Slides
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ROYALTY PHARMA Q2 2026 Financial Results August 5 , 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 circumstances 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 bel ieves 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 24. Any non-U.S. GAAP financial measures presented are not, and should not be viewed 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 Chairman, Partnering & Investments Financial results Terrance Coyne EVP , Chief Financial Officer Conclusion Pablo Legorreta Chief Executive Officer, Chairman of the Board Q&A session All presenters 3 Agenda
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Key highlights Pablo Legorreta Chief Executive Officer, Chairman of the Board
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3 Portfolio Revolution Medicines’ NDA submission of daraxonrasib (pancreatic cancer) accepted for FDA review, EMA started accelerated review FDA, EC approval of Gilead’s Trodelvy (1L mTNBC); FDA approval of GSK’s Jideytro (ROS1+ NSCLC); EC approval of Amgen’s Imdelltra (SCLC) 5 Strong business momentum in Q2 2026 1 Financial Royalty Receipts grew +14% and Portfolio Receipts grew +6% (1) Return on Invested Capital (ROIC) of 14.2%, Return on Invested Equity (ROIE) of 20.1% in LTM Q2 2026 4 Financial guidance FY 2026 Portfolio Receipts expected to be $3,400m to $3,500m excluding new investments (4) ($3,325m to $3,450m previously) • Royalty Receipts growth of ~7% to 10% (+4% to 8% previously) 2 Capital allocation Capital Deployment of $1.1bn and announced value of $1.7bn this year (2) Acquired royalty on AstraZeneca’s cliramitug (ATTR-CM) in July Returned ~$370m to shareholders through dividends (3) and share repurchases in H1 2026 LTM: last twelve months; FDA: Food and Drug Administration; EMA: European Medicines Agency; EC: European Commission; 1L: firs t-line; ATTR-CM: Transthyretin Amyloid Cardiomyopathy; mTNBC: metastatic triple-negative breast cancer; ROS1+: ROS proto - oncogene 1 positive; NSCLC: non-small cell lung cancer; SCLC: small cell lung cancer; NDA: New Drug Application 1. Royalty Receipts represent recurring cash inflows. Portfolio Receipts also include Milestones and other contractual receipts that are more variable. 2. As of August 4, 2026. 3. Reflects dividends and distributions. 4. Portfolio Receipts guidance excludes contribution from transactions announced subsequent to the date of this presentation. 5Key highlights Portfolio update Development-stage pipeline Financial results Conclusion
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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 $856 $887 $768 Delivering double-digit growth on average since IPO 6 1. Growth rates are presented on a pro forma basis. See slide 24 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. 2020(1) Q3 Q4 2021 2022 2023 2024 Q1 +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) +12% +8% +12% 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% $814 +17% $874 2025 +15% +12% +8% +13% +13% 2026 +13% $925 +14% Q2(2) Q3 Q4Q1 Q2(2) Q3 Q4Q1 Q2(2) Q3 Q4Q1 Q2(2) Q3 Q4Q1 Q2(2) Q3 Q4Q1 Q2(2) Q1 Q2(2) $773 Key highlights Portfolio update Development-stage pipeline Financial results Conclusion +13%
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Therapy Jideytro, neladalkib ecopipam Cobenfy Nurtec ODT, Zavzpret Trodelvy Investment year(s) 2025 2024 2023 2018, 2019, 2020 2018 Assets acquired Royalties Royalty Royalty Royalties, equity, Milestones Royalty, Equity Transaction size Up to $315m Up to $94m Up to $500m Up to ~$835m $250m Company GSK Teva Bristol Myers Squibb Pfizer Gilead Acquisition year(1) 2026 2026 2023 2022 2020 Acquisition value ~$11bn ~$1bn ~$14bn ~$12bn ~$21bn Royalty Pharma 7 Ahead of the curve in identifying exciting innovators Select biotech companies acquired by large biopharma after Royalty Pharma funding 1. Represents date of announcement. Key highlights Portfolio update Development-stage pipeline Financial results Conclusion Acquired by biopharma in 2026 Acquirer
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Portfolio update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments
