Royalty Pharma Plc · NASDAQ:RPRX
Royalty Pharma — Investor Day (September 2025)
136 slides from Royalty Pharma's investor day presentation, Sep 11, 2025
Slide 1: Driving value creation through capital allocation excellence
Driving value creation through capital allocation excellence Investor Day 2025 September 11, 2025
Slide 2: Forward Looking Statements
2 Forward Looking Statements 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 purport to be complete o
Slide 3: Today’s agenda
3 Today’s agenda 08:30 Opening Remarks 10:25 Why We Win George Grofik Marshall Urist SVP, Head of Investor Relations & Communications EVP and Head of Research & Investments Driving Value Creation Execution, Returns, Growth Terrance Coyne Pablo Legorreta EVP and Chief Financial Officer Chief Executiv
Slide 4: We will address the most frequently asked investor questions today
4 We will address the most frequently asked investor questions today 1 What is your market opportunity and long-term growth outlook? 2 What are your competitive advantages? 3 Can you provide more detail on your historical returns and are they sustainable? 4 How is your investment approach differenti
Slide 5: Execution, Returns, Growth
Execution, Returns, Growth Pablo Legorreta Chief Executive Officer, Chairman of the Board
Slide 6: Key messages
6 Key messages 1 2 3 4 Strong execution Rapid industry growth Optimized business model Value creation Delivering on strategic and Royalties playing an Established strong Delivered consistent mid- financial priorities since increasingly prominent competitive advantages teens ROIC 2020 IPO and 2022 ro
Slide 7: Delivered on key strategic and financial priorities since our 2020 IPO
Strong execution Rapid industry growth Optimized business model Value creation 7 Delivered on key strategic and financial priorities since our 2020 IPO +12% ~15% ~3x (1) Delivering top-tier growth Return on Invested Capital Scaled platform 2020-2025e Portfolio Receipts CAGR 2019-2025e Headcount incr
Slide 8: On track to achieve financial goals announced at 2022 Investor Day
Strong execution Rapid industry growth Optimized business model Value creation 8 On track to achieve financial goals announced at 2022 Investor Day Portfolio Receipts CAGR of 10% or more 5-year Capital Deployment of $10-12 billion (2020-2030) (2022-2026) $4.7 $4.7bn+ $15 ~$14bn $12 $10-12bn Portfoli
Slide 9: Royalties play a critical funding role in the biopharma ecosystem
Strong execution Rapid industry growth Optimized business model Value creation 9 Royalties play a critical funding role in the biopharma ecosystem… Royalties are an innovative and growing asset class Debt Royalties Equity Cost of capital Low Low to medium High Flexibility Low High Low Operationally
Slide 10: …and offer advantages versus pharma partnering
Strong execution Rapid industry growth Optimized business model Value creation 10 …and offer advantages versus pharma partnering Royalties preserve strategic optionality as the product profile matures Royalties Pharma partnering Strategic optionality High Low Retention of economics Very high Low “Fu
Slide 11: Biopharma is ideally suited for royalty funding
Strong execution Rapid industry growth Optimized business model Value creation 11 Biopharma is ideally suited for royalty funding Unique characteristics of industry are conducive to a vibrant royalty market Industry characteristics Biopharma Supportive of royalties? High operating margins ~50% High
Slide 12: Royalty funding has grown rapidly
Strong execution Rapid industry growth Optimized business model Value creation 12 Royalty funding has grown rapidly Driven by growing capital needs, industry fragmentation, scientific innovation and increased awareness of royalties 5-year average annual announced value (1997-2024)(1) $6.2bn $2.7bn $
Slide 13: Royalty Pharma combines the attractive attributes of multiple industries
Strong execution Rapid industry growth Optimized business model Value creation 13 Royalty Pharma combines the attractive attributes of multiple industries Biopharma Capital allocators Average P/E ratio(1) = ~14x Average P/E ratio(2) = ~34x Alternative asset managers Precious metal royalties Average
Slide 14: Royalty Pharma’s goal is to be the premier capital allocator in life sciences
Royalty Pharma’s goal is to be the premier capital allocator in life sciences with consistent, compounding growth
Slide 15: We are the optimized buyer of royalties
Strong execution Rapid industry growth Optimized business model Value creation 15 We are the optimized buyer of royalties First mover Competitive advantages Optimized buyer of royalties Long track record of success Unique business Efficient model, substantial cash flow generation model Significant s
Slide 16: Our value driven dynamic capital allocation framework
Strong execution Rapid industry growth Optimized business model Value creation 16 Our value driven dynamic capital allocation framework Intend to allocate capital as effectively and efficiently as possible, creating long-term value for shareholders More attractive royalty opportunities Balanced appr
Slide 17: Our investment approach optimizes risk/reward
Strong execution Rapid industry growth Optimized business model Value creation 17 Our investment approach optimizes risk/reward Product selection Risk/reward Highly selective Flexible approach Attractive returns Risk mitigation • Focus on best products with • Maximizes opportunity set • Target attra
Slide 18: Healthy mix of approved and development-stage investments
Strong execution Rapid industry growth Optimized business model Value creation 18 Healthy mix of approved and development-stage investments Royalty Pharma has deployed approximately $27 billion of capital since 2012 Annual Capital Deployment ~$27 billion in cumulative Capital Deployment (2012 – 2025
