Slides
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Q3 2026 Financial Results November 4, 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 21. 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 Financial results Terrance Coyne EVP , Chief Financial Officer Conclusion Pablo Legorreta Chief Executive Officer, Chairman of the Board Q&A session Pablo Legorreta Marshall Urist Terrance Coyne Christopher Hite Chief Executive Officer, Chairman of the Board EVP , Head of Research & Investments EVP , Chief Financial Officer Chairman, Partnering & Investments 3 Agenda
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Key highlights Pablo Legorreta Chief Executive Officer, Chairman of the Board
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3 Portfolio FDA approvals of Revolution Medicines’ Rasonque (pancreatic cancer), Teva’s Weltruza (schizophrenia) Positive Phase 3 results for Amgen’s Imdelltra (1L SCLC), Pharvaris’ deucrictibant XR (HAE attacks) 5 Maintained strong business momentum in Q3 2026 1 Financial Royalty Receipts and Portfolio Receipts grew +9%(1) Return on Invested Capital (ROIC) of 14.3%, Return on Invested Equity (ROIE) of 20.2% in LTM Q3 2026 4 Financial guidance FY 2026 Portfolio Receipts expected to be $3,500m to $3,550m excluding new investments(4) ($3,400m to $3,500m previously) • Royalty Receipts growth of ~10% to 11% (+7% to 10% previously) 2 Capital allocation Capital Deployment of $1.6bn and announced value of $1.9bn this year(2) Acquired a royalty on Takeda’s Mimrylo and Arcutis’ Zoryve in recent months Returned ~$589m to shareholders via dividends(3) and share repurchases in the first 9 months LTM: last twelve months; FDA: Food and Drug Administration; 1L SCLC: first-line small cell lung cancer; XR: extended release; HA E: hereditary angioedema 1. Royalty Receipts represent recurring cash inflows. Portfolio Receipts also include Milestones and other contractual receip ts that are more variable. 2. As of November 3, 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 Financial results Conclusion
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66Key highlights Portfolio update Financial results Conclusion $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 $883 Delivering double-digit growth on average since IPO 1. Growth rates are presented on a pro forma basis. See slide 21 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 +12% Q3 +9% $890
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Portfolio update Marshall Urist, MD, PhD Executive Vice President Head of Research & Investments
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88Key highlights Portfolio update Financial results Conclusion Acquired royalty on Takeda’s Mimrylo for polycythemia vera Mimrylo consensus sales(4) (in billions) Acquired royalty on Takeda’s Mimrylo from Zealand Pharma Transaction terms $100m total, including $50m upfront for a 1% royalty on worldwide sales up to $1.5bn and 0.75% on sales above $1.5bn; RP eligible to receive up to $23m in milestones High unmet patient need for new treatment options PV causes excessive red blood cell production, increasing risk of clotting and major CV events; polytherapy is common and many patients still require phlebotomies First-in-class RBC specific therapy demonstrated significant clinical benefit FDA approval in Q3 2026 underpinned by significant improvements in hematocrit control, reduced phlebotomy burden and improved fatigue in Phase 3 study(1) Blockbuster potential drives attractive returns Takeda guidance of $1bn-$2bn in peak sales(2) and large market with ~155,000 U.S. prevalence(3); transaction expected to deliver unlevered IRR in low double digits PV: polycythemia vera; CV: cardiovascular; RBC: red blood cell; FDA: Food and Drug Administration; IRR: internal rate of retu rn 1.Takeda press release, March 3, 2025. 2. Takeda R&D Day presentation, December 13, 2024. 3. Protagonist Polycythemia Vera Day presentation, February 6, 2025. 4. Reflects Visible Alpha consensus sales for Protagonist as of October 2026. 2026 2035 $0.02 $0.2 $0.5 $0.9 $1.4 $1.8 $2.2 $2.3 $2.5 $2.6
