Slides
Page 1
Driving value creation through capital allocation excellence Investor Day 2025 September 11, 2025
Page 2
This presentation has been prepared by Royalty Pharma plc (the “Company”), is made for informational purposes only and does n ot 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 or to contain all of the information you may desire. Statements contained herein are made as of the date of this presentation unless stated otherwise, and neither the delivery of this presentation at any time, nor any sale of securities, shall under any circumstanc es create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. This presentation contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of our strategies, financing plans, growth opportunities and market growth. In some cases, you can identify such forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “target,” “forecast,” “guidance,” “goal,” “predicts,” “project,” “potential” or “continue,” the nega tive of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the Company. However, these forward-looking statements are not a guarantee of the Company’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the Company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this presentation are made only as of the date hereof. The Company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such state ments to reflect future events or developments, except as required by law. Certain information contained in this presentation relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the Company's own internal estimates and research. While the Company believes these third-party sources to be reliable as of the date of this presentation, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this presentation involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the Company believes its own internal researc h is reliable, such research has not been verified by any independent source. For further information, please see the Company’s reports and documents filed with the U.S. Securities and Exchange Commission (“ SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov. Non-GAAP Financial Information This presentation will include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Additional information regarding non-GAAP financial measures can be found on slide 136 in the Appendix. Any non-U.S. GAAP financial measures presented are not, and should not be vi ewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP and may not be comparable to the calculation of similar measures of other companies. Forward Looking Statements 2
Page 3
3 Today’s agenda 08:30 Opening Remarks George Grofik SVP , Head of Investor Relations & Communications Execution, Returns, Growth Pablo Legorreta Chief Executive Officer, Chairman of the Board Deloitte Royalty Funding Market Study Ashwin Pai EVP , Investments Leveraging Powerful Industry Tailwinds Chris Hite EVP and Vice Chairman Brienne Kugler SVP , Research & Investments 9:50 Q&A Session 10:10 Break 10:25 Why We Win Marshall Urist EVP and Head of Research & Investments Driving Value Creation Terrance Coyne EVP and Chief Financial Officer Closing Remarks Pablo Legorreta Chief Executive Officer, Chairman of the Board 11:55 Q&A Session 12:15 Luncheon With Management
Page 4
4 We will address the most frequently asked investor questions today What is your market opportunity and long-term growth outlook? What are your competitive advantages? Can you provide more detail on your historical returns and are they sustainable? How is your investment approach differentiated from public market investors? Could you provide an update on the outlook for your cystic fibrosis franchise? What do you consider to be your peer group? How should investors think about valuing Royalty Pharma? How is your business positioned for the various macro factors potentially impacting biopharma? 1 2 3 4 5 6 7 8
Page 5
Execution, Returns, Growth Pablo Legorreta Chief Executive Officer, Chairman of the Board
Page 6
6 Key messages 1 Strong execution Delivering on strategic and financial priorities since 2020 IPO and 2022 Investor Day On track to deliver $4.7bn+ top-line in 2030 (10%+ 2020-2030 CAGR) 2 Rapid industry growth Royalties playing an increasingly prominent role in biopharma funding Average annual royalty market size of $6bn from 2020-2024, ~130% growth from prior 5-year period(1) 3 Optimized business model Established strong competitive advantages over ~30 years, now the optimized buyer of royalties Continuous innovation is core to strategy to remain royalty funding leader 4 Value creation Delivered consistent mid- teens ROIC Internalization to drive platform value recognition Our 2030 top- and bottom-line outlook is >10% above consensus Goal of at least mid-teens TSR over next 5 years IPO: initial public offering; CAGR: compound annual growth rate; ROIC: return on invested capital; TSR: total shareholder ret urn Top-line refers to Portfolio Receipts and bottom-line refers to Portfolio Cash Flow. See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Royalty Pharma internal data. Represents announced transaction value.
Page 7
Delivered on key strategic and financial priorities since our 2020 IPO 7 +12% Delivering top-tier growth 2020-2025e Portfolio Receipts CAGR ~$14bn Deployed substantial capital Capital deployed on new royalty transactions since 2020 ~15% Return on Invested Capital 2019-2025e ~$4bn Capital returned to shareholders Dividends paid and shares repurchased since 2020 ~3x Scaled platform Headcount increased from 2020-2025e Simplified Structure with manager internalized Integrated intellectual capital with portfolio of royalties (2) CAGR: compound annual growth rate See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Represents compound annual growth rate from $1.8bn in 2020 to the midpoint of 2025 Portfolio Receipts guidance of $3.050 bill ion to $3.150 billion provided on August 6, 2025 plus expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. 2. Represents Capital Deployment from 2020 to September 10, 2025; announced value of transactions over this time period is ~$19 billion. 3. Represents dividends on Class A and Class B ordinary shares and Class A ordinary share repurchases from June 2020 through the first half of 2025. Strong execution Rapid industry growth Optimized business model Value creation (1) (3)
Page 8
8 See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Expected Portfolio Receipts of approximately $3.1 billion is based on 2025 guidance of be tween $3.050 billion and $3.150 billion provided on August 6, 2025 plus expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. 2. Excludes Biohaven-related accelerated milestone payments of $458 million in 2022 and $525 million in 2023 and $511 million of proceeds from sal e of MorphoSys Development Funding Bonds in 2025. 3. Capital Deployment reflects cash payments during the period for new and previously announced transactions. Announced value of transactions represents the entire amount of capital committed for new transactions during the year, including potential future milestones. Strong execution Rapid industry growth Optimized business model Value creation On track to achieve financial goals announced at 2022 Investor Day 2020 2025e 2030 outlook Portfolio Receipts ($ in billions) 2020-2025e: CAGR of 11-14% ~$3.1bn(1) (12% CAGR) Portfolio Receipts(2) Implied by Outlook Portfolio Receipts CAGR of 10% or more (2020-2030) $4.7bn+ $1.7 $2.7 $3.7 $4.7 5-year Capital Deployment of $10-12 billion (2022-2026) 2022 2023 2024 2025 2026 $ in billions Capital Deployment(3) Implied by Target ~$9bn ~$14bn Announced Value(3) $10-12bn $0 $6 $15 $12 $9 $3
Page 9
9Rapid industry growthStrong execution Optimized business model Value creation Royalties play a critical funding role in the biopharma ecosystem… Debt EquityRoyalties Low Low High Post approval Medium No High Low Low All High No Cost of capital Flexibility Operationally restrictive Broad availability Market sensitivity Product specific Low to medium High Low Post proof-of-concept Low Yes Royalties are an innovative and growing asset class
Page 10
10Rapid industry growthStrong execution Optimized business model Value creation …and offer advantages versus pharma partnering Royalties Pharma partnering High Very high None Low to medium Significant Limited Strategic optionality Retention of economics Administrative complexity Cost of capital Scale of capital Operational capabilities Low Low High Very high Significant Extensive “Fundamentally, there is no impact on strategic options [from royalties]… if you sell 50% of your therapy, it might limit potential attractiveness” – Biotech CFO Royalties preserve strategic optionality as the product profile matures CFO: Chief Financial Officer Biotech CFO quote is from the Deloitte report on The Role of Royalties in Funding Biopharma Innovation.
Page 11
11 1. Innovation in the pharmaceutical industry: new estimates of R&D costs, Joseph A DiMasi, Henry G Grabowski, Ronald W Hansen . 2. Average number of Biopharma licensing deals from 2018 -2024 according to data from Raymond James. 3. Number of companies that complete an IPO, follow -on equity offering, convertible bond offering or raise capital through royal ties according to data from Morgan Stanley and Royalty Pharma internal data. 4. Represents cumulative R&D spend by academic, non-for profits, biotech and pharma over next decade according to Royalty Pharm a internal data. Rapid industry growthStrong execution Optimized business model Value creation Biopharma is ideally suited for royalty funding Industry characteristics Biopharma Supportive of royalties? High operating margins ~50% High capital intensity >$2bn per drug approval(1) Long product life cycle ~15 years Highly fragmented innovation ~250 licensing deals annually(2) Significant # of companies requiring funding >200 annually accessing capital markets(3) Large total addressable market >$1 trillion globally(4) Unique characteristics of industry are conducive to a vibrant royalty market
Page 12
12Rapid industry growthStrong execution Optimized business model Value creation Royalty funding has grown rapidly 20241997 $0.04bn $0.4bn $1.6bn $2.4bn $2.7bn $6.2bn 5-year average annual announced value (1997-2024)(1) Driven by growing capital needs, industry fragmentation, scientific innovation and increased awareness of royalties Future 1. Royalty Pharma internal data, commencing in 1997.
Page 13
Capital allocators 13Rapid industry growthStrong execution Optimized business model Value creation Royalty Pharma combines the attractive attributes of multiple industries Biopharma Alternative asset managers Precious metal royalties Average P/E ratio(1) = ~14x Average P/E ratio(3) = ~20x Average P/E ratio(2) = ~34x Average P/E ratio(4) = ~32x Price to Earnings (P/E) ratios are next twelve months and calculated from the Visible Alpha consensus as of September 3, 2025 . 1. Biopharma group includes AbbVie, Amgen, AstraZeneca, Biogen, Bristol Myers Squibb, Eli Lilly, Gilead, GSK, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, Roche, Sanofi and Vertex. 2. Capital allocators group includes Constellation Software, Copart, Danaher, Heico, Markel, MSCI, ThermoFisher and TransDigm. 3. Alternative asset manager group includes Apollo, Ares Management, Blackstone, Blue Owl, Carlyle, KKR and TPG. 4. Precious metal royalties group includes Franco-Nevada, Royal Gold Inc. and Wheaton Precious Metals.
Page 14
Royalty Pharma’s goal is to be the premier capital allocator in life sciences with consistent, compounding growth
Page 15
15Optimized business modelStrong execution Value creationRapid industry growth We are the optimized buyer of royalties Industry pioneer Unique business model Strongest investment platform First mover Competitive advantages Optimized buyer of royalties Long track record of success Efficient model, substantial cash flow generation Significant scale Highly diversified portfolio Low cost of capital Strong brand and broad network of relationships Flexibility in structuring 1996 Today~30 years
Page 16
16Optimized business modelStrong execution Value creationRapid industry growth Our value driven dynamic capital allocation framework More attractive royalty opportunities Less attractive royalty opportunities Favor share repurchases Build cash on balance sheet, pay down debt or increase dividend Favor capital deployed on royaltiesBalanced approach between royalties and share repurchases Discount to intrinsic value (share price) Premium to intrinsic value (share price) Intend to allocate capital as effectively and efficiently as possible, creating long-term value for shareholders
Page 17
17 IP: Intellectual Property; IPO: Initial public offering; IRR: internal rate of return 1. Based on mid-teens projected IRRs since 2020. Excludes equity investments and ~$2bn of royalty investments where pivotal data has not yet read out. Optimized business modelStrong execution Value creationRapid industry growth Our investment approach optimizes risk/reward Flexible approach • Maximizes opportunity set • Therapeutic area agnostic; no target for annual investment or stage of development Highly selective • Focus on best products with highest impact on patients • Rigorous due diligence • Conviction in scientific rationale, IP and commercial potential Attractive returns • Target attractive returns above cost of capital across market environments • Long-term investment horizon captures higher cash-on-cash multiples Risk mitigation • Approved products or post- proof-of-concept development-stage therapies • Potential to mitigate risk through deal structure Product selection Risk/reward >90% of deal IRRs exceeding cost of capital(1) ~2% of initial reviews resulted in a transaction Mid-teens IRR on deals since 2020(1) 60 Disease areas invested in since 2020
Page 18
18 Numbers may not add due to rounding. Capital Deployment reflects cash payments during the period for new and previously announced transactions. 1. Year to date as of September 10, 2025. Optimized business modelStrong execution Value creationRapid industry growth 35%, ~$9bn Development-stage therapies Healthy mix of approved and development-stage investments Annual Capital Deployment ~$27 billion in cumulative Capital Deployment (2012 – 2025 YTD)(1) 100% 0% 2012 2023 68% 32% 202220212020 65%, ~$17bn Approved products Approved Development-stage 2024 2025 YTD(1) Royalty Pharma has deployed approximately $27 billion of capital since 2012
Page 19
Significant time, resources on new molecule/modality development and achieving proof-of-concept by biopharma 19Optimized business modelStrong execution Value creationRapid industry growth We deploy capital in attractive risk/reward opportunities Phase 1 Phase 2 Phase 3 Registration Approved 100% 0% Industry probability of success(1) Pre-clinical We invest where industry success rates are highest • Deployed ~65% of capital on approved products since 2012 • For development-stage, we generally invest post proof-of-concept (Phase 3 or later) • Industry R&D success rates increase to ~52% in Phase 3 from ~15% in Phase 2(1) • RP development-stage success rate of ~90%, well ahead of industry benchmarks(2) R&D cost(3): ~$900m ~$1.4bn RP investment focus Lowest risk stages of development, highest capital needs Biopharma innovation Strong track record of success 1. BIO: Clinical Development Success Rates and Contributing Factors, 2011 -2020. 2. Development-stage success rate reflects the value of approved development -stage investments divided by the sum of the value of approved and failed development-stage investments. 3. Average R&D cost per approved drug. Congressional Budget Office, Research and Development in the Pharmaceutical Industry, April 2021. 8% 15% 52% 91% 100% n/a
Page 20
20Optimized business modelStrong execution Value creationRapid industry growth 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) 2020 202420232019 20222021 2025e Approved at acquisition Approved since acquisition Development-stage Unsuccessful Amounts may not add due to rounding. 1. Represents average of Invested Capital at Work at the beginning and end of the year. 66% 19% 11% 3% 86%
Page 21
21Optimized business modelStrong execution Value creationRapid industry growth Track record of identifying great products that consistently outperform Therapy First- or best-in class Actual/Current Rituxan HIV franchise(2) Neupogen/Neulasta(1) Tecfidera 1997 Humira CF franchise Remicade Imbruvica Evrysdi Nurtec 2024 Consensus peak sales (in bn) $0.8 $7.0 $2.4 $1.0 $5.0 $5.6 $6.1 $0.9 $4.4 $4.0 Therapeutic Area Cancer Cancer Spinal muscular atrophy Cystic fibrosis Multiple sclerosis Immunology Immunology HIV Cancer Year Migraine Voranigo Cancer At transaction $0.5 $7.6 $15.8 $2.9 $2.5 $6.9 $8.8 $21.2 $4.3 $5.9 $4.4 >$1.0(4) % Outperformance +843% +127% +23% +142% +39% +56% +248% +352% +34% +11% >100% Tremfya $5.5Immunology $8.7(3) +59% Trelegy $3.2Respiratory $4.1 +27% Trodelvy Cancer $0.7 $2.8 +318% CF: cystic fibrosis; HIV: human immunodeficiency virus Consensus data per Visible Alpha as of September 3, 2025. 1. Reflects sum of individual peak sales estimates/actuals for US and International geographies (RP made individual investmen ts in US/International royalty). 2. Figures reflect emtricitabine sales only. 3. Johnson & Johnson has guided to potential peak sales >$10bn. 4. Based on Royalty Pharma peak sales estimate at the time of the transaction .