Slide 19: We deploy capital in attractive risk/reward opportunities
Strong execution Rapid industry growth Optimized business model Value creation 19 We deploy capital in attractive risk/reward opportunities We invest where industry success rates are highest Strong track record of success 100% Biopharma innovation RP investment focus • Deployed ~65% of capital on ap
Slide 20: 86% of current invested capital in approved products
Strong execution Rapid industry growth Optimized business model Value creation 20 86% of current invested capital in approved products Low-risk portfolio driven by capital deployment in approved products and successful development-stage investments Breakdown of total Invested Capital at Work(1) 3% A
Slide 21: Track record of identifying great products that consistently outperform
Strong execution Rapid industry growth Optimized business model Value creation 21 Track record of identifying great products that consistently outperform Consensus peak sales (in bn) Therapy First- or best-in class Therapeutic Area At transaction Actual/Current % Outperformance Year Rituxan Cancer $
Slide 22: Proven ability to identify successful products…
Strong execution Rapid industry growth Optimized business model Value creation 22 Proven ability to identify successful products… Consensus 5-years post transaction - time of acquisition vs. current(1,2) (% change for approved products since 2020) >100% Transaction size >$250m Transaction size <$250
Slide 23: …and generate attractive returns under a range of commercial scenarios
Strong execution Rapid industry growth Optimized business model Value creation 23 …and generate attractive returns under a range of commercial scenarios >95% of capital deployed on approved products expected to achieve target IRRs or better Consensus 5-years post transaction - time of acquisition vs
Slide 24: Strong track record of investing in development-stage therapies
Strong execution Rapid industry growth Optimized business model Value creation 24 Strong track record of investing in development-stage therapies Royalty Pharma development-stage success rate of ~90% excluding therapies still in development Approach drives strong track-record Capital Deployment on d
Slide 25: Scaling the platform with owner/operator mindset
Strong execution Rapid industry growth Optimized business model Value creation 25 Scaling the platform with owner/operator mindset 1 Scaling platform 2 Capital Deployment Headcount growth, 2020-2025e ~3x >70% ~$12bn 100 ~$7bn 35 2020 2025e 2015-2019 2020-2024 3 Internalization will drive efficiencie
Slide 26: Internalization transaction integrated best-in-class platform
Strong execution Rapid industry growth Optimized business model Value creation 26 Internalization transaction integrated best-in-class platform Royalty Pharma evolution (1996 to present) 2025 and beyond 1996 to 2003 2004 to 2011 2012 to 2020 2020 to 2025 Integrated public Royalty Pharma Board of com
Slide 27: Value for platform expected to enhance valuation over time
Strong execution Rapid industry growth Optimized business model Value creation 27 Value for platform expected to enhance valuation over time Integrated company now includes diversified royalty portfolio and platform post internalization Portfolio Platform Portfolio + Platform Royalty Management Inte
Slide 28: Royalty Pharma shares reflect minimal value for platform
Strong execution Rapid industry growth Optimized business model Value creation 28 Royalty Pharma shares reflect minimal value for platform Internalization expected to drive further value creation for shareholders Externally managed RPRX excludes platform Integrated RPRX includes platform Significant
Slide 29: Strong execution has driven upgrades to 2025 estimates since IPO
Strong execution Rapid industry growth Optimized business model Value creation 29 Strong execution has driven upgrades to 2025 estimates since IPO Consensus evolution for 2025 Portfolio Receipts (top-line)(1) RP has executed on financial targets • June 2020: introduced 2020-2025e top-line CAGR +15%
Slide 30: Our 2030 outlook is significantly above analyst consensus estimates
Strong execution Rapid industry growth Optimized business model Value creation 30 Our 2030 outlook is significantly above analyst consensus estimates 2030 Portfolio Receipts outlook 2030 Portfolio Cash Flow outlook in billions per share $4.7+ >$7.50 >10% >15% $4.1(1) (1) $6.9bn $6.39 Analyst Royalty
Slide 31: Powerful business positioned to drive strong value creation
Strong execution Rapid industry growth Optimized business model Value creation 31 Powerful business positioned to drive strong value creation Leader in biopharma royalty funding Expanding market Unique platform Attractive returns Robust growth Strong secular trend of Best-in-class platform for Consi
Slide 32: Deloitte Royalty Funding Market Study
Deloitte Royalty Funding Market Study Ashwin Pai Executive Vice President Investments
Slide 33: Inaugural Deloitte market study on biopharma royalty funding
33 Inaugural Deloitte market study on biopharma royalty funding Comprehensive market study on biopharma royalty funding Deloitte market study: participants by position • 110+ biopharma executives • Quantitative insights: 90 digital survey participants • Qualitative insights: 20+ one-on-one interview
Slide 34: Royalties viewed as strategic addition to capital structure
34 Royalties viewed as strategic addition to capital structure Differentiated benefits of royalties driving increased executive interest What do you view are the main benefits associated with royalty funding? Over the last 3 years, how has your interest (n=80) (% respondents ranking each benefit in
