Slides
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Q3 2025 Financial Results November 5, 2025
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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 Royalty Pharma’s 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 negative 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 resul ts of any revisions to any such statements 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 research 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. Securitie s 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 23 in the Appendix. Any non-U.S. GAAP financial measures presented are not, and should not be vie wed 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
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Key Highlights Pablo Legorreta Chief Executive Officer, Chairman of the Board Portfolio Update Marshall Urist EVP , Head of Research & Investments Development-stage pipeline Chris Hite EVP , Vice Chairman Financial Results Terrance Coyne EVP , Chief Financial Officer Conclusion Pablo Legorreta Chief Executive Officer, Chairman of the Board Q&A Session Pablo Legorreta Terrance Coyne Chris Hite Marshall Urist Chief Executive Officer, Chairman of the Board EVP , Chief Financial Officer EVP , Vice Chairman EVP , Head of Research & Investments 3 Agenda
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Key Highlights Pablo Legorreta Chief Executive Officer, Chairman of the Board
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5 Key messages 1 Financial Double-digit growth in Royalty Receipts (+11%) and Portfolio Receipts (+11%)(1) Return on Invested Capital (ROIC) of 15.7%, Return on Invested Equity (ROIE) of 22.9% in LTM Q3 2025 2 Capital allocation Capital Deployment of $1bn in Q3 2025 ($1.7bn in the first 9 months) Repurchased 4m shares for $152m in Q3 2025 (35m shares for $1.15bn in the first 9 months) 3 Portfolio Acquired royalty on Amgen’s Imdelltra Funding agreement with Zenas for obexelimab 17 development-stage therapies in portfolio with multiple upcoming events over next 24 months 4 Financial guidance FY 2025 Portfolio Receipts expected to be $3,200m to $3,250m excluding future investments(2) ($3,050m to $3,150m previously) • Growth of ~+14% to +16% (~+9% to +12% previously) LTM: last twelve months 1. Royalty Receipts represent recurring cash inflows. Portfolio Receipts also include Milestones and other contractual receip ts that are more variable. 2. Portfolio Receipts guidance excludes contribution from transactions announced subsequent to the date of this presentation.
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$371 $445 $472 $482 $500 $462 $537 $530 $581 $511 $584 $593 $616 $545 $637 $651 $705 $605 $732 $729 $788 $672 $811 Delivering double-digit growth on average since IPO 6 1. Growth rates are presented on a pro forma basis. See slide 23 for definition 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. 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. 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% Portfolio Receipts $608$717$686(3)$637$656(3) $545$606(3)$597$524$605$543$587$475$524$484$472$462$382 $735 $742 $839 $727 +11% Q3 $814 Key Highlights Portfolio Update Development-Stage Pipeline Financial Results Conclusion
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Portfolio Update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments
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8 Acquired royalty on Amgen’s Imdelltra for small cell lung cancer Consensus sales of ~$2.7bn by 2035(4) (Imdelltra sales; $ in billions) – transforming the SCLC treatment paradigm $2.7$2.6$2.5 $2.4 $2.2 $1.8 $1.6 $1.3 $1.0 $0.8 $0.1 $0.5 2024 2035 High unmet patient need Approved in 2024 as a first-in-class targeted immunotherapy for SCLC, where median survival is only ~12 months following initial therapy(1) Transaction terms Up to $950m ($885m upfront) to acquire ~7% royalty from BeOne on Amgen’s Imdelltra; BeOne option to sell additional royalty for up to $65m(2) Compelling patient benefit Reduced risk of death by 40% vs. SoC chemotherapy in 2L+ SCLC(3); High conviction in first-line label expansion with multiple Phase 3 studies ongoing Multi-blockbuster potential Consensus sales of ~$2.7bn by 2035 (>60% increase since 2024 approval); transaction expected to deliver unlevered IRR in the low-double digits Portfolio UpdateKey Highlights Development-Stage Pipeline Financial Results Conclusion SCLC: small cell lung cancer; SoC: standard of care; 2L: second -line; IRR: internal rate of return 1. Amgen presentation, May 2024. 2. ~7% royalty on worldwide net sales excluding greater China. Includes royalty sharing with BeOne on annual net sales above $1.5 billion. 3. Imdelltra overall survival benefit from Phase 3 DeLLphi -304 study. Amgen press release, June 2, 2025. 4. Visible Alpha consensus as of October 2025.
