Slides
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J.P . Morgan Healthcare Conference January 13, 2026
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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 26 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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3 Royalty Pharma’s goal is to be the premier capital allocator in life sciences with consistent, compounding growth
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2025 performance highlights strong business momentum 4Strong execution Rapid industry growth Capital Deployment Development-stage pipeline Optimized business model Financial • 2025 Portfolio Receipts guidance midpoint of $3,225m(1), representing ~15% growth • Return on Invested Capital of 15.7% and Return on Invested Equity of 22.9% (Q3 2025 LTM) Internalization • Simplified structure with internalization, integrating intellectual capital with royalty portfolio • Significant operating and professional cost savings; strengthens alignment and governance Capital Allocation • Added 8 new royalties with $4.7bn of announced deals ($2.6bn Capital Deployment) • Repurchased $1.2bn of shares and grew dividend mid-single digit % Portfolio • Positive clinical and regulatory updates (Myqorzo, TEV-‘749, Tremfya, Trodelvy) • Innovative partnership enables Revolution Medicines to retain control of daraxonrasib LTM: last twelve months See slide 26 for definition and additional information. 1. 2025 Portfolio Receipts guidance of between $3.2 billion to $3.25 billion, representing growth of 14% to 16% year -over-year provided in Royalty Pharma’s Q3 earnings press release on November 5, 2025.
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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… 5 1. Growth rates are presented on a pro forma basis. See slide 26 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 Strong execution Rapid industry growth Capital Deployment Development-stage pipeline Optimized business model
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…while exceeding expectations in 15 of the last 22 quarters 6 1. Growth rates are presented on a pro forma basis. See slide 26 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. 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. 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 Royalty Receipts (year/year growth; $ in millions) Q1 2025 +8% Q2(2) +11% Q3 Strong execution Rapid industry growth Capital Deployment Development-stage pipeline Optimized business model Guidance Raise Top-line Meet Top-line Beat NA Performance vs. Consensus(3):
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On track to achieve financial goals announced at 2022 Investor Day 7Strong execution Rapid industry growth Capital Deployment Development-stage pipeline Optimized business model CAGR: compound annual growth rate See slide 26 for definitions and factors that may impact the achievement of our growth outlook. 1. Expected Portfolio Receipts of approximately $3.225 billion is based on the midpoint of 2025 guidance of be tween $3.2 billion and $3.25 billion provided on November 5, 2025. 2. Excludes Biohaven-related accelerated milestone payments of $458 million in 2022 and $525 million in 2023 and $511 million of proceeds from sal e of MorphoSys Development Funding Bonds in 2025. 3. Capital Deployment reflects cash payments during the period for new and previously announced transactions. Announced value of transactions represents the entire amount of capital committed for new transactions during the year, including potential future milestones. 2020 2025e 2030 outlook Portfolio Receipts ($ in billions) 2020-2025e: CAGR of 11-14% ~$3.2bn(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 ~$10bn >$15bn Announced Value(3) $10-12bn $0 $6 $15 $12 $9 $3
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Royalties play a critical funding role in the biopharma ecosystem… 8Strong execution Rapid industry growth Capital Deployment Development-stage pipeline Optimized business model Royalties are an innovative and growing asset class 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
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…and offer advantages versus pharma partnering 9Strong execution Rapid industry growth Capital Deployment Development-stage pipeline Optimized business model Royalties preserve strategic optionality as the product profile matures 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 CFO: Chief Financial Officer Biotech CFO quote is from the Deloitte report on The Role of Royalties in Funding Biopharma Innovation.