Page 22
22 1. Reflects transactions for approved products since 2020. Excludes Adstiladrin as marketer is private and consensus is unavailable. 2. Consensus sales sourced from Visible Alpha as of September 2025 and i ncludes therapies with consensus available at the time of the deal and now. 3. Voranigo estimate for 5 -years post transaction is based on Royalty Pharma peak sales estimate. 4. Change in Orladeyo consensus sales includes both BioCryst transactions (December 7, 2020 and November 22, 2021) with the percent change weighted by capital deployment. 5. Change in Erleada consensus sales is from date of second Erleada transaction (June 5, 2023). 6. Change in Evrysdi consensus sales includes both PTC transactions (July 20, 2020 and October 19, 2023) with the percent change weighted by capital deployment. 7. Reflects U.S. sales of Skytrofa. 8. Blueprint Medicines press release, January 8, 2024. Optimized business modelStrong execution Value creationRapid industry growth Proven ability to identify successful products… -37%-36% -17% -9% 2%5%6%9%13% 36%37%37% 43%44% 98%103% >100% Discontinued development and marketing excluding U.S. & China(8) CF franchise (4) (6) (5) (7) Transaction size >$250m Transaction size <$250m Increase in consensus = 40% (weighted average by capital deployed) Consensus 5-years post transaction - time of acquisition vs. current(1,2) (% change for approved products since 2020) (3)
Page 23
23Optimized business modelStrong execution Value creationRapid industry growth …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. current(1,2) (% change for approved products since 2020) Transaction size >$250m Transaction size <$250m IRR expected to achieve target returns or better CF franchise (4) (6) (5) (7) (3) 1. Reflects transactions for approved products since 2020. Excludes Adstiladrin as marketer is private and consensus is unavailable. 2. Consensus sales sourced from Visible Alpha as of September 2025 and i ncludes therapies with consensus available at the time of the deal and now. 3. Voranigo estimate for 5 -years post transaction is based on Royalty Pharma peak sales estimate. 4. Change in Orladeyo consensus sales includes both BioCryst transactions (December 7, 2020 and November 22, 2021) with the percent change weighted by capital deployment. 5. Change in Erleada consensus sales is from date of second Erleada transaction (June 5, 2023). 6. Change in Evrysdi consensus sales includes both PTC transactions (July 20, 2020 and October 19, 2023) with the percent change weighted by capital deployment. 7. Reflects U.S. sales of Skytrofa. 8. Blueprint Medicines press release, January 8, 2024. Discontinued development and marketing excluding U.S. & China(8)
Page 24
• Invested ~$9bn in development-stage therapies since 2012 • Require strong proof-of-concept data and target unlevered IRRs in the teens % • Lack of therapeutic area constraints drive broad landscape of opportunities • History of identifying therapies with unmet and underserved patient needs • 17 development-stage therapies in portfolio 24 1. Cumulative through September 10, 2025. 2. Not approved includes investments in otilimab, BCX9930, vosaroxin, palbociclib, ApiJect, MK-8189 and Merck KGaA’s anti-IL17 nanobody M1095. 3. Royalty Pharma’s investment in gantenerumab, which was written -off, has been added back to “in-development” as Roche plans to initiate a Phase 3 trial for the follow-on molecule, trontinemab, in 2025. 4. 90% approved at acquisition excludes development-stage therapies that are still in development. Optimized business modelStrong execution Value creationRapid industry growth Strong track record of investing in development-stage therapies Capital Deployment on development-stage therapies (2012-2025 YTD)(1) approved since acquisition(4) 64% Approved 29% In development(3) 7% Not approved(2) Approach drives strong track-record Royalty Pharma development-stage success rate of ~90% excluding therapies still in development 90%
Page 25
25 See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Refer to the Appendix for a GAAP to non-GAAP reconciliation. 1. Named Executive Officer ownership as of September 2025. Biopharma group consists of the average of AbbVie, Amgen, AstraZeneca, Biogen, Bristol Myers Squibb, Eli Lilly, Gilead, GSK, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, Roche, Sanofi and Vertex. Value creationStrong execution Rapid industry growth Optimized business model 35 100 90% ~95% Scaling platform Headcount growth, 2020-2025e Scaling the platform with owner/operator mindset Owner/operator mindset(1) Management ownership of company 4 1 ~3x 2020 2025e Biopharma 20% <1% Internalization will drive efficiencies Adjusted EBITDA margin expected to increase 3 +5pp 2020 2026e Capital Deployment2 2015-2019 2020-2024 >70% ~$12bn ~$7bn >20x
Page 26
26 Our predecessor was founded in 1996 and we were incorporated under the laws of England and Wales on February 6, 2020. 1. Headcount figures prior to the internalization transaction relate to the external Manager. Value creationStrong execution Rapid industry growth Optimized business model Internalization transaction integrated best-in-class platform Royalty Pharma evolution (1996 to present) Royalty Pharma Deal Team(1) Board of Directors Execute 1996 to 2003 2004 to 2011 2012 to 2020 2020 to 2025 Serial fund structure Ongoing business Expanded investment scope Externally managed public company 2025 and beyond Integrated public company Best-in-class team and capabilities drive powerful investment platform~10~5 ~100~25Headcount(1): Small founder-led fund Scaled platform
Page 27
27 1. Internalization transaction was announced in January 2025 and was completed in May 2025. Value creationStrong execution Rapid industry growth Optimized business model Value for platform expected to enhance valuation over time Intellectual capital & platform Royalty Pharma plc (RPRX) Management company (private) Integrated public company Today Integrated company now includes diversified royalty portfolio and platform post internalization Platform Portfolio + Platform contract Portfolio Previous structure (externally managed, pre-January 2025(1))
Page 28
28Value creationStrong execution Rapid industry growth Optimized business model Royalty Pharma shares reflect minimal value for platform Portfolio value (2020) Value creation Portfolio value (today) Platform Intrinsic equity value (future) Portfolio value has grown substantially Significant value still to be realized from platform ~12% top-line CAGR(1) 38 transactions 48 unique products ~$14bn capital deployed Intellectual capital Future royalty acquisitions Competitive advantages Externally managed RPRX excludes platform Integrated RPRX includes platform Internalization expected to drive further value creation for shareholders CAGR: Compound Annual Growth Rate RPRX: Royalty Pharma plc 1. CAGR from 2020 to 2025 which uses midpoint of 2025 Portfolio Receipts guidance of $3.050 billion to $3.150 billion provided o n August 6, 2025 plus expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025.
Page 29
$2.7bn $3.1bn June 2020 IPO Today 29Value creationStrong execution Rapid industry growth Optimized business model Strong execution has driven upgrades to 2025 estimates since IPO See slide 136 for definitions and factors that may impact our growth outlook. 1. For June 2020, figure represents company compiled consensus for Portfolio Receipts (previously called Adjusted Cash Receip ts) from the available analyst models and includes new investments. Today’s consensus based on Visible Alpha for Portfolio Receip ts including new investments as of September 3, 2025. +15% Consensus evolution for 2025 Portfolio Receipts (top-line)(1) • June 2020: introduced 2020-2025e top-line CAGR outlook of 6% to 9% • May 2022: raised 2020-2025e CAGR to 11% to 14% driven by strong portfolio performance and greater capital deployment at attractive returns • On track to achieve outlook; 2025 consensus is 15% higher than at the time of June 2020 IPO RP has executed on financial targets
Page 30
30 See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Visible Alpha consensus as of September 3, 2025 Value creationStrong execution Rapid industry growth Optimized business model $4.1 $4.7+ Our 2030 outlook is significantly above analyst consensus estimates $6.9bn 2030 Portfolio Receipts outlook in billions 2030 Portfolio Cash Flow outlook per share Analyst consensus $6.39 >$7.50 Analyst consensus Royalty Pharma outlook Royalty Pharma outlook >10% >15%(1) (1)
Page 31
31Value creationStrong execution Rapid industry growth Optimized business model Powerful business positioned to drive strong value creation Expanding market Strong secular trend of growing needs for alternative forms of financing to fund biopharma innovation Unique platform Best-in-class platform for investing in innovative products marketed by premier biopharma companies Attractive returns Consistent unlevered mid- teens IRR and ROIC, >20% return on invested equity Expect to achieve similar returns above cost of capital in future Leader in biopharma royalty funding Robust growth Strong, low volatility growth expected through 2030 2030 top- and bottom-line outlook >10% higher than consensus See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Top-line refers to Royalty Pharma’s Portfolio Receipts and bottom -line refers to Portfolio Cash Flow IRR: internal rate of return; ROIC: return on invested capital
Page 32
Deloitte Royalty Funding Market Study Ashwin Pai Executive Vice President Investments
Page 33
33 Inaugural Deloitte market study on biopharma royalty funding Comprehensive market study on biopharma royalty funding • 110+ biopharma executives • Quantitative insights: 90 digital survey participants • Qualitative insights: 20+ one-on-one interviews Primarily CFOs, CEOs and other key decision makers Provided deeper insights into perceptions towards royalty funding Deloitte market study: participants by position 44% (CFOs) 22% (CEOs) 34% (BD, Board, etc.) CEO: Chief Executive Officer; CFO: Chief Financial Officer; BD: business development
Page 34
34 Royalties viewed as strategic addition to capital structure Over the last 3 years, how has your interest in royalty funding changed? (n=78) (decreased) What do you view are the main benefits associated with royalty funding? (n=80) (% respondents ranking each benefit in top 3 choices) 25% 31% 33% 36% 38% 46% 68% Share risk Ability to customize deal terms Scale of capital Single product financing Operational control No covenants Spares equity dilution 40% (unchanged) 6% 54% (increased) Differentiated benefits of royalties driving increased executive interest
Page 35
35 Companies express strong interest in pursuing royalty funding If your company plans to raise capital in the next 3 years, to what extent would royalty funding be considered? (n=67) Corporate capital needs over the next 3 years (n=74) 54%Majority of the capital needs Will not consider All Some of the capital needs 13% 76% 6% 4% 87% 26% (up to $250m) 31% ($250m - $500m) 34% (>$500m) 9% ($0) 87% of biopharma executives would consider royalties as part of their capital raising plans over the next 3 years 65% of companies likely need >$250m in capital Numbers may not add due to rounding
Page 36
Companies express strong interest in pursuing royalty funding Select quotes from Deloitte Royalty Funding Market Study 36 “Royalties are attractive as they ensure access to non-dilutive capital…helped us overcome setbacks when equity capital markets were closed for us” – Biotech executive “[A] royalty is better than equity and debt financing because it is non-dilutive, simpler than debt and positively received by investors. ” – Biotech executive “One of the important advantages of royalty funding is that it offers risk sharing on the concerned product” – Biotech executive “With royalties, you can operate how you want, do M&A [or other strategic activities]” – Biotech executive
Page 37
37 Royalty funding market is poised for significant growth Opportunity 87% of executives would consider using royalty funding to raise capital over the next 3 years 67% of executives would pursue royalty funding instead of or in addition to equity financing 77% of executives would pursue royalty funding instead of or in addition to debt financing
Page 38
Leveraging Powerful Industry Tailwinds Chris Hite Executive Vice President Vice Chairman
Page 39
39 Key messages 1 Megatrends Global innovation occurring at rapid pace Fragmentation of R&D creating royalties Growing industry capital requirements 2 Large royalty opportunity Fragmentation leading to large and growing existing royalty opportunity Synthetic royalties are an attractive and growing funding modality: • Significant spend required to develop and commercialize biopharma products • Supported by biopharma executives in the Deloitte study 3 Clear industry leader Market share of ~50% from 2020 to present is ~4-fold higher than the next largest competitor, with >70% share of transactions ≥$500m Repeat partners have driven ~30% of announced transaction value since 2020
Page 40
40Large royalty opportunityMegatrends Clear industry leader Biopharma royalty funding market Demand even greater than anticipated Differentiated access to opportunities Scale drives strong competitive advantages Strengthened competitive moats Attractive in all macro environments Sustainable and attractive returns on transactions Key learnings and observations since our IPO in 2020 1 1 2 2 3 3 IPO: initial public offering
Page 41
