Financial Data and Key Metrics Changes - The company reported a 9% growth in portfolio receipts for 2023, with royalty receipts increasing by 8% [30][42] - The fourth quarter saw a 10% growth in royalty receipts, contributing to the overall positive momentum [32][49] - The company achieved $4 billion in announced transactions and $2.2 billion in actual cash deployed during the year, marking a record for synthetic royalty transactions [30][31][36] Business Line Data and Key Metrics Changes - Synthetic royalties, which have historically been a small part of funding, are expected to grow rapidly, with nearly $800 million in transactions recorded in 2023, doubling since the IPO [3][36] - The company added royalties on eight therapies in 2023, including incremental royalties on the blockbuster therapy Evrysdi [30][32] Market Data and Key Metrics Changes - The royalty market saw $7.4 billion in announced transactions in 2023, representing the strongest year ever for royalty funding, with the company maintaining a 53% market share [2] - The company has significantly broadened its portfolio through approximately $13 billion of transactions announced since 2020, exceeding initial guidance [32] Company Strategy and Development Direction - The company aims to be the leading partner funding innovation in life sciences, focusing on acquiring attractive long-duration royalties [30][54] - Management emphasizes the importance of maintaining a disciplined approach to capital allocation, prioritizing new royalty investments over share buybacks [14][54] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering top-line growth with a compound annual growth rate (CAGR) of 10% or more over the decade, despite potential headwinds from product switches and biosimilars [7][30] - The company expects portfolio receipts for 2024 to be between $2.6 billion and $2.7 billion, reflecting underlying growth from its portfolio [31][50] Other Important Information - The company has made changes to its financial presentation to enhance transparency, introducing new non-GAAP measures such as portfolio cash flow and capital deployment [47][48] - The company maintains significant financial capacity for future royalty acquisitions, with over $3.55 billion available through cash and debt markets [44] Q&A Session All Questions and Answers Question: What are the next steps in the dispute regarding royalty levels? - Management indicated there are no updates on the dispute with Vertex and will provide information as it becomes available [7] Question: Can you elaborate on the market for synthetic royalties and their returns compared to traditional structures? - Management noted that synthetic royalties are gaining traction and historically have provided higher returns than traditional royalty structures [62] Question: Should the $4 billion in transactions be considered a new norm for Royalty Pharma? - Management clarified that while there is strong momentum, they are not changing their long-term capital deployment guidance of $10 billion to $12 billion over five years [64] Question: How does the company view the turnover in the shareholder base? - Management aims to focus on long-term holders and educate new investors about the unique aspects of the business [76] Question: What is the company's stance on the Tysabri biosimilar? - Management is monitoring the situation and believes Tysabri will continue to have significant sales despite potential competition from biosimilars [73]

| --- | --- | --- | --- | |-------------------------------------------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------------------| | 1 1 | | 3 | 4 | | Financial | Portfolio | Capital allocation | Full-year guidance | | Strong portfolio growth, including the CF franchise, Trelegy, Tremfya a ...

Portfolio Receipts of $736 million in Q4 2023 and $3,049 million for FY 2023Net cash provided by operating activities of $773 million in Q4 2023 and $2,988 million for FY 2023Announced transactions of up to $4.0 billion in 2023Full year 2024 guidance: Portfolio Receipts of $2,600 to $2,700 million (reflecting royalty receipts growth of 5% to 9% year/year) excluding future transactions NEW YORK, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ:RPRX) today reported financial results for the fourth ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR For the transition period from _________ to __________ Commission file number 001-39329 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Royalty Pharma plc (Exact name of registrant as specified in its charter) England and Wales 98-1535773 (St ...

NEW YORK, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ:RPRX) today announced that it will report its fourth quarter and full year 2023 financial results on Thursday, February 15, 2024 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:00 a.m. Eastern Time that day. Conference Call Information Please visit the "Investors" page of the company's website at https://www.royaltypharma.com/investors/events/ to obtain conference call informa ...

NEW YORK, Jan. 19, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ:RPRX) today announced that its board of directors has declared a dividend for the first quarter of 2024 of $0.21 per Class A share, reflecting a 5% increase in the company's quarterly dividend over the previous quarter's dividend. The dividend will be paid on March 15, 2024 to shareholders of record at the close of business on February 16, 2024. About Royalty Pharma Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutic ...

2023 Portfolio Receipts expected to be approximately $3,050 million, exceeding the upper end of guidance rangeAnnounced transactions of $13 billion since 2020 expected to add approximately $1.2 billion to Portfolio Receipts in 2025 NEW YORK, Jan. 08, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ:RPRX) today provided an update on its business performance, including recent key accomplishments, and the full year 2023 outlook for Portfolio Receipts. Pablo Legorreta, Royalty Pharma's founder and Chief Exec ...

