Slides
Page 1
1 November 2026 Advancing Science in the Pharmaceutical and Biotechnology Sector
Page 2
2 This presentation has been prepared by DRI Healthcare Trust (“DRI Healthcare”). Established as an unincorporated open-ended trust in Ontario, Canada, and publicly trading since its 2021 IPO, DRI Healthcare is a global leader in providing financing to advance innovation in the life scienc es industry. Cautionary Note Regarding Forward-Looking Information This presentation, including responses to questions related thereto, may contain “forward-looking information” within the meaning of, and made pursuant to the “safe harbor” provisions of, Canadian provincial securities laws. Statements that contain forward-looking information are predictive in nature, depend upon or refer to future events or conditions, and include, but are not limited to, statements which reflect management’s current opinions, estimates and assumptions regarding the operations, business, investment opportunities, the profitability and availability of royalty investments, results, performance, financial position and compounding of cash flow, expected financial results, priorities, objectives, strategies, prospects, pipeline, capital management and both short- and long-term outlook of DRI Healthcare and its subsidiaries, which are based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate and reasonable in the circumstances. Statements containing forward-looking information are typically identified by words such as “guidance,” “target,” “project,” “assumes,” “seek,” “objective,” “outlook,” “commitment,” “believe,” “expect,” “will, ” and other similar expressions. Despite careful consideration and review of the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct, and undue reliance should not be placed on such statements. Forward-looking information is subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results to materially differ from those depicted or implied by such information, including but not limited to the risk factors or assumptions identified in DRI Healthcare’s most recent Management’s Discussion and Analysis (“MD&A”), under “Risk Factors” in DRI Healthcare’s most recent Annual Information Form, and in DRI Healthcare’s other filings with Canadian securities regulators available on SEDAR+ at www.sedar/plus.ca. The forward-looking information contained in this presentation represents management’s expectations as of the date of this presentation, and are subject to change after such date. Except as may be required by applicable securities laws, DRI Healthcare does not undertake any obligation to update or revise any statement containing forward-looking information in this presentation, whether as a result of new information, future events or otherwise. Non-GAAP Measures and Ratios This presentation also makes reference to certain non-GAAP financial measures including Total Cash Receipts, Normalized Total Cash Receipts, Total Cash Royalty Receipts and Adjusted EBITDA, and certain non-GAAP ratios including Adjusted EBITDA Margin and Adjusted Cash Earnings per Unit. These measures and ratios are not standardized measures under the International Financial Reporting Standards (“IFRS”) and are therefore unlikely to be comparable to similar financial measures disclosed by other issuers. Rather, these measures and ratios are provided as additional information to complement those IFRS measures by providing further understanding of DRI Healthcare’s financial performance from management’s perspective. Accordingly, these measures should not be considered in iso lation nor as a substitute for analysis of financial information reported under IFRS. See “Financial Review: Non-GAAP Financial Measures” in our most recent MD&A, which includes a reconciliation of IFRS to non- GAAP measures, such reconciliation being incorporated by reference herein. All dollar figures in this presentation are stated in U.S. dollars unless otherwise indicated. Disclaimer
Page 3