41Large royalty opportunityMegatrends Clear industry leader Megatrends driving the royalty industry Global innovation is occurring at a rapid pace Dramatic increase in technological advances, scientific breakthroughs Record number of FDA approvals United States remains a driver of innovation and seeing strong progress in other geographies (e.g., China) R&D fragmentation creating royalties Diverse, decentralized ecosystem Significant complexity of drug development Numerous collaborations, licensing deals and partnerships drive royalty creation Biopharma capital needs are large and growing Biopharma has expansive and diverse clinical pipelines Capital requirements expected to be >$1 trillion over next decade Scaled royalty providers expected to disproportionately benefit FDA: Food and Drug Administration
Page 42
42Large royalty opportunityMegatrends Clear industry leader Innovation and fragmentation driving powerful industry dynamics… Innovation: number of drugs receiving FDA approval(1) 215 226 313 324 2005-2009 2010-2014 2015-2019 2020-2024 >50% increase FDA: Food and Drug Administration 1. FDA, includes drugs approved by CDER (Center for Drug Evaluation and Research) and CBER (Center for Biologics Evaluation and Research). 2. Licensing and partnership data from Raymond James. Fragmentation: licensing and partnership opportunities(2) 253 229 282 278 244 215 230 2018 2019 2020 2021 2022 2023 2024 ~250 average
Page 43
43 Source: Bloomberg, Visible Alpha and CapIQ 1. Based on estimates from Visible Alpha and Royalty Pharma internal analysis. 2. Based on Evaluate Pharma as of July 2025. Large royalty opportunityMegatrends Clear industry leader …and provides substantial funding opportunity by unprofitable biopharma (including SG&A) >$1 trillion by profitable biopharmas >$2 trillion by academic, non-profits Synthetic royalties ~$2 trillion Biopharma revenues (2035e) >$1 trillion Biopharma ecosystem cumulative R&D spend over next decade(1) Global pharma market(2) Synthetic royalties Third-partyroyaltiesThird-partyroyalties Third-party royalties Entire biopharma ecosystem drives our pipeline
Page 44
44Large royalty opportunityMegatrends Clear industry leader China emerging as a significant driver for innovation in biopharma • Significant increase in licensing deals creating royalties on products marketed by global pharma companies • Royalty market will take time to develop as activity has been focused on therapies in early-stage development • Capital markets less developed in China, creating more acute need for alternative sources of capital • RP is focused on developing relationships with Chinese biopharma companies China is a strategic market for biopharma Increased licensing activity has resulted in important long-term royalty opportunity Number of royalties created from China out-licensing TTM: trailing twelve months Source: Morgan Stanley and public company data 3 2 4 9 25 43 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Page 45
45 RP IPO: Royalty Pharma initial public offering in 2020 1. ~$2 billion Royalty Pharma IPO excluded from biotech capital raises. Royalty funding represents announced value of transac tions. Large royalty opportunity Clear industry leaderMegatrends Biotech capital raising versus royalty funding(1) ($ in billions) Strong royalty growth against volatile capital markets backdrop 2016 2024 Biotech capital raises $70 0 $7 0 Royalty funding(1) (3-year rolling average) Follow-on equity Royalty fundingIPOs Converts 2020 • Growth in both strong and more restrictive capital market environments • Benefits becoming more widely recognized • Royalty Pharma 2020 initial public offering raised awareness, accelerating deal activity Uncorrelated royalty growth RP IPO
Page 46
46Large royalty opportunity Clear industry leaderMegatrends Synthetic royalties are an attractive funding modality… § Royalty Debt Equity Non-dilutive to equity / preserves equity upside Customized and tailored funding solutions Independent validation of therapy’s value to patients Share risk of development and/or commercialization No financial covenants Long-term alignment of interests Value add through proprietary analytics Product specific Speed of execution Benefits to biopharma partner Synthetic royalties – a compelling innovation with significant growth potential
Page 47
54% 21% 26% 26% 38% 47 Estimates based on publicly available information. Royalty Pharma partnerships assume fully drawn facilities and maximum tran saction value. Pharma partnerships in Other primarily includes upfront payments. 1. Capital raised since Revolution Medicines’ i nitial public offering on February 18, 2020. 2. Capital raised since Biohaven’s May 2017 IPO. 3. Capital raised since Cytokinetics initial public offering on April 29, 2004. 4. Capital raised since BioCrys t’s initial public offering on March 4, 1994. 5. Capital raised since Zenas Biopharma’s initial public offering on September 16, 2024. Large royalty opportunity Clear industry leaderMegatrends Important funding paradigm emerging for biopharma Royalties are a growing part of successful biotech’s diversified capital structure RP partnership Debt Other / Pharma partnershipEquity Company % capital raised Total ~$4.2bn(3) ~$3.2bn(2) ~$5.3bn(1) ~$1.6bn(4) Flexible Financial flexibility tailored to company’s needs Scale Optionality Insights Partnership Scale of capital needed may only be available through diversified sources Optionality during all market environments Long-term partner that can support company’s needs throughout their growth journey Proprietary insights potentially shared on development program and/or commercial market Significant benefits of diversified capital ~$0.6bn(5)
Page 48
48 Financials are based on reported results where available and FactSet for projections. 1. Post Launch Spend as a Multiple of Pre Launch Spend. Large royalty opportunity Clear industry leaderMegatrends Royalty funding can support product launch investment… Company Product Pre Launch Spend Post Launch Spend Absolute Total Multiple(2) Royalty Deal Nurtec ODT ~$200m ~$1,980m ~$1,780m ~10x Skytrofa ~€150m ~€780m ~€630m ~5x Voquezna ~$190m ~$750m ~$560m ~4x Rytelo ~$140m ~$505m ~$365m ~4x Ayvakit ~$170m ~$590m ~$420m >3x Syfovre / Aspaveli ~$590m ~$1,500m ~$910m >2x Rezdiffra ~$195m ~$1,630m ~$1,435m >8x Cumulative 3-Year SG&A Investment Launch Phase SG&A Increase Biotech companies see a ~5x average increase in SG&A spend when commercializing a product
Page 49
Company Product Pre proof-of-concept Post proof-of-concept(1) Change Total Multiple(2) Royalty Deal daraxonrasib, zoldonrasib ~$750m ~$3,000m ~$2,250m ~4x SpikeVax ~$1,400m ~$6,700m ~$5,300m ~5x aficamten ~$400m ~$1,200m ~$800m ~3x Cobenfy ~$100m ~$700m ~$600m ~7x Vyvgart ~$200m ~$1,200m ~$1,000m ~6x Vax-24, Vax-31 ~$400m ~$2,000m ~$1,600m ~5x brensocatib, TPIP ~$600m ~$2,000m ~$1,400m >3x Cumulative 3-year R&D Investment 49 TPIP: Treprostinil Palmitil Inhalation Powder Financials are based on reported results where available and FactSet for projections. 1. Figures shown until the earlier of current date or product approval. Spend includes Phase 3 / Registration studies for origin al proof-of-concept indication and additional indications where appropriate. 2. Post proof-of-concept spend as a multiple of pre proof-of-concept. 3. Moderna pre-proof of concept spend captures period from 2017-2019. Post proof-of-concept period captures 2020-2022 once SpikeVax approval validated MRNA technology. Large royalty opportunity Clear industry leaderMegatrends R&D Increase post PoC (3) Biotech companies see a ~5x average increase in R&D spend when moving to pivotal studies …and expensive late-stage trials, enabling retention of economics
Page 50
50Large royalty opportunity Clear industry leaderMegatrends 60% (somewhat interested) 20% (not interested) 20% (highly interested) 80% 60% (somewhat interested) 20% (not interested) 20% (highly interested) Synthetic opportunity strongly highlighted in Deloitte study What is your company’s interest level in creating a synthetic royalty to help meet its capital needs over the next 3 years? (n=75) “The [synthetic] royalty market is here to stay. It’s the only way I can see to sell equity in one of our products without encumbering the rest of the portfolio” - Biotech executive “The beauty of [a synthetic] royalty lies in the fact that it is almost like a licensing deal, without the loss of operational control” - Biotech executive “ …Most of the evolution in the industry is happening within synthetic royalties” - Investment banker Survey data and quotes from Deloitte Royalty Funding Market Study
Page 51
3.1 51Large royalty opportunity Clear industry leaderMegatrends …and expected to be an important growth driver Synthetics are underpenetrated in biopharma funding(2,3) (>$310bn in biopharma funding, 2020-2024) Synthetic royalty market growth has been robust(1) (Announced value; $ in billions) Synthetic royalties (~3%) Follow-on equity offerings IPOs Convertible debt Existing royalties Licensing deals (upfront) Private credit 2016 2017 202420222015 20232018 2019 2020 2021 0.2 +36% CAGR Source: Dealogic, Biomedtracker, internal estimates, Evaluate. 1. Royalty Pharna internal analysis. Data reflects announced value of transactions, including milestones and contingent payments. 2. Includes capital raised through initial public offerings (IPOs), follow-on offerings, equity linked issuances and upfronts from licensing deals. 3. Royalty funding reflects announced value of transactions and includes associated equity investments.
Page 52
Partnering with Biotechs to Support their Growth Journey Brienne Kugler Senior Vice President Research & Investments
Page 53
Funding options available Biotech companies strategic and financial considerations Equity • Magnitude of dilution at current share price • Market conditions for scale of funding needed Debt • Quantum of capital (if any) available for pre-revenue companies • Covenants likely to restrict flexibility Partnership • Forfeiture of economics and operational control • Potential to impact M&A prospects Royalty • Enables full operational control at a competitive cost of capital • Asset at right stage of development for royalty partner 53Large royalty opportunity Clear industry leaderMegatrends Royalties help biotech companies preserve optionality High-quality biotech companies may have a range of options available to choose from when raising capital
Page 54
54 Daraxonrasib, a RAS(ON) multi-selective inhibitor for RAS mutant pancreatic and lung cancers 1. Royalty Pharma press release, June 24, 2025. Large royalty opportunity Clear industry leaderMegatrends Revolution Medicines deal a prime example of new funding paradigm “This gives us committed $2 billion of capital, which allows us to make the multi-year commitments that we need to be making now … [and] from a value retention perspective, we think this is a fantastic deal. ” -Revolution Medicines, Business Update Call, June 24, 2025 $2 billion in total funding(1) Up to $1.25bn synthetic royalty on daraxonrasib for cancer • $250m upfront • Tranched investments upon clinical, regulatory and commercial success • Mid-single digit royalty rate Up to $750m of senior secured debt • Tranched investments upon regulatory and commercial success benefitsTransaction terms Significant quantum of capital enables multi-year R&D investments Funding allows retention of global operational control Significant flexibility for future decisions
Page 55
55Large royalty opportunity Clear industry leaderMegatrends Daraxonrasib – a potentially transformative therapy for cancer Multi-blockbuster potential for daraxonrasib (Non risk-adjusted consensus sales; billions)(1) Unique deal structure provides attractive risk/reward Impressive clinical data Pancreatic cancer data suggests potential for >2x longer overall survival vs. historical chemotherapy benchmarks, generally well-tolerated safety High unmet patient need Pancreatic cancer is the 3rd leading cause of cancer death and among the worst 5-year survival rates(2); chemotherapy only current treatment option Large market opportunity Consensus sales of ~$8bn by 2035 and potential peak royalties of ~$180m- $340m(3); potential opportunities in lung and colorectal cancer Risk mitigation Risk-mitigated partnership structure; RP provided $250m upfront with additional funding available only on achievement of milestones $7.9 1. Visible Alpha consensus as of September 2025 2. Five-year survival rate for pancreatic cancer is 13% according to the American Cancer Society. 3. Peak royalties assume royalty rates under required Revolution Medicines draw and maximum draw scenarios. 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Page 56
56Clear industry leaderMegatrends Large royalty opportunity Announced $2.8 billion of royalty transactions in 2024 2024 Royalty Pharma investment activity >440 initial reviews 153 CDAs signed 99 in-depth reviews 42 proposals submitted Executed 8 transactions for $2.8bn ecopipam frexalimab aficamten CK-586 deucrictibant omecamtiv CDA: confidential disclosure agreement
Page 57
57Clear industry leaderMegatrends Large royalty opportunity Growing interest in royalties driving high-quality inbound calls Source of in-depth reviews (outbound vs inbound business development activity) Royalties becoming increasingly established funding modality 2021 2022 2023 2024 30% 61% 72% 71%61 70 93 99 30% 61% 72% 71% Outbound Inbound • Growing in-depth reviews from inbound calls • Increasing interest from partners with high-quality opportunities • Increasingly institutionalized in biopharma as banking practices establish dedicated royalty advisory groups • Outbound calls continue to drive important proportion of completed RP transactions • Royalty Pharma’s profile as a public company facilitated greater awareness of the benefits of royalties Source: Royalty Pharma internal data.
