Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Q3 2021 Earnings Presentation
24 slides from Royalty Pharma's earnings presentation, Nov 10, 2021
Slide 1: Royalty Pharma
ROYALTY PHARMA
Slide 2: Q3 2021 Financial Results
Royalty Pharma plc Q3 2021 Financial Results November 10, 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 Portfolio Update Jim Reddoch EVP, Co-Head of Research and Investments & Chief Scientific Officer Upcoming Events Marshall Urist EVP, Co-Head of Research and Investments Financial Results Terrance Coyne EVP, Chief Financial Offic
Slide 5: Key Highlights
Key Highlights Pablo Legorreta Founder & Chief Executive Officer 5
Slide 6: Q3 2021 – Strong financial performance and portfolio progress
Q3 2021 – Strong financial performance and portfolio progress Double-digit top- and bottom-line growth(1) Robust deal pipeline; YTD transactions announced of $2.8bn(2) ($2.1bn upfront) Continued portfolio progress; positive PT027 Phase 3 data(3), FDA grants gantenerumab BTD(4) Raising full-year guid
Slide 7: Q3 2021 – Strong double-digit top- and bottom-line growth
Q3 2021 – Strong double-digit top- and bottom-line growth Adjusted Cash Receipts(1) Adjusted Cash Flow(1,2) ($ in millions) ($ in millions, except per share amount) 587 +24% 472 441 +12% $0.73/share 394 $0.65/share Q3 2020 Q3 2021 Q3 2020 Q3 2021 1. See slide 21 for definitions. Refer to Royalty Pha
Slide 8: Track record of impressive growth since June 2020 IPO
Track record of impressive growth since June 2020 IPO Adjusted Cash Receipts(1) Adjusted Cash Flow(1) (in millions, year/year growth) (in millions, year/year growth) $1.6bn (+20% YTD) $1.3bn (+21% YTD) +24% +12% $587 +22%(2) +16% $441 +37% $429 $524 $423 +37% +9%(2) +3% +12%(2) +27%(2) $409 +24%(2)
Slide 9: Portfolio Update
Portfolio Update Jim Reddoch, PhD Executive Vice President Co-Head of Research and Investments, Chief Scientific Officer 9
Slide 10: PT027: potential first-in-class therapy with blockbuster potential
PT027: potential first-in-class therapy with blockbuster potential Significant addressable market for PT027 PT027 (ICS/SABA): • PT027 - potential fixed dose combination of budesonide Significant addressable market for rescue therapies (ICS) and albuterol (SABA) to treat asthma ▪ Treats both symptoms
Slide 11: Successful history of investing in development-stage therapies
Successful history of investing in development-stage therapies • $7.7bn invested in development-stage therapies since 2012(1) (2) ▪ Require strong proof-of-concept data approval success rate ▪ Broad landscape of opportunities ▪ Not constrained by therapeutic area 95% 79% • Target returns in the teen
Slide 12: Upcoming Events
Upcoming Events Marshall Urist, MD, PhD Executive Vice President Co-Head of Research and Investments 12
Slide 13: Important upcoming events over the next year
Important upcoming events over the next year Select year-to-date and expected upcoming events 2021 2022 Q3 Q4 FY PT027 Phase 3 results(1) ✓ Intranasal zavegepant Phase 2/3 results(2) Trodelvy Phase 3 results for 3L+ HR+/HER2 mBC(3) Cabometyx, Opdivo, Yervoy Phase 3 results in 1L RCC (COSMIC 313)(4)
Slide 14: Financial Results
Financial Results Terrance Coyne Executive Vice President Chief Financial Officer 14
Slide 15: Total royalty receipt growth of 21% in Q3 2021
Total royalty receipt growth of 21% in Q3 2021 Selected products Q3 2021 Royalty receipts(1) Growth $ in millions % year/year CF Franchise 183 17 96 25 88 13 48 21 40 5 Other DPP-IVs DPP-IV Franchise 38 10 (2) 18 nm 17 n/a Other 185 13 Total 712 21 1. Amounts may not add due to rounding. 15 2. Nurte
Slide 16: 12% ACF growth despite higher interest paid and other expenses
12% ACF(1) growth despite higher interest paid and other expenses Q3 2021 Adjusted Cash Flow (non-GAAP)(1) ($ in millions, except per share amount) 712 (125) 587 (54) (1) (65) $0.73/share(2) (27) 441 Royalty receipts Distributions to non- Adjusted Cash Operating and Ongoing R&D Interest paid, net Ot
Slide 17: Maintaining financial firepower despite robust deal activity
Maintaining financial firepower despite robust deal activity Cash, cash equivalents & marketable securities ($ in millions) • $2.0 billion of cash, cash equivalents and marketable securities as of September 30, 2021 • Capital deployed of $2.3 billion in 2021 1,279 -2,263 • $1.3 billion proceeds from
Slide 18: Raising full-year 2021 guidance
Raising full-year 2021 guidance(1,2) November 10, 2021 August 11, 2021 Comments • Strong portfolio performance Adjusted Cash Receipts (ACR) $2,110m - $2,130m $2,080m - $2,120m • New royalty acquisitions excluding new transactions(1,2) (+17% to +18% yr/yr) (+16% to +18% yr/yr) • $37m one-time Soliqua
Slide 19: Conclusion
Conclusion Pablo Legorreta Founder & Chief Executive Officer 19
Slide 20: Royalty Pharma inaugural Investor Day in Spring 2022
Royalty Pharma inaugural Investor Day in Spring 2022 ▪ Outlook for royalty funding in life sciences ▪ Capital deployment objectives ▪ Long-term growth targets 20
Slide 21: Footnotes
Footnotes 1) To aid in comparability, figures for each fiscal quarter in 2019 are presented on an unaudited pro forma basis, which adjusts certain cash flow line items as if Royalty Pharma’s Reorganization Transactions (as described in the Company’s final prospectus filed with the SEC on June 17, 20
Slide 22: Appendix
Appendix ROYALTY PHARMA 22
Slide 23: Delivering top- and bottom-line growth
Delivering top- and bottom-line growth Adjusted Cash Receipts(1) Adjusted Cash Flow(1) ($ in millions) ($ in millions) 587 441 423 429 536 536 409 524 394 384 484 475 369 462 472 347 446 421 309 382 298 373 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 pro forma 2020 202
Slide 24: Distributions to non-controlling interest (NCI)
Distributions to non-controlling interest (NCI) Third quarter 2021 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 no