Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Full Year and Q4 2024 Financial Results
Royalty Pharma plc Full Year and Q4 2024 Financial Results Feburary 11, 2025 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 achievements reflect strong business momentum
Key achievements reflect strong business momentum 1 2 3 4 Financial Portfolio Capital allocation Internalization Royalty Receipts grew +13% in Added eight new royalties in Capital Deployment of Royalty Pharma to acquire its 2024 with Portfolio Receipts 2024, including four ~$2.8bn in 2024 external m
Slide 7: Internalizing the Manager is the next step in our evolution
Internalizing the Manager is the next step in our evolution Royalty Pharma evolution (1996 to present) Externally Integrated public managed company Expanded public investment company Ongoing scope business Fund Internalizing management company structure 1996 to 2003 2004 to 2011 2012 to 2020 2020 to
Slide 8: Royalty Pharma has been externally managed since 1996
Royalty Pharma has been externally managed since 1996 Current structure Post-internalization structure Management fee ~6.5% of Portfolio Receipts(1) Integrated public company public private Significant cash savings Royalty Royalty Enhances returns Pharma plc Manager Pharma plc Strengthens alignment
Slide 9: Multiple benefits from internalizing the Manager
Multiple benefits from internalizing the Manager Benefits Cash savings are expected to be >$100m in 2026 and >$175m in 2030, compared to status quo, with cumulative savings of Savings >$1.6bn over ten years; compares to total transaction value of ~$1.1 billion(1) Financial Returns Extinguishment of
Slide 10: Transaction Pipeline: Chris Hite
Transaction Pipeline Chris Hite Executive Vice President Vice Chairman 10
Slide 11: Announced $2.8 billion of royalty transactions in 2024
Announced $2.8 billion of royalty transactions in 2024 2024 Royalty Pharma investment activity >440 initial reviews 153 CDAs signed 99 in-depth reviews frexalimab aficamten 42 proposals submitted ecopipam CK-586 deucrictibant omecamtiv Executed 8 transactions for $2.8bn Maintained strong financial d
Slide 12: Synthetic royalty opportunity is large and rapidly growing
Synthetic royalty opportunity is large and rapidly growing ~$290bn biopharma industry funding(1,2) Record year for RP synthetic royalty transactions (2020-2024) (Announced value)(3) ~2.5x Convertible Debt Existing royalties Synthetic Royalties $925m (~4%) Licensing deals (upfront) $775m $664m $375m
Slide 13: Portfolio Update: Marshall Urist
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 13
Slide 14: Recently launched products expected to drive growth
Recently launched products expected to drive growth Transaction size $905 million Up to $500 million $350 million $150 million $125 million Marketer Servier Bristol Myers Squibb Incyte and Syndax Ascendis Geron Indication Low-grade glioma Schizophrenia Chronic GvHD Hypoparathyroidism LR-MDS with TD
Slide 15: Financial Results: Terrance Coyne
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 15
Slide 16: Efficient model generates substantial cash flow to reinvest
Efficient model generates substantial cash flow to reinvest % Portfolio % Portfolio $ in millions Q4 2024 Receipts FY 2024 Receipts Royalty Receipts(1) 729 +12% YoY 2,771 +13% YoY Milestones & other contractual receipts(1) 13 -85% YoY 31 -95% YoY Portfolio Receipts 742 +1% YoY 2,801 -8% YoY Payments
Slide 17: Unique business model powering ~12% average growth since IPO
Unique business model powering ~12% average growth since IPO Royalty Receipts (year/year growth; $ in millions) +15% +12% +8% +13% +15% +12% +14% $732 $729 +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 $472
Slide 18: Royalty Receipts growth of 13% exceeded initial guidance of 5-9%
Royalty Receipts growth of 13% exceeded initial guidance of 5-9% 2024 Portfolio Receipts (non-GAAP)(1) ($ in millions) 0 -8% 3,049 599 0 +13% 18 31 320 2,771 2,801 (17) 2,449 Drivers: + Cystic Fibrosis + Trelegy + Evrysdi + Tremfya Headwinds: - Imbruvica 2023 actuals Milestones and 2023 actuals Roya
Slide 19: Significant financial capacity to execute strategy
Significant financial capacity to execute strategy Cash and cash equivalents ($ in millions) • $929m of cash and cash equivalents as of December 31, 2024 1,493 -2,761 Monetized MorphoSys Development Funding Bonds in January 2025 for $511m of cash • $7.8bn investment grade debt outstanding 2,452
Slide 20: Updated framework guides capital allocation decisions
Updated framework guides capital allocation decisions Royalty Pharma’s Royalty Pharma’scapital allocationframework capital allocation framework • Rigorous framework for capital allocation, weighing More attractive royalty opportunities the attractiveness of each option • Current royalty environment
Slide 21: Balancing acquiring royalties and increasing return of capital
Balancing acquiring royalties and increasing return of capital Capital Deployment Share repurchases Dividend • Capital Deployment guidance of $2.0- • Board authorized new $3bn share • Current dividend of $0.88 annually, $2.5bn per year repurchase program ~3% dividend yield(2) • Target returns mainta
Slide 22: Full-year 2025 guidance
Full-year 2025 guidance(1,2) February 11, 2025 Comments • Strong portfolio performance Portfolio Receipts $2,900m - $3,050m • Milestones and other contractual receipts expected to increase from excluding transactions announced (4%-9% growth yr/yr) $31m in 2024 to ~$60m in 2025 subsequent to February
Slide 23: Conclusion: Pablo Legorreta
Conclusion Pablo Legorreta Founder & Chief Executive Officer 23
Slide 24: Increasingly well positioned to drive value for shareholders
Increasingly well positioned to drive value for shareholders Strong performance Attractive opportunity set Enhancing shareholder value +13% >440 Internalization growth in Royalty Receipts (FY 2024) deal pipeline initial reviews (FY 2024) drives multiple financial & strategic benefits ~$2.8bn Returns
Slide 25: 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 26: Appendix
Appendix ROYALTY PHARMA 26
Slide 27: On track to meet or exceed 5-year capital deployment target
On track to meet or exceed 5-year capital deployment target Investing in approved and development-stage royalties 5-year capital deployment target(2,3) (Transactions announced since January 1, 2022) (Transaction value; since January 1, 2022) 12 ~$10.2bn $10-12bn target Approved 10 Transaction value
Slide 28: Important events expected in 2025
Important events expected in 2025 2025 Select recent and expected upcoming events Q1 Q2 Q3 Q4 TEV-‘749 Phase 3 safety results for schizophrenia (SOLARIS)(1) ecopipam Phase 3 results for Tourette’s syndrome(2) Cobenfy Phase 3 results in adjunctive schizophrenia (ARISE)(3) Clinical aficamten Phase 3 r
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 CK-586 trontinemab omecamtiv mecarbil pelacarsen olpasiran aficamten Initial indication Heart failure Alzheimer’s disease Heart failure Cardiovascular disease Cardiovascular disease oHCM tulmimetostat (CPI-020