Financial Performance and Key Metrics - Adjusted Cash Flow grew by 10% in the quarter prior to Biohaven-related payments and by 8% including these payments [10][41] - Total Royalty receipts increased by 5% in Q3 compared to the previous year, with approximately 7% growth when excluding the Biohaven-related payment [41][42] - Adjusted EBITDA grew by 6% including Biohaven-related payments and by 9% prior to these payments [19][128] Business Line Performance - The cystic fibrosis franchise and Trelegy contributed significantly to growth, alongside newly acquired royalties on Spinraza [41] - Growth was partially offset by weaknesses in Imbruvica and Tysabri [41] - The company reported a solid performance from its base business, with new Royalty acquisitions driving 9% top line growth before the impact of prior period Biohaven-related payments [17] Market Data and Key Metrics - The company raised its full-year guidance for adjusted cash received to between $2.95 billion and $3 billion, reflecting expected underlying growth of around 10% from its portfolio [4][46] - The impact of foreign exchange was negligible this quarter, indicating stable market conditions [18] Company Strategy and Industry Competition - The company is focused on capital allocation, having announced transactions worth $2.2 billion in recent months, enhancing long-term growth and diversifying its portfolio [9] - The competitive environment remains stable, with no significant changes noted compared to previous years, allowing the company to maintain its strategic advantages [54][74] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver attractive long-term financial outlooks, projecting a top line CAGR of 11% to 14% from 2020 to 2025 [26] - The macro environment has expanded the opportunity set for the company, driven by increased capital needs in the biopharma industry [34][35] Other Important Information - The company has maintained significant financial capacity for future Royalty acquisitions, with around $3 billion available through cash and access to debt markets [20][21] - The company has repurchased $305 million of its shares year-to-date, indicating a commitment to returning capital to shareholders [127] Q&A Session Summary Question: What are the greatest incremental opportunities seen in the current macro environment? - Management indicated that opportunities span development stage deals, launch capital needs, and monetization of existing royalties, with no clear standout among these categories [28][29] Question: What was surprising regarding the initial list of drugs from the IRA negotiation? - Management noted that the impact on the business is manageable, with expectations of continued growth despite the IRA's influence [56][78] Question: Is there a guide to larger capital deployment or buybacks? - Management confirmed that they have significant financial flexibility and will consider larger capital deployments if the right opportunities arise [59][81] Question: Are compelling Phase II and III opportunities becoming scarce? - Management stated that while there may be variance in investment types, the overall strategy remains focused on finding the most exciting assets [62][84] Question: How does the company view its competitive environment? - Management reiterated that there has been no significant change in the competitive landscape, maintaining confidence in their strategic positioning [74][112]

