Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q4 and Full Year 2022 Financial Results
Royalty Pharma plc Q4 and Full Year 2022 Financial Results February 15, 2023 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 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
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Key 2022 accomplishments reflect strong business momentum
Key 2022 accomplishments reflect strong business momentum • Adjusted Cash Receipts(1) growth of ~10% prior to accelerated Biohaven payment (31% reported growth) Financial • Adjusted EBITDA(1) growth of ~10% prior to accelerated Biohaven payment (32% reported growth) • Adjusted Cash Flow(1) growth of
Slide 7: Double-digit growth in Q4 and FY 2022
Double-digit growth in Q4 and FY 2022 Adjusted Cash Receipts(1) Adjusted EBITDA(1) Adjusted Cash Flow(1) ($ in millions) ($ in millions) ($ in millions) +96% reported ACR growth +99% reported Adjusted EBITDA growth +146% reported Adjusted Cash Flow growth 1,064 Q4 2022 983 946(3) 458 427 427 +12% +1
Slide 8: Impressive track record of strong top-line growth since IPO
Impressive track record of strong top-line(1) growth since IPO Adjusted Cash Receipts(2) ($ in millions, year/year growth) $2.1bn (+18%) $2.8bn (+31%; +10% prior to Biohaven) +96% 1,064 Q4: +12% prior to accelerated Biohaven payment +15% +2% +24% +12% 605 597 587 +10% +37% +9%(3) 543 +24%(3) +12%(3)
Slide 9: Existing portfolio powered ~10% growth despite LOEs and FX
Existing portfolio powered ~10% growth despite LOEs and FX 2022 Adjusted Cash Receipts (non-GAAP)(1) ($ in millions) 0 +31% 0 ~+10% 458 2,789 90 (65-85) ~290 2,331 Drivers: + Trelegy 2,129 (101) Drivers: + Cystic Fibrosis + Xtandi + Tremfya Headwinds: - Imbruvica (3) 2021 actuals Royalty expiries(2)
Slide 10: Unique power of business model to replenish portfolio
Unique power of business model to replenish portfolio ~$10bn in announced transaction value since 2020 New royalties expected to add ~$1bn in ACR in 2025(1) (at time of acquisition) DFBs New royalties since 2020 Future royalty acquisitions Approved 1,000 CF ~$850m 750 2020 2021 2022 2023 Accelerated
Slide 11: Transaction Pipeline
Transaction Pipeline Chris Hite Executive Vice President Vice Chairman 11
Slide 12: Strong momentum for biopharma royalty market
Strong momentum for biopharma royalty market Biopharma royalty market growth (1) Number of transactions Dollar value of transactions ($ in billions) >6x >10x 27 6.2 24 5.6 5.3 22 4.6 4.3 18 15 13 2.2 7 1.7 4 0.6 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 Royalty
Slide 13: Announced $3.5 billion of transactions in 2022
Announced $3.5 billion of transactions in 2022 2022 Royalty Pharma investment activity >350 initial reviews 106 CDAs signed 70 in-depth reviews 38 proposals submitted Executed 9 transactions for $3.5bn(1) Maintained strong financial discipline: ~3% of initial reviews resulted in a transaction 1. Dat
Slide 14: Positive market backdrop supports strong pipeline trends
Positive market backdrop supports strong pipeline trends Strong growth in initial reviews Opportunity set increasing Robust acquisition activity Initial reviews In-depth reviews Announced value +75% +75% +58% >350 70 $3.5bn >300 61 $3.0bn >265 50 $2.4bn $2.2bn >200 40 2019 2020 2021 2022 2019 2020 2
Slide 15: Portfolio Update
Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments 15
Slide 16: Ionis partnership – adding a pair of attractive royalties
Ionis partnership – adding a pair of attractive royalties Unique structure provides attractive risk-reward • $500m upfront funding and up to $625m in milestones for royalties on: ILLUSTRATIVE Novartis sees >$3bn peak sales(5) ▪ Biogen’s Spinraza for SMA ▪ Novartis’ pelacarsen for cardiovascular dise
Slide 17: Olpasiran – potential multi-blockbuster opportunity
Olpasiran – potential multi-blockbuster opportunity Lp(a) class consensus sales projections(1) ($ in billions) • Acquired Arrowhead Pharmaceuticals’ royalty on Amgen’s olpasiran in Phase 3 development for Lp(a) driven 4.7 cardiovascular disease olpasiran ▪ $250 million upfront payment pelacarsen ▪ $
Slide 18: Selected investment themes of interest
Selected investment themes of interest Under-innovated New modalities Brain Targeted therapy for new diseases disease beyond oncology large markets e.g. migraine, e.g. cell and gene e.g. mood disorders, e.g. cardiology (Lp(a), cardiology (Lp(a), HCM) therapy, gene editing neurodegeneration HCM), imm
Slide 19: Lp(a) is a potentially transformational target for CV disease
Lp(a) is a potentially transformational target for CV disease Lp(a) class has multi-blockbuster potential >8 million >2x Transformational people worldwide with elevated risk of a cardiovascular event in potential of class with no approved Lp(a) and cardiovascular disease(1) people with high Lp(a)(2)
