Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Full-Year and Q4 2023 Financial Results
Royalty Pharma plc Full-Year and Q4 2023 Financial Results February 15, 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 Transaction Pipeline Chris Hite EVP, Vice Chairman Portfolio Update Marshall Urist EVP, Head of Research & Investments Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chief Exec
Slide 5: Key Highlights – Pablo Legorreta
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Key 2023 achievements reflect strong business momentum
Key 2023 achievements reflect strong business momentum 1 2 3 4 Financial Portfolio Capital allocation Full-year guidance Strong portfolio growth, Added royalties on eight Transactions announced of Portfolio Receipts expected to including the CF franchise, therapies, including on $4.0bn(1) and Capita
Slide 7: Strong growth in Royalty receipts in Q4 and full-year 2023
Strong growth in Royalty receipts in Q4 and full-year 2023 Royalty receipts Royalty receipts ($ in millions; year/year growth) ($ in millions; year/year growth) +10% +8% 2,449 2,269 651 593 Q4 2022 Q4 2023 FY 2022 FY 2023 Diversified royalty portfolio of >35 approved products drove strong financial
Slide 8: New royalties diversifying portfolio, driving double-digit growth
New royalties diversifying portfolio, driving double-digit growth(1) Robust transaction activity since the beginning of 2020 New royalties to add ~$1.2bn in Portfolio Receipts in 2025(4) ~$13bn 34 New royalties since 2020 Biohaven payments(5) total announced value unique therapies Future royalty acq
Slide 9: Transaction Pipeline – Chris Hite
Transaction Pipeline Chris Hite Executive Vice President Vice Chairman 9
Slide 10: Strong momentum for biopharma royalty market
Strong momentum for biopharma royalty market Dollar value of transactions(1) Biopharma royalty market share ($ in billions) (2023) >12x Other royalty buyers 7.4 6.3 34% 5.4 5.1 4.5 4.2 #2 royalty buyer 13% 53% 2.2 1.5 0.6 2015 2016 2017 2018 2019 2020 2021 2022 2023 Royalty Pharma maintained its lea
Slide 11: Announced $4.0 billion of royalty transactions in 2023
Announced $4.0 billion of royalty transactions in 2023 2023 Royalty Pharma investment activity >400 initial reviews 126 CDAs signed 93 in-depth reviews 47 proposals submitted Executed 7 transactions for $4.0bn(1) Maintained strong financial discipline as ~2% of initial reviews resulted in an acquire
Slide 12: Strong Royalty Pharma pipeline trends given market backdrop
Strong Royalty Pharma pipeline trends given market backdrop Opportunity set increasing Robust royalty acquisition activity In-depth reviews Announced transaction value ($ in bn) +133% ~+100% 93 $4.0 $3.4 70 61 $2.9 50 $2.4 40 $2.0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Pre-IPO Post-IPO 12
Slide 13: Synthetic royalty opportunity is large and rapidly growing
Synthetic royalty opportunity is large and rapidly growing >$260bn biopharma industry funding(1,2) Strongest year ever for RP synthetic royalty transactions (2019-2023) (Announced value)(3) ~2x Convertible Debt Synthetic Royalties $775m Licensing deals (3%) (upfront) $664m $375m $294m IPOs Follow-on
Slide 14: Portfolio Update – Marshall Urist
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 14
Slide 15: Strong early performance from recent transactions
Strong early performance from 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) 73% Therapy Indication Event Status (3) 63% aficamten oHCM Phase 3 resul
Slide 16: Positive recent events across development-stage portfolio
Positive recent events across development-stage portfolio aficamten KarXT seltorexant Obstructive HCM Schizophrenia MDD with insomnia symptoms Positive Phase 3 results(1) Proposed acquisition by Bristol for ~$13bn(2) $1-5bn in peak sales potential(3) December 2023 December 2023 December 2023 pelabre
Slide 17: Financial Results – Terrance Coyne
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 17
Slide 18: Enhanced financial disclosures for investors
Enhanced financial disclosures for investors Royalty Pharma is implementing changes in the presentation of its non-GAAP measures to further enhance transparency and disclosures for investors and to better reflect the nature of its cash flows There is no change to the presentation of Royalty Pharma’s