3 DRI Healthcare excels at sourcing, analyzing and executing strategic royalty acquisitions of growing assets. We provide capital to parties along the biopharmaceutical value chain to help fund the future of innovation. We hold a diversified portfolio of interests in drugs that address significant unmet needs, are marketed by leading biotech or pharma companies and are backed by robust intellectual property and regulatory protection. DRI Healthcare is a pioneer in pharmaceutical royalty monetization Executive Summary
Page 4
4 Pharmaceutical Royalty Model SYNTHETIC ROYALTY acquisition opportunities TRADITIONAL ROYALTY acquisition opportunities Inventors sell royalties for tax planning and philanthropic reasons Academic institutions sell royalties to offset budget shortfalls or to fund large capital projects Drug developers sell royalties to fund R&D programs or divest a non-core asset Drug marketers create synthetic royalties as an alternative form of non-dilutive financing Each constituent sells royalties for different reasons DRI Healthcare sources deals from all parties along the drug development value chain
Page 5
5 Specialized investment professionals with life science backgrounds and advanced business and science degrees Seasoned team Robust investment criteria that have resulted in strong returns Disciplined capital allocation Proprietary database tracking royalties on more than 2,500 drugs combined with deep industry relationships Proactive sourcing Fundamental ground-up diligence on opportunities to execute high-quality transactions Strong execution1 2 3 4 Our Competitive Advantages
Page 6
6 Track Record of Delivering Growth and Value 1. Includes $214 million in potential additional deployment in milestones as at September 30, 2026. 2. Includes $82 million in capital deployed via co-investments through RMF 2 Co-Investment Fund. DRUG ROYALTY III 2013 – 2018 Private equity fund 15 $586M valued at NEW ROYALTIES DRUG ROYALTY I 2006 – 2008 Private equity fund 19 $645M valued at DRUG ROYALTY II 2009 – 2013 Private equity fund 27 $730M2 valued at DRI Healthcare Trust 2021 - present Public entity $1.8B1 17 & 1 Loan valued at SIGNIFICANT TRANSACTIONS Transition from private equity funds to a public entity facilitates longer-term value creation
Page 7
7 Neurology 35% Ophthalmology 27% Oncology 18% Hematology 13% Lysosomal Storage Disorder 4% Immunology 3% 29 Royalty streams 22 Products $1B+ Annual sales for 3 products3 2021 Initial public offering $1.8B1 Capital deployed $207M Total Income $182M Adjusted EBITDA2 For the twelve months ended September 30, 2026 Therapeutic area allocation based on net book value calculated as at September 30, 2026. Casgevy is presented at fair value and Juvmo FP4 at amortized cost. 17 Royalty acquisitions 7,500+ Royalty opportunities in proprietary database 90% Adjusted EBITDA Margin2 $2.54 Adjusted Cash Earnings per Unit2 Diversified, Risk-mitigated Portfolio Provides large pharmaceutical company characteristics without traditional pharma risks and costs 1. Deployment includes up to $214 million in future contingent milestone payments related to deals. 2. Adjusted EBITDA and Adjusted Cash Earnings per Unit are non-GAAP measures and Adjusted EBITDA Margin is a non -GAAP ratio. See “Financial Review: Non-GAAP Financial Measures” in our third quarter 2026 MD&A. 3. Based on 2025 sales. 4. Juvmo FP represents the four annual fixed payments to DRI, classified as a financial asset.
Page 8
INVESTMENT THESIS TRANSACTION SIZE Provides a well-defined set of near-to-medium-term cash flows that DRI can redeploy into new royalty acquisitions. On September 25, 2026, Juvmo received FDA approval. $316 million Elegrobart Acquired as a pre-approval asset with long-dated cashflows, extending overall portfolio duration. On June 26, 2026, Lumvoa received FDA approval. $130 million payments provided +up to $1302 million in potential milestones Acquired as a pre-approval asset with high conviction of approval plus PIPE investment $127 million3 Disposition: $178 million Provides predictable cash flows with potential for upside optionality and limited risk $57 million Only approved product for acid sphingomyelinase deficiency (“ASMD”) with strong IP protection and long duration $30 million + up to $26 million in potential milestones $19.75 million4 + up to $26 million in potential milestones Uncapped transaction on established product providing cash accretion $125 million $115 million5 +Up to $27.5 million in potential milestones Newly approved and first in class oncology product with uncapped growth potential $85 million $140 million6 High-quality oncology product with strong growth potential Up to $135 million7 $66 million8 Newly approved Diabetes product with long-term cash flows and growth potential Acquisition: $100 million Sale: $210 million Focused on Closing Accretive Transactions 1. Deployment includes up to $214 million in future contingent milestone payments related to deals. 