Page 58
58 Source: Royalty Pharma internal data; Estimate of Biopharma royalty market based on announced transaction value. 1. Represents market share over the 2020 -present period for each segment of value; includes debt -like investments. Clear industry leaderMegatrends Large royalty opportunity Clear leader in the rapidly growing royalty market Biopharma royalty industry size and Royalty Pharma market share Leading market share in each segment ≤$250m >$250m-<$500m ≥$500m 2020-present(1) 20% 39% 72% Other royalty buyers#2 royalty buyer 2020-20242015-2019 50% ~$31bn ~$13bn ~+130% Royalty Pharma 57%
Page 59
59 Note: Funding amount includes equity investments Clear industry leaderMegatrends Large royalty opportunity Repeat transactions highlight value of our partnership approach aficamten, omecamtiv, CK-586 Up to $1.13bn total funding $1.16bn total funding Voranigo, Up to ~$4.0bn total funding ~$1.27bn total funding Fumapharm Up to ~$835m total funding , Zavzpret ~$255m total funding , BCX10013 Up to $325m total funding Up to $2.15bn total funding , BCX10013 Up to $325m total funding 2020, 2021 2x 2020, 2023, 20243x2017, 2022, 20243x2020, 20242x 2014, 20202x2018, 2018, 2019, 20204x 2012, 20142x2007, 2008, 2009, 2009, 20105x
Page 60
60 Source: Royalty Pharma internal data; by announced transaction value. Clear industry leaderMegatrends Large royalty opportunity Deploying substantial capital with repeat partners Multiple benefits to long-term partnershipsCapital committed with repeat partners (~$19bn of announced transaction value since 2020) Growth with partner Increases Royalty Pharma success rate and potential for future transactions with partner Speed of execution Ability to transact quickly given strong base of existing knowledge Information edge Potentially in-depth access to product information, strategy, management Probability of transacting Strong existing relationships and already established roadmap for success Repeat partners ~$6bn (32%) New partners ~$13bn (68%)
Page 61
61 Key messages 1 Megatrends Global innovation occurring at rapid pace Fragmentation of R&D creating royalties Growing industry capital requirements 2 Large royalty opportunity Fragmentation leading to large and growing existing royalty opportunity Synthetic royalties are an attractive and growing funding modality: • Significant spend required to develop and commercialize biopharma products • Supported by biopharma executives in the Deloitte study 3 Clear industry leader Market share of ~50% from 2020 to present is ~4-fold higher than the next largest competitor, with >70% share of transactions ≥$500m Repeat partners have driven ~30% of announced transaction value since 2020
Page 62
Q&A Session
Page 63
Why We Win Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments
Page 64
64 Key messages 2 Business Model Unique corporate structure Differentiated investment approach Leveraging scale advantages 3 Investment platform Rigorous diligence with focus on optimizing risk/reward Deep institutional knowledge and relationships Data & analytics capabilities providing deep insights and value to partners 1 Optimized royalty buyer First mover advantage with deep moats around the business Honed business model and platform over nearly 30 years to maintain leadership position
Page 65
65 PoC: proof-of-concept See slide 136 for factors that may impact the achievement of our growth outlook. 1. $2.4bn average per year represents Capital Deployment from 2020 -2024. Business ModelOptimized royalty buyer Investment platform Our unique structure shaped over decades to acquire royalties 1996 Cost of capital 20% 5% 10% 15% 25% 30% 2.0 Capital Deployment ($bn) 0.5 1.5 1.0 2.5 Investment fund Ongoing business Publicly traded 100% private capital limits use of leverage Diversified portfolio, growing cash flows enable use of investment grade debt Deep access to capital markets Optimized biopharma royalty buyer Platform Scaled investment platform with integrated data & analytics function provides unique insights and value to partners Portfolio Diversified portfolio of >50 approved and development-stage products Financial Efficient model generates significant cash flows; low cost of capital Investment approach Refined over ~30 years; long time horizon enables ability & willingness to take risk; flexible approach; continuously innovating Expanded scope Invest in post-PoC development-stage therapies ~$2.4bn/year(1) ~$1.6bn/year ~$0.6bn/year ~$20m/year 20252004 2012 2020 2030 Internalization Further lowers cost of capital ~7%
Page 66
66Business ModelOptimized royalty buyer Investment platform Investment Platform Our competitive advantages Business Model Industrialized process Human capital Life sciences expertise Relationships Data & analytics Flexibility Scale and diversification Investment time horizon Unique structure Singular focus
Page 67
67Optimized royalty buyer Business Model Investment platform 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 Sources of capital Multiple types (cashflow, IG debt, equity) Predominantly investor capital Royalty portfolio >50 therapies Limited Reinvestment capacity $2.5bn Portfolio Cash Flow (2024) None (beginning of fund) Cost of capital ~7% Teens % IG: investment-grade See slide 136 for definitions. Refer to Appendix for a GAAP to non -GAAP reconciliation.
Page 68
68Optimized royalty buyer Business Model Investment platform Major structural advantages when acquiring royalties Unique structure benefits partners and shareholders Low teens blended % Royalty PharmaTypical competitors Cost to partner advantage 1 2 Partner benefits Shareholder benefits Unlevered returns High teens to low 20s % Low teens blended % Levered returns Benefit of leverage Investor returns3 Royalty Pharma Low-cost IG debt Offers lower cost of capital due to scale and diversified portfolio Cost of capital advantage results in winning more transactions Investors see enhanced equity returns from use of conservative leverage 1 2 3 IG: investment-grade
Page 69
69Optimized royalty buyer Business Model Investment platform Competitors with shorter time horizon • Less ability to provide value for life cycle management • Less structuring flexibility • Capital provider, not a true partner • Only compete in limited market segments Benefits of longer time horizon Structuring Greater flexibility in structuring transactions over the life of the product Opportunities Differentiated ability to acquire development-stage royalties where pivotal studies may not complete for several years Economics Returns optimized as life cycle management benefits (including label expansion) are realized Alignment Aligns with partner time horizon, deepening relationships and likelihood of repeat business Long investment horizon differentiates us from competition 0 years 3 years CommercializationPhase 3 15 years Patent expiry Royalty Pharma Registration Pension funds Structured royalty or debt Royalty competitors Royalty Pharma invests across the product life cycle
Page 70
70Optimized royalty buyer Business Model Investment platform Flexibility in our investment approach drives multiple benefits Win-win funding solutionsExpands opportunity set Effective risk management Ability to structure around multiple development and commercial scenarios Variety of tools to mitigate risk (milestones, royalty tiering, option periods, etc.) Partner-centric approach builds strong relationships; positions RP to achieve attractive returns Our approach to structuring
Page 71
71Optimized royalty buyer Business Model Investment platform Structuring benefits both Royalty Pharma and our partners Tools to structure “win-win” solutions Partner benefits RP benefits Milestones (paid or received) Bridges different sales forecasts Shares in product upside Bridge different sales forecasts Mitigates risk Royalty tiering, sharing or ratchets Bridges different sales forecasts Shares in product upside Bridges different sales forecasts Mitigates risk Development funding opt-in / multi-year tranched funding Committed capital at scale Potential P&L relief Access to earlier-stage innovation Mitigates risk Flexible duration Bridges different sales forecasts Manage cost of capital Bridges different sales forecasts Mitigates risk Debt facilities / equity investments Additional funding at scale Validation of equity story Scales capital provided 1 2 3 4 5
Page 72
72 1. As of September 2025 and includes Research & Investments, Strategy & Analytics, Investments & Capital Strategies and Search & Evaluation. 2. Includes approved products and development-stage therapies. 3. Royalty Pharma internal data through September 10, 2025. 4. Represents midpoint of 2025 Portfolio Receipts guidance of $3.050 billion to $3.150 billion provided on August 6, 2025 plus expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. Optimized royalty buyer Business Model Investment platform Greater scale drives differentiation on larger transactions #1 Buyer of biopharmaceutical royalties 38 Number of people on investments team(1) >70% Market share for transactions ≥$500m (2020-2025 YTD)(3) ~30 Year track record ~$14bn Capital deployed (2020-2025) ~$3.1bn Portfolio Receipts in 2025e(4) >50 Therapies in portfolio(2) ~$21bn Market capitalization
Page 73
73 1. Average Invested Capital at Work as of 2025e. 2. Competitor A and B are illustrative to represent smaller fund sizes of competitors in the royalty market. Optimized royalty buyer Business Model Investment platform Our scale and diversification is unique among royalty buyers Largest royalty acquisitions may add concentration challenges for other royalty buyers Royalty Pharma Competitor A Competitor B (Invested capital)(1) ~$22bn (Fund size)(2) ~$5bn ~$2bn (Fund size)(2) Royalty Pharma has unique size and scale Impact of ~$1bn royalty investment <5% of capital base ~20% of capital base
Page 74
6 13 21 38 2012 2020 2021 2025 74 R&I: Research & Investments; S&A: Strategy & Analytics; I&C: Investments & Capital Strategies; S&E: Search & Evaluation 1. Investment team as of September 2025 consists of Research & Investments, Strategy & Analytics, Investments & Capital Strat egies and Search & Evaluation. Optimized royalty buyer Business Model Investment platform Scaling our team to capture the significant opportunity ahead Investment team(1) Provided at 2022 Investor Day 2025 Investor Day R&I S&A I&C S&E >3x ~1.8x Strategically building our platform Research & Investments Identifies, diligences, negotiates and executes royalty transactions Strategy & Analytics Generates unique insights through real world evidence and data science that are core to diligence process; provides value-add to partners Search & Evaluation Monitors the most exciting early-stage, innovative science occurring in academia and biopharma; establishes early relationships Investments & Capital Strategies Manages and grows relationships in the biopharma industry to deeply understand partner capital needs
Page 75
75 1. Royalty Pharma deal team includes Research & Investments, Investments & Capital Strategies, Strategy & Analytics, Legal, a nd Executive leadership. Optimized royalty buyer Business Model Investment platform Rigorous process results in multiple benefits for shareholders Approach • Best project team based on expertise • Flat structure, no organizational silos Diligence • Exhaustive research led by decision makers • Decades of institutional knowledge Shareholder Benefits • High conviction investments • Disciplined capital allocation • Strong, consistent returns • Effective risk management Accountability and Efficiency • One RP team owns entire deal process • Unified rapid decision making Royalty Pharma Deal Team(1) Investment Committee Board of Directors Execute transaction Identify & Develop Diligence Structure & Negotiate Apply dynamic capital allocation framework
Page 76
76 US: United States; EU: European Union; RoW: Rest of World; TA: therapeutic area; KOL: key opinion leader; FDA: Food & Drug Administration; EMA: European Medicines Agen cy; MSL: medical science liaison; PMDA: Pharmaceuticals and Medical Devices Agency; ESG: environmental, social and governance; IP: intellectual property; PK/PD: pharmacokinetics/pharmacodynamics; IRA: Inflatio n Reduction Act Optimized royalty buyer Business Model Investment platform Exhaustive due diligence process sharpened over decades Clinical Physician Diligence • Global (US/EU/Japan/RoW) • KOL mapping • Academic vs. community • State-of-the-art surveys PK/PD • Dose confirmation • Biomarkers • Key drug properties Patient Journey • Diagnosis and treatment path • Duration of therapy, compliance • Sites of care and geography • Time since diagnosis Market Sizing • Patient finding • Detailed population profiling • Validated epidemiology • Scaled market surveys Intellectual Property • Global (US/EU/Japan and other) • Litigation scenarios • Multiple opinions Transactional • Strategic accounting • Tax planning • Expert structuring and drafting Biostatistics • Effect size scenario analysis • Probability of success • Enrollment projections • Statistical Analysis Plans Pre-Clinical & Toxicology • In-silico methods • In-vitro modeling • Toxicology and sub-specialists • Specialized areas – (e.g., ophthalmology) US Pricing • Gross-to-net modeling • Proprietary RP portfolio data • Comparables • Historical net price realization Payors & Access • Formulary analytics • Medicare, Medicaid • 340b impact • IRA and other policy scenarios Manufacturing & Drug Delivery • Modality specific consultant • Regulatory perspectives • Site visits • Capacity planning • Formulation technologies • Auto-injectors and devices Licensing and Contracts • Analysis of contract language • Deep institutional knowledge • Business risk assessment Clinical & Safety • Comparative analytics and meta-analyses • Clinical trial design • Access to clinical study reports • Patient-level data analysis and/or customized data analyses • TA specific consultants – doctors, R&D execs, clinical trial operations Competition • Global landscape analysis • Patent analysis • Product profile comparisons International Markets • Country-by-country pricing • Addressable patients • Country-by-country access • Global surveys Government & Policy • Democrat and Republican aligned policy consultants • Global policy perspective Management & Governance • Experience and strategy • Compensation alignment Patients & Caregivers • Real world perspective on patient priorities • Patient surveys • Social media analytics Commercial Strategy • Go-to-market strategy and brand plan analysis • Consultants: sales and marketing execs, MSLs, and regional managers • Sales infrastructure and promotional spend feasibility • Gap analysis Regulatory • US/FDA correspondence • EU/EMA correspondence • International (PMDA, other) • Specialized Consultants Corporate Responsibility • Board oversight • Responsible investment process Strategy & Analytics S&A expertise and insights leveraged Regulatory, IP Manufacturing Commercial Forecasting Contracts, Governance
Page 77
77 1. Based on weighted average of capital deployed; compares five -year consensus estimate at time of transaction to current analys t consensus. 2. Includes Research & Investments, Investment & Capital Strategies, Strategy & Analytics, legal and Investment Committee mem bers. 3. Reflects Capital Deployment for development -stage therapies from 2012 through September 10, 2025; excludes products still in development. Optimized royalty buyer Business Model Investment platform Deep industry expertise 1 Sector covered ~1,200 Initial reviews over the last 3 years 40% Increase in five-year consensus estimates of underlying products from date of royalty transaction(1) >230 Cumulative years of life sciences royalty investing experience 67% Of investments team with advanced degrees(2) 90% Approval rate for development-stage therapies(3)
Page 78
78Optimized royalty buyer Business Model Investment platform Volume of opportunities reviewed provides competitive edge Initial reviews by therapeutic category (2022-2024) 199 35 37 37 57 75 117 139 181 309 Oncology Central nervous system Cardio-metabolic Rare disease Infectious disease Inflammation & Immunology Dermatology Ophthalmology Respiratory Other ~1,200 Volume ~1,200 initial reviews processed in past 3 years across all TAs provides comprehensive view of entire drug development landscape Knowledge Volume and breadth of reviews expand institutional knowledge base, improving probability of success and returns Value-add Greater value-add to partners from depth of knowledge and comprehensive monitoring of royalty landscape Capabilities Review process scaled with efficiencies from Strategy & Analytics; opportunity to sharpen diligence process Depth and breadth of reviews compound knowledge TA: therapeutic areas
Page 79
79Optimized royalty buyer Business Model Investment platform We will track opportunities for years to build our portfolio 2018 2021 2017 2014 2019 Select transactions 2012 Present Tracking Negotiations Peak sales(1) ~9 years ~1.5 years >$3 billion ~5 years ~2 months >$1 billion ~8 years ~1 year ~$8 billion ~4 years ~4 months ~$3 billion ~4 years ~9 months >$5 billion ~4 years ~8 months ~$4 billion 2013 frexalimab aficamten RP started tracking Dec 2020 July 2022 April 2024 May 2024 June 2020 June 2021 April 2020 July 2020 Sept 2023 May 2024 June 2021 Jan 2022 RP deal negotiations commence Transaction executed Enables strong relationship development and drives investment conviction 1. Peak sales for Trelegy, Tremfya, Evrysdi and aficamten based on Visible Alpha estimates. Peak sales for Voranigo based on Royalty Pharma internal estimate. Peak sales for frexalimab based on Sanofi guidance.