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9 Acquired royalty on Alnylam’s Amvuttra for ATTR amyloidosis Amvuttra reported and consensus sales(4) ($ in billions) – expanding the ATTR amyloidosis market Approved for ATTR-CM and hATTR-PN ATTR amyloidosis is a progressive, debilitating and fatal disease caused by misfolded TTR proteins that accumulate in the nerves, heart and GI tract Transaction terms $310m to acquire Blackstone’s 1% royalty on worldwide net sales of Alnylam’s Amvuttra; Royalty duration through March 2035 with low IRA risk(1) Compelling patient benefit Dosed Q3M and results in rapid knockdown of TTR; ~35% risk reduction of all-cause mortality in ATTR-CM(2) Multi-blockbuster potential Consensus of ~$8.4bn in 2030; expect unlevered IRR in the low double digits or better under a range of scenarios that factor in significant potential competition from Alnylam’s nucresiran(3) Portfolio UpdateKey Highlights Development-Stage Pipeline Financial Results Conclusion ATTR: transthyretin amyloidosis; ATTR-CM: transthyretin-mediated amyloid cardiomyopathy; hATTR-PN: hereditary transthyretin amyloid polyneuropathy; GI: gastrointestinal; IRA: Inflation Reduction Act; Q3M once every 12 we eks; IRR: internal rate of return 1. Entitled to royalties on Amvuttra sales beginning on October 1, 2025. Amvuttra granted Orphan Drug Designation in the U.S. and EU for the treatment of TTR amyloidosis; the Inflation Reduction Act exempts certain orphan drugs from the Medicare price n egotiation program. 2. The New England Journal of Medicine article (“Vutrisiran in Patients with Transthyretin Amyloidosis with Cardiomy opathy”), published on August 30, 2024. 3. Alnylam’s nucresiran is dosed twice per year and in Phase 3 development for patients with ATTR - CM. Nucresiran is not royalty bearing. Alnylam expects an approval and launch of nucresiran for ATTR -CM in 2030. Alnylam also initiated its Phase 3 study for hATTR-PN in the fourth quarter of 2025, with topline results expected in 2028. 4. Visible Alpha Amvuttra consensus as of November 1, 2025 and reflects 7 analysts through 2030. Visible Alpha only includes 2 analysts forecasting the follow-on product, nucresiran, separately. All other analysts on Visible Alpha combine sales of Amvuttra and nucresiran. $8.4 $7.7 $6.6 $5.1 $4.0 $2.4 $0.6 $0.1 $1.0 2022 203020272023 2024 2025 2028 20292026
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10 IgG4-RD: Immunoglobin G4-Related Disease; IRR: internal rate of return; MS: multiple sclerosis 1. Zenas Biopharma Q2 results press release, August 12, 2025. 2. $75m milestone upon achievement of defined success criteria in INDIGO Phase 3 trial in IgG4 -RD; $75m milestone upon FDA approval for IgG4-RD; $75m milestone upon FDA approval for systemic lupus erythematosus. 3. Adapted from Perugino et al., Lancet Rheumatology, 2023. 4. Obexelimab met the primary endpoint with a 95% relative reduction in new gadolinium (Gd) -enhancing T1 lesions compared to placebo (p=0.0009) over week 8 and 12 in the Phase 2 MoonStone Trial. Zenas press release, October 27, 2025. 5. 20,000 U.S. patient prevalence confirmed by Royalty Pharma proprietary real world evidence analysis with ~40% of diagnosed pa tients managed with chronic high-dose steroids and only ~30% of treated patients using B cell depleting agents. Zenas Biopharma’s obexelimab – an exciting opportunity for IgG4-RD Funding supports obexelimab development and potential IgG4-RD launch in H1 2027 Funding agreement for up to $300mObexelimab – potential new therapy for IgG4-RD Differentiated mechanism Potentially the first non-depleting B cell modulating therapy in IgG4-RD, a rare autoimmune disorder, with Phase 3 topline results expected year-end 2025(1) Staged investment mitigates risk Up to $300m ($75m upfront) to acquire 5.5% royalty; additional $225m in milestones payable to Zenas on certain events(2) Impressive Phase 2 clinical results Compelling IgG4-RD results in induction and maintenance setting regardless of steroid use(3); positive multiple sclerosis results further validates mechanism(4) Blockbuster potential in IgG4-RD >20K prevalent patients with high steroid burden and low advanced therapy uptake(5); expect to deliver unlevered IRR in the teens under range of scenarios Up to $300m in funding 5.5% royalty on worldwide sales of obexelimab Development-Stage PipelinePortfolio UpdateKey Highlights Financial Results Conclusion