Slide 35: Companies express strong interest in pursuing royalty funding
35 Companies express strong interest in pursuing royalty funding 87% of biopharma executives would consider royalties as part of their capital raising plans over the next 3 years Corporate capital needs over the next 3 years (n=74) If your company plans to raise capital in the next 3 years, to what
Slide 36: Companies express strong interest in pursuing royalty funding
36 Companies express strong interest in pursuing royalty funding Select quotes from Deloitte Royalty Funding Market Study “[A] royalty is better than equity and “Royalties are attractive as they ensure debt financing because it is non-dilutive, access to non-dilutive capital…helped simpler than debt
Slide 37: Royalty funding market is poised for significant growth
37 Royalty funding market is poised for significant growth Opportunity 87% 67% 77% of executives would consider of executives would pursue of executives would pursue using royalty funding to raise royalty funding instead of or in royalty funding instead of or in capital over the next 3 years additio
Slide 38: Leveraging Powerful Industry Tailwinds
Leveraging Powerful Industry Tailwinds Chris Hite Executive Vice President Vice Chairman
Slide 39: Key messages
39 Key messages 1 2 3 Megatrends Large royalty opportunity Clear industry leader Global innovation occurring at rapid Fragmentation leading to large and Market share of ~50% from 2020 to pace growing existing royalty opportunity present is ~4-fold higher than the next largest competitor, with >70% s
Slide 40: Key learnings and observations since our IPO in 2020
Megatrends Large royalty opportunity Clear industry leader 40 Key learnings and observations since our IPO in 2020 Biopharma royalty funding market 1 Demand even greater than anticipated 1 Differentiated access to opportunities 2 Scale drives strong competitive advantages 2 Strengthened competitive
Slide 41: Megatrends driving the royalty industry
Megatrends Large royalty opportunity Clear industry leader 41 Megatrends driving the royalty industry Scaled royalty providers expected to disproportionately benefit Global innovation is R&D fragmentation Biopharma capital needs occurring at a rapid pace creating royalties are large and growing Dram
Slide 42: Innovation and fragmentation driving powerful industry dynamics
Megatrends Large royalty opportunity Clear industry leader 42 Innovation and fragmentation driving powerful industry dynamics… Innovation: number of drugs receiving FDA approval(1) Fragmentation: licensing and partnership opportunities(2) >50% increase 324 313 282 278 ~250 average 253 244 229 230 22
Slide 43: …and provides substantial funding opportunity
Megatrends Large royalty opportunity Clear industry leader 43 …and provides substantial funding opportunity Entire biopharma ecosystem drives our pipeline Biopharma ecosystem cumulative R&D spend over next decade(1) Global pharma market(2) >$1 trillion by academic, non-profits ~$2 trillion Biopharma
Slide 44: China emerging as a significant driver for innovation in biopharma
Megatrends Large royalty opportunity Clear industry leader 44 China emerging as a significant driver for innovation in biopharma Increased licensing activity has resulted in important long-term royalty opportunity Number of royalties created from China out-licensing China is a strategic market for b
Slide 45: Strong royalty growth against volatile capital markets backdrop
Megatrends Large royalty opportunity Clear industry leader 45 Strong royalty growth against volatile capital markets backdrop Biotech capital raising versus royalty funding(1) Uncorrelated royalty growth ($ in billions) • Growth in both strong and more restrictive capital market environments $70 $7
Slide 46: Synthetic royalties are an attractive funding modality…
Megatrends Large royalty opportunity Clear industry leader 46 Synthetic royalties are an attractive funding modality… Synthetic royalties – a compelling innovation with significant growth potential Benefits to biopharma partner § Royalty Debt Equity Non-dilutive to equity / preserves equity upside C
Slide 47: Important funding paradigm emerging for biopharma
Megatrends Large royalty opportunity Clear industry leader 47 Important funding paradigm emerging for biopharma Royalties are a growing part of successful biotech’s diversified capital structure Company % capital raised Total Significant benefits of diversified capital Flexible 38% ~$5.3bn(1) Financ
Slide 48: Royalty funding can support product launch investment…
Megatrends Large royalty opportunity Clear industry leader 48 Royalty funding can support product launch investment… Biotech companies see a ~5x average increase in SG&A spend when commercializing a product Cumulative 3-Year SG&A Investment Launch Phase SG&A Increase Royalty Deal Company Product Pre
Slide 49: …and expensive late-stage trials, enabling retention of economics
Megatrends Large royalty opportunity Clear industry leader 49 …and expensive late-stage trials, enabling retention of economics Biotech companies see a ~5x average increase in R&D spend when moving to pivotal studies Cumulative 3-year R&D Investment R&D Increase post PoC Royalty Deal Company Product
Slide 50: Synthetic opportunity strongly highlighted in Deloitte study
Megatrends Large royalty opportunity Clear industry leader 50 Synthetic opportunity strongly highlighted in Deloitte study Survey data and quotes from Deloitte Royalty Funding Market Study What is your company’s interest level in creating a synthetic “The [synthetic] royalty market is here to stay.