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99Financial results Conclusion Acquired royalty on Arcutis’ Zoryve for immune-mediated skin diseases Zoryve actual and consensus sales(4) (in billions) Acquired royalty on Arcutis’ Zoryve from AstraZeneca Transaction terms $100m upfront for a 3% royalty on worldwide sales on Zoryve, a once-daily topical for plaque psoriasis, seborrheic dermatitis and atopic dermatitis High unmet patient need Zoryve provides similar efficacy but better safety than steroids; growing physician recognition of local and systemic side effects of long-term corticosteroid use Strong commercial performance Significant growth opportunity from steroid conversion to BNSTs, which have only 7% share(1); guidance for Zoryve sales of $525m-$540m in 2026(2) (~43% YoY growth) Blockbuster potential drives attractive returns Arcutis peak sales target for Zoryve of $2.3-$3.0bn (current indications)(3); transaction expected to deliver unlevered IRR within target range for approved products BNSTs: branded non-steroidal topicals; YoY: year over year; IRR: internal rate of return; nm: not meaningful. 1. Market share is of dermatology topical prescriptions; Arcutis September 2026 corporate presentation. 2. 2026 sales guidance of $525 million to $540 million provided with Arcutis’ Q2 2026 earnings materials on August 5, 2026. 3. Arcutis Q3 2025 financial results and Investor Day presentation, October 28, 2025. 4. 2026e-2033e period reflects Visible Alpha consensus sales as of October 2026. Key highlights Portfolio update $1.5 $1.3 $1.2 $1.0 $0.9 $0.7 $0.5 $0.4 $0.2 $0.03nm $1.6 2022 2033
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10 Positive developments across royalty portfolio in 2026 Financial results ConclusionKey highlights Portfolio update Therapy Indication Event obexelimab IgG4-RD Phase 3 results(1) litifilimab CLE Phase 2 results(2) Rasonque 2L metastatic PDAC Phase 3 results(3) Myqorzo nHCM Phase 3 results(4) Imdelltra 1L SCLC Phase 3 results(5) deucrictibant HAE prophylaxis Phase 3 results(6) Trodelvy 1L mNSCLC Phase 3 results(7) pelacarsen cardiovascular disease Phase 3 results(8) litifilimab SLE Phase 3 results(9) Therapy Indication Event Avlayah Hunter syndrome FDA approval(10) Trodelvy 1L mTNBC FDA approval(11) ecopipam Tourette syndrome FDA filing(12) obexelimab IgG4-RD FDA filing(13) deucrictibant HAE attacks FDA filing(14) Jideytro ROS1+ NSCLC FDA approval(15) Rasonque 2L metastatic PDAC FDA approval(16) Weltruza schizophrenia FDA approval(17) Ziihera HER2+ 1L GEA FDA approval(18) neladalkib ALK+ NSCLC FDA approval(19) Key regulatory events in 2026 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; SCLC: small cell lung cancer; NSCLC: non -small cell lung cancer; HAE: hereditary angioedema; mNSCLC: metastatic non-small cell lung cancer; SLE: systemic lupus erythematosus; ALK+: anaplastic lymphoma kinase positive; ROS1+: RO S proto-oncogene 1 positive; mTNBC: metastatic triple negative breast cancer; HER2+: human epidermal growth factor receptor 2 positive; GEA: gastroesophageal adenocarcinoma; FDA: U.S. Food and Dr ug Administration 1. Zenas press release, January 5, 2026. 2. Biogen press release, March 28, 2026. 3. Revolution Medicines press release, Apri l 13, 2026. 4. Cytokinetics press release, May 5, 2026. 5. Amgen press release, September 8, 2026. 6. Pharvaris press release, September 8, 2026. 7. Gilead press release, June 8, 2026. 8. Novartis press release, September 4, 2026. 9. MS Global HC Conference, Septem ber 14, 2026. 10. Denali press release, March 25, 2026. 11. Gilead press release, June 24, 2026. 12. Teva press release, August 1 9, 2026. 13. Zenas press release, May 28, 2026. 14. Pharvaris press release, August 12, 2026. 15. GSK press release, July 22, 2026. 16. Revolution Medicines press release, August 26, 2026 . 17. Teva press release, October 9, 2026. 18. Jazz press release, August 25, 2026. 19. GSK Q2 2026 press release, July 28, 2026. Key clinical events in 2026