2. Certain pre-specified clinical milestone events defined under the purchase agreement have not been achieved, which, coupled with the recognition of a $75 million milestone, reduces DRI Healthcare’s maximum potential milestone obligation to $130 million. 3. Included $22 million optional payment to KalVista. 4. Represents a second royalty on Xenpozyme acquired from HLS Therapeutics Inc. 5. Represents the expansion of the royalty entitlement on the US net sales of Omidria from Omeros Corp. 6. Represents a second royalty on Orserdu acquired from Radius Health, Inc. (Radius”) and includes the $10 million milestone payment to Radius. 7. Includes $50 million secured loan made to CTI BioPharma (“CTI”), $60 million royalty acquired from CTI and $6.5 million milestone payment made to CTI. The conditions required for the second milestone payment of $18.5 million were not met by the end of the third quarter of 2 023 and the additional milestone payment was not made. CTI repaid its loan in full and the related credit agreement was terminate d. 8. Represents a second royalty on Vonjo acquired from S*Bio Pte Ltd. Completed seventeen royalty transactions since IPO totaling up to $1.8 billion, with over $1.51 billion deployed to date
Page 9
9 Strong Execution
Page 10
10 Normalized Total Cash Receipts1 $47.5 million 9% vs. Q3 2025 Adjusted EBITDA1 $40.0 million 9% vs. Q3 2025 Adjusted EBITDA Margin1 84% Adjusted Cash Earnings per Unit1 $0.53 Declared Cash Distributions per Unit $0.11 Total income $46.9 million 4% vs. Q3 2025 Q3 2026 Financial Highlights 1. Normalized Total Cash Receipts and Adjusted EBITDA are non -GAAP measures. Adjusted EBITDA Margin and Adjusted Cash Earnings per Unit are non-GAAP ratios. See “Financial Review: Non-GAAP Financial Measures” in our third quarter 2026 MD&A.
Page 11
11 Robust Diversified Portfolio By product1By therapeutic area1 Neurology 36% Ophthalmology 27% Oncology 17% Hematology 13% Lysosomal Storage Disorder 4% Immunology 3% No individual product accounts for more than 25% of net book value1 Portfolio currently consists of 29 royalty streams on 22 products 1. Based on net book value calculated as at September 30, 2026. Casgevy & Juvmo FP are presented at fair value and amortized cost, respectively. 2. Juvmo FP represents the four annual fixed payments to DRI, classified as a financial asset. Juvmo VP represents the variable sales-based payments over the life of the asset, classified as an intangible asset. Juvmo VP2 23% Orserdu 16% Omidria 13% Viridian 13% Juvmo FP2 8% Vonjo 7% Casgevy 5% Spinraza 5% Xenpozyme 4% Xolair 3% Empaveli / Syfovre 2% Zejula 1% Other 1%
Page 12
12 Portfolio Overview (millions of U.S. dollars) THERAPEUTIC AREA Total Cash Royalty Receipts 1 LTM 09/30/2026 Net Book Value 2 09/30/2026 Neurology - 316.7 Oncology 80.2 161.6 Ophthalmology 35.0 133.8 Ophthalmology - 128.4 Hematology 14.8 76.2 Hematology 5.0 56.2 Neurology 15.2 48.4 Lysosomal Storage Disorder 5.8 39.6 Immunology 14.1 28.4 Hematology/Ophthalmology 5.5 17.4 Oncology 3.2 6.9 Oncology 3.3 3.8 Oncology 2.8 2.6 Dermatology 3.7 1.9 Others Various 7.5 1.6 Immunology 6.8 - TOTAL3 202.9 1,023.5 1. Total Cash Royalty Receipts is a non-GAAP measure. See “Financial Review: Non-GAAP Financial Measures” in our third quarter 2026 MD&A. 2. The total net book value refers to the net book value of our royalty assets, whether classified as an intangible royalty asse t or as a financial royalty asset. 3. Totals are based on the sum of figures rounded to the thousands and align with the information in our third quarter 2026 MD&A and ou r third quarter 2026 consolidated financial statements.