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9 Acquired royalty on AstraZeneca’s cliramitug for ATTR-CM Development-stage pipelineKey highlights Financial results ConclusionPortfolio update ATTR-CM market sales by product(6)Acquired royalty on AstraZeneca’s cliramitug from Neurimmune Transaction terms Up to $425m, including $125m upfront for a 3.75% royalty; RP to make $125m payment in Q1 2027 with potential additional milestones of up to $175m Cliramitug addresses high unmet need First-in-class TTR-fibril depleting antibody for ATTR-CM, an age-associated disease caused by misfolded TTR proteins that severely impacts heart function and survival Impressive clinical results with potential to reverse disease course Phase 1 demonstrated strong amyloid clearance via biomarkers(1,2) that correlate with improved CV outcomes; Phase 3 outcomes trial results expected 2028(3) Expanding market drives multi-blockbuster sales potential >500K global ATTR-CM patients, ~200K in the U.S. and ~80% untreated(4); AstraZeneca cliramitug peak sales target of $3bn-$5bn (implies peak royalties of ~$110m-$190m)(5) TTR: transthyretin; ATTR: transthyretin amyloidosis; CM: cardiomyopathy; CV: cardiovascular; CAGR: compound annual growth rat e 1. The New England Journal of Medicine. Phase 1 Trial of Antibody NI006 for Depletion of Cardiac Transthyretin Amyloid, May 2 0, 2023. 2. Nature Medicine. Cliramitug for depletion of cardiac amyloid transthyretin: long-term follow-up of the NI006-101 trial, June 26, 2026. 3. AstraZeneca H1 2026 results update, July 27, 2026. 4. Alnylam TTR Investor Webinar, March 24, 2026. 5. AstraZeneca Investor Day, Rare Disease presentation, May 21, 2024. 6. Estimated by Royalty Pharma. Attruby CM sales are reported by BridgeBio. Alnylam’s Amvuttra and Pfizer’s Vyndamax CM sales are based on Royalty Pharma estimates. Attruby AmvuttraVyndamax ~$5bn ~$3bn ~$2bn~$2bn ~$1bn ~$0.3bn >$7bn ~70% CAGR 2019 2020 2021 2022 2023 2024 2025 RP investment
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10Development-stage pipelineKey highlights Financial results ConclusionPortfolio update Significant therapeutic area expertise built over decades RP transacted RP evaluated Category Spinal muscular atrophy Humira Remicade Immunology Multiple sclerosis Prostate cancer Announced value ~$2.5bn >$4.5bn ~$1.3bn ~$4.0bn Tecfidera 1 Tecfidera 2 2000-2009 2010-2019 2020-2026 Tremfya litifilimab Cimzia Tysabri Xtandi Erleada 1 Spinraza Evrysdi 1 Spinraza Evrysdi 2 & 3 Zolgensma frexalimab Erleada 2 Other(1) TTR amyloidosis Amvuttra cliramitug ~$0.7bn Vyndamax Onpattro Attruby TTR amyloidosis: transthyretin amyloidosis 1. Other includes investments in Entyvio, obexelimab and TEV-408. JNJ-4804
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Development-stage pipeline Chris Hite Chairman Partnering & Investments
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12 Development-stage pipeline: strong, consistent growth Development-stage pipelineKey highlights Financial results ConclusionPortfolio update Pipeline evolution since IPO (by number of therapies) Peak royalty potential from late-stage pipeline ($ in billions) June 2020 December 2024 Current 3 12 19 0>6x June 2020 December 2024 Current <$0.1(1) ~$0.6(2) ~$2.0(4) December 2022 14 >$1.2(3) December 2022 IPO: initial public offering; IgG4-RD: Immunoglobulin G4-related disease 1. Peak royalties for zavegepant, omecamtiv and Airsupra (PT027) based on the Visible Alpha consensus as of June 2020. 2. Peak royalties for Myqorzo (aficamten), olpasiran, Airsupra (PT027) and zavegepant based on the Visible Alpha consensus as of December 2022. Peak royalties for pelabresib and seltorexant based on consensus at time of deal announcement. Peak royalties for pelacarsen based on Novartis guidance. 3. Peak royalties for frexalimab, pelacarsen, and seltorexant based on marketer guidance. Peak royalties for olpasiran , deucrictibant, aficamten, TEV-’749 and pelabresib based on analyst research estimates. 4. Peak royalties for frexalimab, pelacarsen, seltorexant, trontinemab and cliramitug based on marketer guidance. Peak royalties for olpasiran, litifilimab, deucrictibant, daraxonrasib, neladalkib and TEV-’749 based on analyst research estimates. Ecopipam and obexelimab (just IGg4) peak sales based on RP estimates. 0>30x
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13 Positive developments across royalty portfolio in 2026 Key clinical events in 2026 Therapy Indication Event obexelimab IgG4-RD Phase 3 results(1) litifilimab CLE Phase 2 results(2) daraxonrasib 2L metastatic PDAC Phase 3 results(3) Myqorzo nHCM Phase 3 results(4) Trodelvy 1L mNSCLC Phase 3 results(5) pelacarsen cardiovascular disease Phase 3 results(6) deucrictibant HAE prophylaxis Phase 3 results(7) litifilimab SLE Phase 3 results(8) Therapy Indication Event Avlayah Hunter syndrome FDA approval(9) Trodelvy 1L mTNBC FDA approval(10) ecopipam Tourette’s syndrome FDA filing(11) obexelimab IgG4-RD FDA filing(12) deucrictibant HAE attacks FDA filing(13) daraxonrasib 2L metastatic PDAC FDA filing(14) Jideytro ROS1+ NSCLC FDA