Financial Data and Key Metrics Changes - The company reported a 12% growth in royalty receipts, reflecting strong performance in a diversified portfolio [5][19] - Portfolio receipts grew by 17% to $839 million, driven by milestone payments and strong underlying performance [20][22] - The company repurchased $723 million of its shares in the first quarter, part of a $2 billion share repurchase plan for 2025 [6][24] Business Line Data and Key Metrics Changes - The cystic fibrosis franchise, including Trelegy and Xtandi, was a key driver of growth in royalty receipts [19] - Milestone and other contractual receipts amounted to $51 million, including a significant milestone payment of $27 million [20] Market Data and Key Metrics Changes - The company expects portfolio receipts for 2025 to be between $2.975 billion and $3.125 billion, reflecting growth of 6% to 12% [8][27] - The weakening of the U.S. Dollar is expected to provide a tailwind to revenue growth [8] Company Strategy and Development Direction - The company is focused on a dynamic capital allocation framework, balancing share repurchases with attractive royalty acquisitions [6][24] - A new Phase III R&D funding collaboration with Biogen for latifilumab in lupus was announced, indicating a focus on high-potential therapies [7][10] - The company aims to leverage its unique business model to drive shareholder value in the growing biopharma market [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong financial performance in 2025, citing a robust pipeline and effective capital allocation [32][34] - The company does not expect significant impacts from tariffs on its royalties, as tariffs are typically incurred upstream of royalty-bearing sales [31][50] Other Important Information - The company raised its full-year 2025 guidance, reflecting strong portfolio performance and favorable currency effects [8][27] - The company maintains significant financial capacity with cash and equivalents close to $1.1 billion and investment-grade debt [22][23] Q&A Session Questions and Answers Question: Impact of regulatory and policy uncertainties on deal-making - Management noted that while there is policy uncertainty, it has not significantly impacted their opportunity set, and the investment environment remains strong [39][40] Question: Updates on Vertex cystic fibrosis portfolio negotiations - No updates were provided on the Vertex situation, but management remains confident in their position regarding KALYDECO [41] Question: Potential for Royalty Pharma to step in as a funding source - Management highlighted the significant capital needs of the biotech sector, presenting an opportunity for Royalty Pharma to provide necessary funding [48][49] Question: Clinical benefit of echopipam and market parallels - Management emphasized the unmet need in the Tourette syndrome market and the potential for echopipam to fill this gap, while also acknowledging the TD market as an interesting comparison [77] Question: Timing for potential dispute with Vertex - Management could not comment on the timing of any potential dispute with Vertex [79]