Page 13
13 Provides a well-defined set of near-to-medium-term cash flows that DRI can redeploy into new royalty acquisitions Juvmo (tavapadon) was approved by the FDA on September 25, 2026 for the treatment of Parkinson’s Disease (“PD”) Announced positive topline results from TEMPO-1, TEMPO-2 and TEMPO-3 for early and advanced PD $316 million up-front purchase price Entitled to four equal annual payments totaling $93.75 million, payable on or before the first four anniversaries of FDA approval; sales milestones on cumulative U.S. net sales; and tiered royalty on annual U.S. net sales of Juvmo (tavapadon) with Total Cash Receipts capped at $437.5 million First royalty paid on a one-quarter lag, after first commercial sale of Juvmo (tavapadon) Parkinson’s disease, which affects approximately 1 million people in the US, is a chronic, progressive and incurable neurodegenerative disorder with high unmet medical need Juvmo is an oral, once-daily selective dopamine agonist that offers meaningful improvements in safety (lower rates of impulse control disorders, somnolence, and dyskinesia) versus currently available treatments Juvmo will be marketed by AbbVie, a large pharma company that has an established Parkinson’s disease franchise with strong commercial execution TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Juvmo (tavapadon) Royalty Transaction
Page 14
14 Second pre-approval royalty acquisition with long-dated cashflows, extending overall portfolio duration Lumvoa (veligrotug) was approved by the FDA in June 2026 for the treatment of active and chronic thyroid eye disease (“TED”) Announced positive topline results from REVEAL-1 and REVEAL-2 for active and chronic TED, respectively $55 million up-front purchase price $75 million milestone payment to Viridian in connection with Lumvoa’s FDA approval Entitled to a tiered royalty on annual U.S. net sales of Lumvoa (veligrotug) and elegrobart First royalty paid on a one-quarter lag, after first commercial sale of Lumvoa (veligrotug) TED is an autoimmune inflammatory disorder of the eye socket that affects about 300,000 patients in the US Lumvoa (veligrotug) is now the second approved biologic treatment for TED, with the potential to improve patients’ quality of life with fewer doses and less time required for a full treatment course Elegrobart, if approved, is expected to provide additional convenience benefits with a low-volume autoinjector designed for self-administration, planned for commercial launch TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Lumvoa (Veligrotug) & Elegrobart Royalty Transaction & Elegrobart
Page 15
15 Novel deal structure offers predictable annual cash flows plus potential additional payments Approved by the FDA in December 2023 for the treatment of sickle cell disease (“SCD”) and in January 2024 for the treatment of transfusion-dependent beta thalassemia (“TDT”), and approved by the EMA in February 2024 for both indications $57.0 million up front purchase price Entitled to receive specific payments based on a sublicensing agreement for the Cas9 gene-editing technology for Casgevy Payments collected annually in Q1 Deal completed in October 2024 Potential additional annual sales- based milestones in every year Entitled to receive a mid-double- digit percentage of a $50 million contingent payment Only approved gene-edited cell therapy for SCD and TDT Payment streams run until 2034 TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Casgevy Transaction
Page 16
16 Adjusted EBITDA1 for the Last Twelve Months Ended September 30, 2026 (millions) $207.2 $202.9 $181.6 ($2.1) ($0.8) ($0.5) ($0.9) ($21.3) Total Income Net gain (loss) on marketable securities Other interest income Net change in royalties receivable Net change in financial royalty asset Normalized Total Cash Receipts Operating expenses Adjusted EBITDA 1 1 2 LTM Adjusted EBITDA Margin1 90% LTM Adjusted Cash Earnings per Unit1 $2.54 Cash available to drive portfolio growth and maintain distributions to Unitholders Strong Cash Generation 1. Adjusted EBITDA and Normalized Total Cash Receipts are non -GAAP financial measures. Adjusted EBITDA Margin and Adjusted Cash Earnings per Unit are non-GAAP ratios. See “Financial Review: Non-GAAP Financial Measures” in our third quarter 2026 MD&A. 2. Operating expenses include Other operating expenses, G&A, compensation, Deal investigation and research expense and all other relevant expenses.