approval(15) daraxonrasib 2L metastatic PDAC FDA approval(14) neladalkib ALK+ NSCLC FDA approval(16) TEV-’749 schizophrenia FDA approval(17) 1L: first-line; 2L: second-line; IgG4-RD: Immunoglobulin G4-related disease; CLE: cutaneous lupus erythematosus; PDAC: pancreati c ductal adenocarcinoma; nHCM: non-obstructive hypertrophic cardiomyopathy; HAE: hereditary angioedema; mNSCLC: metastatic non-small cell lung cancer; SLE: systemic lupus erythematosus; ALK+: anaplastic lymphoma kinase positive; NSCLC: non -small cell lung cancer; ROS1+: ROS proto-oncogene 1 positive; mTNBC: metastatic triple negative breast cancer; FDA: U.S. Food and Drug Administration 1. Zenas BioPharma press release, January 5, 2026. 2. Biogen press release, March 28, 2026. 3. Revolution Medicines press rel ease, April 13, 2026 4. Cytokinetics press release, May 5, 2026. 5. Gilead Press Release, June 8, 2026. 6. Novartis Q2 2026 earn ings presentation, July 21, 2026. 7. Pharvaris press release, May 12, 2026. 8. Biogen Q2 2026 earnings presentation, July 29, 2026. 9. Denali Therapeutics press release, Ma rch 25, 2026. 10. Gilead Press Release, June 24, 2026. 11. Teva press release, June 18, 2026. 12. Zenas BioPharma press release, May 28, 2026. 13. Pharvaris Press Release, July 6, 2026. 14. Revolution Medicines press release, July 22, 2026 and research analyst estimates which forec ast a daraxonrasib launch in 2026. 15. GSK press release, July 22, 2026. 16. Nuvalent press release, May 27, 2026. 17. Teva press release, July 29, 2026. Development-stage pipelineKey highlights Financial results ConclusionPortfolio update Key regulatory events in 2026
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14 Multiple pivotal readouts during 2026-2027 Important Phase 3 results to potentially unlock value for development-stage pipeline Cardiovascular disease Phase 3 results (2026)(1)Phase 3 results (April 2026) 2L PDAC Lupus (SLE) Phase 3 results (2026)(1) ~$95m peak royalties (all indications)(3)>$150m peak royalties(3)~$180-$340m peak royalties (all indications)(3) ~$180m-$340m peak royalties (all indications)(3) >$150m peak royalties(3)>$400m peak royalties (all indications)(3) daraxonrasib pelacarsen litifilimab Multiple sclerosis Phase 3 results (2027)(1)Phase 3 results (2027)(2) 2L NSCLC Major depressive disorder Phase 3 results (2027)(2) daraxonrasib frexalimab seltorexant 2026 events2027 events 2L: second-line; PDAC: pancreatic ductal adenocarcinoma; nHCM: non-obstructive hypertrophic cardiomyopathy; SLE: systemic lupus erythematosus; NSCLC: non -small cell lung cancer; CLE: cutaneous lupus erythematosus; 1. Phase 3 results timing for pelacarsen, litifilimab (SLE, CLE) and frexalimab are based on marketer guidance. 2. Phase 3 results timing for daraxonrasib (2L NSCLC) and seltorexant are based on clinicaltrials.gov. 3. Peak royalties are calculated using peak annual sales based on the marketer guidance (the midpoint is used when ranges are provided) for frexalimab, pelacarsen, and seltorexant. Peak royalties for litifilimab, Myqorzo and daraxonrasib are based on peak annual sales from analyst research estimates. For daraxonrasib, lower end of peak royalties assume the required Revolution Medicines draw (Tranches 1 and 2); upper end peak royalties assu me maximum draw scenarios (Tranches 1 through 5). Phase 3 results (May 2026) nHCM ~$230m peak royalties (all indications)(3) Myqorzo ~$95m peak royalties (all indications)(3) Lupus (CLE) Phase 3 results (2027)(1) litifilimab Development-stage pipelineKey highlights Financial results ConclusionPortfolio update
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15 Well-balanced portfolio, anchored by approved products Development-stage pipelineKey highlights Financial results ConclusionPortfolio update Low-risk portfolio driven by capital deployment in approved products and ~90% development-stage success rate(1) Breakdown of total Invested Capital at Work(2) 2020 202420232019 20222021 2025 Approved at acquisition Approved since acquisition Development-stage Unsuccessful (3) 65% 19% 12% 4% 84% $16bn $18bn $20bn $22bn $14bn $11bn $10bn Q2 2026 (LTM) $22bn LTM: last twelve months Amounts may not add due to rounding. 1. ~90% success rate since 2012 represents development -stage investments that have been approved since acquisition and excludes therapies that are still in development. 2. Represents average of Invested Capital at Work at the beginning and end of the year. 3. Unsuccessful totals include unsuccessful development-stage investments and products that were Approved at acquisition or Approved since acquisition that are no longer expected to generate royalty receipts.