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Royalty Pharma plc's unaudited condensed consolidated financial statements for Q3 and 9M 2023, encompassing balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$15.86 billion** as of September 30, 2023, driven by reduced cash and debt repayment, significantly lowering current liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | As of Sep 30, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $936,448 | $1,710,751 | | Financial royalty assets, net | $13,230,474 | $13,493,106 | | **Total assets** | **$15,855,524** | **$16,813,466** | | **Liabilities & Equity** | | | | Current portion of long-term debt | $0 | $997,512 | | Total current liabilities | $127,933 | $1,166,783 | | Long-term debt | $6,131,194 | $6,118,810 | | **Total liabilities** | **$6,270,427** | **$7,288,093** | | **Total shareholders' equity** | **$9,585,097** | **$9,525,373** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2023, total income increased to **$1.76 billion**, with diluted EPS rising to **$1.43**, though Q3 net income decreased to **$72.1 million** Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Total income and other revenues | $536,313 | $573,463 | $1,758,486 | $1,671,467 | | Operating income | $151,442 | $192,210 | $879,254 | $789,720 | | Consolidated net income | $122,077 | $220,414 | $982,502 | $840,094 | | Net income attributable to Royalty Pharma plc | $72,114 | $142,651 | $640,494 | $498,916 | | Diluted EPS | $0.16 | $0.32 | $1.43 | $1.14 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$2.22 billion** for the nine months ended September 30, 2023, despite a **$774.3 million** net decrease in cash due to debt repayment and share repurchases Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | For the Nine Months Ended Sep 30, 2023 | For the Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,215,174 | $1,574,049 | | Net cash used in investing activities | ($1,072,617) | ($1,444,163) | | Net cash used in financing activities | ($1,916,860) | ($679,306) | | **Net change in cash and cash equivalents** | **($774,303)** | **($549,420)** | | Cash and cash equivalents, end of period | $936,448 | $991,628 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, financial royalty assets, debt, shareholder equity, and related party transactions, clarifying the company's biopharmaceutical royalty business - The company is the **largest buyer** of biopharmaceutical royalties and a **leading funder** of innovation in the biopharmaceutical industry, acquiring royalties on both approved products and development-stage candidates[35](index=35&type=chunk) - The company's largest individual marketer and payor of royalties is **Vertex**, accounting for **31%** of the current portion of financial royalty assets as of September 30, 2023[46](index=46&type=chunk) Top Financial Royalty Assets by Net Carrying Value (in thousands) | Asset | Net Carrying Value (as of Sep 30, 2023) | | :--- | :--- | | Cystic fibrosis franchise | $5,304,675 | | Tysabri | $1,200,887 | | Trelegy | $1,171,799 | | Tremfya | $775,902 | | Evrysdi | $772,667 | - In September 2023, the company repaid **$1.0 billion** of its 0.75% senior unsecured notes upon maturity[100](index=100&type=chunk) - In March 2023, the board authorized a share repurchase program of up to **$1.0 billion**. Through the first nine months of 2023, the company repurchased **8.9 million shares** for approximately **$278.6 million**[108](index=108&type=chunk) - Subsequent to the quarter end, in October 2023, the company acquired additional royalties on Roche's Evrysdi from PTC Therapeutics for an upfront payment of **$1.0 billion**[134](index=134&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and operations, covering business model, portfolio performance, investment activities, liquidity, and non-GAAP financial measures [Business and Portfolio Overview](index=33&type=section&id=Business%20and%20Portfolio%20Overview) Royalty Pharma, the largest biopharmaceutical royalty buyer, holds a portfolio of over 35 products, with **$2.6 billion** in royalty receipts for 9M 2023, driven by the Cystic Fibrosis franchise and Zavzpret milestone - The company's business model is **capital-efficient**, providing exposure to the biopharmaceutical industry's **long product life cycles** and **high barriers to entry** while substantially **reducing exposure to common industry risks** like early-stage development and high R&D costs[139](index=139&type=chunk) Royalty Receipts by Top Products (in thousands) | Royalties | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | | Cystic fibrosis franchise | $660,673 | $591,733 | | Zavzpret milestone | $475,000 | $0 | | Tysabri | $256,932 | $281,819 | | Imbruvica | $193,895 | $241,943 | | Trelegy | $143,111 | $42,720 | | **Total royalty receipts** | **$2,597,444** | **$2,048,103** | [Results of Operations](index=42&type=section&id=Results%20of%20Operations) For 9M 2023, total income rose **5.2%** to **$1.76 billion**, driven by the Zavzpret milestone, while provision for changes in expected cash flows increased to **$637.2 million** and G&A expenses rose **23.7%** - Income from financial royalty assets for the first nine months of 2023 increased by **6.1%** to **$1.67 billion**, primarily driven by **$153.6 million** of interest income recognized from the **$475.0 million** Zavzpret milestone payment[180](index=180&type=chunk)[183](index=183&type=chunk) - Provision expense for changes in expected cash flows was **$637.2 million** for the first nine months of 2023, primarily due to declines in sell-side analysts' consensus sales forecasts for Imbruvica, Tremfya, and Tysabri[188](index=188&type=chunk)[192](index=192&type=chunk) - R&D funding expense decreased by **59.3%** to **$51.5 million** in the first nine months of 2023, compared to **$126.6 million** in the same period of 2022. The 2023 expense was mainly a **$50.0 million** milestone payment to Cytokinetics[179](index=179&type=chunk)[195](index=195&type=chunk) - General and administrative expenses increased by **23.7%** in the first nine months of 2023, driven by higher Operating and Personnel