Full Year and Q4 2025 Financial Results February 11, 2026 Forward Looking Statements 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 stated otherwise, and ne ...

Core Insights - Royalty Pharma experienced a landmark year in 2025, achieving a top-line growth of 14%-16% and announcing $4.7 billion in royalty transactions, while the royalty market reached a record high of $10 billion [2][3][5]. Company Performance - The company internalized its external manager, leading to cost savings and improved governance, and is on track to meet its 2025 guidance for Portfolio Receipts of $3,200 to $3,250 million [6][7]. - Royalty Pharma achieved a Return on Invested Capital of 15.7% and a Return on Invested Equity of 22.9% on a trailing twelve-month basis [7]. Industry Trends - The royalty funding market saw a 40% increase in total value, reaching $10 billion in 2025, compared to an average of $7.1 billion over the previous five years [3][4]. - Synthetic royalties, a concept pioneered by Royalty Pharma, accounted for $4.7 billion of the total market value, highlighting their growing acceptance in the biopharma capital structure [4][5]. Future Outlook - The company anticipates continued favorable industry conditions in 2026, supported by a robust pipeline of potential transactions and several important milestones in its development-stage portfolio [2][10]. - Royalty Pharma expects to achieve at least $4.7 billion in Portfolio Receipts by 2030, implying a growth rate of 9% or greater from 2025 to 2030 [9]. Development Pipeline - The company’s pipeline includes 20 development-stage therapies, with several expected to achieve pivotal milestones in 2026, including daraxonrasib, litifilimab, and pelacarsen [11][12]. - The late-stage pipeline therapies have the potential for combined peak sales exceeding $43 billion annually, translating to over $2.1 billion in new royalties for Royalty Pharma [12].

Core Insights - Royalty Pharma and Denali Therapeutics have entered into a $275 million synthetic royalty funding agreement based on future net sales of tividenofusp alfa, an investigational therapy for Hunter syndrome [1][4]. Company Overview - Royalty Pharma is the largest buyer of biopharmaceutical royalties and funds innovation across the biopharmaceutical industry, collaborating with various innovators [6]. - Denali Therapeutics is focused on developing biotherapeutics that can cross the blood-brain barrier, utilizing its proprietary TransportVehicle platform [7]. Product Information - Tividenofusp alfa is Denali's lead investigational therapy for mucopolysaccharidosis type II (Hunter syndrome) and is currently under FDA review for accelerated approval, with a target date of April 5, 2026 [2][3]. Transaction Details - The agreement includes an initial payment of $200 million from Royalty Pharma, with an additional $75 million contingent upon EMA approval by December 31, 2029 [4]. - Royalty Pharma will receive a 9.25% royalty on worldwide net sales of tividenofusp alfa, ceasing upon reaching a multiple of 3.0x or 2.5x if achieved by Q1 2039 [4]. Leadership Statements - Royalty Pharma's CEO expressed enthusiasm about the partnership, highlighting the innovative nature of tividenofusp alfa and its potential impact on patients with Hunter syndrome [3]. - Denali's CEO noted that the partnership with Royalty Pharma recognizes the value of tividenofusp alfa and will support broader development opportunities [3].