Slide 51: …and expected to be an important growth driver
Megatrends Large royalty opportunity Clear industry leader 51 …and expected to be an important growth driver Synthetic royalty market growth has been robust(1) Synthetics are underpenetrated in biopharma funding(2,3) (Announced value; $ in billions) (>$310bn in biopharma funding, 2020-2024) +36% Pri
Slide 52: Partnering with Biotechs to Support their Growth Journey
Partnering with Biotechs to Support their Growth Journey Brienne Kugler Senior Vice President Research & Investments
Slide 53: Royalties help biotech companies preserve optionality
Megatrends Large royalty opportunity Clear industry leader 53 Royalties help biotech companies preserve optionality High-quality biotech companies may have a range of options available to choose from when raising capital Funding options available Biotech companies strategic and financial considerati
Slide 54: Revolution Medicines deal a prime example of new funding paradigm
Megatrends Large royalty opportunity Clear industry leader 54 Revolution Medicines deal a prime example of new funding paradigm Transaction terms benefits Up to $1.25bn synthetic royalty on daraxonrasib for cancer Significant quantum of • $250m upfront capital enables multi-year • Tranched investmen
Slide 55: Daraxonrasib – a potentially transformative therapy for cancer
Megatrends Large royalty opportunity Clear industry leader 55 Daraxonrasib – a potentially transformative therapy for cancer Unique deal structure provides attractive risk/reward Multi-blockbuster potential for daraxonrasib (Non risk-adjusted consensus sales; billions)(1) $7.9 Impressive clinical da
Slide 56: Announced $2.8 billion of royalty transactions in 2024
Megatrends Large royalty opportunity Clear industry leader 56 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 Ex
Slide 57: Growing interest in royalties driving high-quality inbound calls
Megatrends Large royalty opportunity Clear industry leader 57 Growing interest in royalties driving high-quality inbound calls Source of in-depth reviews Royalties becoming increasingly established funding modality (outbound vs inbound business development activity) • Growing in-depth reviews from i
Slide 58: Clear leader in the rapidly growing royalty market
Megatrends Large royalty opportunity Clear industry leader 58 Clear leader in the rapidly growing royalty market Biopharma royalty industry size and Royalty Pharma market share Leading market share in each segment 2015-2019 2020-2024 2020-present(1) 72% 57% ~+130% 50% 39% ~$13bn 20% ~$31bn ≤$250m >$
Slide 59: Repeat transactions highlight value of our partnership approach
Megatrends Large royalty opportunity Clear industry leader 59 Repeat transactions highlight value of our partnership approach Voranigo, aficamten, omecamtiv, CK-586 , BCX10013 , BCX10013 $1.16bn total funding Up to $1.13bn total funding UpUptoto$325m totalfunding $325m total funding Up to $2.15bn to
Slide 60: Deploying substantial capital with repeat partners
Megatrends Large royalty opportunity Clear industry leader 60 Deploying substantial capital with repeat partners Capital committed with repeat partners Multiple benefits to long-term partnerships (~$19bn of announced transaction value since 2020) Speed of execution Information edge Ability to transa
Slide 61: Key messages
61 Key messages 1 2 3 Megatrends Large royalty opportunity Clear industry leader Global innovation occurring at rapid Fragmentation leading to large and Market share of ~50% from 2020 to pace growing existing royalty opportunity present is ~4-fold higher than the next largest competitor, with >70% s
Slide 62: Q&A Session
Q&A Session
Slide 63: Why We Win
Why We Win Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments
Slide 64: Key messages
64 Key messages 1 2 3 Optimized royalty buyer Business Model Investment platform First mover advantage with deep Unique corporate structure Rigorous diligence with focus on moats around the business optimizing risk/reward Differentiated investment approach Honed business model and platform Deep inst
Slide 65: Our unique structure shaped over decades to acquire royalties
Optimized royalty buyer Business Model Investment platform 65 Our unique structure shaped over decades to acquire royalties Investment fund Ongoing business Expanded scope Publicly traded Internalization Optimized biopharma royalty buyer 100% private capital Diversified portfolio, Invest in post-PoC
Slide 66: Our competitive advantages
Optimized royalty buyer Business Model Investment platform 66 Our competitive advantages Business Model Investment Platform Unique structure Industrialized process Investment time horizon Human capital Flexibility Life sciences expertise Scale and diversification Relationships Singular focus Data &
Slide 67: Multiple elements of our business drive competitive moats
Optimized royalty buyer Business Model Investment platform 67 Multiple elements of our business drive competitive moats Typical competitor Business model Ongoing business Closed-end fund Investment life Indefinite 7-10 years Strategic focus Life science royalties Multi-industry, multi-strategy Sourc
Slide 68: Major structural advantages when acquiring royalties
Optimized royalty buyer Business Model Investment platform 68 Major structural advantages when acquiring royalties Unique structure benefits partners and shareholders 1 Offers lower cost of capital due to scale and diversified portfolio Partner benefits Shareholder benefits 1 Cost to partner 2 Cost
Slide 69: Long investment horizon differentiates us from competition
Optimized royalty buyer Business Model Investment platform 69 Long investment horizon differentiates us from competition Benefits of longer time horizon Royalty Pharma invests across the product life cycle 0 years 3 years 15 years Structuring Phase 3 Registration Commercialization Patent expiry Grea