Financial Performance - Total income and other revenues for Q1 2025 were $568.247 million, a slight increase of $269 thousand or 0.0% compared to Q1 2024[170]. - Consolidated net income for Q1 2025 was $433.433 million, a significant increase of $437.706 million compared to a net loss of $4.273 million in Q1 2024[170]. - Net income attributable to Royalty Pharma plc was $238.349 million in Q1 2025, a substantial increase of $233.571 million compared to $4.778 million in Q1 2024[170]. - Adjusted EBITDA for Q1 2025 was $737.6 million, an increase from $656.5 million in Q1 2024[215]. - Portfolio Cash Flow for Q1 2025 was $610.8 million, an increase of 4.0% compared to $583.9 million in Q1 2024[216]. - The company reported a net loss of $61.5 million for Q1 2025, with operating expenses of $81.4 million[233]. Revenue Sources - Royalty Pharma's portfolio includes royalties on over 35 commercial products, contributing significantly to its revenue streams[138]. - Income from financial royalty assets decreased by $2.056 million or 0.4% to $539.490 million in Q1 2025, primarily due to a decline in the cystic fibrosis franchise[171]. - Portfolio Receipts for Q1 2025 totaled $839.3 million, a 17.1% increase from $717.0 million in Q1 2024[188]. - Royalty Receipts increased by $83.8 million to $788.3 million in Q1 2025, reflecting an 11.9% growth compared to $704.5 million in Q1 2024[188]. - Milestones and other contractual receipts surged by $38.5 million to $51.0 million in Q1 2025, marking a 308.7% increase from $12.5 million in Q1 2024[188]. - The cystic fibrosis franchise generated $249.7 million in Q1 2025, up 14.3% from $218.5 million in Q1 2024, driven by strong global demand for Trikafta/Kaftrio[188][190]. - Trelegy royalties rose by $14.7 million to $85.2 million in Q1 2025, a 20.8% increase from $70.6 million in Q1 2024, due to strong volume growth[188][190]. - Xtandi royalties increased by $11.5 million to $52.5 million in Q1 2025, reflecting a 28.0% growth from $41.0 million in Q1 2024, driven by demand from the nmCSPC indication[188][191]. - Spinraza royalties increased significantly by $6.3 million to $12.9 million in Q1 2025, a 94.7% increase from $6.6 million in Q1 2024[188][191]. Expenses and Costs - General and administrative expenses primarily include Operating and Personnel Payments, legal expenses, and share-based compensation[162]. - General and administrative expenses rose by $53.1 million or 92.0% in Q1 2025, driven by higher Operating and Personnel Payments[176]. - R&D funding expenses consist of payments made to acquire royalties or milestones on product candidates, which can be upfront or milestone-based[161]. - R&D funding expense increased by $50.0 million in Q1 2025, related to a payment to Biogen for litifilimab[175]. - Interest expense increased by $21.0 million or 47.5% in Q1 2025, primarily due to the issuance of $1.5 billion of senior unsecured notes[178]. - The provision for changes in expected cash flows from financial royalty assets was a loss of $127.140 million in Q1 2025, compared to a provision income of $583.600 million in Q1 2024[173][174]. Acquisitions and Investments - The company plans to acquire its Manager for approximately $1.1 billion, which is expected to reduce costs and enhance economic returns[144]. - The acquisition of the remaining 34% interest in Royalty Pharma Collection Trust was completed in December 2023[141]. - The company expects the acquisition of its Manager to close in the second quarter of 2025, pending shareholder approval[144]. - The company invested $101.3 million in royalties, milestones, and other contractual receipts during Q1 2025, continuing its strategy of acquiring new royalty assets[197]. - The company expects to continue making acquisitions in the ordinary course of business to support long-term growth in Royalty Receipts[196]. - The company acquired a synthetic royalty on Niktimvo for an upfront payment of $350 million, which is approved for chronic graft-versus-host disease treatment[198]. Cash Flow and Financing - The company generated $596.1 million in net cash from operating activities for Q1 2025, a decrease of $68.6 million compared to $664.6 million in Q1 2024[199][205]. - As of March 31, 2025, the company had $1.1 billion in cash and cash equivalents, up from $929 million as of December 31, 2024[208]. - The company has $7.8 billion in outstanding senior unsecured notes as of March 31, 2025, with a total debt carrying value of $7.6 billion[200][209]. - Cash provided by investing activities in Q1 2025 was $503.9 million, compared to cash used of $86.7 million in Q1 2024, primarily driven by the sale of MorphoSys Development Funding Bonds[204][206]. - Cash used in financing activities increased by $729.3 million in Q1 2025, primarily due to repurchases of Class A ordinary shares[207]. - The company has access to $1.8 billion under its Revolving Credit Facility as of March 31, 2025[211]. - The company paid dividends of $95.4 million in Q1 2025, compared to $93.8 million in Q1 2024[220]. - In Q1 2025, the company repurchased 22.7 million shares at a cost of approximately $723.1 million, with $2.3 billion remaining under the new share repurchase program[221]. Strategic Collaborations - The company expanded its strategic funding collaboration with Cytokinetics to provide up to $575 million, including $250 million in upfront payments[203]. - The company has a long-term funding arrangement with Cytokinetics totaling up to $525 million, with $75 million drawn in March 2025[223]. - As of March 31, 2025, the company had $350 million remaining available under the Cytokinetics Funding Commitments[223]. Future Obligations - Future principal payments under the Notes total $7.8 billion, with interest payments amounting to $3.5 billion over the next five years[227]. - As of March 31, 2025, committed capital requirements for R&D activities were approximately $216.3 million[225].

3 Royalty Pharma plc Q1 2025 Financial Results May 8, 2025 2 Forward Looking Statements & Non-GAAP Measures This presentation has been prepared by Royalty Pharma plc (the "Company"), is made for informational purposes only and does not 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 s ...