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11 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 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, seltorexant and JNJ-4804, which are based on clinicaltrials.gov. Cliramitug and TEV-’408 based on RP estimates. 2. Potential peak sales for frexalimab, seltorexant, cliramitug, trontinemab, TEV-’408 and JNJ-4804 based on marketer guidance (the midpoint is used when ranges are provided). Peak sales for TEV -’408 is based on Teva’s $1bn projection for vitiligo and $1.5-$2.0bn projection for celiac disease. Potential peak sales for neladalkib, olpasiran, litifilimab, and deucrictibant based on analyst research estimates as of October 2026. Ecopipam and obexelimab (IgG4 only) peak sales based on RP estimates. 3. Royalty rates are undisclosed. 4. JNJ-4804 and TEV-’408 included in total. Expected launch year(1) Therapy Lead indication Potential peak sales (non risk adjusted)(2) Potential peak royalties 2026 neladalkib ALK-positive NSCLC >$2.5bn >$40m 2027 ecopipam Tourette syndrome ~$1bn ~$80m obexelimab IgG4-related disease >$1bn >$55m deucrictibant hereditary angioedema >$1.5bn >$80m 2028 seltorexant depression >$3bn >$150m litifilimab lupus >$2bn >$125m 2029 frexalimab multiple sclerosis >$5bn >$400m trontinemab Alzheimer’s disease >$3bn >$130m cliramitug ATTR cardiomyopathy ~$4bn ~$150m olpasiran cardiovascular disease >$3bn >$250m 2030+ TEV-’408 vitiligo $2.5-$3bn undisclosed(3) JNJ-4804 inflammatory bowel disease $1-$5bn undisclosed(3) Total late-stage development: >$30bn >$1.7bn(4) Financial results ConclusionKey highlights Portfolio update
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Financial results Terrance Coyne Executive Vice President Chief Financial Officer
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13Financial results ConclusionKey highlights Portfolio update Efficient model generates substantial cash flow to reinvest Q3 2026 Portfolio Receipts Payments for operating and professional costs Interest paid, net Portfolio Cash Flow (non-GAAP) 75.6% 5.6% % Portfolio Receipts $890 ($50) Adjusted EBITDA (non-GAAP) $840 94.4% Capital Deployment ($362) in millions Comments Royalty Receipts(1) Milestones & other contractual receipts(1) $883 $7 +9% YoY +9% YoY +138% 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. ($167) 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 3m from ~560m in Q3 2025 $673
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14Financial results ConclusionKey highlights Portfolio update Drivers: + Tremfya + Voranigo + Evrysdi + Imdelltra Headwinds: - Imbruvica 0 Royalty Receipts grew 12% YTD, led by strong business performance 0 +12% YTD 2025 Portfolio Receipts YTD 2026 Portfolio Receipts Royalty expiries(1) Base business(2) $2,588 Milestones and other contractual receipts YTD 2026 Royalty Receipts +9% $2,538 $2,271 ($105) $373 $50 $110 YTD 2025 Royalty Receipts Milestones and other contractual receipts $2,380 YTD 2026 Portfolio Receipts and Royalty Receipts growth ($ in millions) Amounts may not add due to rounding. 1. Primarily includes Promacta, Farxiga/Onglyza and Soliqua. 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
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15Financial results ConclusionKey highlights Portfolio update 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 period. Invested Capital at Work is calculated as total cumulative Capital Deployment less cumulative Capital Deployment on e xpired products. Invested Capital at Work represents capital deployed for all active investments. Refer to slide 30 for the deta iled buildup of Invested Capital at Work. 2. Return on Invested Equity (“ROIE”) is calculated as Portfolio Cash Flow plus accelerated rece ipts, less nominal equity performance awards earned (“ROIE Portfolio Cash Flow”) divided by the average of Invested Equity at Wo rk at period- end and prior period-end. Invested Equity at Work is calculated as Invested Capital at Work less net debt. Refer to slide 30 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%) 14.3% 20.2% 2019-2025 (average) Q3 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 +/- 1.7% (ROIE) Comments