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Financial results Terrance Coyne Executive Vice President Chief Financial Officer
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17 Efficient model generates substantial cash flow to reinvest Financial results Q2 2026 Portfolio Receipts Payments for operating and professional costs Interest paid, net Portfolio Cash Flow (non-GAAP) 95.2% 4.8% % Portfolio Receipts $773 ($37) Adjusted EBITDA (non-GAAP) $736 95.2% Capital Deployment ($349) in millions Comments Royalty Receipts(1) Milestones & other contractual receipts(1) $768 $5 +6% YoY +14% YoY (91%) YoY Share count(2) 557 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. ($0) Key highlights ConclusionPortfolio update Development-stage pipeline 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 Reflects cash savings from internalization of manager Reduced by 5m from ~562m in Q2 2025 $736
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Drivers: + Tremfya + Voranigo + Imdelltra + Evrysdi Headwinds: - Imbruvica 0 18 Portfolio Receipts growth reflects strength of portfolio 0 +14% Q2 2025 Portfolio Receipts Q2 2026 Portfolio Receipts Royalty expiries(1) Base business(2) $773 Milestones and other contractual receipts Q2 2026 Royalty Receipts +6% $768 $672 ($26) $122 $5 $56 Q2 2025 Royalty Receipts Milestones and other contractual receipts $727 Q2 2026 Portfolio Receipts growth ($ in millions) Amounts may not add due to rounding. 1. Primarily includes Promacta. 2. Base business is defined as royalties in Royalty Pharma's portfolio as of December 31, 2025 and includes a negligible cont ribution from Ziihera, which was acquired in Q1 2026 and began contributing to Royalty Receipts in Q2 2026. Headwinds: - Promacta Financial resultsKey highlights ConclusionPortfolio update Development-stage pipeline
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19 LTM: last twelve months 1. Return on Invested Capital (“ROIC”) is calculated as Adjusted EBITDA plus accelerated receipts, less nominal equity perfor mance awards (EPAs) 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 exp ired products. Invested Capital at Work represents capital deployed for all active investments. Refer to slide 33 for the detail ed buildup of Invested Capital at Work. 2. Return on Invested Equity (“ROIE”) is calculated as Portfolio Cash Flow plus accelerated receipt s, 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 33 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) 14.9% (Range: 13.0% - 16.4%) 21.5% (Range: 18.4% - 23.5%) 14.2% 20.1% 2019-2025 (average) Q2 2026 LTM Remarkably stable returns since IPO with conservative leverage enhancing returns to shareholders • ROIC and ROIE in 2025 benefited from the sale of the MorphoSys Development Funding Bonds • Reflects cash generated by the business relative to active capital invested • Aggregate business measures complement individual deal returns • Remarkably stable returns: estimated standard deviation of +/- 1.1% (ROIC) and +/- 1.8% (ROIE) Comments Financial resultsKey highlights ConclusionPortfolio update Development-stage pipeline
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Balanced capital allocation (H1 2026) 20 S&P: Standard and Poor 1. In July 2026, Royalty Pharma repaid the $380 million term loan upon maturity. 2. Total leverage is calculated as Total deb t divided by Adjusted EBITDA. 3. Net leverage is calculated as Total debt less cash and cash equivalents divided by Adjusted EBITDA. 4. S&P Global upgrade June 2026, Fitch upgrade March 2026, Moody’s upgrade April 2025. 5. Calculated based on total leverage ratio o f ~4.0x. Total leverage is calculated as Total debt divided by Adjusted EBITDA (as defined in credit agreement filed with the SE C). 6. Reflects dividends and distributions. Maintaining financial flexibility while returning capital Capital Deployment $877m Dividends(6) $271m Share repurchases $96m Return of capital: $367m Significant financial capacity to execute strategy Cash & cash equivalents $812m as of June 30, 2026(1) Investment grade debt $9.2bn(1) with weighted average duration of ~12 years; total leverage of 2.8x(2), net leverage of 2.6x(3) Credit rating upgrade Royalty Pharma is now BBB rated across all major credit rating agencies following upgrade by S&P in June(4) Financial capacity ~$4.3bn of financial flexibility(5); $1.8bn revolving credit facility Return of capital Returned $367m to shareholders in H1 2026 through dividends(6) and share repurchases (~25% of Portfolio Cash Flow) Financial resultsKey highlights ConclusionPortfolio update Development-stage pipeline S&P rating upgrade affirms strong financial position
