Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Q3 2022 Earnings Presentation
25 slides from Royalty Pharma's earnings presentation, Nov 8, 2022
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q3 2022 Financial Results
Royalty Pharma plc Q3 2022 Financial Results November 8, 2022 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 Portfolio Update Marshall Urist EVP, Head of Research & Investments Financial Results Terrance Coyne EVP, Chief Financial Officer Conclusion Pablo Legorreta Founder & Chief Executive Officer Pablo Legorreta Founder & Chief Execu
Slide 5: Key Highlights
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Executing against our strategic objectives
Executing against our strategic objectives 1 2 3 4 Financial Strong capital Positive portfolio Raising full-year performance deployment progress guidance Adjusted Cash Receipts (“top- Transactions announced YTD Pfizer closed acquisition of Adjusted Cash Receipts(1) line”)(1) +2%, Adjusted of $3.0bn(
Slide 7: Solid financial performance in Q3 2022
Solid financial performance in Q3 2022 Adjusted Cash Receipts(1) Adjusted EBITDA(1) Adjusted Cash Flow(1,2) ($ in millions) ($ in millions) ($ in millions, except per share amounts) $37m headwind to ACR growth from Soliqua milestone payment in Q3 2021 $25m ($0.04/share) upfront development- stage pa
Slide 8: Impressive track record of strong top-line growth since IPO
Impressive track record of strong top-line growth since IPO Adjusted Cash Receipts(1) ($ in millions, year/year growth) $2.1bn (+18%) $1.7bn (+9% YTD) +15% +2% +24% 605 597 587 +12% +37% +10% 543 524 524 +9%(2) +3% +12%(2) +24%(2) 484 472 475 462 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 1. 2. Se
Slide 9: Emerging funding paradigm for successful biotechs
Emerging funding paradigm for successful biotechs Immunomedics raised ~$1.9bn in capital(1) Biohaven raised ~$3.2bn in capital(2) Other Royalty Pharma Pfizer partnership Royalty Pharma Partnership Partnership 23% 13% 16% 26% Debt 4% Debt 23% 60% 35% Equity Equity Acquired by Gilead for ~$21bn Acquir
Slide 10: Portfolio Update
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 10
Slide 11: R&D funding collaborations a significant growth opportunity
R&D funding collaborations a significant growth opportunity • Merck collaboration may serve as a model for future Global biopharma R&D expenditures(1) transactions with large biopharma companies • Multiple potential benefits ~$1 trillion Risk-sharing cumulative R&D Optimizes R&D spend to pursue
Slide 12: MK-8189: R&D funding collaboration on key pipeline program
MK-8189: R&D funding collaboration on key pipeline program • Oral PDE10A inhibitor in Phase 2b(1) for schizophrenia Novel structure: Scaled investment decision following Phase 2b study results Potential for efficacy similar to current standard of care with differentiated safety profile Merck provi
Slide 13: Potential royalties on ~40 projects in late-stage development
Potential royalties on ~40 projects in late-stage development Phase 2 Phase 3 Registration New molecular entity MK-8189 gantenerumab (brain shuttle) pelabresib aficamten gantenerumab zavegepant (intranasal) Schizophrenia Alzheimer’s disease 1L Myelofibrosis oHCM Prodromal to mild Alzheimer’s Migrain
Slide 14: Important upcoming events over the next year
Important upcoming events over the next year 2022 2023 Select recent and expected upcoming events Q3 Q4 FY Cabometyx, Opdivo, Yervoy Phase 3 results for 1L RCC (COSMIC 313)(1) PFS met, trial continuing for OS Trodelvy Phase 3 OS results for 3L+ HR+/HER2- mBC(2) Xtandi, Talzenna Phase 3 results for m
Slide 15: Financial Results
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 15
Slide 16: Total royalty receipts stable in Q3 2022
Total royalty receipts stable in Q3 2022 Selected products Q3 2022 Royalty receipts(1) Growth $ in millions % year/year CF Franchise 208 14 91 -5 74 -15 50 4 46 14 43 n/a 21 29 (2) 20 14 15 21 Other (3) 135 -36 Total 704 -1 CF: cystic fibrosis 1. Amounts may not add due to rounding. 2. Nurtec ODT ro
Slide 17: Efficient model generates substantial cash flow to invest
Efficient model generates substantial cash flow to invest YoY % $ in millions (except per share amount) Q3 2022 change % ACR Comments Royalty receipts 704 -1% Distributions to non-controlling interests Decline primarily reflects end of Januvia, -107 -15% Janumet and other DPP-IV royalties Adjusted C
Slide 18: Significant financial firepower for future royalty acquisitions
Significant financial firepower for future royalty acquisitions Cash, cash equivalents & marketable securities ($ in millions) Adjusted EBITDA less net • $1.1bn of cash, cash equivalents and interest = ~$1,425m marketable securities as of September 30, 2022 1,584 -117 -2,096 • Pro forma(1) cash, cas
Slide 19: Raising full-year 2022 guidance
Raising full-year 2022 guidance(1,2) August 4, 2022 November 8, 2022 Comments • Strong portfolio performance, partially Adjusted Cash Receipts (non-GAAP) $2,275m - $2,350m $2,750m - $2,800m offset by Imbruvica headwinds • Accelerated Biohaven payments of $458m excluding transactions announced (~+7%
Slide 20: Strong 2022 performance expected
Strong 2022 performance expected Adjusted Cash Receipts (non-GAAP)(1) 2022 guidance range (excluding future investments)(5) ILLUSTRATIVE ($ in millions) ~+29% to 32% 0 growth ~+8% to 10% 0 growth 2,750-2,800 Drivers: + Trelegy 2,129 Drivers: + Cystic Fibrosis + Xtandi + Tremfya Headwinds: - Imbruvic
Slide 21: Conclusion
Conclusion Pablo Legorreta Founder & Chief Executive Officer 21
Slide 22: Executing well against capital deployment plan
Executing well against capital deployment plan Attractive therapies added in 2022(1) Strong year of capital deployment ~$3bn in transaction value for 2022(2) (year-to-date through November 8, 2022) (year-to-date through November 8, 2022) Marketer Therapy ~$3bn Development-stage MK-8189 32% ~$1.7bn z
Slide 23: 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 24: Appendix
Appendix ROYALTY PHARMA 24
Slide 25: Distributions to non-controlling interests (NCI)
Distributions to non-controlling interests (NCI) Third quarter 2022 NCI as a Products % of royalty receipts • Royalty Pharma includes several non-controlling Cystic fibrosis franchise(1) 17.6% interests in our financial statements. Tysabri 17.6% Imbruvica 17.6% • The largest of these impacting the n