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10 Record year for royalty funding in 2025 Driven by growing capital needs, industry fragmentation, scientific innovation and increased awareness of royalties Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model 20251997 $0.08bn $0.6bn $1.5bn $2.4bn $3.6bn $7.1bn 5-year average annual announced value (1997-2025)(1) 1. Royalty Pharma internal data, commencing in 1997. $10bn
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11 Synthetic royalties are expected to be an important growth driver Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model $4.7 Synthetics are underpenetrated in biopharma funding(2,3) (>$290bn in biopharma funding, 2021-2025) Synthetic royalty market growth has been robust(1) (Announced value; $ in billions) Synthetic royalties (~5%) Follow-on equity offerings IPOs Convertible debt Existing royalties Licensing deals (upfront) Private credit 2016 2017 202420222015 20232018 2019 2020 2021 $0.2 +37% CAGR CAGR: compound annual growth rate Source: Dealogic, Biomedtracker, internal estimates, Evaluate. 1. Royalty Pharma internal analysis. Data reflects announced value of transactions, including milestones and contingent payments . 2. Includes capital raised through initial public offerings (IPOs), follow-on offerings, equity linked issuances, upfronts from licensing deals, existing and synthetic royalties and private credit. 3. Royalty funding reflects announced value of transactions and includes associated equity investments. 2025
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12 Strongest year ever for RP synthetic royalty transactions Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model RP announced four synthetic deals in 2025 Announced value of RP synthetic transactions(1) ($ in millions) Source: Dealogic, Biomedtracker, internal estimates, Evaluate. 1. Royalty Pharma internal analysis. Data reflects announced value of transactions, including milestones and contingent payments . 20242022 20232020 2021 >5x 2025 $2,075 $375 $294 $664 $775 $925 Lupus Up to $250m litifilimab Pancreatic cancer Up to $1.25bn daraxonrasib Hunter syndrome Up to $275m tividenofusp alfa IgG4-Related Disease Up to $300m obexelimab TEV-53408 Vitiligo Up to $500m
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13 Announced $4.7 billion of royalty transactions in 2025 Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model 2025 Royalty Pharma investment activity >480 initial reviews 155 CDAs signed 109 in-depth reviews 35 proposals submitted Executed 8 transactions for $4.7bn CDA: confidential disclosure agreement litifilimab daraxonrasib obexelimab tividenofusp alfa neladalkib zidesamtinib
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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 ~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 ~$1.4bn RP investment focus Lowest risk stages of development, highest capital needs Biopharma innovation Strong track record of success 8% 15% 52% 91% 100% n/a Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model
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15 LTM: last twelve months 1. Represents average of Invested Capital at Work at the beginning and end of the year. Invested Capital at Work is calculated as total cumulative Capital Deployment less cumulative Capital Deployment on expired products. Invested Capital at Work represents capital deployed for all active investments. Refer to slide 35 for the detailed buildup of Invested Capital at Work. Capital at work has doubled since 2019 while maintaining low overall risk Low-risk portfolio driven by Capital Deployment in approved products and successful development-stage investments Total Invested Capital at work(1) ($ in billions) Approved at acquisition Approved since acquisition Development-stage Unsuccessful 2019 2020 2021 2022 2023 2024 Q3 2025 (LTM) 11% Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model 86% ~$21 $10
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16 Proven ability to identify successful products… Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model 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 January 2026 and includes 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 all PTC transactions (2020, 2023 and 2025) with the percent change weighted by capital deployment. 7. Reflects U.S. sales of Skytrofa. 8. Blueprint Medicines press release, January 8, 2024. -50% -38% -31% -9% 5%7%8%11%13%14% 29% 39%39%43% 49% 106%107% >100% Discontinued development and marketing excluding U.S. & China(8) CF franchise (6) (5) (7) Transaction size >$250m Transaction size <$250m Increase in consensus = 38% (weighted average by capital deployed) Consensus 5-years post transaction - time of acquisition vs. current(1,2) (% change for approved products since 2020) (3) (4)
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17 …and generate attractive returns under a range of commercial scenarios Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model IRR: internal rate of return 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 January 2026 and inc ludes 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 all PTC transactions (2020, 2023 and 2025) 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) CF franchise (5) (7) Consensus 5-years post transaction - time of acquisition vs. current(1,2) (% change for approved products since 2020) (3) (4) >95% of capital deployed on approved products expected to achieve target IRRs or better Transaction size >$250m Transaction size <$250m IRR expected to achieve target returns or better (6)