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$3,400m - $3,500m (Royalty Receipts expected growth of 7%-10% yr/yr) ~5.5% - 6.5% of Portfolio Receipts $350m - $360m 21 IRA: Inflation Reduction Act 1. See slide 24 for definitions and for additional information regarding Royalty Pharma’s 2026 full year financial guidance. 2. This guidance is as of August 5, 2026 and assumes no major unforeseen adverse events and excludes any potential contribution 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. Full year 2026 guidance(1,2) Comments Portfolio Receipts excluding transactions announced subsequent to August 5, 2026(1,2) Operating & professional costs Interest paid • Strong portfolio performance • Milestones and other contractual receipts expected to decrease from $128m in 2025 to ~$60m in 2026 • Reflects loss of exclusivity for Promacta, launch of biosimilar Tysabri in the United States and range of scenarios for IRA impact • Assumes no issuance of additional debt • Interest paid of ~$175m in Q3 2026, with de minimis interest paid expected in Q4 2026 • Excludes interest received ($11m in H1 2026) • Reflects repayment of $380m term loan in July 2026 • Reflects cost savings from the internalization August 5, 2026 May 6, 2026 Financial resultsKey highlights ConclusionPortfolio update Development-stage pipeline $3,325m - $3,450m (Royalty Receipts expected growth of 4%-8% yr/yr) ~5.5% - 6.5% of Portfolio Receipts $350m - $360m
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Conclusion Pablo Legorreta Chief Executive Officer, Chairman of the Board
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23 Powerful business positioned to drive strong value creation Financial resultsDevelopment-stage pipelinePortfolio updateKey highlights Conclusion 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 Return on Invested Capital (ROIC), ~20%+ Return on Invested Equity (ROIE) Leader in biopharma royalty funding Robust growth IRR: internal rate of return See slide 24 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. Strong, low volatility top- and bottom-line growth expected through 2030
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24 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 difference 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, and exc ludes the $511 million in 2025 proceeds from the sale of the MorphoSys Development Funding Bonds. 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 11, 2026 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 11, 2026 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 prod ucts. 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 15.0% and 13.5% for ROIC, based on the 2019 to 2 025 average and Q2 2026 LTM, 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 23.4% and 21.0% for ROIE, based on the 2019 to 2025 average and Q2 2026 LTM, 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 inflows, 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 a re 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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26 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 Expected launch year(1) Therapy Lead indication Potential peak sales (non risk adjusted)(2) Potential peak royalties 2026 TEV-’749 schizophrenia >$1bn >$40m neladalkib ALK-positive NSCLC >$3.5bn >$50m daraxonrasib pancreatic cancer ~$11bn ~$180-340m 2027 ecopipam Tourette syndrome ~$1bn ~$80m pelacarsen cardiovascular disease >$3bn >$150m obexelimab IgG4-related disease >$1bn >$55m deucrictibant hereditary angioedema >$1.5bn ~$80m 2028 frexalimab multiple sclerosis >$5bn >$400m seltorexant depression >$3bn >$150m litifilimab lupus ~$1.5bn ~$95m 2029 trontinemab Alzheimer’s disease >$3bn >$130m cliramitug ATTR cardiomyopathy ~$4bn ~$150m olpasiran cardiovascular disease >$4bn >$375m Total late-stage development: >$40bn ~$2.0bn (3) Excludes JNJ-4804 (4) ALK-positive: Anaplastic Lymphoma Kinase Positive; NSCLC: non-small cell lung cancer; IgG4: Immunoglobulin G4 related disease; A TTR: transthyretin amyloidosis 1. Expected launch year based on marketer guidance except for olpasiran and seltorexant, which are based on clinicaltrials.gov, and daraxonrasib which is based on analyst research estimates. Revolution Medicines was granted a voucher under the Commissioner’s National Priority Voucher program that could speed time to market. 2. Potential peak sales for frexalimab, pelacarsen, seltorexant, cliramitug and trontinemab based on marketer guidance (the midpoint is used when ranges are provided); potential peak sales for olpasiran, litifilimab, deucrictibant, daraxonrasib, and TEV-’749 based on analyst research estimates as of August 2026. Ecopipam and obexelimab (just IGg4) peak sales based on RP estimates. Due to the acquisition by GSK, the neladalkib peak sales are based on the Nuvalent consensus as of May 2026. 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 Tranche 2 was funded in May 2026. 4. JNJ-4804 is transitioning to phase 3 clinical studies. The royalty rate on JNJ -4804 has not been disclosed.