Financial Performance - Portfolio Receipts for Q1 2025 reached $839 million, a 17% increase from $717 million in Q1 2024[5] - Royalty Receipts grew 12% to $788 million, driven by strong performance from the cystic fibrosis franchise, Trelegy, and Xtandi[10] - Adjusted EBITDA for Q1 2025 was $738 million, up 12% from $656 million in Q1 2024[21] - The company reported total income of $568 million for Q1 2025, consistent with Q1 2024, while operating income improved to $534 million from a loss of $74 million in the previous year[55] - Cash collections from financial royalty assets for Q1 2025 were $830 million, an increase from $745 million in Q1 2024[60] - Adjusted EBITDA for Q1 2025 was reported at $738 million, compared to $656 million in Q1 2024[64] - Net cash provided by operating activities for Q1 2025 was $596 million, down from $665 million in Q1 2024[63] Guidance and Projections - The company raised its full year 2025 guidance for Portfolio Receipts to between $2,975 million and $3,125 million, representing expected growth of 6% to 12%[4] - Royalty Pharma's 2025 Portfolio Receipts guidance is projected to be between $2,975 million and $3,125 million, reflecting a growth of approximately 6% to 12% year-over-year[31] - The company plans to provide further details on its long-term outlook at the upcoming Investor Day in September 2025[3] - The company expects to update its guidance for operating and professional costs following the internalization transaction expected in Q2 2025[32] Capital Management - Royalty Pharma repurchased approximately 23 million Class A ordinary shares for $723 million during Q1 2025[14] - Capital Deployment in Q1 2025 was $101 million, primarily for R&D funding for Biogen's litifilimab[17] - The total transaction value for recent acquisitions is approximately $1.1 billion, emphasizing the company's commitment to strategic growth[71] - The company aims to redeploy cash generated from operations into discretionary investments, debt repayment, and shareholder returns[71] Cash and Debt Position - Cash and cash equivalents as of March 31, 2025, were $1.1 billion, with total debt of $7.8 billion[12] - Interest paid in 2025 is anticipated to be approximately $260 million, with $119 million expected in Q3 2025[33] - Total liabilities as of March 31, 2025, were $7,820 million, slightly down from $7,880 million at the end of 2024[58] - Royalty Pharma's cash and cash equivalents increased to $1,088 million as of March 31, 2025, up from $929 million at the end of 2024[58] Operational Efficiency - Adjusted EBITDA is defined as Portfolio Receipts minus payments for operating and professional costs, reflecting the company's operational efficiency[71] - Portfolio Cash Flow, calculated as Adjusted EBITDA minus net interest paid or received, indicates the cash available for value-enhancing royalty acquisitions and shareholder returns[71] - Distributions to legacy non-controlling interests are classified under financing activities, impacting cash flow management[70] Revenue Streams - Other products contributing to Royalty Receipts include Cimzia, Crysvita, and Emgality, among others, highlighting a diverse revenue stream[71] - A milestone payment of $27 million related to Airsupra contributed to the increase in Portfolio Receipts[11] - Royalty Receipts include variable payments based on product sales, showcasing the company's performance-linked revenue model[69] - Royalty Pharma's portfolio includes royalties on over 35 commercial products, indicating a strong market presence and potential for future revenue growth[38]

Core Insights - Royalty Pharma plc reported strong financial results for Q1 2025, with a 17% increase in Portfolio Receipts and a positive outlook for the full year, raising guidance for Portfolio Receipts to between $2,975 million and $3,125 million, reflecting expected growth of 6% to 12% year-over-year [1][6][28] Financial Performance - Portfolio Receipts reached $839 million in Q1 2025, up from $717 million in Q1 2024, driven by strong performances in the cystic fibrosis franchise, Trelegy, and Xtandi [11][10] - Royalty Receipts grew 12% to $788 million, primarily due to the same product performances [10][7] - Adjusted EBITDA for Q1 2025 was $738 million, a 12% increase from $656 million in Q1 2024 [19][5] - Net cash provided by operating activities was $596 million, down 10% from $665 million in the previous year [5][12] Capital Allocation and Shareholder Returns - The company repurchased approximately 23 million Class A ordinary shares for $723 million under a $3 billion share repurchase program [14][3] - A quarterly dividend increase of approximately 5% was announced, reflecting the company's commitment to returning value to shareholders [7][2] Strategic Developments - Royalty Pharma entered into a Phase 3 R&D funding partnership with Biogen for litifilimab, committing up to $250 million over six quarters [20][2] - The company is on track to acquire its external manager, RP Management, LLC, which is expected to generate significant cost savings and enhance shareholder alignment [22][24] Market and Product Updates - Positive clinical and regulatory updates were reported, including FDA and EC approvals for Johnson & Johnson's Tremfya in Crohn's disease and ulcerative colitis, and positive Phase 3 results for Emalex's ecopipam in Tourette syndrome [26][27][7] - The cystic fibrosis franchise, Trelegy, and Xtandi were highlighted as key growth drivers for the company's revenue [10][11] 2025 Financial Outlook - The updated guidance for Portfolio Receipts reflects a growth expectation of approximately 6% to 12% year-over-year, with payments for operating and professional costs anticipated to be around 10% of Portfolio Receipts [28][29]