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18 Positive developments across royalty portfolio in 2025 Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model Key clinical events in 2025 Key regulatory events in 2025 1L: first-line; mTNBC: metastatic triple negative breast cancer; oHCM: obstructive hypertrophic cardiomyopathy; HAE: hereditary angioedema; FDA: Food and Drug Administration; EC: European Commis sion 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. Emalex press release, October 8, 2025. 4. Roche Q3 earnings presentation, October 23, 2025. 5. Pharvaris press release, December 3, 2025. 6. Bristol Myers Squibb press release, April 22, 2025. 7. Johnson & Johnson Q3 earnings pres entation, October 14, 2025. 8. Teva press release, December 9, 2025. 9. Gilead Q3 presentation, October 30, 2025. 10. Cytokinetics press release, December 19, 2025. Therapy Indication Event TEV-‘749 schizophrenia Phase 3 safety(1) Trodelvy 1L mTNBC Phase 3 results(2) ecopipam Tourette’s syndrome Phase 3 results(3) trontinemab Alzheimer’s disease Phase 3 initiation(4) deucrictibant IR HAE attacks Phase 3 results(5) Cobenfy Adjunct schizophrenia Phase 3 results(6) Therapy Indication Event Tremfya Crohn’s disease FDA approval(7) Tremfya Crohn’s disease EC approval(7) Tremfya ulcerative colitis EC approval(7) TEV-‘749 schizophrenia FDA filing(8) Trodelvy 1L mTNBC FDA filing(2,9) Myqorzo oHCM FDA approval(10) ecopipam Tourette’s syndrome FDA filing(3)
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19 2L: second-line; PDAC: pancreatic ductal adenocarcinoma; NSCLC: non -small cell lung cancer; SLE: systemic lupus erythematosus; C LE: cutaneous lupus erythematosus; 1. Phase 3 results timing for daraxonrasib (2L PDAC), pelacarsen, litifilimab (SLE, CLE) and frexalimab are based on marketer guidance. 2. Phase 3 results timing for olpasiran, daraxonrasib (2L NSCLC) and seltorexant are based on clinicaltrials.gov. 3. 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, litifilimab, and daraxonrasib are based on peak sales from analyst research estimates. For daraxonrasib, peak royalties are calculated assuming royalty rates under required Revolution Medicines draw (T ranche 1 and Tranche 2) and maximum draw scenarios (Tranches 1 through 5). Tranche 1 was funded in June 2025 and the Tranche 2 draw is required by Revolution Medicines on positive Phase 3 data (RASolute 302). Revolution Medicines has the option to cancel Tranche 2 if it enters into an agreement to be acquired before a positive readout of the Phase 3 PDAC clinical trial. 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 Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model Cardiovascular disease Phase 3 results (2026)(1)Phase 3 results (2026 / 2027)(1,2) 2L PDAC, 2L NSCLC Lupus (SLE / CLE) Phase 3 results (2026 / 2027)(1) ~$125m peak royalties(3)>$150m peak royalties(3)~$180m-$340m peak royalties(3) >$375m peak royalties(3) >$150m peak royalties(3)>$400m peak royalties(3) daraxonrasib pelacarsen litifilimab Multiple sclerosis Phase 3 results (2027)(2)Phase 3 results (2027)(2) Cardiovascular disease Major depressive disorder Phase 3 results (2027)(2) olpasiran frexalimab seltorexant 2026 events2027 events
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20 Exciting pipeline of large potential royalties to power growth beyond 2030 All late-stage development assets have first-in-class or best-in-class potential Capital DeploymentRapid industry growthStrong execution Development-stage pipeline Optimized business model ROS1: ROS proto-oncogene; NSCLC: non-small cell lung cancer; ALK-positive: Anaplastic Lymphoma Kinase Positive; IgG4: Immunoglobulin G4 related disease 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, zidesamtinib, neladalkib, tividenofusp alfa 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 (Tranche 1 and Tranche 2) and maximum draw sc enarios (Tranches 1 through 5). Tranche 1 was funded in June 2025 and the Tranche 2 draw is required by Revolution Medicines on positive Phase 3 data (RASolute 302). Revolution Medicines has the option to cancel Tranche 2 if it enters into an agreement to be acquired before a positive readout of the Phase 3 PDAC clinical trial. For purposes of calculating 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 Myqorzo (aficamten) Obstructive hypertrophic cardiomyopathy >$5bn >$225m ecopipam Tourette’s syndrome ~$1bn ~$80m zidesamtinib ROS1-positive NSCLC ~$2bn ~$30m tividenofusp alfa Hunter syndrome >$0.5bn >$50m TEV-’749 schizophrenia >$1bn >$35m 2027 daraxonrasib pancreatic cancer ~$8bn ~$180-340m pelacarsen cardiovascular disease >$3bn >$150m neladalkib ALK-positive NSCLC ~$3.5bn ~$50m obexelimab IgG4-related disease ~$1bn ~$55m deucrictibant hereditary angioedema >$1.5bn >$60m 2028 frexalimab multiple sclerosis >$5bn >$400m olpasiran cardiovascular disease >$4bn >$375m seltorexant depression >$3bn >$150m litifilimab lupus ~$2bn ~$125m 2029 trontinemab Alzheimer’s disease >$3bn >$130m Total late-stage development: >$43bn >$2.1bn (3)
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21 Portfolio generating attractive returns Remarkably stable returns since IPO with conservative leverage enhancing returns to shareholders Development-stage pipelineCapital DeploymentRapid industry growthStrong execution Optimized business model Return on Invested Capital (ROIC)(1) Return on Invested Equity (ROIE)(1) 14.5% 14.1% 14.2% 16.4% 16.0% 13.0% 2019 2020 2021 2022 2023 2024 Q3 2025 (LTM) 15.7% 14.8% average annual return (SD +/- 1.2%) 21.6% 21.2% 19.8% 23.5% 22.9% 18.4% 2019 2020 2021 2022 2023 2024 Q3 2025 (LTM) 22.9% 21.5% average annual return (SD +/- 1.7%) LTM: last twelve months; SD: standard deviation See slide 26 for definition and additional information. 1. Refer to slide 35 for the detailed buildup of Invested Capital at Work and Invested Equity at Work. Refer to the Appendix for GAAP to non-GAAP reconciliations.