Slide 70: Flexibility in our investment approach drives multiple benefits
Optimized royalty buyer Business Model Investment platform 70 Flexibility in our investment approach drives multiple benefits Our approach to structuring Expands opportunity set Effective risk management Win-win funding solutions Ability to structure around Variety of tools to mitigate risk Partner-
Slide 71: Structuring benefits both Royalty Pharma and our partners
Optimized royalty buyer Business Model Investment platform 71 Structuring benefits both Royalty Pharma and our partners Tools to structure “win-win” solutions Partner benefits RP benefits Bridges different sales forecasts Bridge different sales forecasts 1 Milestones (paid or received) Shares in pro
Slide 72: Greater scale drives differentiation on larger transactions
Optimized royalty buyer Business Model Investment platform 72 Greater scale drives differentiation on larger transactions #1 38 ~$14bn >50 Buyer of biopharmaceutical Number of people on Capital deployed (2020-2025) Therapies in portfolio(2) royalties investments team(1) >70% ~30 ~$3.1bn ~$21bn Marke
Slide 73: Our scale and diversification is unique among royalty buyers
Optimized royalty buyer Business Model Investment platform 73 Our scale and diversification is unique among royalty buyers Royalty Pharma has unique size and scale Impact of ~$1bn royalty investment ~$22bn <5% of capital base Largest royalty acquisitions may add concentration challenges for other ro
Slide 74: Scaling our team to capture the significant opportunity ahead
Optimized royalty buyer Business Model Investment platform 74 Scaling our team to capture the significant opportunity ahead Investment team(1) Strategically building our platform >3x ~1.8x Research & Investments Identifies, diligences, negotiates and executes royalty transactions 38 Strategy & Analy
Slide 75: Rigorous process results in multiple benefits for shareholders
Optimized royalty buyer Business Model Investment platform 75 Rigorous process results in multiple benefits for shareholders Approach Diligence • Best project team based on expertise • Exhaustive research led by decision makers • Flat structure, no organizational silos • Decades of institutional kno
Slide 76: Exhaustive due diligence process sharpened over decades
Optimized royalty buyer Business Model Investment platform 76 Exhaustive due diligence process sharpened over decades Strategy & Analytics S&A expertise and insights leveraged Clinical Commercial Regulatory, IP Contracts, Forecasting Manufacturing Governance Physician Diligence PK/PD Patient Journey
Slide 77: Deep industry expertise
Optimized royalty buyer Business Model Investment platform 77 Deep industry expertise 1 >230 40% Sector covered Cumulative years of life sciences royalty Increase in five-year consensus investing experience estimates of underlying products from date of royalty transaction(1) ~1,200 67% 90% Initial r
Slide 78: Volume of opportunities reviewed provides competitive edge
Optimized royalty buyer Business Model Investment platform 78 Volume of opportunities reviewed provides competitive edge Initial reviews by therapeutic category Depth and breadth of reviews compound knowledge (2022-2024) 309 Oncology Volume 181 Central nervous system ~1,200 initial reviews processed
Slide 79: We will track opportunities for years to build our portfolio
Optimized royalty buyer Business Model Investment platform 79 We will track opportunities for years to build our portfolio Enables strong relationship development and drives investment conviction Select transactions 2012 Present Tracking Negotiations Peak sales(1) Dec July 2013 2020 2022 ~9 years ~1
Slide 80: Significant therapeutic area expertise built over decades
Optimized royalty buyer Business Model Investment platform 80 Significant therapeutic area expertise built over decades Category 2000-2010 2010-2020 2020-2025 Capital deployed Humira Cimzia Tremfya Immunology Remicade litifilimab obexelimab >$2bn Tecfidera 1 Tecfidera 2 frexalimab Multiple sclerosis
Slide 81: Conviction in SMA built over many years
Optimized royalty buyer Business Model Investment platform 81 Conviction in SMA built over many years >$2bn of capital deployed across multiple therapies 2018 July 2020 Dec. 2020 Jan. 2023 Oct. 2023 UMass & CSHL PTC Therapeutics RegenXBio Ionis Pharmaceuticals PTC Therapeutics Spinraza Evrysdi Zolge
Slide 82: Powerful insights generated from our proprietary data resources
Optimized royalty buyer Business Model Investment platform 82 Powerful insights generated from our proprietary data resources Adds value to partner development and launch strategy Deep investment in data(1) Proprietary insights Patient-level ~200m Market sizing claims data High resolution epidemiolo
Slide 83: Essential role of S&A in creating differentiated insights
Optimized royalty buyer Business Model Investment platform 83 Essential role of S&A in creating differentiated insights Identified high level of need for a new cGvHD treatment option driving conviction in a strong launch High resolution market sizing Duration of therapy Detailed launch insights cGvH
Slide 84: Niktimvo’s launch has significantly exceeded consensus expectations
Optimized royalty buyer Business Model Investment platform 84 Niktimvo’s launch has significantly exceeded consensus expectations Data sciences platform enabled differentiated conviction in Niktimvo’s potential; Q2 sales 140% above consensus Sales vs. consensus at time of RP transaction (in millions
Slide 85: Royalty Pharma’s reputation provides competitive edge