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2026 and 2027 clinical and regulatory events 27 Avlayah FDA approval(15) (Hunter syndrome) 2026 2027 frexalimab Phase 3 results (13) (multiple sclerosis) seltorexant Phase 3 results(14) (MDD) litifilimab Phase 3 results(9) (CLE) Imdelltra Phase 3 results(14) (1L SCLC) daraxonrasib Phase 3 results (14) (2L NSCLC) pelacarsen FDA approval (cardiovascular disease) deucrictibant (IR) FDA approval (20) (HAE attacks) 2026 2027 obexelimab FDA approval (IgG4-RD) Clinical Regulatory pelabresib EMA approval (myelofibrosis) litifilimab FDA filing (SLE, CLE) Regulatory events in 2027 are estimated based on the timing of Phase 3 results and expected filing timelines. 1L: first -line; 2L: second-line; IgG4-RD: immunoglobulin G4 related disease; HAE: hereditary angioedema; PDAC: pancreatic ductal adenocarcinoma; C LE: cutaneous lupus erythematosus; nOH: neurogenic orthostatic hypotension; MSA: multiple system atrophy; nHCM: non-obstructive hypertrophic cardiomyopathy; mNSCLC: metastatic non small cell lung cancer; ADP: Alzheimer’s Disease Psychosis; SLE: systemic lupus erythematosus; IPF: idiopathic pulmonary fibrosis; ALK+: anaplastic lymphoma kinase -positive; MDD: major depressive disorder; SCLC: small cell lung cancer; NSCLC: non small cell lung cancer; ROS1: ROS proto -oncogene 1; mTNBC: metastatic triple negative breast cancer; FDA: Food and Drug Administration; EMA: European Medicines Agency; XR: extended release; IR: immediat e release. 1. Zenas BioPharma press release, January 5, 2026. 2. Biogen press release, March 28, 2026. 3. Revolution Medicines pres s release, April 13, 2026. 4. Cytokinetics press release, May 5, 2026. 5. Theravance press release, March 3, 2026. 6. Gilead press release, June 8, 2026. 7. Pharvaris Q1 2026 earnings release, May 12, 2026. 8. Novartis Q2 earnings presentation, July 21, 2026. 9. Biogen press release, July 29, 2026. 10. Zenas BioPharma press release, May 13, 2026. 11. Syndax press release, July 14, 2026. 12. ADP and bipolar 1 disorders are separate trials. Bristol Myers Squibb Q2 earnings presentat ion, July 30, 2026. 13. Sanofi Q1 2026 presentation, April 23, 2026. 14. clinicaltrials.gov. 15. Denali Therapeutics press release, March 25, 2026. 16. GSK Press Release, July 22 , 2026. 17. Zenas BioPharma press release, May 28, 2026. 18. Teva press release, June 18, 2026. 19. Gilead Press Release, June 2 4, 2026. 20.Pharvaris Press Release, July 6, 2026. 21. Revolution Medicines press release, July 22, 2026 and research analyst estimates which forecast a daraxonrasib launch in 2026. 22. Jazz Q2 press release, August 3, 2026. 23. Teva press release, July 29, 2026. neladalkib FDA approval(16) (ALK+ NSCLC) obexelimab Phase 3 results(1) (IgG4-RD) pelacarsen Phase 3 results (8) (cardiovascular disease) daraxonrasib Phase 3 results(3) (2L metastatic PDAC) litifilimab Phase 3 results(9) (SLE) Cobenfy Phase 3 results(12) (ADP; bipolar 1 disorder) Myqorzo Phase 3 results (4) (nHCM) deucrictibant (XR) Phase 3 results(7) (HAE attacks prophylaxis) TEV-’749 FDA approval(23) (schizophrenia) deucrictibant (IR) FDA filing(20) (HAE attacks) Trodelvy FDA approval(19) (1L mTNBC) Jideytro FDA approval(16) (ROS1+ NSCLC) pelabresib EMA filing(8) (myelofibrosis) obexelimab FDA filing (17) (IgG4-RD) Trodelvy Phase 3 results (6) (1L mNSCLC) Niktimvo Phase 2 results (11) (IPF) obexelimab Phase 2 results (10) (SLE) litifilimab Phase 2 results (2) (CLE) ampreloxetine Phase 3 results (5) (nOH due to MSA) daraxonrasib FDA filing(21) (2L metastatic PDAC) ecopipam FDA filing(18) (Tourette’s syndrome) frexalimab FDA, EMA filings (13) (multiple sclerosis) daraxonrasib FDA approval(21) (2L metastatic PDAC) Ziihera FDA approval (22) (HER2+ 1L GEA)