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Development-stage pipeline Chris Hite Executive Vice President Vice Chairman
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12 PDAC: pancreatic ductal adenocarcinoma; IgG4-RD: Immunoglobin G4-related disease; SCLC: small cell lung cancer; TTR: transthyretin 1. Consists of up to $1.25 billion of synthetic royalty funding and a senior secured loan of up to $750m. Deploying capital on attractive therapies Development-stage pipeline has grown to 17 therapies after adding 3 therapies in 2025 Transaction size Up to $250m Up to $2.0bn(1) Up to $300m Up to $950m $310m Transaction type Synthetic Synthetic Synthetic Existing Existing Seller Biogen Revolution Medicines Zenas BioPharma BeOne Medicines Blackstone Therapy litifilimab daraxonrasib obexelimab Indication Lupus PDAC IgG4-RD SCLC TTR amyloidosis Regulatory status Phase 3 Phase 3 Phase 3 Approved Approved Development-stage Development-Stage PipelinePortfolio UpdateKey Highlights Financial Results Conclusion Approved
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13 Amounts may not add due to rounding. Capital Deployment reflects cash payments during the period for new and previously announced transactions. See slide 23 for definitions and factors that may impact the achievement of our growth outlook. LTM: last twelve months 1. Year to date as of November 5, 2025. 2. Represents average of Invested Capital at Work at the beginning and end of the year. Invested Capital at Work is calculate d as total cumulative Capital Deployment less cumulative Capital Deployment on expired products. Invested Capital at Work repres ents capital deployed for all active investments. Refer to slide 32 for the detailed buildup of Invested Capital at Work. Expanding development-stage pipeline while managing portfolio risk Low-risk portfolio driven by Capital Deployment in approved products and successful development-stage investments Annual Capital Deployed at time of investment Total Invested Capital at work(2) ($ in billions) Approved at acquisition Approved since acquisition Development-stage Unsuccessful 2019 2020 2021 2022 2023 2024 Q3 2025 (LTM) 11% Development-Stage PipelinePortfolio UpdateKey Highlights Financial Results Conclusion 86% 100% 0% 2012 2023 73% 27% 202220212020 Approved Development-stage 2024 2025 YTD(1) 66% average for approved ~$21 $10
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14 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. Capital Deployment in attractive risk/reward opportunities Significant time, resources on new molecule/modality development and achieving proof-of-concept by biopharma Phase 1 Phase 2 Phase 3 Registration Approved 100% 0% Industry probability of approval(1) Pre-clinical We invest where industry success rates are highest • Deployed ~66% 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 8% 15% 52% 91% 100% n/a Development-Stage PipelinePortfolio UpdateKey Highlights Financial Results Conclusion
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15 2L: second-line; CV: cardiovascular; nHCM: non-obstructive hypertrophic cardiomyopathy; HAE: hereditary angioedema; PDAC: pancreatic ductal adenocarcinoma; SLE: systemic lupus erythematosus; IgG4-RD: Immunoglobulin G4-related disease; NSCLC: non - small cell lung cancer; CLE: cutaneous lupus erythematosus; MS: multiple sclerosis; MDD: major depression disorder 1. Phase 3 results timing for daraxonrasib (2L PDAC), pelacarsen, aficamten, litifilimab (SLE, CLE), obexelimab, and deucrictibant are based on marketer guidance. 2. Phase 3 results timing for olpasiran, daraxonrasib (2L NSCLC), frexalimab and seltorexant are based on clinicaltrials.gov. 3. Deucrictibant Phase 3 readout for HAE on-demand treatment expected in Q4 2025 and for HAE long -term prophylaxis expected in H2 2026. 