Page 17
17 Positioned for Growth
Page 18
18 2026 Guidance & Long-Term Growth Agenda Adjusted EBITDA ($) $157 to $162 Million1 2026 Guidance Reported 2025 Adjusted EBITDA $164.9M Adjustment for non-recurring back-dated royalty recoveries $(15.7)M Run rate 2025 Adjusted EBITDA baseline for comparative purposes $149.2M Multi-Year Aspiration through 20302 Capital Deployment Target Over 5 Years (2026 – 2030) Adjusted EBITDA Growth Rates (%) $800 Million to $1 Billion Low Teens CAGR 2026 to 20301 1. Adjusted EBITDA guidance is based on a 2025 Adjusted EBITDA run rate which has been adjusted to remove a $15.7 million impact of non-recurring back-dated royalty recoveries received in the first quarter of 2025 related to Orserdu. The table above outlines the adjustment from reported 2025 Adjusted EBITDA to the run -rate Adjusted EBITDA for 2025 which will form the comparative basel ine for 2026 Adjusted EBITDA guidance. 2. The multi-year aspiration does not constitute guidance or outlook but rather are provided for the purpose of assisting the read er in measuring progress toward DRI Healthcare’s growth objectives.
Page 19
19 Proactive Sourcing Provides Competitive Advantage Identify Originate Qualify • Proprietary database tracking over 7,500 royalties on over 2,500 drugs • Built on various data sources, including from global patent and trademark offices, industry- specific databases, and other internal sources Letter of intent (Bid) Enter exclusivity period (Full Diligence) • Clinical profile • Sales drivers • Risk factors • Preliminary valuation • Leverage due diligence across multiple opportunities • Relationships with key decision makers at academic and corporate institutions built and maintained over the last 30+ years • Direct outreach and attendance at major life sciences industry conferences and events INTELLECTUAL PROPERTY DRIVEN Identify drugs on which there are royalties PRELIMINARY DILIGENCE Determine asset feasibility through research insights RELATIONSHIP DRIVEN Interact with royalty holders to assess needs Sourcing Funnel Our strong relationships and proprietary processes generate exclusive deal flow
Page 20
20 Rigorous Due Diligence Process SciMed Review IP and LOE LegalCommercial Assessment G l o s s a r y IP – intellectual property. KOL – key opinion leaders. LOE – loss of exclusivity. MoA – mechanism of action. ➢ Appointment of internal multi-disciplinary deal team ➢ Individualized diligence plan and deal size considerations ➢ Proactive assessment of deal risks ➢ Strategic engagement of external consultants • Comprehensive internal IP assessment of • patent coverage • validity and enforceability • freedom to operate • LOE • litigation risk • Specialized IP review and opinions provided by external counsel • Customized deal structure by experienced legal team • Underlying agreement review, including licensing agreements • Bankruptcy and overall risk assessment • Tax implications • Legal opinions and additional risk analysis by external counsel • Primary and secondary market research • Detailed market models and third-party forecasts • Competitive landscape evaluation, including product cost comparisons • Commercial bankruptcy risk • Marketer assessment and strategy review • Reimbursement analysis • MoA and preclinical review • Review of key clinical trials • In-depth clinical and patient data analysis • Probability of success determination • Regulatory environment analysis • Targeted KOL research and interviews Deal Launch
Page 21
21 Robust pipeline of over $4.5 Billion in potential opportunities1 Address important unmet needs with life-changing therapies for patients Marketed by leading biotech or biopharma companies Provides strong intellectual property and regulatory protection 1. As of September 30, 2026. Represents the aggregate value of potential opportunities under active evaluation by our investment team.