Optimized royalty buyer Business Model Investment platform 85 Royalty Pharma’s reputation provides competitive edge Select quotes from Deloitte Royalty Funding Market Study “I have had executives leave 200-300 “RP is extremely creative, They win “Being able to structure the deal cleverly basis point
Slide 86: Strength of platform approach evident in breadth and scope of activity
Optimized royalty buyer Business Model Investment platform 86 Strength of platform approach evident in breadth and scope of activity ~$14bn of capital deployed to acquire royalties on 48 products spanning 60 unique disease areas Years 2020 2021 2022 2023 2024 2025 Total Capital $2.2bn $2.5bn $2.4bn
Slide 87: Voranigo highlights high conviction and rapid deal execution
Optimized royalty buyer Business Model Investment platform 87 Voranigo highlights high conviction and rapid deal execution Gaining exposure to an innovative therapy for brain cancer 2019 End of 2019 June 2020 Dec 2020 RP evaluates Voranigo Agios initiates RP acquires IDHIFA Agios sells oncology busi
Slide 88: Voranigo – rapidly approaching $1 billion in annual sales
Optimized royalty buyer Business Model Investment platform 88 Voranigo – rapidly approaching $1 billion in annual sales We excel at identifying exciting underappreciated therapies Voranigo – a transformative therapy for glioma Voranigo launch is exceeding expectations Actual sales vs. consensus at t
Slide 89: Why we win
Optimized royalty buyer Business Model Investment platform 89 Why we win Competitive Scale and Brand Partnership price focus reputation mentality Deep Long-term Flexibility on Responsiveness relationships horizon structuring
Slide 90: Driving Value Creation
Driving Value Creation Terrance Coyne Executive Vice President Chief Financial Officer
Slide 91: Key messages
91 Key messages 1 2 3 4 Strong execution Robust growth targets Attractive returns Value creation Delivering on our stated $4.7bn+ top-line in 2030 IRR tracking to mid-teens Disciplined capital goals (9%+ 2025-2030 CAGR) since 2020 allocation framework Proven track record for >$7.50 per share bottom-
Slide 92: Executing on strategic and financial commitments
Strong execution Robust growth Attractive returns Value creation 92 Executing on strategic and financial commitments Criteria Commitment Achievement Long-term growth 11-14% 2020-2025 top-line CAGR ~12% top-line CAGR implied by 2025 guidance(1) Capital Deployment ~$2.0-2.5bn annual average ~$2.4bn an
Slide 93: Consistently strong growth since IPO…
Strong execution Robust growth Attractive returns Value creation 93 Consistently strong growth since IPO… Royalty Receipts (year/year growth; in millions) +8% +15% +12% +8% +13% +11% +12% +15% +12% +14% $788 +11% +9% +10% $732 $729 +6% $705 +11% +16% +9% +12% $672 +7% $637 $651 +14% +10% $616 $605 +
Slide 94: …while exceeding expectations in 14 of the last 21 quarters
Strong execution Robust growth Attractive returns Value creation 94 …while exceeding expectations in 14 of the last 21 quarters Royalty Receipts (year/year growth; in millions) +8% +15% +12% +8% +13% +11% Top-line Beat Top-line Meet Guidance Raise Q1 Q2 Q3 Q4 Q1 Q2(2) Q3 Q4 Q1 Q2(2) Q3 Q4 Q1 Q2(2) Q
Slide 95: A proven model for attractive growth
Strong execution Robust growth Attractive returns Value creation 95 A proven model for attractive growth Portfolio Receipts (in billions) CAGR: Conservatively 9%+ assumes stable $4.7+ Capital Deployment of $2.0-2.5bn annually CAGR: ~12% ~$3.1 $1.8 2020 2025e(1) 2030 outlook CAGR: compound annual gro
Slide 96: Diversified portfolio fuels sustainable growth
Strong execution Robust growth Attractive returns Value creation 96 Diversified portfolio fuels sustainable growth Portfolio Receipts(1) (“top-line”) Components of growth Similar contribution from existing and new investments 1 Existing Portfolio $4.7bn+ • Visible growth driven by a portfolio of 35+
Slide 97: Key approved royalties driving growth through end of decade
Strong execution Robust growth Attractive returns Value creation 97 Key approved royalties driving growth through end of decade Top Drivers of Growth Marketer Commentary Servier Strong initial launch exceeding investment case with rapid blockbuster potential Johnson & Johnson 2030 consensus sales of
Slide 98: CF Franchise to remain important contributor over the long term
Strong execution Robust growth Attractive returns Value creation 98 CF Franchise to remain important contributor over the long term 2030 CF Franchise Portfolio Receipts outlook(1) >$200m >$1bn CF Franchise 2030 Portfolio Receipts ~$800m now expected to be ~$600-700m ~$800m under a downside royalty r
Slide 99: Exciting pipeline of large potential royalties to power growth beyond 2030
Strong execution Robust growth Attractive returns Value creation 99 Exciting pipeline of large potential royalties to power growth beyond 2030 All late-stage development assets have first-in-class or best-in-class potential Potential peak sales Expected launch year(1) Therapy Lead indication Potenti
Slide 100: Powering growth through consistent reinvestment
Strong execution Robust growth Attractive returns Value creation 100 Powering growth through consistent reinvestment Portfolio Receipts by investment year since IPO ($bn) Investment Year (1) Capital Deployment(2) Notable Investments $2.6 2020 $2.2bn 2021 $2.5bn 2022 $2.4bn 2023 $2.2bn 2024 $2.8bn $1
Slide 101: Increasingly diversified top-line and profitability
Strong execution Robust growth Attractive returns Value creation 101 Increasingly diversified top-line and profitability Royalty Pharma’s efficient business model drives similar top- and bottom-line diversification 2025e diversification (top 3 products) Illustrative 2030 diversification (top 3 produ