4. Peak royalties are calculated using peak sales based on the marketer guidance (the midpoint is used when ranges are provided) for frexalimab, pelacarsen, and seltorexant. Peak royalties for olpasiran, aficamten, litifilimab, deucrictibant, daraxonrasib, and obexelimab are based on peak sales from analyst research estimates. For daraxonrasib, peak royalties are calculated to be between ~$180 million to ~$340 million assuming royalty rates under the required Revolution Medicines dr aw and maximum draw scenarios. The midpoint of that range is used for the purpose of this presentation. Multiple pivotal readouts over next 24 months Important Phase 3 results to potentially unlock value for development-stage pipeline Phase 3 results expected in 2027(1, 2)Phase 3 results expected in Q4 2025 / 2026(1, 3) obexelimab deucrictibant pelacarsen aficamten litifilimab daraxonrasib olpasiran daraxonrasib litifilimab frexalimab seltorexant Development-Stage PipelinePortfolio UpdateKey Highlights Financial Results Conclusion Therapy Peak royalties(4) (across all indications) Therapy Peak royalties(4) (across all indications) >$200m >$200m >$200m >$200m $100-$200m $100-$200m $100-$200m $100-$200m $100-$200m $50-$100m ~$50m Indication 2L PDAC CV disease nHCM SLE IgG4-RD HAE Indication CV disease MS 2L NSCLC MDD CLE
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Financial Results Terrance Coyne Executive Vice President Chief Financial Officer
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($123) ($34) $3 17 YoY: year over year Amounts may not add due to rounding. 1. Reported net of legacy non-controlling interests to facilitate increased transparency of individual royalty economics and mil estones. 2. Reflects weighted-average diluted Class A ordinary shares outstanding in millions. Efficient model generates substantial cash flow to reinvest $ in millions Portfolio Receipts Payments for operating and professional costs Portfolio Cash Flow (non-GAAP) Interest paid, net 80.7% 4.2% % Portfolio Receipts $814 $657 +11% YoY Adjusted EBITDA (non-GAAP) $779 95.8% Capital Deployment Share count(2) ($1,013) 560 Royalty Receipts(1) Milestones & other contractual receipts(1) $811 +11% YoY n/a Comments Substantially all cash inflows of the business Measure of cash that can be redeployed into new royalties, to pay debt, or returned to shareholders Reflects cash payments during the period for new and previously announced transactions Recurring cash inflows of our royalty portfolio More variable cash receipts Financial ResultsDevelopment-Stage PipelinePortfolio UpdateKey Highlights Conclusion Q3 2025 Reflects cash savings from internalization of manager Share count reduced by 33 million from approximately 593 million in Q3 2024
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18 LTM: last twelve months. See slide 23 for definitions and factors that may impact the achievement of our growth outlook. 1. R eturn on Invested Capital (“ROIC”) is calculated as Adjusted EBITDA plus accelerated receipts, less nominal equity performance a wards (EPAs) 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 slide 32 for the detailed buildup o f Invested Capital at Work. 2. Return on Invested Equity (“ROIE”) is calculated as Portfolio Cash Flow plus accelerated receipts , less nominal equity performance 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. Refer to slide 32 for the detailed buildup of Invested Equity at Work. Refer to the Appendix for GAAP to non-GAAP reconciliations. Portfolio continues to generate attractive returns Return on Invested Equity(2) Return on Invested Capital(1) 14.7% 21.2% 15.7% 22.9% 2019-2024 (Average) Q3 2025 (LTM) Remarkably stable returns since IPO with conservative leverage enhancing returns to shareholders • Reflect cash generated by the business relative to active capital invested • Aggregate business measures that complement individual deal returns • Remarkably stable returns: estimated standard deviation of +/- 1.2% (ROIC) and +/- 1.8% (ROIE) Comments Financial ResultsDevelopment-Stage PipelinePortfolio UpdateKey Highlights Conclusion
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Balanced capital allocation (first nine months of 2025) 19 1. Total leverage is calculated as Total debt divided by Adjusted EBITDA. 2. Net leverage is calculated as Total debt less cash and cash equivalents divided by Adjusted EBITDA. 3. Calculated based on total leverage ratio of ~4.0x. Total leverage is calculated as Total debt divided by Adjusted EBITDA ( as defined in credit agreement filed with the SEC). Maintaining financial flexibility while returning capital Capital Deployment $1,709m Dividends $385m Share repurchases $1,147m Return of capital: ~$1.5bn Significant financial capacity to execute strategy Cash & cash equivalents $939m as of September 30, 2025; issued $2.0bn of notes in Q3 and repaid $1bn of notes upon maturity Investment grade debt $9.2bn outstanding with weighted average duration of ~13 years; total leverage of 3.2x(1) and net leverage of 2.9x(2) Financial capacity ~$2.9bn with cash on hand and additional leverage(3); $1.8bn revolving credit facility Share repurchases Repurchased $1.15 billion (~35m shares in first nine months of 2025) Financial ResultsDevelopment-Stage PipelinePortfolio UpdateKey Highlights Conclusion