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22 Our value driven dynamic capital allocation framework Intend to allocate capital as effectively and efficiently as possible, creating long-term value for shareholders Development-stage pipelineCapital DeploymentRapid industry growthStrong execution Optimized business model 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)
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23 Significant financial capacity to execute strategy and drive value creation Development-stage pipelineCapital DeploymentRapid industry growthStrong execution Optimized business model Royalty acquisitions At least $2.0-2.5bn average per year • Potential for upside & per year volatility • Largely self-funded over time via cash flow Additional Capacity $1.9bn authorization remaining (at 9/30/25) • Up to $3bn share repurchase plan announced January 2025 • Potential for additional share repurchases through 2030 Share repurchases ~2.3% annual yield (currently $0.94/year) • Commitment to mid-single digit % growth annually Dividends $30bn ~$30 billion of projected capacity (H2 2025-2030) >$10bn+ of incremental firepower • Assumes use of conservative leverage • Committed to investment grade rating(1) See slide 26 for definitions and factors that may impact the achievement of our growth outlook. 1. Currently rated Baa2 / BBB- / BBB- (Moody’s / S&P / Fitch).
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24 Royalty Pharma combines the attractive attributes of multiple industries Development-stage pipelineCapital DeploymentRapid industry growthStrong execution Optimized business model Capital allocatorsBiopharma Alternative asset managers Precious metal royalties Average P/E ratio(1) = ~14x Average P/E ratio(3) = ~24x Average P/E ratio(2) = ~36x Average P/E ratio(4) = ~27x Price to Earnings (P/E) ratios are next twelve months and calculated from the Visible Alpha consensus as of January 6, 2026. 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.
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25 Clear path to deliver substantial shareholder value Development-stage pipelineCapital DeploymentRapid industry growthStrong execution Optimized business model • >$7.50 Portfolio Cash Flow per share (11%+ CAGR) • Represents >60% increase from 2025(1) 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 CAGR: compound annual growth rate; IRR: internal rate of return; ROIC: Return on Invested Capital See slide 26 for definitions and factors that may impact the achievement of our growth outlook. 1. Based on the Visible Alpha consensus for Royalty Pharma Portfolio Cash Flow per share (including new investments) of $4.61 as of January 6, 2026.
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26 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 statements 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 performance awards earned (“ROIC Adjusted EBITDA”) divided by the average of Invested Capital at Work at the beginning and end of the year. 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 16.1%, 17.7%, 14.8%, 13.7%, 17.1%, 14.1% and 11. 5% for ROIC based on 2019, 2020, 2021, 2022, 2023, 2024 and the last twelve months ended Q3 2025, respectievly. 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 27.8%, 29.0%, 22.2%, 20.8%, 25.3%, 20.8% and 18.1% for ROIE based on 2019, 2020, 2021, 2022, 2023, 2024 and the last twelve months 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 operating activities, at this time due to the inherent difficulty in accurately forecasting and quantifying certain amounts that are necessary for such reconciliation, including, primarily, payments for operating and professional costs, distributions from eq uity 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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On track to meet or exceed 5-year capital deployment target 28 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) Investing in approved and development-stage royalties (2022-2025) obexelimab neladalkib zidesamtinib tividenofusp alfa 1. Includes launch and development capital. 2. Includes senior secured loan. 3. See slide 26 for factors that may impact Royalty Pharma’s Capital Deployment target. 4. Capital Deployment target provided at May 17, 2022 Investor Day. Includes in announced value the up to $275m for tividenofusp alfa, which is contingent on FDA and EMA approval. 5-year Capital Deployment of $10-12 billion(4) (2022-2026) 2022 2023 2024 2025 2026 $ in billions Capital Deployment(3) Implied by Target ~$10bn >$15bn Announced Value(3) $10-12bn $0 $6 $15 $12 $9 $3