Page 22
22 Compounding Cash Flows Increase Growth Potential New asset acquisitions Total Cash Receipts2 Adjusted EBITDA2 Cash for redeployment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative effect of compounding Annual CF without compounding Annual CF with compounding Virtuous cycle of growing returns and reinvestment 1. The above chart is for illustrative purposes only to depict the effect of reinvesting cash flow over time. The chart was generated using a typical deal cash flow profile based on a historical analysis of our internal database of royalty transactions. K ey assumptions include original transaction funded with a mix of debt and equity, with interest rate expense and other operating costs facto red in. 2. Total Cash Receipts and Adjusted EBITDA are non-GAAP measures. See “Financial Review: Non-GAAP Financial Measures” in our third quarter 2026 MD&A. 1 Enables future acquisitions and delivers value for Unitholders
Page 23
23 Additional indications have potential to enhance royalty streams Growth opportunities from existing assets1 PHASE 1 PHASE 2 PHASE 3 Registration 2 1. As of Oct 22, 2026. Growth opportunities represent ongoing trials for some of the products in our portfolio to be used in add itional indications. We do not make any representations that such trials will be ultimately successful, or regarding our perform ance if such trials were to be successful. 2. Data has read out, pending approval Vonjo Spinraza Zejula Orserdu elegrobart Syfovre / Empaveli PAXIS: Treatment of VEXAS syndrome PIERRE: Spinraza evaluating a novel route of administration using a proprietary device SUMIT-ELA: Combination therapy for ER+/HER2- mBC ELCIN: Monotherapy in CDK4/6 inhibitor naïve ER+/HER2- mBC ELEVATE and ELECTRA: Combination therapy for ER+/HER2- mBC NCT07215390: Study to Evaluate APL 3007 + Syfovre in GA REVEAL-1 (Active): Subcutaneous treatment for Thyroid Eye Disease NCT07214740: Study to Evaluate a Pegcetacoplan (Syfovre®) Prefilled Syringe PACIFICA: Confirmatory trial in Myelofibrosis ASCEND: Higher dose Spinraza in patients who had received Evrysdi GLIOFOCUS: newly diagnosed, MGMT unmethylated glioblastoma (sponsored by Ivy Brain Tumor Center, supported by GSK) ELEGANT: Monotherapy for patients in ER+/HER2- with high risk of recurrence ADELA: Combination therapy for patients with ER+/HER2- mBC with ESR1m+ NCT07213960: A Sequential Phase 2/3 Study of APL2 in Patients With Focal Segmental Glomerulosclerosis NCT07020832: Efficacy and Safety in Adults with High Risk Delayed Graft Function Following Kidney Allograft Transplant REVEAL-2 (Chronic): Subcutaneous treatment for Thyroid Eye Disease
Page 24
24 Striving to deliver value to our stakeholders, our community, and society as a whole • Review of our partners’ sustainability practices • Head office located in a Gold LEED- certified building • Committed to waste reduction • Employee environmental training and awareness Environmental Building a platform for sustainability Committed to ESG Practices • Highly diverse and inclusive team • Balanced gender representation • Employee paid time off for charitable volunteering • Professional development and career advancement • Corporate giving and donations Social Valuing diversity and community support • Strong governance practices and policies • Diverse and majority independent Board • Board oversight of ESG and risk management • Active Unitholder engagement • Robust cybersecurity • Whistleblower policy Governance Accountability and integrity as core values
Page 25
25 Key priorities Focus on long-term, sustainable growth generating strong Unitholder returns Efficient Execution & Disciplined Expense Management Disciplined Capital Allocation Strengthening Asset Risk Framework
Page 26
26 Valuation comparisons highlight underlying value1 DRI Healthcare Units are Undervalued Relative to Royalty Peers PRICE / BOOK PRICE / OPERATING CASH FLOW 2,3 DIVIDEND YIELD 1.6x 8.0x 3.4% 4.23x 12.17x 1.4% 6.16x 48.6x NA 5.53x 25.02x 0.6% 6.33x 30.25x 0.6% 1. Information sourced from company filings as of September 30, 2026. 2. DRI Healthcare’s cash flow calculated as Cash Flow from Operating Activities plus Cash Interest Received less Cash Interest P aid. 3. Peer group reporting dates differ; these figures are calculated as at 9/30/2026
Page 27
27 Investment Highlights Founded in 1989, DRI Healthcare is a pioneer and a global leader in healthcare royalty investing Diversified portfolio of products by therapeutic area and marketer We believe we are well positioned to capitalize on generational industry growth delivering attractive uncorrelated cash flows Potential for high margin value opportunity on self-liquidating asset class generating quarterly cash flows Decades-long industry relationships and highly specialized investment capabilities create strong barriers to entry 27
Page 28
28 ir@drihealthcare.com Contact us Katherine Rebejko
Page 29
29 Appendix A Deal Summaries
Page 30
30 First pre-approval royalty acquisition and PIPE investment highlight evolving investment strategy Approved by the FDA in July 2025 for the treatment of acute attacks of hereditary angioedema (HAE) in adult and pediatric patients aged 12 years and older $100 million up front purchase price plus $5 million PIPE1 Paid $22 million as an optional one-time payment to the marketer in July 2025, which increased the first-tier royalty rate Entitled to a tiered royalty on worldwide net sales The Trust exercised its contractual put option with respect to the Trust’s royalty participation right in Ekterly for a total net repurchase price of $178 million The Trust is no longer entitled to royalty participation rights in Ekterly and no longer liable for the potential sales-based milestone payment TRANSACTION OVERVIEW EXERCISE OF PUT OPTION Ekterly Royalty Transaction 1. Private investment in public equity.