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20 PR: Portfolio Receipts 1. See slide 23 for definitions and for additional information regarding Royalty Pharma’s 2025 full -year financial guidance. 2. This guidance is as of November 5, 2025 and assumes no major unforeseen adverse events and excludes any potential contributio n from transactions announced subsequent to that date. Furthermore, Royalty Pharma may amend its guidance in the event it engages in new royalty transactions which have a material near -term financial impact on the Company. See the information on slide 2, “Forward Looking Statements & Non-GAAP Measures,” for factors that may impact the achievement of this guidance. 3. The MorphoSys Development Funding Bonds proceeds of $511 million are treated as an asset sale and are not recorded in Portfolio Receipts. Full year 2025 guidance(1,2) Comments Portfolio Receipts(3) excluding transactions announced subsequent to November 5, 2025(1,2) Operating & professional costs Interest paid August 6, 2025 $3,050m - $3,150m (9%-12% growth yr/yr) ~9.0% - 9.5% of Portfolio Receipts ~$275m • Strong portfolio performance • Milestones and other contractual receipts expected to be ~$125m in 2025 • Reflects Q2 Promacta generic launch • Interest paid expected to be $7m in Q4 2025 • Excludes interest received, which was $28m through first nine months of 2025 • Expect interest paid to be $350m-$360m in 2026, including interest payments on $2bn of Notes issued in September 2025 • Reflects H2 2025 savings from extinguishment of the management fee • ~$70m of one-time expenses (>2% of PR) related to internalization and other one-time items November 5, 2025 $3,200m - $3,250m (14%-16% growth yr/yr) ~9.0% - 9.5% of Portfolio Receipts ~$275m Financial ResultsDevelopment-Stage PipelinePortfolio UpdateKey Highlights Conclusion
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Conclusion Pablo Legorreta Chief Executive Officer, Chairman of the Board
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22 IRR: internal rate of return; ROIC: Return on Invested Capital See slide 23 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. 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 Leader in biopharma royalty funding Robust growth Strong, low volatility top- and bottom-line growth expected through 2030 ConclusionFinancial ResultsDevelopment-Stage PipelinePortfolio UpdateKey Highlights
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23 To aid in comparability, 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 significant differe nce between the pro forma and reported figures is the non -controlling interest attributable to legacy investors that 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. Using net cash provided by operating activities, the closest GAAP measure to ROIC Adjusted EBITDA, the ratios are 15.6% and 11.5% for ROIC, based on the 2019 to 2 024 average and the LTM ended Q3 2025, respectively. 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. Using net cash provided by ope rating activities, the closest GAAP measure to ROIE Portfolio Cash Flow, the ratios are 24.3% and 18.1% for ROIE, based on the 2019 to 2024 average and the LTM ended Q3 2025, respectively. 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)
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Appendix
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25 On track to meet or exceed 5-year capital deployment target ecopipamMK-8189 olpasiran pelacarsen ampreloxetine 2022 2023 Development-stage Approved KarXT aficamten(1) TEV-‘749 2024 frexalimab aficamten(1) CK-586 deucrictibant 2025 litifilimab daraxonrasib(2) 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 5-year Capital Deployment of $10-12 billion(4) (2022-2026) Investing in approved and development-stage royalties (2022-current) obexelimab 1. Includes launch and development capital. 2. Includes senior secured loan. 3. See slide 23 for factors that may impact Royalty Pharma’s capital deployment target. 4. Capital deployment target provided at May 17, 2022 Investor Day.
