Core Insights - Royalty Pharma expects Portfolio Receipts for 2024 to reach approximately $2.8 billion, reflecting a year-over-year growth of about 13% in Royalty Receipts [2][3][7] - The company has deployed around $2.8 billion in capital for royalty transactions in 2024, marking a record year for synthetic royalty deals [2][5] - Royalty Pharma's development-stage pipeline has the potential to generate over $1 billion in new royalties from innovative therapies across various therapeutic categories [2][8] Financial Performance - Preliminary unaudited results indicate that Royalty Pharma anticipates adjusted EBITDA for 2024 to be between $2,560 million and $2,570 million, with Portfolio Cash Flow expected to be approximately $2,450 million to $2,455 million [3][26] - Net cash provided by operating activities is projected to be around $2,760 million to $2,770 million for the full year 2024 [3][26] Capital Deployment and Pipeline - Since 2020, Royalty Pharma has announced transactions totaling approximately $15.5 billion, with significant additions in 2024 including royalties on Voranigo and frexalimab [5][8] - The company is set to benefit from several new product launches in 2025, including Voranigo, Yorvipath, Niktimvo, Rytelo, and Cobenfy [6][7] Upcoming Events - Royalty Pharma will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 14, 2025, at 6:45 p.m. ET [9]

Royalty Pharma plc to become an integrated company by acquiring its external manager, RP Management, LLCSignificant annual cash savings of greater than $100 million in 2026 growing to over $175 million in 2030, with cumulative savings of more than $1.6 billion over ten yearsSimplified structure to benefit shareholders through strengthened shareholder alignment, enhanced governance and increased economic return on investments Board authorized a $3 billion share repurchase program; $2 billion of shares intend ...

Royalty Pharma plc to become an integrated company by acquiring its external manager, RP Management, LLCSignificant annual cash savings of greater than $100 million in 2026 growing to over $175 million in 2030, with cumulative savings of more than $1.6 billion over ten yearsSimplified structure to benefit shareholders through strengthened shareholder alignment, enhanced governance and increased economic return on investments Board authorized a $3 billion share repurchase program; $2 billion of shares intend ...

Group 1: W.P. Carey - W.P. Carey is a real estate investment trust (REIT) trading approximately 35% below its 2022 peak, currently offering a 6.2% yield [3][5] - The REIT has a 98.8% occupancy rate after spinning off 59 buildings into another company, which has allowed it to focus on its remaining properties [3][6] - W.P. Carey has raised its dividend payout three times since the spinoff and expects adjusted funds from operations to be between $4.65 and $4.71 per share this year, significantly above its current dividend obligation of $3.50 annually [5][6] - The REIT owns 1,430 single-tenant buildings across Europe and North America, with a well-diversified tenant list [6][7] Group 2: Royalty Pharma - Royalty Pharma offers a 3.2% yield and invests in drugmakers in exchange for royalty stakes in their products, benefiting from the reliable trend of increasing prescription drug expenses [8][9] - The company has a stake in 15 blockbuster drugs generating over $1 billion in annual sales and has raised its dividend four times since going public in 2020, totaling a 40% increase [9][10] - Royalty Pharma has announced transactions worth $10.1 billion since the start of 2022, with expectations for significant earnings growth in the coming years [10][11] - The company is positioned to capitalize on the need for over $1 trillion in capital for startup drugmakers over the next decade, making it a leading provider of royalty financing [11]

Royalty Pharma inaugural Prize for Impact in Healthcare awarded to Michael Milken, the founder of the Milken Institute, Faster Cures & the Prostate Cancer FoundationThe Prize includes a charitable donation to further fund medical research NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced the inaugural Royalty Pharma Prize for Impact in Healthcare, which honors individuals or organizations who positively impact healthcare, was awarded to Micheal Milken. The prize i ...