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Development-stage pipeline: 19 potential therapies 28 Initial and additional indications for development-stage therapies 1L: first-line; 2L: second-line; 3L: third-line; NSCLC: non small cell lung cancer; FSGS: focal segmental glomerulosclerosis; MCD: minimal change disease; ATTR -CM: transthyretin amyloid cardiomyopathy; AD: Alzheimer’s disease; HAE: hereditary angioedema; XR: extended release; AAE-C1INH: acquired angioedema due to C1-inhibitor deficiency; CV: cardiovascular; ALK: Anaplastic Lymphoma Kinase; MDD: major depressive disorder; IR: immediate release; IgG4-RD: immunoglobulin G4-related disease 1. Teva plans to initiate a Phase 2b study in vitiligo in Q4 2026. 2. Roche plans to initiate a Phase 3 in pre-clinical Alzheimer’s disease. litifilimab Systemic lupus erythematosus daraxonrasib 2L metastatic pancreatic cancer frexalimab Relapsing multiple sclerosis ecopipam Tourette syndrome pelabresib Myelofibrosis trontinemab Early symptomatic AD seltorexant MDD w/insomnia symptoms Phase 2 olpasiran CV disease (secondary prevention) Phase 3 tulmimetostat (CPI-0209) Blood cancer, solid tumors Registration Initial indicationAdditional indication Rare disease Immunology OncologyNeuroscience Cardio-Metabolic pelacarsen CV disease (secondary prevention) frexalimab Type 1 diabetes omecamtiv mecarbil Heart failure CK-586 Heart failure frexalimab FSGS or MCD deucrictibant (IR) HAE deucrictibant (XR) HAE attacks prophylaxis daraxonrasib 2L/3L metastatic NSCLC obexelimab IgG4-RD obexelimab Relapsing multiple sclerosis obexelimab Systemic lupus erythematosus trontinemab(2) 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 neladalkib 1L ALK-positive NSCLC TEV-‘408(1) Vitiligo TEV-‘408 Celiac disease JNJ-4804 co-antibody therapy Autoimmune conditions neladalkib 2L+ ALK-positive NSCLC TEV-’749 Schizophrenia frexalimab Kidney transplant rejection cliramitug ATTR-CM
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Approved royalty portfolio: significant label expansion opportunities 29 Additional indications for approved products Adstiladrin Intermediate risk NMIBC 1L: first-line; 2L: second-line; mUC: metastatic urothelial carcinoma; NSCLC: non -small-cell lung carcinoma; UTUC: upper tract urothelial carcinoma; cGvHD: chronic graft versus host disease; TNBC: triple negative breast cancer; HER2 -: human epidermal growth factor receptor 2-negative; SCLC: small cell lung cancer; R/R: relapsed/refractory; mEC: metastatic endometrial cancer; NMIBC: non -muscle invasive bladder cancer; nHCM: non-obstructive hypertrophic cardiomyopathy; ES: extensive-stage; NECs: neuroendocrine carcinomas; mGEA: metastatic gastroesophageal adenocarcinoma; BTC: biliary tract cancer. 1. ARROS-1 Phase 1/2 Clinical Trial is designed with registrational intent. 2. High risk localized advanced prostate cancer prior to radical prostatectomy. 3. High risk localized advanced prostate cancer receiving primary radiation therapy. 4. Basket trial 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). 5. In post -trastuzumab deruxtecan settings. salanersen (once-yearly) Spinal Muscular Atrophy Niktimvo Idiopathic pulmonary fibrosis Erleada Localized prostate cancer(3) Cobenfy Psychosis in Alzheimer’s disease Trodelvy (+ combinations) 1L mUC Trodelvy (+ pembrolizumab) High risk adjuvant TNBC Erleada High risk prostate cancer(2) Trodelvy 2L+ mEC Niktimvo (+ steroids) 1L cGvHD Niktimvo (+ Jakafi) 1L cGvHD Cobenfy Agitation in Alzheimer’s disease Cobenfy Bipolar I Disorder Rytelo R/R myelofibrosis Cobenfy Alzheimer’s disease cognition Adstiladrin (+chemo) High risk NMIBC Adstiladrin Low-grade UTUC Imdelltra 1L Limited-Stage SCLC Phase 2 Phase 3 Registration Additional indication Skytrofa Growth hormone indications(4) Rare disease Immunology OncologyNeuroscience 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 Ziihera (+ chemo, tislelizumab) 1L HER2+ mGEA Ziihera (+ chemo) 1L HER2+ BTC Ziihera (+ chemo)(5) HER2+ metastatic breast cancer Ziihera HER2+ solid tumors Ziihera Early breast cancer Jideytro(1) 1L ROS1-positive NSCLC Trodelvy NSCLC