Slide 102: We are well positioned for changing macro environment
Strong execution Robust growth Attractive returns Value creation 102 We are well positioned for changing macro environment Unique uncorrelated investment opportunity in a turbulent market Macro landscape Biotech backdrop • Non-cyclical growth • Business not sensitive to biotech • Strong historical f
Slide 103: Consistently strong bottom-line growth with path to >$7.50 in 2030
Strong execution Robust growth Attractive returns Value creation 103 Consistently strong bottom-line growth with path to >$7.50 in 2030 Portfolio Cash Flow per share progression Illustrative 2030 non-GAAP outlook CAGR: $4.7bn+ Portfolio Receipts 11%+ >$7.50 (-) 4% - 5% Operating expenses $6.39 CAGR:
Slide 104: Focused on maximizing shareholder value through attractive returns
Strong execution Robust growth Attractive returns Value creation 104 Focused on maximizing shareholder value through attractive returns Return Metric Track Record Notes IRR / Mid-teens % • Typical investment metrics based on actual and projected cashflows Cash on Cash >2x • Accounts for timing and m
Slide 105: IRRs tracking ahead of expectations in current environment
Strong execution Robust growth Attractive returns Value creation 105 IRRs tracking ahead of expectations in current environment Attractive unlevered IRRs above cost of capital Current environment Target for IRRs Low double digit % Approved products (IRRs) Teens % Development-stage Teens % (IRRs) ~7%
Slide 106: >90% of transactions expected to exceed cost of capital
Strong execution Robust growth Attractive returns Value creation 106 >90% of transactions expected to exceed cost of capital Unlevered IRRs for investments since 2020(1) % of Capital Deployed 57% >90% of Deals exceeding cost of capital 35% 100% of Deals >$500m exceeding or significantly exceeding co
Slide 107: Track record of exceptional value creation
Strong execution Robust growth Attractive returns Value creation 107 Track record of exceptional value creation % of M&A transactions that create value Achieved through our competitive advantages Business model >90% Unique structure, singular focus on biopharma, scale, diversification and investment
Slide 108: Remarkably stable returns since IPO
Strong execution Robust growth Attractive returns Value creation 108 Remarkably stable returns since IPO Return on Invested Capital (ROIC) ROIC Adjusted EBITDA(1)(2) Invested Capital at Work Return on Invested Capital in billions in billions 14.7% ~$22 Average annual return ~$3 $20 (SD +/- 1.2%) $2.
Slide 109: Capital at work has doubled since 2019 while maintaining low overall risk
Strong execution Robust growth Attractive returns Value creation 109 Capital at work has doubled since 2019 while maintaining low overall risk Invested Capital at Work (in billions) Approved at acquisition Approved since acquisition ~$22 $20 86% tied to approved products Development-stage $18 (inclu
Slide 110: Product selection, scale and diversification insulates returns
Strong execution Robust growth Attractive returns Value creation 110 Product selection, scale and diversification insulates returns Average annual ROIC (2019-2025e) 15.3% 0.6% 14.7% Impact of unsuccessful investments Strong risk management minimizes impact of unsuccessful investments on ROIC ROIC RO
Slide 111: Conservative leverage enhances returns
Strong execution Robust growth Attractive returns Value creation 111 Conservative leverage enhances returns Return on Invested Equity (ROIE) ROIE Portfolio Cash Flow (1)(2) Invested Equity at Work Return on Invested Equity in billions in billions 21.2% Average annual return (SD +/- 1.7%) ~$3 23.5% 2
Slide 112: Return profile compares favorably to the S&P 500
Strong execution Robust growth Attractive returns Value creation 112 Return profile compares favorably to the S&P 500 Average historical Return on Invested Capital Average historical Return on Invested Equity >350bps 21.2% >500bps 17.6% 14.7% 9.5% S&P 500 Royalty Pharma S&P 500 Royalty Pharma (ROE)
Slide 113: Strong growth and operating efficiency underpin expanding cash flows
Strong execution Robust growth Attractive returns Value creation 113 Strong growth and operating efficiency underpin expanding cash flows Summary growth and margin outlook Illustrative cash flow after Capital Deployment Assuming $2.0-2.5bn deployment annually CAGR: 9%+ $4.7bn+ ~$4.0bn $1.5-2.0bn Por
Slide 114: Capital allocation discipline guided by value-driven framework
Strong execution Robust growth Attractive returns Value creation 114 Capital allocation discipline guided by value-driven framework More attractive royalty opportunities Balanced approach between Favor capital deployed on royalties royalties and share repurchases Discount to intrinsic value Premium
Slide 115: Significant capital allocation firepower to create value
Strong execution Robust growth Attractive returns Value creation 115 Significant capital allocation firepower to create value 2020-H1 2025 capital allocation (1) Projected capacity H2 2025-2030 Royalty acquisitions Return of capital: ~$4bn At least $2.0-2.5bn average annual capital deployment • Pote
Slide 116: Platform value should drive multiple expansion
Strong execution Robust growth Attractive returns Value creation 116 Platform value should drive multiple expansion Multiple Expansion Platform value driven by recognition of: Significantly higher + Competitive moats + Strong growth outlook + Consistent and predictable returns + Leading diversificat
Slide 117: Pathway to significant share price appreciation by 2030
Strong execution Robust growth Attractive returns Value creation 117 Pathway to significant share price appreciation by 2030 Goal of at least mid-teens total shareholder return with significant upside potential from recognition of platform PCF/share growth Illustrative Royalty Pharma share price evo
