Royalty Pharma Investor Day Highlights Strong Growth Outlook and Company’s Plans to Drive Value Creation

Core Insights - Royalty Pharma is hosting an Investor Day to discuss its strategies for shareholder value creation through its unique business model in the biopharma royalty market [1][2] - The company anticipates continued strong growth in the biopharma royalty market, targeting a mid-teens average annual total shareholder return through 2030 [2][12] Financial Performance and Projections - Royalty Pharma expects a compound annual growth rate of approximately 12% in Portfolio Receipts from 2020 to 2025, aiming for at least $4.7 billion in Portfolio Receipts by 2030 [3][4] - The company has achieved a Return on Invested Capital (ROIC) of approximately 15% and a Return on Invested Equity (ROIE) of approximately 21% since 2019 [6][7] - The biopharma royalty market has seen significant growth, averaging $6.2 billion in announced transaction value per year from 2020 to 2024, more than double the previous five-year average [7][9] Capital Deployment and Investment Strategy - Royalty Pharma is on track to exceed its five-year capital deployment target of $10 billion to $12 billion, with $14 billion in announced transactions and $9 billion deployed to date [4][5] - The company expects to achieve an unlevered internal rate of return (IRR) in the mid-teens on its post-IPO investments, with strong returns on both approved and development-stage products [5][6] Market Trends and Industry Position - A Deloitte market study indicates growing interest in royalty funding among biopharma executives, with 54% reporting increased interest and 87% considering royalties for capital needs [9][10] - Royalty Pharma has expanded its workforce approximately three-fold since its IPO, enhancing its capabilities in data and analytics to support its growth strategy [10][11] Shareholder Value Creation - The company aims to be a premier capital allocator in life sciences, with plans for share buybacks and a commitment to grow dividends by a mid-single digit percentage annually [11][12] - Royalty Pharma's investment platform is expected to gain recognition, potentially leading to significant upside beyond the targeted mid-teens total shareholder return [12]