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16Financial results ConclusionKey highlights Portfolio update Balanced capital allocation (first nine months of 2026) 1. Total leverage is calculated as Total debt divided by Adjusted EBITDA. 2. Net leverage is calculated as Total debt less cash and cash equivalents divided by Adjusted EBITDA. 3. Calculated based on total leverage ratio of ~4.0x. Total leverage is calculated as Total debt divided by Adjusted EBITDA ( as defined in credit agreement filed with the SEC). 4. Reflects dividends and distributions. Maintaining financial flexibility while returning capital Return of capital: $589m Significant financial capacity to execute strategy Cash & cash equivalents $514m as of September 30, 2026 Investment grade debt $8.8bn with weighted average duration of ~12 years; total leverage of 2.7x(1), net leverage of 2.5x(2) Financial capacity ~$4.8bn of financial flexibility(3); $1.8bn revolving credit facility as of September 30, 2026 Return of capital Returned $589m to shareholders in first nine months of 2026 through dividends(4) and share repurchases (~28% of Portfolio Cash Flow) Share repurchases $183m Dividends(4) $406m Capital Deployment $1,239m
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Full year 2026 guidance(1,2) 17Financial results ConclusionKey highlights Portfolio update $3,500m - $3,550m (Royalty Receipts expected growth of 10%-11% yr/yr) ~5.5% - 6.0% of Portfolio Receipts $350m - $360m 1. See slide 21 for definitions and for additional information regarding Royalty Pharma’s 2026 full year financial guidance. 2. This guidance is as of November 4, 2026 and assumes no major unforeseen adverse events and excludes any potential contributio n from transactions announced subsequent to that date. Furthermore, Royalty Pharma may amend its guidance in the event it engages in new royalty transactions which have a material near -term financial impact on the Company. See the information on slide 2, “Forward Looking Statements & Non-GAAP Financial Information,” for factors that may impact the achievement of this guidance. Comments Portfolio Receipts excluding transactions announced subsequent to November 4, 2026(1,2) Operating & professional costs Interest paid • Strong portfolio performance • Milestones and other contractual receipts expected to decrease from $128m in 2025 to ~$65m in 2026 • Assumes no issuance of additional debt • Expect de minimis interest paid in Q4 2026 • Excludes interest received ($18m through first nine months of 2026) • Reflects repayment of $380m term loan in July 2026 • Reflects cost savings from the internalization November 4, 2026 August 5, 2026 $3,400m - $3,500m (Royalty Receipts expected growth of 7%-10% 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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19Financial results ConclusionKey highlights Portfolio update Royalty Pharma upgraded to AAA by MSCI, its highest ESG rating ESG rankings Core pillars Reflects our industry-leading governance and talent management, and a business model aligned with unmet patient needs Environmental stewardship Corporate governance Access to healthcare Responsible investing Human capital development ESG: Environmental, Social and Governance