Page 31
31 TRANSACTION OVERVIEW GROWTH POTENTIAL Omidria Expansion Transaction Approved by FDA in May 2014 and by the EMA in July 2015 for intracameral use during cataract surgery or intraocular lens replacement to maintain pupil dilation and reduce postoperative pain $115 million up front purchase price plus up to $27.5 million in potential milestones 30% royalty rate on US net sales through December 31, 2031 Deal completed in February 2024 Replaces annual structured caps from original Omidria transaction, giving upside exposure to sales growth Mature product brings stable sales history and predictable growth Anticipated continued contribution to cash flows from 2024 through 2031 Accretive transaction with both near and long-term cash flow generation
Page 32
32 Uncapped royalties on long-duration asset Orserdu I $85 million upfront purchase price Mid-single digit tiered royalty on worldwide net sales Deal completed in June 2023 Orserdu II $130 million upfront plus $10 million milestone payment, which was paid in January 2025 Low to high single digit tiered royalty on worldwide net sales Deal completed in August 2023 Royalties collected on a one-quarter lag Approved by the FDA in January 2023 and the EMA in September 2023 for advanced/metastatic breast cancer patients with ESR1 mutations Significant progression free survival benefit over standard of care with limited side effects and convenience of oral administration Received $10 million in regulatory and sales-based milestone payments in January 2025 Orserdu Royalty Transactions TRANSACTION OVERVIEW GROWTH POTENTIAL
Page 33
33 Second royalty on Vonjo increases exposure to long duration high-quality asset Vonjo II Royalty Transaction Approved by the FDA in February 2022 as the only treatment for myelofibrosis with severe thrombocytopenia $66 million purchase price for a tiered royalty on worldwide net sales We are entitled to receive up to $107.5 million in incoming milestone payments Deal completed in July 2023 First year of sales strongly exceeded analyst consensus estimates $6.5 million payment made to CTI in January 2023 for achieving sales milestone on Vonjo I royalty In June 2023, Sobi acquired CTI for $1.7 billion TRANSACTION OVERVIEW GROWTH POTENTIAL
Page 34
34 Proceeds reinvested to generate compound effects for Unitholders Approved by the FDA in November 2022 for the treatment of stage 2 Type 1 diabetes $100 million up front purchase price for a single digit royalty on worldwide net sales Up to a $50 million potential milestone tied to the successful advancement of treatment of newly diagnosed or recent-onset Type 1 diabetes by 2028 Additional $50 million potential milestone payment based on exceeding certain sales thresholds Deal completed in March 2023 Sanofi announced agreement to acquire Provention Bio days after our acquisition of the royalty $210 million upfront sale for our royalty entitlement Sanofi is now obligated to pay the two $50 million milestones to Macrogenics if they are achieved Deal completed in April 2023 ACQUISITION FROM MACROGENICS SALE TO SANOFI Tzield Royalty Transaction
Page 35
35 Long duration product with strong IP protection anticipated to generate high multiple on invested capital Approved by the EMA in June 2022 and by the FDA in August 2022 for the treatment of ASMD $30 million up front purchase price Approximately 1% royalty on worldwide sales Royalties collected semi-annually Deal completed in November 2022 $26 million in potential milestone payments based on cumulative royalties received First and only approved product for the treatment of ASMD, also known as Niemann-Pick disease Royalties are expected to expire in Q4 2036 TRANSACTION OVERVIEW GROWTH POTENTIAL Xenpozyme I Royalty Transaction
Page 36