Payments which are calculated based on cash receipts, including the large Zavzpret milestone[197](index=197&type=chunk) [Investments Overview](index=48&type=section&id=Investments%20Overview) The company invested **$1.2 billion** in royalties during 9M 2023, including a subsequent **$1.0 billion** Evrysdi acquisition and other notable investments in Skytrofa, Adstiladrin, KarXT, and Spinraza/pelacarsen - In the first nine months of 2023, the company invested **$1.2 billion** in royalties, milestones, and related assets[214](index=214&type=chunk) - Key acquisitions in 2023 include[215](index=215&type=chunk)[216](index=216&type=chunk) - **Evrysdi:** **$1.0 billion** upfront for additional royalties (Oct 2023) - **Skytrofa:** **$150 million** upfront - **Adstiladrin:** **$300 million** upfront - **KarXT:** **$100 million** upfront - **Spinraza/pelacarsen:** **$500 million** upfront [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity from operations was **$2.2 billion** for 9M 2023, with **$936.4 million** cash, **$6.3 billion** total debt, and non-GAAP Adjusted Cash Flow increasing **52%** to **$2.0 billion** - As of September 30, 2023, cash and cash equivalents totaled **$936.4 million**. The company repaid **$1.0 billion** of senior unsecured notes in September 2023, reducing total outstanding debt to a par value of **$6.3 billion**[219](index=219&type=chunk)[220](index=220&type=chunk) Non-GAAP Financial Measures (in thousands) | Metric | 9M 2023 | 9M 2022 | % Change | | :--- | :--- | :--- | :--- | | Total royalty receipts | $2,597,444 | $2,048,103 | 26.8% | | Adjusted Cash Receipts | $2,312,807 | $1,725,377 | 34.0% | | Adjusted EBITDA | $2,123,968 | $1,583,724 | 34.1% | | Adjusted Cash Flow | $1,959,667 | $1,289,273 | 52.0% | - The significant increase in Adjusted Cash Receipts and Adjusted Cash Flow was primarily driven by the **$475.0 million** Zavzpret milestone payment, strong performance of the cystic fibrosis franchise, and contributions from newly acquired royalties like Trelegy[246](index=246&type=chunk)[248](index=248&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures have occurred since the Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes in market risk exposures since the last annual report[271](index=271&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting identified - The CEO and CFO concluded that as of the end of the period, the company's disclosure controls and procedures were effective to a reasonable assurance level[272](index=272&type=chunk) - No changes in internal controls over financial reporting occurred during the third quarter of 2023 that materially affected, or are reasonably likely to materially affect, internal control[273](index=273&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, not expecting a material adverse effect on its business or financial condition - The company is involved in ordinary course legal proceedings but does not expect them to have a material adverse impact[123](index=123&type=chunk)[275](index=275&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant business risks, including dependency on biopharmaceutical product sales, competition, reliance on third-party marketers, holding company status, and tax complexities - The company's business is subject to **significant risks**, including sales risks of the underlying biopharmaceutical products, reliance on the Manager, uncertainties in acquiring new assets, and potential conflicts of interest[277](index=277&type=chunk)[281](index=281&type=chunk) - A significant risk is the reliance on a limited number of products, with the top five product franchises accounting for **66%** of royalty receipts in the first nine months of 2023 (excluding the Zavzpret milestone)[312](index=312&type=chunk) - The company is **entirely dependent** on its external Manager for all required services, and its success depends on the Manager's **key personnel**, particularly **CEO Pablo Legorreta**[294](index=294&type=chunk)[295](index=295&type=chunk) - The company expects to be classified as a **Passive Foreign Investment Company (PFIC)** for U.S. federal income tax purposes, which could result in **adverse tax consequences** for U.S. shareholders[411](index=411&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=92&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased **4.86 million** shares for **$144.1 million**, with **$721.4 million** remaining under the authorized repurchase program Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | Total Cost (thousands) | | :--- | :--- | :--- | :--- | | July 2023 | 1,296 | $31.03 | $40,218 | | August 2023 | 1,252 | $30.50 | $38,186 | | September 2023 | 2,314 | $28.42 | $65,764 | | **Total Q3 2023** | **4,862** | **$29.65** | **$144,168** | - As of September 30, 2023, approximately **$721.4 million** remained available for future repurchases under the company's **$1.0 billion** share repurchase program, which expires on June 23, 2027[420](index=420&type=chunk) [Item 5. Other Information](index=93&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption and termination of Rule 10b5-1 trading plans by executive officers and directors during Q3 2023 - During Q3 2023, **CFO Terrance Coyne** terminated a Rule 10b5-1 trading plan, while **EVP Marshall Urist** and **Director Rory Riggs** each adopted new plans for the sale of company shares[423](index=423&type=chunk)[424](index=424&type=chunk) [Item 6. Exhibits](index=94&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed with the report include **CEO and CFO certifications** and **XBRL interactive data files**[427](index=427&type=chunk)

Royalty Pharma plc (NASDAQ:RPRX) Q2 2023 Earnings Conference Call August 8, 2023 8:00 AM ET Company Participants Pablo Legorreta - Chief Executive Officer Marshall Urist - Executive Vice President, Head of Research and Investment Terrance Coyne - Executive Vice President, Chief Financial Officer Chris Hite - Executive Vice President, Vice Chairman George Grofik - Head of Investor Relations and Communications Conference Call Participants Chris Shibutani - Goldman Sachs Hardik Parekh - JP Morgan Geoff Meacha ...