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20Financial results ConclusionKey highlights Portfolio update Powerful business positioned to drive strong value creation Expanding market Strong secular trend of growing needs for alternative forms of financing to fund biopharma innovation Unique platform Best-in-class platform for investing in innovative products marketed by premier biopharma companies Attractive returns Consistent unlevered mid- teens IRR and 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 21 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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21 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, 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 per iod. Invested Capital at Work is calculated as total cumulative Capital Deployment less cumulative Capital Deployment on expired p roducts. Invested Capital at Work represents capital deployed for all active investments. Using net cash provided by operating activities, the closest GAAP measure to ROIC Adjusted EBITDA, the ratios are 15.0% and 13.2% for ROIC, based on the 2019 to 2 025 average and Q3 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 period -end and prior period-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 Q3 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 inflow s, in each case including royalties, milestones and other cash flows. Royalty Pharma has not reconciled certain non -GAAP targets to the most directly comparable GAAP measure, net cash provided by op erating activities, at this time due to the inherent difficulty in accurately forecasting and quantifying certain amounts tha t are necessary for such reconciliation, including, primarily, payments for operating and professional costs, distributions from equity method investees, and interest received. The Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to project net cash provided by operating activities on a GAAP basis at this time. Royalty Pharma’s long-term outlook is based on its most up-to-date view on its prospects as of September 11, 2025. This long-term outlook assumes no major unforeseen adverse events subsequent to the date of this presentation. Growth outlook includes future royalty acquisiti ons. Furthermore, Royalty Pharma may amend its long -term outlook in the event it engages in new royalty transactions. See the information on slide 2 “Forward Looking Statements & Non -GAAP Financial Information,” for factors that may impact the long -term outlook. Financial Targets and Long-Term Outlook 1) 2) 3) 4) 5) Footnotes 6) 7) 8)
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Appendix
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Development-stage pipeline: 16 potential therapies 23 Initial and additional indications for development-stage therapies 1L: first-line; 2L: second-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; EU: European Union 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 frexalimab Relapsing multiple sclerosis ecopipam Tourette syndrome pelabresib (EU) 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 frexalimab Type 1 diabetes omecamtiv mecarbil Heart failure CK-586 Heart failure frexalimab FSGS or MCD deucrictibant (IR) HAE deucrictibant (XR) HAE attacks prophylaxis obexelimab IgG4-RD obexelimab Relapsing multiple sclerosis obexelimab Systemic lupus erythematosus trontinemab(2) Preclinical AD litifilimab Cutaneous lupus erythematosus olpasiran CV disease (primary prevention) deucrictibant (XR) AAE-C1INH frexalimab Secondary progressive multiple sclerosis TEV-‘408(1) Vitiligo TEV-‘408 Celiac disease JNJ-4804 co-antibody therapy Autoimmune conditions neladalkib 2L+ ALK-positive NSCLC frexalimab Kidney transplant rejection cliramitug ATTR-CM neladalkib 1L ALK-positive NSCLC
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Approved royalty portfolio: significant label expansion opportunities 24 Additional indications for approved products Adstiladrin Intermediate risk NMIBC 1L: first-line; 2L: second-line; 3L: third-line; SCLC: small cell lung cancer; NSCLC: non -small cell lung cancer; ES-SCLC: extensive stage small cell lung cancer; UTUC: upper tract urothelial carcinoma; cGvHD: chronic graft versus host disease; ROS1: ROS proto- oncogene 1; TNBC: triple negative breast cancer; HER2+: human epidermal growth factor receptor 2 -positive; mEC: metastatic endometrial cancer; NMIBC: non-muscle invasive bladder cancer; nHCM: non-obstructive hypertrophic cardiomyopathy; NECs: neuroendocrine carcinomas; 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 Erleada Localized prostate cancer(3) Cobenfy Psychosis in Alzheimer’s disease 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 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 ES-SCLC Cobenfy Adjunctive bipolar mania Myqorzo nHCM 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 Cobenfy Autism irritability Rasonque 2L/3L metastatic NSCLC Rasonque 1L metastatic pancreatic cancer Rasonque Resectable pancreatic cancer Rasonque (+ pembrolizumab) 1L NSCLC Imdelltra (subcutaneous) 2L ES-SCLC