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2025 and 2026 clinical and regulatory events 26 2025 2026 obexelimab Phase 3 results(8) (IgG4-RD) Trodelvy Phase 3 results(2) (1L mTNBC) TEV-’749 Phase 3 safety results(1) (schizophrenia) ecopipam Phase 3 results(4) (Tourette's syndrome) trontinemab Phase 3 initiation(7) (Alzheimer’s disease) Cobenfy Phase 3 results(3) (adjunctive schizophrenia) pelacarsen Phase 3 results(10) (cardiovascular disease) daraxonrasib Phase 3 results(12) (2L metastatic PDAC) litifilimab Phase 3 results(13) (SLE) aficamten Phase 3 results(5) (1L oHCM) deucrictibant (IR) Phase 3 results(9) (HAE attacks) Cobenfy Phase 3 results(6) (ADP) aficamten Phase 3 results(11) (nHCM) deucrictibant (XR) Phase 3 results(9) (HAE attacks) Cabometyx FDA approval(16) (advanced NETs) Tremfya FDA approval(14) (Crohn’s disease) Tremfya EC approval(14) (Crohn’s disease) ecopipam FDA approval (Tourette’s syndrome) TEV-‘749 FDA approval (schizophrenia) Tremfya EC approval(14) (ulcerative colitis) 2025 aficamten FDA approval(11) (oHCM) 2026 TEV-‘749 FDA filing(15) (schizophrenia) ecopipam FDA filing(4) (Tourette’s syndrome) deucrictibant (IR) FDA filing (HAE attacks) Clinical Regulatory pelacarsen FDA filing(10) (cardiovascular disease) Trodelvy FDA filing(2,17) (1L mTNBC) Trodelvy FDA approval (1L mTNBC) 1L: first-line; 2L: second-line; mTNBC: metastatic triple negative breast cancer; nHCM: non-obstructive hypertrophic cardiomyopathy; oHCM: obstructive hypertrophic cardiomyopathy; ADP: Alzheimer’s Disease Psychosis; PDAC: pancreatic ductal adenocarcinoma; HAE: hereditary angioedema; IgG4-RD: immunoglobulin G4 related disease; SLE: systemic lupus erythematosus; NETs: neuroendocrine tumors; FDA: Food and Drug Administration; EC: European Commission 1. Teva Q4 earnings release, January 29, 2025. 2. Refers to Phase 3 ASCENT -04/KEYNOTE-D19 study (Gilead press release, April 21, 2025) and Phase 3 ASCENT-03 study (Gilead press release, May 23, 2025). 3. Bristol Myers Squibb press release, April 22, 2025. 4. Emalex press release, February 25, 2025. 5. Refers to Phase 3 MAPLE study. Cytokinetics press release, May 13, 2025. 6. Bristol Myer s Squibb Q3 earnings presentation, October 30, 2025. 7. Roche Q3 earnings presentation, October 23, 2025. 8. Zenas BioPharma Q2 press release, August 12, 2025. 9. Pharvaris Q2 press release, August 12, 2025. 10. Novartis Q3 earnings presentation, October 28, 2025. 11. Cytokinetics Q2 press release , August 7, 2025. 12. Revolution Medicines Q2 press release, August 6, 2025. 13. Biogen Q3 earnings presentation, October 30, 2025. 14. Johnson & Johnson Q3 earnings presentation, October 14, 2025. 15. Teva press rel ease, September 20, 2025. 16. Exelixis press release, March 26, 2025. 17. Gilead Q3 presentation, October 30, 2025.
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FSGS: focal segmental glomerulosclerosis; MCD: minimal change disease; AD: Alzheimer’s disease; XR: extended release; AAE-C1INH: acquired angioedema due to C1 -inhibitor deficiency; CV: cardiovascular; nOH: neurogenic orthostatic hypotension; MSA: multiple system atrophy; IgG4-RD: immunoglobulin G4-related disease.; NSCLC: non -small cell lung cancer; MDD: major depressive d isorder; IR: immediate release; nHCM: non-obstructive hypertrophic cardiomyopathy; oHCM: obstructive hypertrophic cardiomyopathy 1. Roche plans to initiate a Phase 3 in pre-clinical Alzheimer’s disease. 2. Pharvaris plans to initiate a Phase 3 study of deucrictibant for the prophylactic and on-demand treatment of AAE-C1INH attacks by year-end 2025. Development-stage pipeline: 17 potential therapies 27 litifilimab Systemic lupus erythematosus daraxonrasib 2L metastatic pancreatic cancer frexalimab Relapsing multiple sclerosis TEV-‘749 Schizophrenia ecopipam Tourette syndrome pelabresib Myelofibrosis trontinemab Early symptomatic AD seltorexant MDD w/insomnia symptoms ampreloxetine Symptomatic nOH in MSA aficamten nHCM Phase 2 olpasiran CV disease (secondary prevention) Phase 3 tulmimetostat (CPI-0209) Blood cancer, solid tumors Registration Initial indicationAdditional indication Rare disease Immunology CancerNeuroscience Cardio-Metabolic pelacarsen CV disease (secondary prevention) frexalimab Systemic lupus erythematosus frexalimab Type 1 diabetes omecamtiv mecarbil Heart failure CK-586 Heart failure frexalimab FSGS or MCD deucrictibant (IR) Hereditary angioedema aficamten oHCM deucrictibant (XR) Hereditary angioedema daraxonrasib 2L/3L metastatic NSCLC obexelimab G4-related disease (lgG4-RD) obexelimab Relapsing multiple sclerosis obexelimab Systemic lupus erythematosus Initial and additional indications for development-stage therapies trontinemab(1) Preclinical AD litifilimab Cutaneous lupus erythematosus olpasiran CV disease (primary prevention) daraxonrasib 1L metastatic pancreatic cancer daraxonrasib Resectable pancreatic cancer deucrictibant(2) AAE-C1INH frexalimab Secondary progressive multiple sclerosis daraxonrasib (+ pembrolizumab) 1L NSCLC
