Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Q1 2021 Earnings Presentation
23 slides from Royalty Pharma's earnings presentation, May 11, 2021
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q1 2021 Financial Results
Royalty Pharma plc Q1 2021 Financial Results May 11, 2021 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 Marshall Urist EVP, Co-Head of Research and Investments Portfolio Update Jim Reddoch EVP, Co-Head of Research and Investments & Chief Scientific Officer Financial Results Terrance Coyne EVP, Chief Financial
Slide 5: Key Highlights – Pablo Legorreta
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Q1 2021 – Executing against our strategy
Q1 2021 – Executing against our strategy Strong double-digit top- and bottom-line growth(1) Robust deal flow with YTD transactions announced of $787m(2), including $582m upfront Exciting collaboration with MSCI on thematic indexes announced Raising full-year guidance for Adjusted Cash Receipts(3) (e
Slide 7: Q1 2021 – Strong double-digit top- and bottom-line growth
Q1 2021 – Strong double-digit top- and bottom-line growth Adjusted Cash Receipts(1) Adjusted Cash Flow(1,2) ($ in millions) ($ in millions) 524 +37% 409 +37% $0.67/share 382 298 $0.49/share Q1 2020 Q1 2021 Q1 2020 Q1 2021 1. See slide 20 for definitions. Refer to Royalty Pharma’s Current Report on F
Slide 8: Developing innovative life science thematic indexes
Developing innovative life science thematic indexes ▪ Novel collaboration with MSCI to develop new biopharma and life sciences indexes ▪ Leverages Royalty Pharma’s deep scientific knowledge and unique data analytics capabilities ▪ Expected to generate recurring and growing revenue stream on life sci
Slide 9: Royalty Acquisitions – Marshall Urist, MD, PhD
Royalty Acquisitions Marshall Urist, MD, PhD Executive Vice President Co-Head of Research and Investments 9
Slide 10: Cabometyx - leading TKI approved in multiple indications
Cabometyx - leading TKI approved in multiple indications Sales evolution(1) ($ in millions) • Acquired GSK’s royalty in cabozantinib products Cabometyx/Cometriq +23% CAGR ▪ $342 million upfront, $50 million potential milestone payments 3,013(2) ▪ 3% royalty on worldwide net sales U.S. Non-U.S. • Cab
Slide 11: Oxlumo - transformative rare disease therapy for PH1
Oxlumo - transformative rare disease therapy for PH1 Primary Hyperoxaluria (PH) Type 1: • Acquired Dicerna’s royalty interest in Oxlumo (lumasiran) Patients in the U.S. / EU (2) ▪ $180 million upfront payment ▪ $60 million potential sales-based milestones ▪ Mid-high single digit royalty ~2,900-3,400
Slide 12: Portfolio Update – Jim Reddoch, PhD
Portfolio Update Jim Reddoch, PhD Executive Vice President Co-Head of Research and Investments, Chief Scientific Officer 12
Slide 13: Strong portfolio progress with important upcoming events
Strong portfolio progress with important upcoming events Select year-to-date and expected upcoming events 2021 Q1 Q2 Q3 Q4 Oral zavegepant Phase 2/3 study start(1) ✓ Cabometyx 1L HCC top-line results (COSMIC 312)(2) Cabometyx mCRPC ORR results (COSMIC 021)(2) Clinical Trodelvy Phase 3 results for 3L
Slide 14: Financial Results – Terrance Coyne
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 14
Slide 15: Total Royalty Receipts growth of 19% in Q1 2021
Total Royalty Receipts growth of 19% in Q1 2021 Selected Products Q1 2021 Royalty Receipts(1) Growth $ in millions % year/year CF Franchise 167 68 89 15 87 4 HIV Franchise 46 -45 44 23 41 18 DPP-IV Franchise 36 3 Other DPP-IVs Other 139 49 Total 649 19 1. Amounts may not add due to rounding. 15
Slide 16: Strong Adjusted Cash Flow conversion in Q1 2021
Strong Adjusted Cash Flow conversion in Q1 2021 Q1 2021 Adjusted Cash Flow (Non-GAAP)(1) ($ in millions) 649 (126) 524 (42) (3) (63) $0.67/share(2) (7) 409 Royalty Receipts Non-Controlling Adjusted Cash Operating and R&D Funding Interest, net Other Adjusted Cash Flow Interest Receipts Professional C
Slide 17: Strong balance sheet liquidity to drive new royalty acquisitions
Strong balance sheet liquidity to drive new royalty acquisitions Cash, cash equivalents & marketable securities ($ in millions) • $1.8 billion of cash, cash equivalents and As of March 31, 2021 marketable securities as of March 31, 2021 409 -521 • Capital deployed of $521 million in Q1 -102 2021 1,9
Slide 18: Full-year 2021 guidance
Full-year 2021 guidance(1,2) Adjusted Cash Receipts: Operating & professional costs: $1,940 to $1,980 million approximately 9%-10% excluding new transactions(1,2) of Adjusted Cash Receipts(2) (previously $1,910 to $1,960) (unchanged) 1. See Slide 20 for definitions and for additional information reg
Slide 19: Conclusion – Pablo Legorreta
Conclusion Pablo Legorreta Founder & Chief Executive Officer 19
Slide 20: Footnotes
Footnotes 1) To aid in comparability, figures for each fiscal quarter in 2019 are presented on an unaudited pro forma basis, which adjusts certain cash flow line items as if Royalty Pharma’s Reorganization Transactions (as described in the Company’s final prospectus filed with the SEC on June 17, 20
Slide 21: Appendix
Appendix ROYALTY PHARMA 21
Slide 22: Delivering top- and bottom-line growth
Delivering top- and bottom-line growth Adjusted Cash Receipts(1) Adjusted Cash Flow(1) ($ in millions) ($ in millions) 536 536 524 472 484 423 462 409 446 384 394 421 369 347 373 382 309 298 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 pro forma 2020 2021 2019 pro forma 2020 2021 T
Slide 23: Distributions to non-controlling interest (NCI)
Distributions to non-controlling interest (NCI) First quarter 2021 NCI as a Products % of Royalty Receipts • Royalty Pharma includes several non-controlling Cystic fibrosis franchise(1) 15.4% interests in our financial statements. Tysabri 17.6% Imbruvica 17.6% • The largest of these impacting the no