36 Second royalty on long-term asset further increases portfolio duration Approved by the EMA in June 2022 and by the FDA in August 2022 for the treatment of ASMD $13.25 million up front purchase price, paid $6.5 million milestone payment in June 2026 Approximately 1% royalty on worldwide sales Entitled to receive all royalties up to $6.3 million in royalty receipts per calendar year, with an economic sharing agreement for all royalty receipts above this amount Royalties collected semi-annually Deal completed in June 2024 $26 million in potential milestone payments based on Xenpozyme achieving certain annual net sales thresholds First and only approved product for the treatment of ASMD, also known as Neimann-Pick disease Royalties are expected to expire in Q4 2036 TRANSACTION OVERVIEW GROWTH POTENTIAL Xenpozyme II Royalty Transaction
Page 37
37 Multiple indications in development represent a pipeline in a product Approved by the FDA in March 2017 and by the EMA in November 2017 for the treatment of ovarian cancer $35 million up front purchase price 0.5% net royalty on worldwide net sales by GSK Royalties collected on one-quarter lag Deal completed in September 2022 In development for metastatic castrate sensitive and resistant prostate cancer, endometrial cancer, HER2-breast cancer, and non-small cell lung cancer Royalties are expected to expire in Q2 2033 TRANSACTION OVERVIEW GROWTH POTENTIAL Zejula Royalty Transaction
Page 38
38 Long-term horizon and attractive growth prospects Empaveli: Approved by the FDA in May 2021 and by the EMA in December 2021 for the treatment of Paroxysmal Nocturnal Hemoglobinuria (“PNH”) Syfovre: Approved by the FDA as the first and only treatment for Geographic Atrophy in February 2023 $28.2 million purchase price1 plus a $4.0 million potential milestone payment <1% royalty on worldwide net sales up to $500 million per annum Deal completed in July 2022 Represents a significant advancement in the standard of care for PNH In development for pipeline indications including Cold Agglutinin Disease and C3 Glomerulopathy TRANSACTION OVERVIEW GROWTH POTENTIAL Empaveli Royalty Transaction 1. Includes $24.5 million royalty acquired on July 20, 2022 and $3.7 million royalty acquired from a separate counterparty on Ap ril 3, 2023.
Page 39
39 Strong cash flows generate immediate revenues Approved by the FDA in 2006 for the treatment of Papulopustular Rosacea $50.5 million purchase price for royalties on worldwide sales Deal completed in September 2021 It has an established commercial track record and brings immediate accretive value with substantial royalty receipts netted out of purchase price Among leading treatment options for managing papulopustular rosacea Two additional royalty interests acquired as part of transaction Royalties collected on a one-quarter lag and are expected to expire in Q1 2028 TRANSACTION OVERVIEW GROWTH POTENTIAL Oracea Royalty Transaction
Page 40
40 Proven ability to provide flexibility in deal structuring while managing risk Pre -approval $50 million secured loan • Funding for Vonjo launch preparation • Secured loan provided downside protection if approval not granted Upon approval $60 million tiered royalty • Funding for Vonjo launch • Sliding royalty rates as annual sales increase • DRI Healthcare obtains higher royalty on lower tranche of annual sales Milestones by Q3 2023 Up to $25 million1 • Two potential milestones in event Vonjo sales exceeded certain thresholds by Q3 2023 • Risk sharing for different launch curves Deal Structure Case Study: CTI BioPharma / Vonjo 1. A milestone payment of $6.5 million was paid to CTI on January 25, 2023. The conditions required for the second milestone pay ment of $18.5 million were not met by the end of Q3 2023 and the additional milestone payment was not made.