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Adstiladrin Intermediate risk NMIBC mUC: metastatic urothelial carcinoma; mNSCLC: metastatic non -small-cell lung carcinoma; HNSCC: head and neck squamous cell carcinom a; UTUC: upper tract urothelial carcinoma; cGvHD: chronic graft versus host disease; TNBC: triple negative breast cancer; HR+/HER2-: hormone receptor-positive, human epidermal growth factor receptor 2 -negative; mBC: metastatic breast cancer; SCLC: small cell lung cancer; R/R: relapsed/refractory; mTNBC: metastatic triple negative breast cancer; mEC: metastatic endometrial cancer; NMIBC: non-muscle invasive bladder cancer; ES: extensive -stage; NECs: neuroendocrine carcinomas; PsA: psoriatic arthritis 1. EVOKE-02. 2. Ascendis plans to initiate a basket trial in the fourth quarter of 2025 for several established growth -hormone indications including: Idiopathic Short Stature (ISS), short stature homeobox-containing gene deficiency (SHOX deficiency), Turner syndrome, and Small for Gestational Age (SGA). 3. EVOKE -03. 4. High risk localized advanced prostate cancer prior to radical prostatectomy. 5. High risk localized advanced prostate canc er receiving primary radiation therapy. Approved royalty portfolio: significant label expansion opportunities 28 salanersen (once-yearly) Spinal Muscular Atrophy Niktimvo Idiopathic pulmonary fibrosis Tazverik (+ Revlimid, Rituxan) 2L Follicular lymphoma Erleada Localized prostate cancer(5) Cobenfy Psychosis in Alzheimer’s disease Trodelvy (+ combinations) 1L mUC Trodelvy (+ pembrolizumab) High risk adjuvant TNBC Trodelvy (+ pembrolizumab)(1) 1L mNSCLC Trodelvy Lung, HNSCC and endometrial Trodelvy 1L TNBC (PD-L1-) Erleada High risk prostate cancer(4) Spinraza (higher dose) Spinal Muscular Atrophy Trodelvy (+ pembrolizumab) 1L mTNBC (PD-L1+) Tremfya PsA Structural Damage Trodelvy (+pembrolizumab)(3) 1L mNSCLC Trodelvy 1L HR+/HER2- mBC post endocrine Trodelvy 2L+ mEC Niktimvo (+ steroids) 1L cGvHD Niktimvo (+ Jakafi) 1L cGvHD Tremfya + golimumab Ulcerative colitis, Crohn’s disease Cobenfy Agitation in Alzheimer’s disease Cobenfy Bipolar I Disorder Rytelo R/R myelofibrosis Cobenfy Alzheimer’s disease cognition Adstiladrin (+ chemo, pembrolizumab) High risk NMIBC Adstiladrin Low-grade UTUC Imdelltra 1L Limited-Stage SCLC Phase 2 Phase 3 Registration Additional indications for approved productsAdditional indication Skytrofa Growth hormone indications(2) Rare disease Immunology CancerNeuroscience Cardio-Metabolic Imdelltra (+ Imfinzi) 1L Induction ES SCLC Imdelltra (+ Imfinzi) 1L Maintenance ES SCLC Imdelltra Advanced NECs Trodelvy Extensive-stage SCLC Cobenfy Adjunctive bipolar mania
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29 GAAP to non-GAAP reconciliation Adjusted EBITDA and ROIC Adjusted EBITDA $ in millions 2019 (PF)(1) 2020 2021 2022 (PF)(2) 2023 (PF)(2) 2024 Q3 2025 LTM Net cash provided by operating activities (GAAP) $1,742 $2,035 $2,018 $2,144 $2,988 $2,769 $2,405 Adjustments: Proceeds from available for sale debt securities $150 $3 $63 $542 $1 $20 $31 Distributions from equity method investees - $15 $1 - $44 $24 $103 Interest paid, net $206 $131 $143 $145 $98 $113 $233 Derivative collateral received, net - ($45) - - - - - Development-stage funding payments $83 $26 $200 $177 $52 $2 $402 Payments for Employee EPAs - - - - - - $2 Distributions to legacy NCI - Portfolio Receipts ($525) ($544) ($480) ($442) ($377) ($362) ($357) Accelerated Receipts - - - ($458) ($525) - - Adjusted EBITDA (non-GAAP) $1,656 $1,621 $1,944 $2,109 $2,281 $2,565 $2,820 Accelerated Receipts - - - $458 $525 - $511 Equity performance awards(3) ($153) - - - - - ($50) ROIC Adjusted EBITDA (non-GAAP) $1,503 $1,621 $1,944 $2,566 $2,806 $2,565 $3,281 Amounts may not add due to rounding. NCI: non-controlling interests. PF: Proforma. LTM: Last Twelve Months. 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.