Royalty Pharma (RPRX) reported $735 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 15.4%. EPS of $1.04 for the same period compares to $0.79 a year ago.The reported revenue represents a surprise of +3.39% over the Zacks Consensus Estimate of $710.89 million. With the consensus EPS estimate being $0.95, the EPS surprise was +9.47%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Financial Data and Key Metrics Changes - Royalty Pharma reported a 15% growth in Portfolio Receipts and Royalty Receipts in Q3 2024, driven by a high-quality portfolio of over 35 commercial products [8][11] - The company raised its full-year 2024 guidance for Portfolio Receipts to a range of $2.75 billion to $2.8 billion, reflecting expected growth in Royalty Receipts of around 11% to 13% [11][39] - Year-to-date capital deployment reached approximately $2.6 billion, with $95 million spent on share repurchases in the quarter [9][30] Business Line Data and Key Metrics Changes - The cystic fibrosis franchise, Trelegy, and Tremfya were highlighted as key growth drivers for Royalty Receipts [26] - Recent acquisitions included royalties on three novel therapies, with significant potential for growth from FDA approvals of Cobenfy, Voranigo, and Tremfya [10] Market Data and Key Metrics Changes - The company noted a strong performance in the chronic graft versus host disease (GVHD) market, with the acquisition of a synthetic royalty on Niktimvo, expected to launch in early 2025 [14][15] - The market for synthetic royalties is anticipated to grow, with Royalty Pharma achieving $800 million in synthetic royalty transactions in 2024 alone [25] Company Strategy and Development Direction - Royalty Pharma continues to focus on acquiring new royalties and maintaining a robust pipeline, emphasizing a balanced capital allocation strategy [9][35] - The company aims to deploy $10 billion to $12 billion in value-enhancing royalty acquisitions over a five-year period, with a strong track record of capital deployment [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver double-digit growth consistently, citing a diversified portfolio as a key strength [58] - The company remains optimistic about the future, with expectations for continued strong performance driven by recent acquisitions and market opportunities [44][46] Other Important Information - Royalty Pharma maintains significant financial capacity for future acquisitions, with approximately $3 billion available through cash and access to debt markets [31][32] - The company has a weighted average cost of debt of 3.1% and a leverage ratio of around 3x total debt to adjusted EBITDA [32][33] Q&A Session Summary Question: Insights on Cobenfy/KarXT label - Management expressed satisfaction with the Cobenfy approval and its potential to address unmet patient needs in schizophrenia [48][50] Question: Impact of CF business on urgency for new deals - Management indicated that while the cystic fibrosis business has moderated, it still expects growth and does not change the urgency for new investments [52][54] Question: Timeline for Niktimvo market penetration - Management is optimistic about Niktimvo's launch and market penetration, citing significant unmet patient needs [66] Question: High-level thoughts on 2025 guidance - Management refrained from providing specific guidance for 2025 but expressed confidence in the current portfolio and growth opportunities [70] Question: Competitive landscape for Cobenfy - Management acknowledged the potential competition from AbbVie's emraclidine but viewed it as a positive for the market overall [78] Question: Adoption challenges for Niktimvo due to IV administration - Management believes that despite Niktimvo being IV administered, the significant unmet need will drive its adoption [90]

ROYALTY PHARMA ROYALTY PHARMA Royalty Pharma plc Q3 2024 Financial Results November 6, 2024 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 d ...