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2026 and 2027 clinical and regulatory events 25 Avlayah FDA approval(15) (Hunter syndrome) 2026 2027 seltorexant Phase 3 results(14) (MDD) litifilimab Phase 3 results(11) (CLE) Imdelltra Phase 3 results(10) (1L SCLC) Rasonque Phase 3 results(14) (2L NSCLC) 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 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; CLE: 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: immediate release; sNDA: supplemental New Drug Application; HER2+: human epidermal growth factor receptor 2 positive; GEA: gastroesophageal adenocar cinoma 1. Zenas press release, 01/05/26. 2. Biogen press release, 03/28/26. 3. Revolution Medicines press release, 04/13/26. 4. Cyto kinetics press release, 05/05/26. 5. Theravance press release, 03/03/26. 6. Gilead press release, 06/08/26. 7. Pharvaris press release, 09/08/26. 8. Novartis press release, 09/04/26. 9. Syndax press release, 10/12/26. 10. Amgen press release, 09/08/26. 11. MS Global HC Conference, 09/14/26. 12. Zenas investor event, 09/29/26. 13. ADP and bipolar 1 disorders are separate trials. BMY Q2 2026 earnings presentation, 07/30/26. 14. clinicaltrials.gov. 15. Denali press release, 03/25/26. 16. GSK Press Release, 07/22/26. 17. Zenas press releas e, 05/28/26. 18. Teva press release, 08/19/26. 19. Gilead Press Release, 06/24/26. 20. Pharvaris press release, 08/12/26. 21. Revolution Medicines press release, 08/26/26. 22. Jazz press release, 08/25/26. 23. Teva press release, 10/09/26. 24. Novartis Interim Financial R eport, 10/27/26. 25. GSK Q2 2026 press release, 07/28/26. 26. Cytokinetics press release, 10/12/26. neladalkib FDA approval(25) (ALK+ NSCLC) obexelimab Phase 3 results(1) (IgG4-RD) pelacarsen Phase 3 results(8) (cardiovascular disease) Rasonque Phase 3 results(3) (2L metastatic PDAC) litifilimab Phase 3 results(11) (SLE) Cobenfy Phase 3 results(13) (ADP) Myqorzo Phase 3 results(4) (nHCM) deucrictibant (XR) Phase 3 results(7) (HAE attacks prophylaxis) Weltruza 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(24) (myelofibrosis) obexelimab FDA filing(17) (IgG4-RD) Trodelvy Phase 3 results(6) (1L mNSCLC) Niktimvo Phase 2 results(9) (IPF) obexelimab Phase 2 results(12) (SLE) litifilimab Phase 2 results(2) (CLE) ampreloxetine Phase 3 results(5) (nOH due to MSA) ecopipam FDA filing(18) (Tourette syndrome) Rasonque FDA approval(21) (2L metastatic PDAC) Ziihera FDA approval(22) (HER2+ 1L GEA) Myqorzo sNDA filing(26) (nHCM) Myqorzo FDA approval (nHCM) Cobenfy Phase 3 results(13) (bipolar 1 disorder)
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26 Well-balanced portfolio, anchored by approved products Low-risk portfolio driven by capital deployment in approved products and ~89% 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) 64% 21% 11% 5% 85% $16bn $18bn $20bn $22bn $14bn $11bn $10bn Q3 2026 (LTM) $22bn LTM: last twelve months Amounts may not add due to rounding. 