Page 80
80Optimized royalty buyer Business Model Investment platform Significant therapeutic area expertise built over decades RP transacted RP evaluated Category Spinal muscular atrophy Humira Remicade Immunology Multiple sclerosis Prostate cancer Capital deployed >$2bn >$4bn >$1bn >$2bn Tecfidera 1 Tecfidera 2 2000-2010 2010-2020 2020-2025 Tremfya litifilimab Cimzia Tysabri Xtandi Erleada 1 Spinraza Evrysdi 1 Spinraza Evrysdi 2 Zolgensma frexalimab Erleada 2 obexelimab
Page 81
81 UMass: University of Massachusetts; CSHL: Cold Spring Harbor Laboratory; CMC: chemistry, manufacturing and controls; IP: inte llectual property; JSC: joint steering committee; FDA: Food and Drug Administration; EMA: European Medical Agency; SMA: spinal muscular atrophy 1. Ionis transaction for $500m upfront and up to $625m in milestones to acquire an interest in Spinraza and pelacarsen royalties. Optimized royalty buyer Business Model Investment platform Conviction in SMA built over many years UMass & CSHL Participated Spinraza 2018 PTC Therapeutics July 2020 RegenXBio Dec. 2020 Acquired Evrysdi Participated Zolgensma Ionis Pharmaceuticals Jan. 2023 Acquired Spinraza(1) PTC Therapeutics Oct. 2023 Acquired Evrysdi Physicians • 85 calls (US, EU, Japan) • 3 surveys (>330 docs, >8.8K patients) Consultants • 6 consultants • CMC, pre-clinical, IP, regulatory Clinical analysis • Review of comparability between age groups • Comparability/ standardization of endpoints • Clinical review of label expansion potential Market analysis • Epidemiology and incidence review • Country-by-country review of launches, reimbursement, pricing, unit sales • Assessed potential in unlaunched countries Data room • Major FDA interactions: minutes, briefing books, mid and late-cycle meetings, etc. • EMA interactions • JSC meetings: regulatory, clinical, non- clinical, competitive intelligence • Clinical review: pivotal study, toxicology • Quarterly sales, pricing, gross-to-net SMA due diligence summary >$2bn of capital deployed across multiple therapies
Page 82
82 HCP: health care practitioner 1. Royalty Pharma internal data. Optimized royalty buyer Business Model Investment platform Powerful insights generated from our proprietary data resources Strategy & Analytics Patient-level claims data Patient electronic medical records Provider-level prescribing data ~200m people ~44m people ~6m HCPs Market sizing High resolution epidemiology, treatment rate estimates and identification of patient need Patient journey / real world use Quantify duration of treatment, compliance, and therapeutic sequencing Physician behavior Analyze prescribing at individual physician level to segment patterns across geographies and practice settings Launch dynamics Compare launch performance across precedent products Deep investment in data(1) Proprietary insights Adds value to partner development and launch strategy Real world evidence Data science Competitive intelligence Artificial intelligence Longitudinal patient- level data ~9 years
Page 83
54% 30% 2% 61% 24% 0% 20% 40% 60% 80% 100% 83Optimized royalty buyer Business Model Investment platform Rezurock cGvHD launch analysis New starts: ~45% of patients diagnosed >2 yrs Significant need for new cGvHD therapies 70%+ of patients stop available therapies in <2 yrs Patient persistence Quarters on market Q1 Q28Q4 Rezurock Jakafi Q8Q6 0 100 200 300 400 500 600 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Diagnosed <2 years Diagnosed >2 years Quarters on market New patient starts on therapy 181 avg. 123 avg. 89 avg. Per quarter average patients diagnosed >2 years Identified high level of need for a new cGvHD treatment option driving conviction in a strong launch cGvHD: chronic graft versus host disease; 1L: first-line; 2L: second-line; 3L: third-line Niktimvo is marketed in the U.S. by Incyte and Syndax Pharmaceuticals Rezurock is marketed by Sanofi Jakafi is marketed by Incyte in the U.S. and Novartis ex-U.S. Proprietary data sciences analysis High resolution market sizing Duration of therapy Detailed launch insights 0 2,000 4,000 6,000 8,000 10,000 1L+ cGvHD incidence cGvHD market size 2L+ cGvHD incidence 3L+ cGvHD incidence Allogeneic Transplants ~45% risk of cGvHD ~70% progress ~80% progress Total patients Essential role of S&A in creating differentiated insights
Page 84
$10 $15 $18 $19 $99 $14 $36 $41 $46 $245 84Optimized royalty buyer Business Model Investment platform 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) Quarters on market Q1 25a Q2 25a Q3 25e Q4 25e Actual / current consensus Consensus at the time of RP transaction (November 4, 2024) FY 26e Source: Actual sales reported by Incyte; estimated sales are Visible Alpha consensus as of September 4, 2025.
Page 85
85Optimized royalty buyer Business Model Investment platform Royalty Pharma’s reputation provides competitive edge “RP is extremely creative, They win deals based on reputation.” – Investment banker “Being able to structure the deal cleverly where we did not have to seek approval of a partner was very important to us… and RP really distinguished itself in this regard.” – Biotech executive “I have had executives leave 200-300 basis points on the table for RP… quoting a biotech CEO ‘I’ll sleep better having RP as a partner going into a launch.” – Investment banker “RP is the most sophisticated when it comes to forecasting.” – Investment banker “RP is extremely flexible; they were open to more creative solutions to meet our specific needs and it’s always good to have such a partner.” – Biotech executive “RP has always been willing to make bold investments. They have a first- class research team that understands the market opportunities – which is their true differentiator.” – Big Pharma executive Select quotes from Deloitte Royalty Funding Market Study
Page 86
86Optimized royalty buyer Business Model Investment platform Strength of platform approach evident in breadth and scope of activity Years Capital deployed Products Diseases 2020 $2.2bn 13 11 Select examples 2021 $2.5bn 8 13 2023 $2.2bn 7 7 2024 $2.8bn 9 13 2025 $1.7bn 4 6 2022 $2.4bn 7 10 trontinemab olpasiran aficamten pelacarsen frexalimab Total 48 60 ~$14bn of capital deployed to acquire royalties on 48 products spanning 60 unique disease areas daraxonrasib ~$14bn
Page 87
87Optimized royalty buyer Business Model Investment platform Voranigo highlights high conviction and rapid deal execution August 2024 receives FDA approval ~5 years of tracking and strong Agios relationship drove successful transaction 2019 RP evaluates Voranigo for Phase 3 R&D funding End of 2019 Agios initiates Phase 3 INDIGO study Dec 2020 Agios sells oncology business to Servier; retains Voranigo royalty May 2024 RP acquires Voranigo royalty for $905m May 2024 Best and final offers due March 2023 Phase 3 study achieves interim analysis April 2024 Agios hires bank to monetize royalty July 2023 RP approaches Agios on royalty monetization June 2020 RP acquires IDHIFA royalty from Agios June 2023 Phase 3 results presented at ASCO & published in NEJM Aug 2024 – June 2025 Voranigo rapidly approaching ~$1bn in annual sales ASCO: American Society of Clinical Oncology; NEJM: New England Journal of Medicine; FDA: Food and Drug Administration Gaining exposure to an innovative therapy for brain cancer
Page 88
88 1. Royalty steps down to 12% on sales >$1 billion. 2. Voranigo consensus sales estimates derived from RP analysis of Agios analyst models at time of deal (May 2024). Optimized royalty buyer Business Model Investment platform Voranigo – rapidly approaching $1 billion in annual sales Voranigo launch is exceeding expectations Actual sales vs. consensus at time of deal ($ in millions)(2) We excel at identifying exciting underappreciated therapies Voranigo – a transformative therapy for glioma Long-term tracking Followed Voranigo for ~5 years and was patient in execution; RP acquired 15% royalty(1) on potential blockbuster Overlooked opportunity Marketed by Servier, a private French company, with low investor awareness of opportunity Compelling patient benefit Strong clinical data in low grade glioma; expected to transform standard of care Investment conviction Extensive due diligence led to differentiated view and high conviction in a strong launch Q3 2024 Q4 2024 Q1 2025 Q2 2025 $130 Consensus (at time of deal)(2) Actual sales $177 $223 $33 $12 $12$3$2
Page 89
Competitive price 89Optimized royalty buyer Business Model Investment platform Why we win Deep relationships Brand reputation Scale and focus Responsiveness Flexibility on structuring Long-term horizon Partnership mentality
Page 90
Driving Value Creation Terrance Coyne Executive Vice President Chief Financial Officer
Page 91
91 Key messages ROIC: Return on Invested Capital; IRR: internal rate of return; CAGR: compound annual growth rate Top-line refers to Portfolio Receipts and bottom-line refers to Portfolio Cash Flow. See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Refer to the Appendix for a GAAP to non -GAAP reconciliation. 1. Based on Visible Alpha consensus as of September 3, 2025. 2. Equity returns reflect Return on Invested Equity (ROIE). 1 Strong execution Delivering on our stated goals Proven track record for ~30 years 2 Robust growth targets $4.7bn+ top-line in 2030 (9%+ 2025-2030 CAGR) >$7.50 per share bottom- line in 2030 (11%+ 2025- 2030 CAGR) Both targets >10% higher than consensus(1) 3 Attractive returns IRR tracking to mid-teens since 2020 ROIC consistently mid- teens with equity returns in low 20% range(2) 4 Value creation Disciplined capital allocation framework Clear path to significant share price appreciation
Page 92
Executing on strategic and financial commitments 92 CAGR: compound annual growth rate See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Represents midpoint of 2025 Portfolio Receipts guidance of $3.050 billion to $3.150 billion provided on August 6, 2025 plu s expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. 2. Unlevered IRR targets of high-single to low-double digit % on approved products and teens % on unapproved products. 3. Rated BBB- by both S&P and Fitch. 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 annual average Returns Low-teens blended returns(2) Mid-teens blended returns now projected Portfolio Weighted average duration of >10 years ~13-year duration and enhanced diversification Dividend growth Mid-single digit annual growth 5% annual growth since May 2022 Investor Day Share repurchases Approval for up to $3bn through 2030 $1bn in first 6 months of authorization Credit rating Maintain investment grade rating Moody’s upgraded (Baa2); S&P and Fitch maintained(3) On track Strong execution Robust growth Attractive returns Value creation
Page 93
$371 $445 $472 $482 $500 $462 $537 $530 $581 $511 $584 $593 $616 $545 $637 $651 $705 $605 $732 $729 $788 $672 Consistently strong growth since IPO… 93 1. Growth rate is presented on a pro forma basis. See slide 136 for definitions and additional information. 2. Royalty Receipts in the second quarter are typically lower than the first quarter as royalties for certain products or fra nchises are tiered and typically reset at the beginning of the year. Thus, second quarter Royalty Receipts (reflecting first qua rter sales) often include royalties on sales at the lowest royalty tier. Q2 2020(1) Q3 Q4 Q1 2021 Q2(2) Q3 Q4 Q1 2022 Q2(2) Q3 Q4 Q1 2023 Q2(2) Q3 Q1Q4 2024 Q2(2)Q1 Q3 +13%+8%+12%+15% Q4 +19% +12% +11% +35% +4% +14% +10% +16% +11% +9% +12% +6% +7% +9% +10% +14% +11% -7% +15% +11% Royalty Receipts (year/year growth; in millions) Q1 +12% 2025 +8% +12% Q2(2) +11% Strong execution Robust growth Attractive returns Value creation
Page 94
…while exceeding expectations in 14 of the last 21 quarters 94 1. Growth rate is presented on a pro forma basis. See slide 136 for definitions and additional information. 2. Royalty Receipts in the second quarter are typically lower than the first quarter as royalties for certain products or fra nchises are tiered and typically reset at the beginning of the year. Thus, second quarter Royalty Receipts (reflecting first qua rter sales) often include royalties on sales at the lowest royalty tier. 3. Beat defined as reported top-line >1% vs. Visible Alpha consensus the day prior to earnings; Meet defined as reported topline within 1% of Visible Alpha consensus the day prior to earnings. Q1 2020 shown as not applicable as quarter occurred prior to IPO. Guidance Raise Top-line Meet Top-line Beat NA Performance vs. Consensus(3): Royalty Receipts (year/year growth; in millions) Q2 2020(1) Q3 Q4 Q1 2021 Q2(2) Q3 Q4 Q1 2022 Q2(2) Q3 Q4 Q1 2023 Q2(2) Q3 Q1Q4 2024 Q2(2)Q1 Q3 +13%+8%+12%+15% Q4 Q1 2025 +8% Q2(2) +11% Strong execution Robust growth Attractive returns Value creation
Page 95
A proven model for attractive growth 95 CAGR: compound annual growth rate See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Represents midpoint of 2025 Portfolio Receipts guidance of $3.050 billion to $3.150 billion provided on August 6, 2025 plu s expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. 2020 2025e 2030 outlook $1.8 ~$3.1 $4.7+ Portfolio Receipts (in billions) Conservatively assumes stable Capital Deployment of $2.0-2.5bn annually CAGR: 9%+ Strong execution Robust growth Attractive returns Value creation CAGR: ~12% (1)
Page 96
Diversified portfolio fuels sustainable growth 96 See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Represents midpoint of 2025 Portfolio Receipts guidance of $3.050 billion to $3.150 billion provided on August 6, 2025 plu s expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. Portfolio Receipts(1) (“top-line”) 2025e 2030 outlook ~$3.1bn $4.7bn+ 1 2 Similar contribution from existing and new investments • Conservatively assumes ~$2.0-2.5bn of Capital Deployment annually • Continue to invest at attractive returns above cost of capital Future Royalty Acquisitions • Visible growth driven by a portfolio of 35+ approved products • Significant cash flow generation from base business • High potential, post proof-of-concept development-stage pipeline Components of growth 2 Existing Portfolio1 Strong execution Robust growth Attractive returns Value creation (1)
Page 97
Key approved royalties driving growth through end of decade 97 Top Drivers of Growth Marketer Commentary Servier Strong initial launch exceeding investment case with rapid blockbuster potential Johnson & Johnson 2030 consensus sales of $8.7bn(1) below J&J peak guidance of >$10bn(2) GSK Leading respiratory asset that has consistently outperformed consensus expectations Bristol Myers High potential innovative antipsychotic product in a highly genericized market Roche Leading therapy for spinal muscular atrophy with continued growth expected Gilead Substantial potential growth opportunity in 1st line triple negative breast cancer Amgen Strong ongoing launch in small cell lung cancer and potential for label expansion Strong execution Robust growth Attractive returns Value creation 1. Per Visible Alpha as of September 3, 2025. 2. Per Johnson & Johnson second quarter earnings call on July 16, 2025.