Slide 19: Updates to Non-GAAP measures
Updates to Non-GAAP measures Previous New Comments Calculation of Portfolio Receipts will result in the same total as under Maximizing Adjusted Cash Receipts Portfolio Receipts previous presentation of Adjusted Cash Receipts (Non-GAAP) Individual royalties to be reported net of legacy non-controllin
Slide 20: Strong financial performance in 2023
Strong financial performance in 2023 Milestones and other Royalty receipts contractual receipts Portfolio Receipts ($ in millions) ($ in millions) ($ in millions) $509m Biohaven $525m Biohaven payments in 2022(1) payments in 2023(1) +8% +15% +9% 3,049 2,789 2,449 599 2,269 520 2,449 2,269 520 599 20
Slide 21: Strength of diversified portfolio drove growth in FY 2023
Strength of diversified portfolio drove growth in FY 2023 Select products Portfolio Receipts Growth Portfolio Receipts Growth ($ in millions) Q4 2022 Q4 2023 (% YoY) FY 2022 FY 2023 (% YoY) CF Franchise 187 208 11 690 771 12 73 68 -7 305 279 -8 47 60 28 90 203 nm 58 50 -13 258 210 -18 40 44 9 150 16
Slide 22: Efficient model generates substantial cash flow to reinvest
Efficient model generates substantial cash flow to reinvest % Portfolio % Portfolio $ in millions Q4 2023 Receipts FY 2023 Receipts Royalty receipts 651 +10% YoY 2,449 +8% YoY Milestones & other contractual receipts 84 -82% YoY 599 +15% YoY Portfolio Receipts 736 -31% YoY 3,049 +9% YoY Payments for
Slide 23: Significant financial capacity for future royalty acquisitions
Significant financial capacity for future royalty acquisitions Cash, cash equivalents & marketable securities ($ in millions) • Financial capacity of >$3.5 billion with cash on hand and additional leverage(1) 2,708 -2,192 • $477m of cash and cash equivalents as of December 31, 2023 >3,000 >3,500 • $
Slide 24: Full-year 2024 guidance
Full-year 2024 guidance(1,2) February 15, 2024 Comments • Strong portfolio performance and full year of incremental Evrysdi royalties, partially offset by Imbruvica and Tysabri headwinds Portfolio Receipts • Milestones and other contractual receipts expected to decline from excluding transactions an
Slide 25: Strong underlying royalty receipts growth expected in 2024
Strong underlying royalty receipts growth expected in 2024 Milestones and other Royalty receipts contractual receipts Portfolio Receipts ($ in millions) ($ in millions) ($ in millions) Expected growth of 5% to 9% in 2024 Expected to be ~$30 million in 2024 Guidance of $2.6bn to $2.7bn in 2024 3,049
Slide 26: Conclusion – Pablo Legorreta
Conclusion Pablo Legorreta Founder & Chief Executive Officer 26
Slide 27: Simple business model drives compounding growth
Simple business model drives compounding growth Capital deployment Returns ~$9 billion of Capital Deployment Returns Consistent attractive returns since 2020 meaningfully above cost of capital ~$13 billion announced value >80% of investments above cost of of transactions since 2020 capital from 2012
Slide 28: Footnotes
Footnotes 1) To aid in comparability, quarter-over-quarter growth in 2020 is calculated based on pro forma 2019 results, which adjusts certain cash flow line items as if Royalty Pharma’s Reorganization Transactions (as described in the Company’s final prospectus filed with the SEC on June 17, 2020 (
Slide 29: Appendix
Appendix ROYALTY PHARMA 29
Slide 30: Simplifying our non-GAAP presentation
Simplifying our non-GAAP presentation Previous New ($ in millions) FY 2022 FY ($ in millions) FY 2022 Royalty receipts by product and franchise Total Royalty Receipts 3,231 Royalty receipts 2,269 will be reported net of Distributions to legacy non-controlling interests (442) Milestones and other con
Slide 31: Strong growth in 2023 driven by royalty portfolio
Strong growth in 2023 driven by royalty portfolio 2023 Portfolio Receipts ($ in millions) 0 +9% 599 3,049 0 +8% 2,789 520 49 (74) 205 Drivers: 2,449 + Spinraza 2,269 Drivers: + Cystic Fibrosis + Trelegy + Evrysdi Headwinds: - Imbruvica - Tysabri Portfolio Receipts Milestone and Royalty receipts Roya
Slide 32: Important milestones expected in 2024
Important milestones expected in 2024 2024 Select recent 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) Trodelvy Phase 3 results for 2L+ metastatic urothelial cancer (TROPiCS-04)(3) Tr
Slide 33: 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