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30 GAAP to non-GAAP reconciliation Portfolio Cash Flow and ROIE Portfolio Cash Flow Amounts may not add due to rounding. NCI: non-controlling interests. PF: Proforma. LTM: Last Twelve Months. 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 (PF)(2) 2023 (PF)(2) 2024 Q3 2025 LTM Net cash provided by operating activities (GAAP) $1,742 $2,035 $2,018 $2,144 $2,988 $2,769 $2,405 Adjustments: Proceeds from available for sale debt securities $150 $3 $63 $542 $1 $20 $31 Distributions from equity method investees - $15 $1 - $44 $24 $103 Interest paid, net $206 $131 $143 $145 $98 $113 $233 Derivative collateral received, net - ($45) - - - - - Development-stage funding payments $83 $26 $200 $177 $52 $2 $402 Payments for Employee EPAs - - - - - - $2 Distributions to legacy NCI - Portfolio Receipts ($525) ($544) ($480) ($442) ($377) ($362) ($357) Accelerated Receipts - - - ($458) ($525) - - Adjusted EBITDA (non-GAAP) $1,656 $1,621 $1,944 $2,109 $2,281 $2,565 $2,820 Interest paid, net ($206) ($131) ($143) ($145) ($98) ($113) ($233) Portfolio Cash Flow (non-GAAP) $1,450 $1,490 $1,801 $1,964 $2,183 $2,452 $2,586 Accelerated Receipts - - - $458 $525 - $511 Equity performance awards(3) ($153) - - - - - ($50) ROIE Portfolio Cash Flow (non-GAAP) $1,297 $1,490 $1,801 $2,421 $2,708 $2,452 $3,047
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31 Capital Deployment summary Amounts may not add due to rounding. NCI: non-controlling interests. PF: Proforma. LTM: Last Twelve Months. 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. $ in millions 2019 (PF)(1) 2020 2021 2022 2023 2024 Q3 2025 LTM Acquisitions of financial royalty assets ($1,721) ($2,182) ($2,192) ($1,742) ($2,116) ($2,506) ($1,460) Development-stage funding payments ($83) ($26) ($200) ($177) ($52) ($2) ($404) Purchases of available for sale debt securities ($125) - ($70) ($480) - ($150) ($75) Milestone payments ($250) - ($19) - ($12) ($75) ($294) 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 $0 Capital Deployment ($2,187) ($2,240) ($2,508) ($2,428) ($2,192) ($2,761) ($2,231)
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32 Invested Capital at Work and Invested Equity at Work summary $ in millions 2019 (PF) 2020 2021 2022 2023 2024 Q3 2025 LTM Beginning Invested Capital at Work $10,312 $10,424 $12,504 $14,837 $16,535 $18,496 $20,350 Capital Deployment(1) $1,818 $2,240 $2,508 $2,428 $2,192 $2,761 $2,231 Expiries(2) ($1,707) ($159) ($176) ($730) ($231) ($409) ($1,195) Ending Invested Capital at Work $10,424 $12,504 $14,837 $16,535 $18,496 $20,848 $21,385 Net debt(3) ($4,890) ($4,008) ($5,177) ($5,565) ($5,823) ($6,871) ($8,241) Ending Invested Equity at Work $5,534 $8,496 $9,660 $10,970 $12,673 $13,977 $13,144 Average Invested Capital at Work $10,368 $11,464 $13,671 $15,686 $17,516 $19,672 $20,868 Average Invested Equity at Work $6,010 $7,015 $9,078 $10,315 $11,822 $13,325 $13,322 Amounts may not add due to rounding. NCI: non-controlling interests. PF: Proforma. LTM: Last Twelve Months. 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.