Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Q3 2020 Earnings Presentation
23 slides from Royalty Pharma's earnings presentation, Nov 11, 2020
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q3 2020 Financial Results
Royalty Pharma plc Q3 2020 Financial Results November 11, 2020 2
Slide 3: Forward Looking Statements & Non-GAAP Financial Information
Forward Looking Statements & Non-GAAP Financial Information 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 do
Slide 4: Agenda
Agenda Key Highlights Pablo Legorreta Founder & Chief Executive Officer Royalty Acquisitions Jim Reddoch EVP, Head of Research and Investments Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chief Executive Officer Pablo Legorreta Founder & Chief Ex
Slide 5: Key Highlights - Pablo Legorreta
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Business momentum continued in Q3 2020
Business momentum continued in Q3 2020 Strong financial results delivering double-digit top and bottom-line growth(1) Inaugural bond offering locking in low cost of debt and 12.5 year weighted-average maturity Further expanded portfolio with total year-to-date announced transactions of $2.3bn Succes
Slide 7: Strong Q3 2020 financial results
Strong Q3 2020 financial results Adjusted Cash Receipts(1) Adjusted Cash Flow(1) ($ in millions) ($ in millions) +12%(2) 472 421 +27%(2) 394 309 Q3 2019 Q3 2020 Q3 2019 Q3 2020 pro forma(2) pro forma(2) 1. See slide 20 for definitions. Refer to Royalty Pharma’s Current Report on Form 8-K dated Novem
Slide 8: Royalty Acquisitions - Jim Reddoch, PhD
Royalty Acquisitions Jim Reddoch, PhD Executive Vice President Head of Research and Investments 8
Slide 9: Recent portfolio progress reinforces growth outlook
Recent portfolio progress reinforces growth outlook ✓ Trikafta/Kaftrio: positive phase 3 data in children ages 6-11 with cystic fibrosis ✓ Trodelvy: positive pivotal phase 2 TROPHY U-01 results in metastatic urothelial cancer presented at ESMO Clinical ✓ Trodelvy: confirmatory Phase 3 ASCENT study i
Slide 10: Immunomedics transaction validates hybrid funding strategy
Immunomedics transaction validates hybrid funding strategy • January 2018: Royalty Pharma provided capital to Immunomedics Trodelvy consensus sales (1) to fund clinical, commercial and manufacturing activities for Trodelvy (sacituzumab govitecan) in mTNBC and other indications(2) At Investment Curre
Slide 11: CF royalty acquisition expands exposure to premier franchise
CF royalty acquisition expands exposure to premier franchise Vertex CF franchise: sales evolution ($ in billions) • Acquired CF Foundation’s residual royalty interest sharing in Vertex’s CF franchise on sales above $5.8bn (1) Vertex FY 2020 guidance: $6.0-6.2bn ▪ $575 million upfront payment $5.8bn
Slide 12: Financial Results - Terrance Coyne
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 12
Slide 13: Total Royalty Receipts growth of 7% in Q3 2020
Total Royalty Receipts growth of 7%(1) in Q3 2020 Selected Products Q3 2020 Royalty Receipts(2) Growth $ in millions % year/year CF Franchise 157 36 78 16 77 -8 HIV Franchise 67 6 40 28 38 21 DPP-IV Franchise 34 2 Other DPP-IVs Other 97 -21 1. Growth on Q3 2019 pro forma basis 2. Amounts may not add
Slide 14: Strong Adjusted Cash Flow in Q3 2020
Strong Adjusted Cash Flow in Q3 2020 Q3 2020 Adjusted Cash Flow (Non-GAAP)(1) 588 (116) 472 (59) $0.65/share(3) (5) (15) (2) 1 394 Royalty Receipts Non-Controlling Adjusted Cash Operating and R&D Funding Interest, net Other Adjusted Cash Flow Interest Receipts Professional Costs (non-GAAP) % Adjuste
Slide 15: Successfully issued $6 billion unsecured bonds at attractive rates
Successfully issued $6 billion unsecured bonds at attractive rates Among lowest weighted-average coupon Weighted-average maturity slightly longer than rates across biopharma (1)(2) biopharma peer group (1)(2) Peer A 1.65% Peer F 17.7yrs 2.125% Peer B 17.4yrs Peer B 2.14% Peer D 15.2yrs Peer C 2.36%
Slide 16: Balance sheet well positioned to drive new royalty acquisitions
Balance sheet well positioned to drive new royalty acquisitions Cash, cash equivalents & marketable securities ($ in millions) • $2.1 billion of cash, cash equivalents and As of September 30, 2020 marketable securities as of September 30, 1,060 -1,427 2020 • $1.5 billion revolver enhances liquidity
Slide 17: Full-Year 2020 guidance
Full-Year 2020 guidance(1,2) Adjusted Cash Receipts: Operating & professional costs: $1,780 to $1,800 million approximately 10% excluding new transactions(2,3) of Adjusted Cash Receipts 1. See Slide 20 for definitions and for additional information regarding Royalty Pharma’s 2020 full-year financial
Slide 18: Conclusion - Pablo Legorreta
Conclusion Pablo Legorreta Founder & Chief Executive Officer 18
Slide 19: Positioned for long-term, sustainable growth
Royalty Pharma - Positioned for long-term, sustainable growth Biopharma royalty market 3-year rolling average (1) Biopharma royalty market (1) ($ in3-year billions)rolling average ($ in billions) Full-Year 2020 guidance raised +52% 3.3 3.4 Improved capital structure 2.7 2.5 2.3 2.3 Recent portfolio
Slide 20: Footnotes
Footnotes 1) To aid in comparability, % changes have been calculated based on the three months ended September 30, 2019 figures presented on an unaudited pro forma basis, which adjusts certain cash flow line items as if Royalty Pharma’s Reorganization Transactions (as described in the Company’s fina
Slide 21: Appendix
Appendix ROYALTY PHARMA 21
Slide 22: Delivering continued top and bottom-line growth
Delivering continued top and bottom-line growth Adjusted Cash Receipts(1,2) Adjusted Cash Flow(1,2) ($ in millions, year/year growth) ($ in millions, year/year growth) 536 +12% 462 472 446 +27% 421 386 384 394 373 382 369 347 309 298 536 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 pro forma 2
Slide 23: Distributions to non-controlling interest
Distributions to non-controlling interest Third quarter 2020 NCI as a Products % of Royalty Receipts • Royalty Pharma includes several non-controlling Cystic fibrosis franchise 17.6% interests in our financial statements. Tysabri 17.6% Imbruvica 17.6% • The largest of these impacting the non-GAAP HI