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2025 and 2026 expected clinical and regulatory events 29 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(11) (cardiovascular disease) daraxonrasib Phase 3 results(12) (2L metastatic PDAC) litifilimab Phase 3 results(9) (SLE) Myqorzo (aficamten) Phase 3 results(5) (1L oHCM) deucrictibant (IR) Phase 3 results(6) (HAE attacks) Cobenfy Phase 3 results(13) (ADP) Myqorzo (aficamten) Phase 3 results(10) (nHCM) deucrictibant (XR) Phase 3 results(6) (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 Myqorzo (aficamten) FDA approval(18) (oHCM) 2026 TEV-‘749 FDA filing(15) (schizophrenia) ecopipam FDA filing(4) (Tourette’s syndrome) deucrictibant (IR) FDA filing(6) (HAE attacks) Clinical Regulatory pelacarsen FDA filing(11) (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; ROS1: ROS proto-oncogene 1; NSCLC: non small cell lung cancer; 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, October 8, 2025. 5. Refers to Phase 3 MAPLE study. Cytokinetics press release, May 13, 2025. 6. Pharvaris press release, December 3, 2025. 7. Roche Q3 earnings presentation, October 23, 2025. 8. Zenas BioPharma press release, Janua ry 5, 2026. 9. Biogen Q3 earnings presentation, October 30, 2025. 10. Cytokinetics Q3 press release, November 5, 2025. 11. Novartis Q3 earnings presentation, October 28, 2025. 12. Revolution Medicines Q3 press release, November 5, 2025. 13. Bristol Myers Squib b press release, December 3, 2025. 14. Johnson & Johnson Q3 earnings presentation, October 14, 2025. 15. Teva press release, De cember 9, 2025. 16. Exelixis press release, March 26, 2025. 17. Gilead Q3 presentation, October 30, 2025. 18. Cytokinetics press release, December 19, 2025. 19. Nuvalent press release, November 19, 2025. The FDA has assigned a PDUFA date of September 18, 2025 for zidesamtinib. zidesamtinib FDA approval(19) (ROS1+ NSCLC)
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1L: first-line; 2L: second-line; 3L: third-line; FSGS: focal segmental glomerulosclerosis; MCD: minimal change disease; AD: Alzh eimer’s disease; ALK: Anaplastic Lymphoma Kinase; NSCLC: non small cell lung cancer; XR: extended release; AAE-C1INH: acquired angioedema due to C1-inhibitor deficiency; ROS1: ROS proto-oncogene 1; CV: cardiovascular; nOH: neurogenic orthostatic hypotension; MSA: multiple system atrophy; IgG4 -RD: immunoglobulin G4-related disease; MDD: major depre ssive disorder; IR: immediate release; nHCM: non-obstructive hypertrophic cardiomyopathy 1. Teva is targeting to start a Phase 2b study in vitiligo in 2026. 2. ALKOVE-1 Phase 1/2 clinical trial is designed with registrational intent. 3. ARROS -1 Phase 1/2 Clinical Trial is designed with registrational intent. 4. Roche plans to initiate a Phase 3 in pre -clinical Alzheimer’s disease. Development-stage pipeline: 20 potential therapies 30 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 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 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(4) Preclinical AD litifilimab Cutaneous lupus erythematosus olpasiran CV disease (primary prevention) daraxonrasib 1L metastatic pancreatic cancer daraxonrasib Resectable pancreatic cancer deucrictibant AAE-C1INH frexalimab Secondary progressive multiple sclerosis daraxonrasib (+ pembrolizumab) 1L NSCLC zidesamtinib 2L+ ROS1-positive NSCLC neladalkib(2) 2L+ ALK-positive NSCLC tividenofusp alfa MPS II (Hunter syndrome) zidesamtinib(3) 1L ROS1-positive NSCLC neladalkib 1L ALK-positive NSCLC TEV-‘408(1) Vitiligo TEV-‘408 Celiac disease
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Adstiladrin Intermediate risk NMIBC 1L: first-line; 2L: second-line; 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; nHCM: non-obstructive hypertrophic cardiomyopathy; 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 31 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 Myqorzo nHCM
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32 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. EPA: Equity Performance Award. 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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33 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. EPA: Equity Performance Award. 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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34 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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35 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. 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.