Slide 118: Royalty Pharma shares the attributes of the great long-term value creators
Strong execution Robust growth Attractive returns Value creation 118 Royalty Pharma shares the attributes of the great long-term value creators Select business attributes Disciplined capital allocation Value-driven dynamic capital allocation framework Independent thinking Prioritize long-term compou
Slide 119: Clear path to deliver substantial shareholder value
Strong execution Robust growth Attractive returns Value creation 119 Clear path to deliver substantial shareholder value Driver 2025-2030 outlook • $4.7bn+ Portfolio Receipts (9%+ CAGR) Top-line • Best-in-class pharma diversification • >$7.50 Portfolio Cash Flow per share (11%+ CAGR) Bottom-line • R
Slide 120: Concluding remarks
Concluding remarks Pablo Legorreta Chief Executive Officer, Chairman of the Board
Slide 121: Key messages
121 Key messages 1 2 3 4 Strong execution Rapid industry growth Optimized business model Value creation Delivering on strategic and Royalties playing an Established strong Delivered consistent mid- financial priorities since increasingly prominent competitive advantages teens ROIC 2020 IPO and 2022
Slide 122: Q&A Session
Q&A Session
Slide 123: Appendix
Appendix
Slide 124: GAAP to non-GAAP reconciliation
124 GAAP to non-GAAP reconciliation Adjusted EBITDA and ROIC Adjusted EBITDA $ in millions 2019 (PF)(1) 2020 2021 2022(2) 2023(2) 2024 Net cash provided by operating activities (GAAP) 1,742 2,035 2,018 2,144 2,988 2,769 Adjustments: Proceeds from available for sale debt securities 150 3 63 542 1 20
Slide 125: GAAP to non-GAAP reconciliation
125 GAAP to non-GAAP reconciliation Portfolio Cash Flow and ROIE Portfolio Cash Flow $ in millions 2019 (PF)(1) 2020 2021 2022(2) 2023(2) 2024 Net cash provided by operating activities (GAAP) 1,742 2,035 2,018 2,144 2,988 2,769 Adjustments: Proceeds from available for sale debt securities 150 3 63 5
Slide 126: Capital Deployment summary
126 Capital Deployment summary $ in millions 2019 (PF)(1) 2020 2021 2022 2023 2024 Acquisitions of financial royalty assets (1,721) (2,182) (2,192) (1,742) (2,116) (2,506) Development-stage funding payments (83) (26) (200) (177) (52) (2) Purchases of available for sale debt securities (125) - (70) (
Slide 127: Invested Capital at Work and Invested Equity at Work summary
127 Invested Capital at Work and Invested Equity at Work summary $ in millions 2019 (PF) 2020 2021 2022 2023 2024 Beginning Invested Capital at Work 10,312 10,424 12,504 14,837 16,535 18,496 Capital Deployment(1) 1,818 2,240 2,508 2,428 2,192 2,761 Expiries(2) (1,707) (159) (176) (730) (231) (409) E
Slide 128: Advancing our partners’ core mission with win-win solutions
128 Advancing our partners’ core mission with win-win solutions Structure Launch & Existing royalties Synthetic royalties development M&A capital Potential • Diversification of asset • Funding for completion • Launch funding offers • Monetize non-strategic benefits portfolio of development and flexi
Slide 129: 2026 estimated compensation mix
129 Strengthening alignment with shareholders Internalization transaction results in significantly greater portion of management compensation in equity Pre-internalization (external manager structure) Post-internalization Equity received from internalization vests over 5 years Cash 2026 estimated co
Slide 130: CF to remain important contributor regardless of triple scenario
130 CF to remain important contributor regardless of triple scenario Triple combination 2030 CF Franchise Scenario Components Duration(3) blended royalty(1) Portfolio Receipts outlook(2) elexacaftor ivacaftor tezacaftor ~9% -- 2037 Deuterated ivacaftor deuterated is royalty bearing vanzacaftor ivaca
Slide 131: “Win-win” funding solutions facilitated through structuring
131 “Win-win” funding solutions facilitated through structuring Mechanisms to structure “win-win” solutions Majority of transactions include structuring(1) (by royalties acquired; 2020-2025) Milestones (paid or received) 1 Payments for clinical or regulatory events, or certain sales levels Royalty t
Slide 132: Deal examples show breadth of structuring capabilities
132 Deal examples show breadth of structuring capabilities Examples highlight how Royalty Pharma can bridge its sales case with consensus / management forecasts 1 Milestones 2 Tiered royalty 3 Royalty cap & ratchet (post Phase 3 medicine) (approved, pre-launch medicine) (approved, pre-launch medicin
Slide 133: What does $1bn of investment mean for future cash receipts?
133 What does $1bn of investment mean for future cash receipts? Representative annual Portfolio Receipts(1,2) (“top-line”) from $1bn of investment - based on blend of historical acquisitions $300m Period of accelerated Period of reduced growth growth during product launch in latter-half of decade po
Slide 134: Environmental, social and governance
134 Environmental, social and governance Environmental Social Governance ESG Rankings Systematic approach to Senior Leadership and Responsible Investment evaluating potential climate- Employee Engagement Policy ensures that ESG- related risks and Committees foster related risks and opportunities col
Slide 135: Royalty Pharma’s differentiated investment profile
135 Royalty Pharma’s differentiated investment profile Unique advantages as an investor Differentiated biopharma characteristics Proprietary insights Compelling investment profile • Proprietary access to company data • Strong growth/returns, highly diversified • Deep internal and external diligence
Slide 136: Footnotes
136 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, 20