Page 98
CF Franchise to remain important contributor over the long term 98 CF: cystic fibrosis See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. In the second quarter of 2025, we did not receive from Vertex the full amount of Royalty Receipts on Alyftrek net sales to which we are contractually entitled. We believe we are entitled to a royalty of approximately 8% on net sales of Alyftrk and Vertex only paid us a royalty rate of approximately 4%. As a result, we have commenced the dispute resolution procedures contemplated by the agreem ents relating to our royalties on Vertex’s cystic fibrosis products. Portfolio receipts figures shown are net of estimated distr ibutions to legacy non-controlling interests (NCI). There are no NCI distributions related to the additional royalty interest that we acquired from the CF Foundation in 2020. Prior downside view New downside view Contractual royalty rate ~$600-700m ~$800m >$1bn CF Franchise 2030 Portfolio Receipts now expected to be ~$800m under a downside royalty rate with potential for >$1bn Current View 2030 CF Franchise Portfolio Receipts outlook(1) Strong execution Robust growth Attractive returns Value creation >$200m Consensus at similar level reflects downside royalty scenario
Page 99
Exciting pipeline of large potential royalties to power growth beyond 2030 99 1. Expected launch year based on marketer guidance except for olpasiran and seltorexant, which are based on clinicaltrials.gov. 2. Potential peak sales for frexalimab, pelacarsen, seltorexant and trontinemab based on marketer guidance (the midpoint is used when ranges are provided); potential peak sales for olpasiran, aficamten, litifilimab, deucrictibant, daraxonrasib, obexelimab and TEV-’749 based on analyst research estimates. Ecopipam peak sales based on RP estimates. 3. Peak royalties assume royalty rates under required Revolution Medicines draw and maximum draw scenarios. For purposes of c alculating to total potential peak late-stage development royalties, the midpoint of the range is used. Expected launch year(1) Therapy Lead indication Potential peak sales (non risk adjusted)(2) Potential peak royalties 2026 aficamten hypertrophic cardiomyopathy >$4bn >$175m ecopipam Tourette’s ~$1bn ~$80m TEV-’749 schizophrenia >$1bn >$35m 2027 daraxonrasib pancreatic cancer ~$8bn ~$180-340m pelacarsen cardiovascular disease >$3bn >$150m obexelimab IgG4-related disease ~$1bn ~$55m deucrictibant hereditary angioedema >$1bn >$50m 2028 frexalimab multiple sclerosis >$5bn >$400m olpasiran cardiovascular disease >$4bn >$375m seltorexant depression >$3bn >$150m litifilimab lupus ~$2bn ~$125m 2029 trontinemab Alzheimer’s >$3bn >$130m Total late-stage development: >$36bn >$2bn Strong execution Robust growth Attractive returns Value creation All late-stage development assets have first-in-class or best-in-class potential (3)
Page 100
100 Powering growth through consistent reinvestment See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Investment year reflects the year in which the transaction was announced. 2. Figures reflect total capital deployed in a given year, including capital deployment related to deals announced in prior y ears. 3. Excludes accelerated payments received from 2020 Biohaven investment in 2022/2023 and proceeds received from sale of MorphoSys Development Funding Bonds in 2025. 2020 2021 2022 2023 2024 2025e 2030e $0.0 $0.2 $0.5 $0.8 $1.1 $1.5 2020 2021 2022 2023 2024 2025 YTD Portfolio Receipts by investment year since IPO ($bn) $2.6 $2.2bn $2.5bn $2.4bn $2.2bn $2.8bn $1.7bn Investment Year (1) Capital Deployment(2) Total $13.8bn Strong execution Robust growth Attractive returns Value creation Notable Investments (3) (3) (3)
Page 101
Increasingly diversified top-line and profitability 101 See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Large Biopharma and Mid -Cap Biopharma data per Evaluate Pharma and Visible Alpha as of August 2025. Figures rounded to the nearest 5%. 1. Large Biopharma group reflects average of AbbVie, Amgen, AstraZeneca, Biogen, Bristol Myers Squibb, Eli Lilly, Gilead, GSK , Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, Roche, Sanofi and Vertex. 2. Mid-Cap Biopharma group reflects average of Alnylam, argenx, Astellas, BioMarin, Exelixis, Genmab, Incyte, Insmed, Ipsen, Jazz, Neurocrine, SOBI, UCB and United Therapeutics. 3. Represents average 2030 operating income contribution of top 3 products for large and mid -cap biopharma peers assuming illustrative 75% contribution margin of top products based on analyst research estimates. ~30% ~80% >100% Large Biopharma(1) Mid-Cap Biopharma(2) ~30% ~50% ~75% Large Biopharma(1) Mid-Cap Biopharma(2) ~45% ~55% ~80% Large Biopharma(1) Mid-Cap Biopharma(2) 2025e diversification (top 3 products) Illustrative 2030 diversification (top 3 products) Strong execution Robust growth Attractive returns Value creation Top-line (% of 2025e) Top-line (% of 2030) Operating income (% of 2030)(3) Royalty Pharma’s efficient business model drives similar top- and bottom-line diversification
Page 102
102 We are well positioned for changing macro environment Unique uncorrelated investment opportunity in a turbulent market Strong execution Robust growth Attractive returns Value creation Macro landscape • Non-cyclical growth • Strong historical financial performance through cycles • Efficient cost base Higher rates • Low funding costs with long-duration fixed debt • Ability to maintain spreads over cost of capital regardless of rates • Strong balance sheet Biotech backdrop • Business not sensitive to biotech funding cycles • Secular growth in royalty funding • Innovation continually renews and expands opportunity set Tariffs and drug pricing • Royalties protected from tariffs • Manageable government exposure • Consistent reinvestment reflects latest pricing environment
Page 103
Consistently strong bottom-line growth with path to >$7.50 in 2030 $4.7bn+ Portfolio Receipts ~$4.0bn Portfolio Cash Flow (-) 4% - 5% Operating expenses (-) $0.4 - 0.5bn Interest paid Buyback Authorization(2) >$7.50 PCF / Share $2.45 $4.37 2020 (actuals) 2025e (consensus)(1) 2030 (RP outlook) >$7.50 Portfolio Cash Flow per share progression CAGR: 12% CAGR: 11%+ $6.39 Current 2030 Consensus(1) 103Strong execution Robust growth Attractive returns Value creation Illustrative 2030 non-GAAP outlook CAGR: compound annual growth rate; PCF: Portfolio Cash Flow See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Refer to the Appendix for a GAAP to non -GAAP reconciliation. 1. Per Visible Alpha as of September 3, 2025. 2. As of the end of Q2 2025, up to $2bn of potential share repurchases remain available under share repurchase plan announced in January 2025.
Page 104
104 Focused on maximizing shareholder value through attractive returns Return on Invested Equity Return Metric • Typical investment metrics based on actual and projected cashflows • Accounts for timing and magnitude of cashflows over investment life • Predominantly utilized to calculate returns on individual transactions • Reflect cash generated by the business relative to active capital invested • Provide easily calculable snapshot of cash return over a specific period • Focus on cash returns given GAAP accounting complexities • Aggregate business measures that complement individual deal returns Return on Invested Capital IRR / Cash on Cash NotesTrack Record Mid-teens % >2x on transactions since 2020 ~15% from 2019-2025e ~21% from 2019-2025e NEW Strong execution Robust growth Attractive returns Value creation See slide 136 for definitions and factors that may impact the achievement of our growth outlook.