Slide 20: Unique ability to invest in multiple products in the same class
Unique ability to invest in multiple products in the same class Hematology Lipoprotein(a) Anti-TNFs Cardiology Immunology olpasiran pelacarsen Spinal Muscular Atrophy Royalty Neurology Multiple sclerosis Rare Disease Pharma Prostate cancer Migraine Oncology Diabetes Portfolio agnostic to therapeutic
Slide 21: Airsupra: first-in-class therapy with blockbuster potential
Airsupra: first-in-class therapy with blockbuster potential projected to reach ~$1bn in sales(4) ($ in millions) • Airsupra (formerly PT027) FDA approved in January 2023 ▪ Fixed dose combination of budesonide (ICS) and albuterol 967 (SABA) to treat asthma ▪ First and only rescue medication approved
Slide 22: Maintained track record of success with recent transactions
Maintained track record of success with recent transactions(1) Change in 2025 consensus sales(2) since acquisition Development-stage therapies (Transactions since 2020; approved therapies) (Transactions since 2020; select events) 56% 51% Airsupra (PT027) approval in asthma otilimab not progressing P
Slide 23: Financial Results
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 23
Slide 24: Strong growth in total royalty receipts in Q4 and FY 2022
Strong growth in total royalty receipts in Q4 and FY 2022 Select key products Q4 2022 FY 2022 Royalty receipts(1) Growth Royalty receipts(1) Growth ($ in millions) (% year/year) ($ in millions) (% year/year) (2) 20 480 500 nm 80 480 560 nm CF Franchise 219 12 811 16 88 -7 370 0 71 -20 313 -11 49 0 1
Slide 25: Efficient model generates substantial cash flow to reinvest
Efficient model generates substantial cash flow to reinvest YoY % YoY % $ in millions (except per share amount) Q4 2022 change % ACR FY 2022 change % ACR Royalty receipts 1,183 79% 3,231 24% Distributions to non-controlling interests – royalty receipts -119 3% -442 -8% Adjusted Cash Receipts (non-GA
Slide 26: Significant financial firepower for future royalty acquisitions
Significant financial firepower for future royalty acquisitions Cash, cash equivalents & marketable securities ($ in millions) • $1.7bn of cash, cash equivalents and Adjusted EBITDA less marketable securities as of December 31, net interest = ~$2,421m 2022 2,566 -145 -2,507 • Pro forma(1) cash, cash
Slide 27: Full-year 2023 guidance
Full-year 2023 guidance(1,2) February 15, 2023 Comments • Strong portfolio performance and full year of Trelegy Adjusted Cash Receipts (non-GAAP) $2,375m - $2,475m royalties, partially offset by Imbruvica headwinds excluding transactions announced • 2023 growth headwind from accelerated Biohaven pay
Slide 28: Underlying growth in 2023 driven by existing portfolio
Underlying growth in 2023 driven by existing portfolio Biohaven payment added $509m ACR in 2022 Strong underlying ACR growth expected in 2023 ($458m accelerated payment; $52m Series A fixed payment) ($ in millions) ($ in millions) ILLUSTRATIVE ~+4% to +9% 0 underlying growth 2,789 Accelerated paymen
Slide 29: Conclusion
Conclusion Pablo Legorreta Founder & Chief Executive Officer 29
Slide 30: A unique way to invest in biopharma
A unique way to invest in biopharma Maximizing • Exposure to transformative therapies • Revenue and profit diversification • Therapeutic area breadth • Long weighted average portfolio duration Minimizing • Consistent and sustainable growth • Management team continuity • Early-stage development risk
Slide 31: 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 32: Appendix
Appendix ROYALTY PHARMA 32
Slide 33: Distributions to non-controlling interests (NCI)
Distributions to non-controlling interests (NCI) Royalties Q4 2022 NCI as a % of royalty receipts Nurtec ODT/Biohaven payment(1) 5.1% • Royalty Pharma includes several non-controlling Cystic fibrosis franchise(1) 14.9% interests in our financial statements. Tysabri 17.6% Imbruvica 17.6% • The larges
Slide 34: Multiple important milestones expected in 2023
Multiple important milestones expected in 2023 2023 Select year-to-date and expected upcoming events Q1 Q2 Q3 Q4 Xtandi Phase 3 results for nmCSPC (EMBARK)(1) Cabometyx, Tecentriq Phase 3 results for RCC during or following ICI (CONTACT-03)(2) Cabometyx, Opdivo, Yervoy Phase 3 OS results for 1L rena
Slide 35: Potential royalties on >35 projects in late-stage development
Potential royalties on >35 projects in late-stage development Phase 2 Phase 3 Registration New molecular entity MK-8189 trontinemab aficamten pelacarsen olpasiran zavegepant (intranasal) Schizophrenia Alzheimer’s disease oHCM Cardiovascular disease Cardiovascular disease Migraine (acute treatment) t