Royalty Pharma Q3 2024 Earnings Release [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Royalty Pharma reported strong Q3 2024 results with a 15% year-over-year growth in Portfolio Receipts to $735 million, deploying approximately $1.2 billion in capital and raising full-year 2024 guidance to $2,750 million to $2,800 million Q3 2024 Financial & Liquidity Summary | ($ and shares in millions) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Portfolio Receipts | $735 | $637 | 15% | | Net cash provided by operating activities | $704 | $574 | 23% | | Adjusted EBITDA (non-GAAP) | $679 | $582 | 17% | | Portfolio Cash Flow (non-GAAP) | $617 | $528 | 17% | | Weighted average Class A ordinary shares outstanding - diluted | 593 | 601 | (1)% | - Raised full-year 2024 guidance for Portfolio Receipts to a new range of **$2,750 million** to **$2,800 million**[1](index=1&type=chunk)[3](index=3&type=chunk) - Capital Deployment reached approximately **$1.2 billion** in Q3 and **$2.6 billion** year-to-date[1](index=1&type=chunk) - Strengthened the portfolio by acquiring royalties on three innovative therapies: Niktimvo, Yorvipath, and deucrictibant[2](index=2&type=chunk) - Recent FDA approvals for portfolio assets include Cobenfy (schizophrenia), Tremfya (ulcerative colitis), and Voranigo (glioma)[3](index=3&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) The company's financial performance in Q3 2024 was robust, highlighted by a 15% increase in Portfolio Receipts, strong liquidity with $950 million in cash, and significant growth in non-GAAP measures like Adjusted EBITDA and Portfolio Cash Flow [Portfolio Receipts](index=2&type=section&id=Portfolio%20Receipts) Portfolio Receipts grew 15% YoY to $735 million in Q3 2024, with Royalty Receipts also up 15% to $732 million, primarily driven by strong performance from Trelegy, Evrysdi, the cystic fibrosis franchise, and Tremfya Q3 2024 Portfolio Receipts by Product ($ in millions) | Product | Marketer | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Cystic fibrosis franchise | Vertex | $207 | $196 | 6% | | Trelegy | GSK | $91 | $58 | 55% | | Tysabri | Biogen | $68 | $71 | (4)% | | Evrysdi | Roche | $48 | $16 | 204% | | Imbruvica | AbbVie, J&J | $46 | $51 | (10)% | | Xtandi | Pfizer, Astellas | $43 | $39 | 12% | | Promacta | Novartis | $42 | $45 | (6)% | | Tremfya | Johnson & Johnson | $34 | $27 | 26% | | **Total Royalty Receipts** | | **$732** | **$637** | **15%** | | **Total Portfolio Receipts** | | **$735** | **$637** | **15%** | - The significant increase in Royalty Receipts was primarily driven by strong growth from Trelegy, Evrysdi, the cystic fibrosis franchise, and Tremfya[2](index=2&type=chunk)[5](index=5&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, Royalty Pharma maintained a solid liquidity position with $950 million in cash and cash equivalents against total debt of $7.8 billion, continuing its share repurchase program with $95 million in buybacks during the quarter - As of September 30, 2024, the company held **$950 million** in cash and cash equivalents and had total debt with a principal value of **$7.8 billion**[7](index=7&type=chunk) - In Q3 2024, the company repurchased approximately **3 million** Class A ordinary shares for **$95 million**, with year-to-date repurchases totaling **7 million** shares for **$180 million**[8](index=8&type=chunk) [Non-GAAP Liquidity Measures](index=3&type=section&id=Non-GAAP%20Liquidity%20Measures) In Q3 2024, Adjusted EBITDA (non-GAAP) was $679 million, and Portfolio Cash Flow (non-GAAP) was $617 million, both increasing by 17% compared to the same period last year, reflecting strong cash generation for reinvestment and shareholder returns Q3 Non-GAAP Liquidity Summary ($ in millions) | Measure | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Portfolio Receipts | $735 | $637 | 15% | | Adjusted EBITDA (non-GAAP) | $679 | $582 | 17% | | Portfolio Cash Flow (non-GAAP) | $617 | $528 | 17% | - Portfolio Cash Flow reflects cash generated that can be redeployed into royalty acquisitions, debt repayment, dividends, or share repurchases[9](index=9&type=chunk) [Capital Deployment & Recent Transactions](index=3&type=section&id=Capital%20Deployment%20%26%20Recent%20Transactions) Royalty Pharma actively deployed capital, with $1.2 billion in Q3 and $2.2 billion year-to-date for the first nine months of 2024, primarily on acquiring financial royalty assets, and announced new transactions totaling up to approximately $2.7 billion in 2024 Capital Deployment by Category ($ in millions) | Category | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Acquisitions of financial royalty assets | $(1,195) | $(2,009) | | **Total Capital Deployment** | **$(1,195)** | **$(2,239)** | - Announced new transactions of up to approximately **$2.7 billion** in 2024, including **$294 million** in Q3 and **$350 million** in November[13](index=13&type=chunk) - Key recent transactions include a **$350 million** synthetic royalty on Niktimvo, a **$150 million** synthetic royalty on Yorvipath, and a royalty interest in deucrictibant for ~**$21 million** upfront plus milestones[13](index=13&type=chunk) [Key Portfolio Developments](index=4&type=section&id=Key%20Portfolio%20Developments) The company's portfolio saw significant positive regulatory and clinical developments, including FDA approvals for Cobenfy, Tremfya, and Voranigo, alongside pipeline discontinuations for MK-8189 and BCX10013 - **FDA Approvals:** - **Cobenfy (KarXT):** Approved in September 2024 for schizophrenia in adults (Bristol Myers Squibb) - **Tremfya:** Approved in September 2024 for adults with moderately to severely active ulcerative colitis (Johnson & Johnson) - **Voranigo (vorasidenib):** Approved in August 2024 as a first-in-class therapy for IDH-mutant diffuse glioma (Servier)[17](index=17&type=chunk) - **Regulatory Submissions:** - **aficamten:** Cytokinetics submitted an NDA to the FDA in Q3 2024 - **Skytrofa:** Ascendis Pharma submitted a supplemental BLA to the FDA for adults with growth hormone deficiency[16](index=16&type=chunk) - **Pipeline Discontinuations:** - **MK-8189:** Merck removed the drug from its pipeline chart - **BCX10013:** BioCryst discontinued development due to insufficient clinical activity[16](index=16&type=chunk)[17](index=17&type=chunk) [2024 Financial Outlook](index=5&type=section&id=2024%20Financial%20Outlook) The company raised its full-year 2024 guidance for Portfolio Receipts to a range of $2,750 million to $2,800 million, reflecting an expected Royalty Receipts growth of 11% to 13% for the year Full Year 2024 Financial Outlook | Metric | Updated Guidance (Nov 6, 2024) | Previous Guidance | | :--- | :--- | :--- | | Portfolio Receipts | $2,750M to $2,800M | $2,700M to $2,775M | | Payments for operating and professional costs | ~8.5% of Portfolio Receipts | 8% to 9% of Portfolio Receipts | | Interest paid | $160 million | $160 million | - The updated guidance includes expected Royalty Receipts growth of **11% to 13%** in 2024, an increase from the previous guidance of 9% to 12%[3](index=3&type=chunk)[18](index=18&type=chunk) - Anticipated interest paid is approximately **$160 million** for 2024, projected to increase to approximately **$260 million** in 2025 following a recent debt issuance[19](index=19&type=chunk) [Financial Statements (Unaudited)](index=9&type=section&id=Financial%20Statements%20(Unaudited)) The unaudited financial statements for the third quarter ended September 30, 2024, detail the company's financial position and performance, including total income of $565 million, consolidated net income of $806 million, total assets of $18.0 billion, and net cash provided by operating activities of $704 million [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 2024, Royalty Pharma reported total income and other revenues of $565 million, with a net operating income of $735 million and consolidated net income of $806 million, of which $544 million was attributable to Royalty Pharma plc Q3 2024 Statement of Operations Highlights ($ in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total income and other revenues | $565 | $536 | | Total operating (income)/expense, net | $(170) | $385 | | Operating income | $735 | $151 | | Consolidated net income | $806 | $122 | | Net income attributable to Royalty Pharma plc | $544 | $72 | [Selected Balance Sheet Data](index=10&type=section&id=Selected%20Balance%20Sheet%20Data) As of September 30, 2024, the company's balance sheet showed total assets of $18.0 billion, an increase from $16.4 billion at year-end 2023, with total liabilities at $7.8 billion and total shareholders' equity at $10.3 billion Balance Sheet Highlights ($ in millions) | Metric | As of Sep 30, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $950 | $477 | | Total assets | $18,042 | $16,382 | | Total liabilities | $7,784 | $6,298 | | Total shareholders' equity | $10,258 | $10,084 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended September 30, 2024, net cash provided by operating activities was $704 million, while net cash used in investing activities was $1.19 billion, primarily due to acquisitions of financial royalty assets, and net cash used in financing activities was $326 million Q3 2024 Cash Flow Summary ($ in millions) | Cash Flow Category | Three Months Ended Sep 30, 2024 | | :--- | :--- | | Net cash provided by operating activities | $704 | | Net cash used in investing activities | $(1,193) | | Net cash (used in)/provided by financing activities | $(326) | | Net change in cash and cash equivalents | $(815) | [Reconciliation of GAAP to Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides a reconciliation of the non-GAAP liquidity measures, Adjusted EBITDA and Portfolio Cash Flow, to the most directly comparable GAAP measure, Net cash provided by operating activities, showing adjustments from $704 million to $679 million and $617 million respectively for Q3 2024 Q3 2024 GAAP to Non-GAAP Reconciliation ($ in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | $704 | $574 | | Adjustments | ... | ... | | Adjusted EBITDA (non-GAAP) | $679 | $582 | | Interest paid, net | $(62) | $(54) | | Portfolio Cash Flow (non-GAAP) | $617 | $528 | [Appendix & Notes](index=6&type=section&id=Appendix%20%26%20Notes) The appendix contains supplementary information, including a corporate overview, forward-looking statements, definitions of key performance and non-GAAP metrics, and a table detailing approved indications for select therapies in the company's portfolio [About Royalty Pharma & Forward-Looking Statements](index=6&type=section&id=About%20Royalty%20Pharma%20%26%20Forward-Looking%20Statements) Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties with a portfolio of over 35 commercial products, and the report includes standard forward-looking statement disclaimers regarding future performance and risks - Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation, with a portfolio of royalties on more than **35** commercial products and **15** development-stage candidates[21](index=21&type=chunk) [Definition of Key Metrics](index=7&type=section&id=Definition%20of%20Key%20Metrics) This section defines key performance metrics, including Portfolio Receipts as cash generation from portfolio investments, and non-GAAP measures like Adjusted EBITDA and Portfolio Cash Flow, used to evaluate the company's ability to generate cash for deployment - Portfolio Receipts is a key metric representing cash generation, defined as the sum of Royalty Receipts, milestones, and other contractual receipts[26](index=26&type=chunk)[39](index=39&type=chunk) - Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures used by management to evaluate the company's ability to generate cash from operations for deployment into acquisitions, debt repayment, and shareholder returns[29](index=29&type=chunk)[30](index=30&type=chunk)

Portfolio Receipts growth of 15% to $735 million; Royalty Receipts growth of 15%Net cash provided by operating activities of $704 millionCapital Deployment of approximately $1.2 billion Raising full year 2024 guidance: Portfolio Receipts expected to be $2,750 to $2,800 million NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the third quarter of 2024 and raised full year 2024 guidance for Portfolio Receipts. “We delivered strong growth of app ...