1. ~89% success rate since 2012 represents development -stage investments that have been approved since acquisition and excludes therapie s 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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27 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 Q3 2026 LTM Net cash provided by operating activities (GAAP) $1,742 $2,035 $2,018 $2,144 $2,988 $2,769 $2,490 $2,960 Adjustments: Proceeds from available for sale debt securities $150 $3 $63 $542 $1 $20 $21 $17 Distributions from equity method investees - $15 $1 - $44 $24 $105 $35 Interest paid, net $206 $131 $143 $145 $98 $113 $242 $334 Derivative collateral received, net - ($45) - - - - - - Development-stage funding payments $83 $26 $200 $177 $52 $2 $452 $243 Payments for Employee EPAs - - - - - - $11 $27 Distributions to legacy NCI - Portfolio Receipts ($525) ($544) ($480) ($442) ($377) ($362) ($355) ($336) Accelerated Receipts - - - ($458) ($525) - - - Adjusted EBITDA (non-GAAP) $1,656 $1,621 $1,944 $2,109 $2,281 $2,565 $2,966 $3,281 Accelerated Receipts - - - $458 $525 - $511 - Equity performance awards(3) ($153) - - - - - ($81) ($94) ROIC Adjusted EBITDA (non-GAAP) $1,503 $1,621 $1,944 $2,566 $2,806 $2,565 $3,396 $3,187 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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28 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 Q3 2026 LTM Net cash provided by operating activities (GAAP) $1,742 $2,035 $2,018 $2,144 $2,988 $2,769 $2,490 $2,960 Adjustments: Proceeds from available for sale debt securities $150 $3 $63 $542 $1 $20 $21 $17 Distributions from equity method investees - $15 $1 - $44 $24 $105 $35 Interest paid, net $206 $131 $143 $145 $98 $113 $242 $334 Derivative collateral received, net - ($45) - - - - - - Development-stage funding payments $83 $26 $200 $177 $52 $2 $452 $243 Payments for Employee EPAs - - - - - - $11 $27 Distributions to legacy NCI - Portfolio Receipts ($525) ($544) ($480) ($442) ($377) ($362) ($355) ($336) Accelerated Receipts - - - ($458) ($525) - - - Adjusted EBITDA (non-GAAP) $1,656 $1,621 $1,944 $2,109 $2,281 $2,565 $2,966 $3,281 Interest paid, net ($206) ($131) ($143) ($145) ($98) ($113) ($242) ($334) Portfolio Cash Flow (non-GAAP) $1,450 $1,490 $1,801 $1,964 $2,183 $2,452 $2,724 $2,946 Accelerated Receipts - - - $458 $525 - $511 - Equity performance awards(3) ($153) - - - - - ($81) ($94) ROIE Portfolio Cash Flow (non-GAAP) $1,297 $1,490 $1,801 $2,421 $2,708 $2,452 $3,154 $2,852
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29 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. 2. Prior to Q1'25, Development-stage funding payments is calculated as the summation of Development -stage funding payments - ongoing and Development-stage funding payments - upfront and milestone from our GAAP consolidated statements of cash flows. 3. Represents capital deployed on launch and development funding which is generally provided in exchange for a long -term stream of fixed payments with a predetermined schedule around the launch of a drug. $ in millions 2019 (PF)(1) 2020 2021 2022 2023 2024 2025 Q3 2026 LTM Acquisitions of financial royalty assets ($1,721) ($2,182) ($2,192) ($1,742) ($2,116) ($2,506) ($1,698) ($1,716) Development-stage funding payments(2) ($83) ($26) ($200) ($177) ($52) ($2) ($452) ($243) Purchases of available for sale debt securities(3) ($125) - ($70) ($480) - ($150) ($175) ($100) Milestone payments ($250) - ($19) - ($12) ($75) ($271) ($66) 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) ($2,596) ($2,125)
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30 Invested Capital at Work and Invested Equity at Work summary $ in millions 2019 (PF)(1) 2020 2021 2022 2023 2024 2025 Q3 2026 LTM Beginning Invested Capital at Work $10,312 $10,424 $12,504 $14,837 $16,535 $18,496 $20,848 $21,386 Capital Deployment $1,818 $2,240 $2,508 $2,428 $2,192 $2,761 $2,596 $2,125 Expiries(2) ($1,707) ($159) ($176) ($730) ($231) ($409) ($1,172) ($174) Ending Invested Capital at Work $10,424 $12,504 $14,837 $16,535 $18,496 $20,848 $22,272 $23,337 Net debt(3) ($4,890) ($4,008) ($5,177) ($5,565) ($5,823) ($6,871) ($8,561) ($8,286) Ending Invested Equity at Work $5,534 $8,496 $9,660 $10,970 $12,673 $13,977 $13,710 $15,051 Average Invested Capital at Work $10,368 $11,464 $13,671 $15,686 $17,516 $19,672 $21,560 $22,362 Average Invested Equity at Work $6,010 $7,015 $9,078 $10,315 $11,822 $13,325 $13,844 $14,098 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.