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30 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 2025 Q2 2026 LTM Net cash provided by operating activities (GAAP) $1,742 $2,035 $2,018 $2,144 $2,988 $2,769 $2,490 $2,976 Adjustments: Proceeds from available for sale debt securities $150 $3 $63 $542 $1 $20 $21 $14 Distributions from equity method investees - $15 $1 - $44 $24 $105 $35 Interest paid, net $206 $131 $143 $145 $98 $113 $242 $290 Derivative collateral received, net - ($45) - - - - - - Development-stage funding payments $83 $26 $200 $177 $52 $2 $452 $224 Payments for Employee EPAs - - - - - - $11 $25 Distributions to legacy NCI - Portfolio Receipts ($525) ($544) ($480) ($442) ($377) ($362) ($355) ($345) Accelerated Receipts - - - ($458) ($525) - - - Adjusted EBITDA (non-GAAP) $1,656 $1,621 $1,944 $2,109 $2,281 $2,565 $2,966 $3,220 Accelerated Receipts - - - $458 $525 - $511 - Equity performance awards(3) ($153) - - - - - ($81) ($88) ROIC Adjusted EBITDA (non-GAAP) $1,503 $1,621 $1,944 $2,566 $2,806 $2,565 $3,396 $3,133 Amounts may not add due to rounding. NCI: non-controlling interests. PF: Proforma. EPAs: Equity performance awards. LTM: last tw elve 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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31 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. EPAs: Equity performance awards; LTM: last tw elve 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 2025 Q2 2026 LTM Net cash provided by operating activities (GAAP) $1,742 $2,035 $2,018 $2,144 $2,988 $2,769 $2,490 $2,976 Adjustments: Proceeds from available for sale debt securities $150 $3 $63 $542 $1 $20 $21 $14 Distributions from equity method investees - $15 $1 - $44 $24 $105 $35 Interest paid, net $206 $131 $143 $145 $98 $113 $242 $290 Derivative collateral received, net - ($45) - - - - - - Development-stage funding payments $83 $26 $200 $177 $52 $2 $452 $224 Payments for Employee EPAs - - - - - - $11 $25 Distributions to legacy NCI - Portfolio Receipts ($525) ($544) ($480) ($442) ($377) ($362) ($355) ($345) Accelerated Receipts - - - ($458) ($525) - - - Adjusted EBITDA (non-GAAP) $1,656 $1,621 $1,944 $2,109 $2,281 $2,565 $2,966 $3,220 Interest paid, net ($206) ($131) ($143) ($145) ($98) ($113) ($242) ($290) Portfolio Cash Flow (non-GAAP) $1,450 $1,490 $1,801 $1,964 $2,183 $2,452 $2,724 $2,930 Accelerated Receipts - - - $458 $525 - $511 - Equity performance awards(3) ($153) - - - - - ($81) ($88) ROIE Portfolio Cash Flow (non-GAAP) $1,297 $1,490 $1,801 $2,421 $2,708 $2,452 $3,154 $2,842
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32 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 2025 Q2 2026 LTM Acquisitions of financial royalty assets ($1,721) ($2,182) ($2,192) ($1,742) ($2,116) ($2,506) ($1,698) ($2,399) Development-stage funding payments ($83) ($26) ($200) ($177) ($52) ($2) ($452) ($224) Purchases of available for sale debt securities ($125) - ($70) ($480) - ($150) ($175) ($100) Milestone payments ($250) - ($19) - ($12) ($75) ($271) ($53) 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 ($0) Capital Deployment ($2,187) ($2,240) ($2,508) ($2,428) ($2,192) ($2,761) ($2,596) ($2,776)
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33 Invested Capital at Work and Invested Equity at Work summary $ in millions 2019 (PF) 2020 2021 2022 2023 2024 2025 Q2 2026 LTM Beginning Invested Capital at Work $10,312 $10,424 $12,504 $14,837 $16,535 $18,496 $20,848 $21,225 Capital Deployment(1) $1,818 $2,240 $2,508 $2,428 $2,192 $2,761 $2,596 $2,776 Expiries(2) ($1,707) ($159) ($176) ($730) ($231) ($409) ($1,172) ($985) Ending Invested Capital at Work $10,424 $12,504 $14,837 $16,535 $18,496 $20,848 $22,272 $23,016 Net debt(3) ($4,890) ($4,008) ($5,177) ($5,565) ($5,823) ($6,871) ($8,561) ($8,368) Ending Invested Equity at Work $5,534 $8,496 $9,660 $10,970 $12,673 $13,977 $13,710 $14,648 Average Invested Capital at Work $10,368 $11,464 $13,671 $15,686 $17,516 $19,672 $21,560 $22,121 Average Invested Equity at Work $6,010 $7,015 $9,078 $10,315 $11,822 $13,325 $13,844 $14,162 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.