Core Viewpoint - Wall Street analysts anticipate Royalty Pharma (RPRX) will report quarterly earnings of $0.99 per share, reflecting a year-over-year increase of 1%, with revenues expected to reach $793.58 million, up 10.7% from the previous year [1] Earnings Estimates - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [1] - The consensus estimate for 'Portfolio Receipts- Royalty Receipts- Products- Cystic fibrosis franchise' is projected at $234.18 million, representing a year-over-year change of +7.2% [4] - Analysts predict 'Portfolio Receipts- Royalty Receipts- Products- Tysabri' will reach $58.87 million, indicating a decline of -14.8% year over year [4] - The estimate for 'Portfolio Receipts- Royalty Receipts- Products- Imbruvica' is $45.35 million, reflecting a decrease of -9.4% year over year [5] - The average prediction for 'Portfolio Receipts- Royalty Receipts- Products- Xtandi' is $49.97 million, showing an increase of +21.8% year over year [5] - Analysts expect 'Portfolio Receipts- Royalty Receipts- Products- Promacta' to reach $34.38 million, indicating a decline of -19.2% from the prior year [6] - The estimate for 'Portfolio Receipts- Royalty Receipts- Products- Tremfya' is $38.91 million, reflecting an increase of +7.6% year over year [6] - The consensus for 'Portfolio Receipts- Royalty Receipts- Products- Cabometyx/Cometriq' is $21.62 million, indicating a year-over-year increase of +21.3% [7] - Analysts project 'Portfolio Receipts- Royalty Receipts- Products- Evrysdi' to be $51.98 million, reflecting a change of +15.6% from the prior year [7] - The estimate for 'Portfolio Receipts- Royalty Receipts- Products- Trodelvy' is $11.32 million, indicating a change of +10.2% year over year [8] - The total estimate for 'Portfolio Receipts- Royalty Receipts- Products- Total' is projected at $777.88 million, suggesting a year-over-year increase of +10.4% [8] - Analysts forecast 'Portfolio Receipts- Royalty Receipts- Products- Trelegy' to reach $84.96 million, reflecting a year-over-year change of +20.4% [9] - The estimate for 'Portfolio Receipts- Royalty Receipts- Products- Nurtec ODT/Zavzpret' is projected at $9.01 million, indicating a significant increase of +43.9% year over year [9] Stock Performance - Shares of Royalty Pharma have increased by +5.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.4% change [9]

NEW YORK, April 21, 2025 (GLOBE NEWSWIRE) -- The board of directors of Royalty Pharma plc (Nasdaq: RPRX) has approved the payment of a dividend for the second quarter of 2025 of $0.22 per Class A ordinary share. The dividend will be paid on June 10, 2025, to shareholders of record at the close of business on May 16, 2025. About Royalty Pharma Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collabor ...

NEW YORK, April 17, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it will report its first quarter 2025 financial results on Thursday, May 8, 2025 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:30 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 information and to view th ...

NEW YORK, April 08, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ:RPRX) today announced the appointment of Vlad Coric, M.D. to the company's Board of Directors, effective immediately. Vlad Coric is the Chairman and Chief Executive Officer of Biohaven, a biopharmaceutical company focused on the discovery, development and commercialization of life-changing treatments in key therapeutic areas including neuroscience, immunology and oncology. "I am excited to announce that we are strengthening our Board wi ...

NEW YORK, April 08, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced the appointment of Vlad Coric, M.D. to the company’s Board of Directors, effective immediately. Vlad Coric is the Chairman and Chief Executive Officer of Biohaven, a biopharmaceutical company focused on the discovery, development and commercialization of life-changing treatments in key therapeutic areas including neuroscience, immunology and oncology. “I am excited to announce that we are strengthening our Board w ...