Executive Vice President Vice Chairman 13
Slide 14: Exciting development-stage pipeline to drive long-term growth
Exciting development-stage pipeline to drive long-term growth 1 2 3 High potential Lower risk Unlocking value 15 development-stage therapies(1) with Development-stage pipeline supported Multiple potential upcoming events over potential to generate peak annual by lower-risk profile as majority are in
Slide 15: Healthy mix of approved and development-stage investments
Healthy mix of approved and development-stage investments Annual Capital Deployment ~$22.8 billion in cumulative Capital Deployment (since 2012 – 2024 YTD) 100% 86% 61%, ~$13.8bn 37% 39% ,~$8.3bn ,~$9.0bn(1) Approved products Development-stage Development-stage therapies therapies 14% 0% 2012 2020 2
Slide 16: Significant growth and diversity of development-stage pipeline
Significant growth and diversity of development-stage pipeline Pipeline evolution since IPO Strong diversity of pipeline (by number of therapies) (by number of therapies) 50x Immunology Cardiology 15(1) Cancer 9 Rare disease 3 Psychiatry Neurology June 2020 December 2021 Current 1. Including frexali
Slide 17: Strong track record of investing in development-stage therapies
Strong track record of investing in development-stage therapies Capital Deployment on development-stage therapies(2, 3) (since 2012) • Invested ~$9bn in development-stage Approved since acquisition therapies since 2012 ▪ Require strong proof of concept data 10% ▪ Broad landscape of opportunities Not
Slide 18: Unique and powerful approach to development-stage investing
Unique and powerful approach to development-stage investing Product selection Deal structure Post proof of concept with strong evidence of Risk mitigation strategies through clinical & regulatory clinical efficacy and safety milestones, royalty tiering, option periods, etc. Approach Partnering direc
Slide 19: 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 Therapy Lead indication Marketer best-in-class (non risk adjusted)(3) royalties Frexalimab(1) multiple sclerosis Sanofi >$5bn >$400m olpasiran cardiovascular disease Amgen >$3bn >$250m
Slide 20: Financial Results
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 20
Slide 21: Strong Royalty Receipts performance in Q1 2024
Strong Royalty Receipts performance in Q1 2024 Milestones and other Royalty Receipts contractual receipts Portfolio Receipts ($ in millions) ($ in millions) ($ in millions) Recurring cash inflows $475m Biohaven-related payment in Q1 2023(1) +14% -98% -37% 1,131 515 705 717 616 705 515 616 12 Q1 2023
Slide 22: Efficient model generates substantial cash flow to reinvest
Efficient model generates substantial cash flow to reinvest % Portfolio $ in millions Q1 2024 Receipts Comments Royalty Receipts(1) 705 +14% YoY Recurring cash inflows of our royalty portfolio Milestones & other contractual receipts(1) 12 -98% YoY More variable cash receipts Portfolio Receipts 717 -
Slide 23: Significant financial capacity for future royalty acquisitions
Significant financial capacity for future royalty acquisitions Cash and cash equivalents ($ in millions) • Pro forma(1) cash and cash equivalents of $318m ▪ $525m of cash to acquire frexalimab royalties >3,000 >3,500 • $6.3bn investment grade debt outstanding ▪ Total pro forma leverage of 2.6x(2) ▪
Slide 24: Full year 2024 guidance
Full year 2024 guidance(1,2) February 15, 2024 May 9, 2024 Comments • Strong portfolio performance and full year of incremental Evrysdi royalties, partially offset by Imbruvica and Tysabri Portfolio Receipts • Milestones and other contractual receipts expected to excluding transactions announced $2,
Slide 25: Conclusion
Conclusion Pablo Legorreta Founder & Chief Executive Officer
Slide 26: Participating in most important waves of biopharma innovation
Participating in most important waves of biopharma innovation Frexalimab(1) - MS KarXT - schizophrenia Next exciting wave pelacarsen - CV disease of biopharma innovation olpasiran - CV disease aficamten - oHCM trontinemab - AD Trikafta - cystic fibrosis Xtandi Tremfya - immunology Trikafta Cabometyx
Slide 27: Footnotes
Footnotes 1) To aid in comparability, quarter-over-quarter growth in 2020 is calculated based on pro forma 2019 results, which adjusts certain cash flow line items as if Royalty Pharma’s Reorganization Transactions (as described in the Company’s final prospectus filed with the SEC on June 17, 2020 (
Slide 28: Appendix
Appendix ROYALTY PHARMA 28
Slide 29: Strong Royalty Receipts growth and base business performance
Strong Royalty Receipts growth and base business performance Q1 2024 Portfolio Receipts ($ in millions) 0 -37% 1,131 515 Recurring cash receipts +14% 21 12 68 705 717 616 Drivers: Drivers: + Cystic Fibrosis + Evrysdi 2 + Trelegy + Evrysdi 1 Headwinds: - Imbruvica Portfolio Receipts Milestones and Ro
Slide 30: Important events expected in 2024
Important events expected in 2024 2024 Select year-to-date and expected upcoming events Q1 Q2 Q3 Q4 Trodelvy Phase 3 results for 2-3L non-small cell lung cancer (EVOKE-01)(1) Tremfya Phase 3 results for Crohn’s disease(2) TEV-‘749 Phase 3 results for schizophrenia(3) Long-term safety results Trodelv
Slide 31: 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 tulmimetostat (CPI-0209) pelabresi