Page 105
105 IRRs tracking ahead of expectations in current environment Strong execution Robust growth Attractive returns Value creation 5% 10% 15% 20%+ Current environment ~7% Target for IRRs Royalty Pharma cost of capital Approved products (IRRs) Development-stage (IRRs) Low double digit % Teens % Attractive unlevered IRRs above cost of capital Teens %
Page 106
106 >90% of transactions expected to exceed cost of capital 1. Excludes equity investments and ~$2bn of royalty investments where pivotal data has not yet read out. Strong execution Robust growth Attractive returns Value creation Unlevered IRRs for investments since 2020(1) % of Capital Deployed Blended unlevered IRR tracking to mid-teens and a >2x cash-on-cash multiple 100% of Deals >$500m exceeding or significantly exceeding cost of capital >90% of Deals exceeding cost of capital 35% 8% 35% 57% Below Cost of Capital (<6% IRR) Meeting Cost of Capital (6-8% IRR) Exceeding Cost of Capital (8-12% IRR) Significantly Exceeding Cost of Capital (>12% IRR) 0% ~$1bn -- ~$4bn ~$7bnCapital Deployed(1):
Page 107
Achieved through our competitive advantages Business model Unique structure, singular focus on biopharma, scale, diversification and investment time horizon Investment platform Industrialized process, premier and consistent team, with key relationships and analytics capabilities Unbiased portfolio construction Ability to target leading therapies across all therapeutic areas, avoiding concentration or bias No strategic premiums Royalties avoid the take-out premiums typical in traditional M&A, preserving value at entry Track record of exceptional value creation 107 1. Harvard Business Review and Warwick Business School. Strong execution Robust growth Attractive returns Value creation % of M&A transactions that create value Royalty Pharma royalties Broader Market M&A >90% ~10-40% (1)
Page 108
108 Remarkably stable returns since IPO SD: Standard deviation; See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Retu rn on Invested Capital (“ROIC”) is calculated as Adjusted EBITDA plus accelerated receipts, less nominal equity performance awar ds (EPAs) earned (“ROIC Adjusted EBITDA”) divided by the average of Invested Capital at Work at the beginning and end of the year. Inve sted Capital at Work is calculated as total cumulative Capital Deployment less cumulative Capital Deployment on expired products . Invested Capital at Work represents capital deployed for all active investments. Refer to slide 127 for the detailed buildup of Invest ed Capital at Work. Refer to the Appendix for GAAP to non -GAAP reconciliations. 1. The 2019 results are calculated on a pro forma basis, which adjusts certain cash flow line items as if our Reorganization Transactions (as described in our final prospectus filed with the SEC on June 17, 2020) and our initial public offering had take n place on January 1, 2019. The most significant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that resulted from the Reorganization Transactions. Additionally, the 2019 results were also adjusted to exc lude the legacy non-controlling interest portion of interest paid and operating expenses. 2. The 2022 and 2023 results are calculated on a pro f orma basis to exclude Accelerated Receipts (as defined in the Credit Agreement) as if Amendment No. 5 of the Credit Agreement had taken effect on January 1, 2019. Accelerated Receipts were $458m in 2022, $525m in 2023 and $511m in 2025. 14.5% 14.1% 14.2% 16.4% 16.0% 13.0% 2019 2020 2021 2022 2023 2024 2025e ~15% ROIC Adjusted EBITDA(1)(2) in billions Return on Invested Capital = 14.7% Average annual return (SD +/- 1.2%) $1.5 $1.6 $1.9 $2.6 $2.8 $2.6 ~$3 2019 2020 2021 2022 2023 2024 2025e Invested Capital at Work in billions ÷ Strong execution Robust growth Attractive returns Value creation Return on Invested Capital (ROIC) $10 $11 $14 $16 $18 $20 ~$22 2019 2020 2021 2022 2023 2024 2025e
Page 109
109 Capital at work has doubled since 2019 while maintaining low overall risk Invested Capital at Work (in billions) Strong execution Robust growth Attractive returns Value creation 2019 2020 2021 2022 2023 2024 2025e $10 $11 $14 $16 $18 $20 ~$22 Approved at acquisition Approved since acquisition Development-stage Unsuccessful % Total Approved: % Development-stage: % Unsuccessful: See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 94% 6% 0% 94% 4% 2% 93% 4% 3% 90% 7% 3% 89% 8% 3% 88% 9% 3% 86% 11% 3% 3% related to unsuccessful investments 11% related to current development-stage (including 3% with positive pivotal data) 86% tied to approved products (including 19% development-stage at acquisition that have since been approved)
Page 110
110 Product selection, scale and diversification insulates returns See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. ROIC excludes unsuccessful investments from invested capital at work. Unsuccessful investments include otilimab, BCX9930, vosaroxin, palbociclib, ApiJect, MK-8189 and Merck KGaA’s anti-IL17 nanobody M1095. 15.3% 14.7% ROIC 0.6% ROIC Excludes unsuccessful investments(1) Average annual ROIC (2019-2025e) Strong risk management minimizes impact of unsuccessful investments on ROIC Impact of unsuccessful investments Strong execution Robust growth Attractive returns Value creation Includes unsuccessful investments
Page 111
111 Conservative leverage enhances returns SD: Standard deviation; See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Retu rn on Invested Equity (“ROIE”) is calculated as Portfolio Cash Flow plus accelerated receipts, less nominal equity performance a wards earned (“ROIE Portfolio Cash Flow”) divided by the average of Invested Equity at Work at year-end and prior year-end. Invested Equity at Work is calculated as Invested Capital at Work less net debt. Refer to slide 127 for the detailed buildup of Invested Equit y at Work. Refer to the Appendix for GAAP to non-GAAP reconciliations. 1. The 2019 results are calculated on a pro forma basis, which adjusts certain cash flow line items as if our Reorganization Transactions (as described in our final prospectus filed with the SEC on June 17, 2020) and our initial public offering had take n place on January 1, 2019. The most significant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that resulted from the Reorganization Transactions. Additionally, the 2019 results were also adjusted to exc lude the legacy non-controlling interest portion of interest paid and operating expenses. 2. The 2022 and 2023 results are calculated on a pro f orma basis to exclude Accelerated Receipts (as defined in the Credit Agreement) as if Amendment No. 5 of the Credit Agreement had taken effect on January 1, 2019. Accelerated Receipts were $458m in 2022, $525m in 2023 and $511m in 2025. 21.6% 21.2% 19.8% 23.5% 22.9% 18.4% 2019 2020 2021 2022 2023 2024 2025e ~21% $6 $7 $9 $10 $12 $13 ~$14 2019 2020 2021 2022 2023 2024 2025e $1.3 $1.5 $1.8 $2.4 $2.7 $2.5 ~$3 2019 2020 2021 2022 2023 2024 2025e ROIE Portfolio Cash Flow (1)(2) in billions Return on Invested EquityInvested Equity at Work in billions =÷ 21.2% Average annual return (SD +/- 1.7%) Strong execution Robust growth Attractive returns Value creation Return on Invested Equity (ROIE)
Page 112
112 Return profile compares favorably to the S&P 500 Royalty Pharma figures reflect 2019 -2025e average; S&P 500 figures reflect 2019 -2024 average ROIC and ROE per FactSet S&P 500 Royalty Pharma 9.5% 14.7% S&P 500 Royalty Pharma 17.6% 21.2% Average historical Return on Invested Capital Average historical Return on Invested Equity >500bps (ROE) Strong execution Robust growth Attractive returns Value creation >350bps
Page 113
~$2.5bn ~$4.0bn~$3.1bn $4.7bn+ 2025e 2030 outlook Strong growth and operating efficiency underpin expanding cash flows 113 Summary growth and margin outlook Portfolio Receipts Operating expenses Interest paid, net Portfolio Cash Flow Portfolio Cash Flow Margin: Adjusted EBITDA Margin: >80% >90% ~85% ~95% See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Expected Portfolio Receipts of approximately $3.1 billion is based on 2025 guidance of between $3.050 billion and $3.150 b illion provided on August 6, 2025 plus expected contribution from the Imdelltra royalty acquisition announced on August 25, 2025. (1) Illustrative cash flow after Capital Deployment Assuming $2.0-2.5bn deployment annually CAGR: 9%+ $0.0-0.5bn $1.5-2.0bn 500 500 2025e 2030 outlook Enhanced cash flow gives optionality to: 1. Scale royalty acquisitions 2. Return capital to shareholders Strong execution Robust growth Attractive returns Value creation
Page 114
Capital allocation discipline guided by value-driven framework 114Strong execution Robust growth Attractive returns Value creation More attractive royalty opportunities Less attractive royalty opportunities Favor share repurchases Build cash on balance sheet, pay down debt or increase dividend Favor capital deployed on royaltiesBalanced approach between royalties and share repurchases Discount to intrinsic value (share price) Premium to intrinsic value (share price)
Page 115
Significant capital allocation firepower to create value 115 Royalty acquisitions At least $2.0-2.5bn average annual capital deployment • Potential for upside / year over year volatility • Largely self-funded over time via retained cash flow Additional Capacity $2bn remaining under current program • Potential for additional share repurchases through 2030 Share repurchases ~2.5% annual yield (currently $0.88/year) • Commitment to grow by mid-single digit % annually Dividends $30bn Projected capacity H2 2025-2030 >$10bn+ of incremental firepower • Assumes continued use of conservative leverage • Committed to investment grade rating(2) Strong execution Robust growth Attractive returns Value creation 78% 13% 9% 2020-H1 2025 capital allocation (1) $18bn See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Refer to the Appendix for a GAAP to non -GAAP reconciliation. 1. Capital deployment through Q2 2025 adjusted to include Q3 Capital Deployment through September 10, 2025. 2. Currently rated Baa2 / BBB- / BBB- (Moody’s / S&P / Fitch). Return of capital: ~$4bn
Page 116
Platform value should drive multiple expansion 116 Significantly higher 2025 PCF per share multiple 2030 PCF per share multiple ~8x multiple (~$36 share price / $4.37 consensus PCF per share)(1) PCF: Portfolio Cash Flow See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Visible Alpha as of September 3, 2025. Platform value driven by recognition of: + Competitive moats + Strong growth outlook + Consistent and predictable returns + Leading diversification + Potential to significantly scale capital deployment + Integration following internalization + Macro resilience + Strong balance sheet Multiple Expansion Strong execution Robust growth Attractive returns Value creation
Page 117
Pathway to significant share price appreciation by 2030 117 Current ~8x Goal of at least mid-teens total shareholder return with significant upside potential from recognition of platform Platform value Share price: Strong execution Robust growth Attractive returns Value creation Multiple expansion PCF/share growth Mid-teens TSR(2) 2030 >$7.50 $4.37 2025e consensus(1) Illustrative Royalty Pharma share price evolution Current ~8xPCF multiple: 2030Today2030 outlook Portfolio Cash Flow per share >70% PCF: Portfolio Cash Flow See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Per Visible Alpha as of September 3, 2025. 2. Expected average annual total shareholder return over 2025 -2030 driven by growth in Portfolio Cash Flow per share and growing dividend. Significant appreciation
Page 118
Royalty Pharma shares the attributes of the great long-term value creators 118Strong execution Robust growth Attractive returns Value creation See slide 136 for definitions and factors that may impact the achievement of our growth outlook. Top-line refers to Portfolio Receipts and Bottom-line refers to Portfolio Cash Flow per share. 1. Compounded annual growth outlook from 2025 -2030. Select business attributes Disciplined capital allocation Value-driven dynamic capital allocation framework Independent thinking Prioritize long-term compounding, avoiding short-termism Compounding value creation Sustainable mid-teens unlevered returns vs optimized ~7% cost of capital Efficient cost structure 95%+ Adjusted EBITDA margins; 85% Portfolio Cash Flow margin Strong and durable growth 9%+ top-line and 11%+ bottom-line growth from highly diversified portfolio(1) Wide competitive moats >70% market share of transactions over $500m Owner-oriented mindset >20% of shares owned by employees
Page 119
119 Clear path to deliver substantial shareholder value • >$7.50 Portfolio Cash Flow per share (11%+ CAGR) • Represents >70% increase from 2025 2025-2030 outlook • Consistent mid-teens ROIC • Continue to deliver attractive IRRs well above cost of capital • $4.7bn+ Portfolio Receipts (9%+ CAGR) • Best-in-class pharma diversification • At least mid-teens annual total shareholder return • Clear path for significant upside to reflect platform value Bottom-line Returns Top-line Value creation Driver Strong execution Robust growth Attractive returns Value creation CAGR: compound annual growth rate See slide 136 for definitions and factors that may impact the achievement of our growth outlook.
Page 120
Concluding remarks Pablo Legorreta Chief Executive Officer, Chairman of the Board
Page 121
121 Key messages 1 Strong execution Delivering on strategic and financial priorities since 2020 IPO and 2022 Investor Day On track to deliver $4.7bn+ top-line in 2030 (10%+ 2020-2030 CAGR) 2 Rapid industry growth Royalties playing an increasingly prominent role in biopharma funding Average annual royalty market size of $6bn from 2020-2024, ~130% growth from prior 5-year period(1) 3 Optimized business model Established strong competitive advantages over ~30 years, now the optimized buyer of royalties Continuous innovation is core to strategy to remain royalty funding leader 4 Value creation Delivered consistent mid- teens ROIC Internalization to drive platform value recognition Our 2030 top- and bottom-line outlook is >10% above consensus Goal of at least mid-teens TSR over next 5 years IPO: initial public offering; CAGR: compound annual growth rate; ROIC: return on invested capital; TSR: total shareholder ret urn Top-line refers to Portfolio Receipts and bottom-line refers to Portfolio Cash Flow See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 1. Royalty Pharma internal data. Represents announced transaction value.
Page 122
Q&A Session
Page 123
Appendix
Page 124
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 Distributions from equity method investees - 15 1 - 44 24 Interest paid, net 206 131 143 145 98 113 Derivative collateral received, net - (45) - - - - Development-stage funding payments 83 26 200 177 52 2 Distributions to legacy NCI - Portfolio Receipts (525) (544) (480) (442) (377) (362) Accelerated receipts - - - (458) (525) - Adjusted EBITDA (non-GAAP) 1,656 1,621 1,944 2,109 2,281 2,565 Accelerated receipts - - - 458 525 - Equity performance awards(3) (153) - - - - - ROIC Adjusted EBITDA (non-GAAP) 1,503 1,621 1,944 2,566 2,806 2,565 Amounts may not add due to rounding. NCI: non-controlling interests. 1. The 2019 results are calculated on a pro forma basis, which adjusts certain cash flow line items as if our Reorganization Transactions (as described in our final prospectus filed with the SEC on June 17, 2020) and our initial public offering had take n place on January 1, 2019. The most significant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that resulted from the Reorganization Transactions. Additionally, the 2019 results were also adjusted to exc lude the legacy non-controlling interest portion of interest paid and operating expenses. 2. The 2022 and 2023 results are calculated on a pro forma basis to exclude Accelerated Receipts (as defined in the Credit Ag reement) as if Amendment No. 5 of the Credit Agreement had taken effect on January 1, 2019. 3. Amount in 2019 reflects the portion of carry distributed adjusted on a pro forma basis as if our Reorganization Transactio n and our initial public offering had taken place on January 1, 2019.
Page 125
125 GAAP to non-GAAP reconciliation Portfolio Cash Flow and ROIE Portfolio Cash Flow Amounts may not add due to rounding. NCI: non-controlling interests. 1, The 2019 results are calculated on a pro forma basis, which adjusts certain cash flow line items as if our Reorganization Transactions (as described in our final prospectus filed with the SEC on June 17, 2020) and our initial public offering had take n place on January 1, 2019. The most significant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that resulted from the Reorganization Transactions. Additionally, the 2019 results were also adjusted to exc lude the legacy non-controlling interest portion of interest paid and operating expenses. 2. The 2022 and 2023 results are calculated on a pro forma basis to exclude Accelerated Receipts (as defined in the Credit Ag reement) as if Amendment No. 5 of the Credit Agreement had taken effect on January 1, 2019. 3. Amount in 2019 reflects the portion of carry distributed adjusted on a pro forma basis as if our Reorganization Transactio n and our initial public offering had taken place on January 1, 2019. $ 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 Distributions from equity method investees - 15 1 - 44 24 Interest paid, net 206 131 143 145 98 113 Derivative collateral received, net - (45) - - - - Development-stage funding payments 83 26 200 177 52 2 Distributions to legacy NCI - Portfolio Receipts (525) (544) (480) (442) (377) (362) Accelerated receipts - - - (458) (525) - Adjusted EBITDA (non-GAAP) 1,656 1,621 1,944 2,109 2,281 2,565 Interest paid, net (206) (131) (143) (145) (98) (113) Portfolio Cash Flow (non-GAAP) 1,450 1,490 1,801 1,964 2,183 2,452 Accelerated receipts - - - 458 525 - Equity performance awards(3) (153) - - - - - ROIE Portfolio Cash Flow (non-GAAP) 1,297 1,490 1,801 2,421 2,708 2,452
Page 126
126 Capital Deployment summary Amounts may not add due to rounding. NCI: non-controlling interests. 1. The 2019 results are calculated on a pro forma basis, which adjusts certain cash flow line items as if our Reorganization Transactions (as described in our final prospectus filed with the SEC on June 17, 2020) and our initial public offering had take n place on January 1, 2019. The most significant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that resulted from the Reorganization Transactions. $ 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) (480) - (150) Milestone payments (250) - (19) - (12) (75) Investments in equity method investees (27) (40) (35) (10) (13) (11) Acquisitions of other financial assets - - - (21) - (18) Contributions from legacy NCI – R&D 19 8 7 1 1 1 Capital Deployment (2,187) (2,240) (2,508) (2,428) (2,192) (2,761)
Page 127
127 Invested Capital at Work and Invested Equity at Work summary Amounts may not add due to rounding. NCI: non-controlling interests. 1. The 2019 results are calculated on a pro forma basis, which adjusts certain cash flow line items as if our Reorganization Transactions (as described in our final prospectus filed with the SEC on June 17, 2020) and our initial public offering had take n place on January 1, 2019. The most significant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that resulted from the Reorganization Transactions. Further, it was adjusted to include contributions from n on-controlling interests on non-R&D assets. 2. Reflects capital deployment associated with expired or partially expired royalty investments. 3. Net debt is calculated as principal value of debt, less the sum of cash and cash equivalents and marketable securities as of each period end. $ 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) Ending Invested Capital at Work 10,424 12,504 14,837 16,535 18,496 20,848 Net debt(3) (4,890) (4,008) (5,177) (5,565) (5,823) (6,871) Ending Invested Equity at Work 5,534 8,496 9,660 10,970 12,673 13,977 Average Invested Capital at Work 10,368 11,464 13,671 15,686 17,516 19,672 Average Invested Equity at Work 6,010 7,015 9,078 10,315 11,822 13,325
Page 128
128 Advancing our partners’ core mission with win-win solutions Existing royalties Synthetic royalties Launch & development capital M&A Structure Potential benefits to partner • Diversification of asset portfolio • Non-dilutive funding for business growth and investment • Upfront capital today in exchange for a long-dated stream of payments • Funding for completion of development and commercialization of portfolio • Retain operational control of development programs • Lower cost of capital than issuing equity • Launch funding offers flexible, patient, long-term alternative financing • Lower cost of capital than selling equity and less restrictive than debt • Monetize non-strategic passive royalties to reduce net M&A price • Capital provided through purchase of royalties and supplemental funding
Page 129
129 Strengthening alignment with shareholders 1. For this analysis Equity Performance Awards are treated as equity. A portion of equity performance awards will be paid in cash to enable recipients to pay taxes, with the after-tax amount settled in equity. Estimated compensation mix as of January 2025. 2. Represents other named executive officers of Royalty Pharma. Cash Equity Cash Equity Cash Equity Cash Equity Equity received from internalization vests over 5 years Vast majority of equity received from internalization vests over 9 years Post-internalizationPre-internalization (external manager structure) Other executives(2) 2026 estimated compensation mix(1) CEO Internalization transaction results in significantly greater portion of management compensation in equity
Page 130
130 CF to remain important contributor regardless of triple scenario RP: Royalty Pharma; CF: Cystic fibrosis; PR: Portfolio Receipts. 1. Vanzacaftor royalty rates based on statements by Vertex. 2. PR figures shown are net of estimated distributions to legacy non-controlling interests (NCI). There are no NCI distributions related to the additional royalty interest that we acquired from the CF Foundation in 2020 3. Indicates date applicable product when generic competition is expected to enter the market. RP is entitled to royalties on CF products that arose out of the collaboration between Vertex and the Cystic Fibrosis Foundation. Royalties are not tied to patents. Triple combination blended royalty(1)Scenario Components Duration(3) Royalty bearing components ~9% 2037elexacaftor ivacaftor tezacaftor Deuterated ivacaftor is royalty bearing ~8%vanzacaftor deuterated ivacaftor tezacaftor 2039 Deuterated ivacaftor not royalty bearing ~4%vanzacaftor deuterated ivacaftor tezacaftor RP position 2030 CF Franchise Portfolio Receipts outlook(2) >$1bn ~$800m --
Page 131
131 “Win-win” funding solutions facilitated through structuring 1. Royalty Pharma internal data. Majority of transactions include structuring(1) (by royalties acquired; 2020-2025) Mechanisms to structure “win-win” solutions Milestones (paid or received) Payments for clinical or regulatory events, or certain sales levels Royalty tiering, sharing or ratchets Royalty rates increase or decrease, typically at certain sales levels Development funding opt-in / multi-year tranched funding Pre-PoC funding support with option to scale capital for pivotal trial Flexible duration Royalties end at certain time or level of commercial performance Launch capital / equity investments Additional capital in exchange for fixed payments or equity Milestones (paid or received) Royalty tiering, sharing or ratchets Flexible duration Launch capital or equity Development funding opt-in / multi-year tranched funding None 1 2 3 4 5
Page 132
132 Deal examples show breadth of structuring capabilities Selected Royalty Pharma deals that have been anonymized. Projections for RP base case and consensus are as of the time of the announcement. Examples highlight how Royalty Pharma can bridge its sales case with consensus / management forecasts Milestones (post Phase 3 medicine) Milestones share portion of upside with seller if product significantly outperforms RP case Tiered royalty (approved, pre-launch medicine) Highest royalty tier is on lowest risk sales. Royalty obligation decreases if sales in-line with management forecast Royalty cap & ratchet (approved, pre-launch medicine) Ratchet provides downside protection; sliding cap ends royalty obligation early if sales are in-line with management forecast 1 2 3 Product revenues Years Milestones paid Consensus (primary indication) RP base case RP sales forecast vs. consensus Product revenues Years Management forecast RP base case Lower royalty tier Higher royalty tier No royalties RP sales forecast vs. management Product revenues Years Management forecast RP base caseRoyalty ratchet Sliding cap RP sales forecast vs. management
Page 133
133 What does $1bn of investment mean for future cash receipts? 1. See slide 136 for definitions and factors that may impact the achievement of our growth outlook. 2. Representative cash receipts based on blended average of actual and projected returns for approved and development -stage transactions over the last five years under a range of scenarios. $200m $100m $0m $300m 50 2 141 3 4 6 127 8 139 10 11 15 $160-200m Often significant residual “tail” beyond 10 years 20 $160-180m Period of accelerated growth during product launch Period of reduced growth in latter-half of decade post product launch Representative annual Portfolio Receipts(1,2) (“top-line”) from $1bn of investment - based on blend of historical acquisitions Years Post Acquisition
Page 134
134 Environmental, social and governance Senior Leadership and Employee Engagement Committees foster collaboration and enhance workplace culture Expansive professional development initiatives Steadfast commitment to philanthropy Environmental Systematic approach to evaluating potential climate- related risks and opportunities GHG emissions transparently disclosed and externally assured Sustainability practices and environmental stewardship Social Governance Responsible Investment Policy ensures that ESG- related risks and opportunities are systematically reviewed Diverse, independent board Board oversight of ESG Robust governance policies and practices ESG Rankings
Page 135
135 Royalty Pharma’s differentiated investment profile 1. Comparisons of Royalty Pharma royalties versus selected Pharma M&A transactions of products on which we own royalties; bas ed on Schedule 14-9 forecasts for AbbVie/Pharmacyclics (Imbruvica), Bristol Myers/Karuna ( Cobenfy), Gilead/Immunomedics (Trodelvy),and Pfizer/Biohaven (Nurtec Differentiated biopharma characteristics Compelling investment profile • Strong growth/returns, highly diversified • Attractive valuation Deal valuation arbitrage • No strategic acquisition premium paid for royalties • ~70% lower outlay vs. traditional M&A(1) Macro resilience • Royalties insulated from tariffs • Strong return spreads across rate cycles • Continuous investments reflect latest Rx pricing Unique advantages as an investor Proprietary insights • Proprietary access to company data • Deep internal and external diligence • Advanced in-house data analytics Access to innovation • Access to private company opportunities • Ability to invest in single products in large biopharma Risk management • Transaction structuring to mitigate risk
Page 136
136 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 (“Prospectus”)) and its initial public offering (“IPO”) had taken place on January 1, 2019. The most sig nificant difference between the pro forma and reported figures is the non -controlling interest attributable to legacy investors tha t resulted from the Reorganization Transactions. Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from its portfolio i nvestments, the primary source of capital available to deploy to make new portfolio investments. Portfolio Receipts is defined a s the sum of Royalty Receipts and milestones and other contractual receipts. Royalty Receipts include variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to Royalty Pharma (“Royalty Receipts”). Milestones and other contractual receipts include sales -based or regulatory milestone payments and other fixed contr actual receipts, net of contractual payments to the legacy non -controlling interests, that are attributed to Royalty Pharma. Por tfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or marketable securities, both of which are not central to Royalty Pharma’s fundamental business strategy. Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP condensed consolidated sta tements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts and milestones and other contractual receipts to the Legacy Investors Partnerships. Adjusted EBITDA is defined under the revolving credit agreement as Portfolio Receipts minus payments for operating and profes sional costs. Operating and professional costs reflect Payments for operating and professional costs from the statements of cash flows. Refer to the Appendix for a GAAP to non-GAAP reconciliation. See the Company’s Annual Report on Form 10 -K filed with SEC on February 12, 2025 for additional discussion on defined term. Portfolio Cash Flow is defined under the revolving credit agreement as Adjusted EBITDA minus interest paid or received, net. Refer to the Appendix for a GAAP to non-GAAP reconciliation. See the Company’s Annual Report on Form 10 -K filed with SEC on February 12, 2025 for additional discussion on defined term. Capital Deployment represents the total outflows that will drive future Portfolio Receipts and reflects cash paid at the acqu isition date and any subsequent associated contractual payments reflected in the period in which cash was paid. Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP condensed consolidat ed statements of cash flows: Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other financial assets, Milestone payments, Development -stage funding payments, less Contributions from legacy non -controlling interests - R&D. Return on Invested Capital (“ROIC”) is calculated as Adjusted EBITDA plus accelerated receipts, less nominal equity performan ce awards earned (“ROIC Adjusted EBITDA”) divided by the average of Invested Capital at Work at the beginning and end of the yea r. Invested Capital at Work is calculated as total cumulative Capital Deployment less cumulative Capital Deployment on expired p roducts. Invested Capital at Work represents capital deployed for all active investments. Refer to the Appendix for a GAAP to non-GAAP reconciliation. Return on Invested Equity (“ROIE”) is calculated as Portfolio Cash Flow plus accelerated receipts, less nominal equity perfor mance awards earned (“ROIE Portfolio Cash Flow”) divided by the average of Invested Equity at Work at year -end and prior year-end. Invested Equity at Work is calculated as Invested Capital at Work less net debt. Net debt is calculated as principal value of debt, less the sum of cash and cash equivalents and marketable securities as of each period end. Refer to the Appendix for a GAAP to non- GAAP reconciliation. Illustrative returns reflect a combination of actual results and estimated projected returns for investments based on analyst consensus sales projections (where applicable). IRR (or returns) are calculated using total cash outflows and total cash inflow s, in each case including royalties, milestones and other cash flows. Royalty Pharma has not reconciled certain non -GAAP targets to the most directly comparable GAAP measure, net cash provided by op erating activities, at this time due to the inherent difficulty in accurately forecasting and quantifying certain amounts tha t are necessary for such reconciliation, including, primarily, payments for operating and professional costs, distributions from equity method investees, and interest received. The Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to project net cash provided by operating activities on a GAAP basis at this time. Royalty Pharma’s long-term outlook is based on its most up-to-date view on its prospects as of September 11, 2025. This long-term outlook assumes no major unforeseen adverse events subsequent to the date of this presentation. Growth outlook includes future royalty acquisiti ons. Furthermore, Royalty Pharma may amend its long -term outlook in the event it engages in new royalty transactions. See the information on slide 2 “Forward Looking Statements & Non -GAAP Financial Information,” for factors that may impact the long -term outlook. Financial Targets and Long-Term Outlook 1) 2) 3) 4) 5) Footnotes 6) 7) 8)