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 ...

Summary of Royalty Pharma Conference Call Company Overview - **Company**: Royalty Pharma - **Industry**: Biopharma royalty market - **Position**: Clear leader with no direct public competitors [3][4] Core Points and Arguments Growth and Financial Performance - **2025 Financial Goals**: Expected growth in portfolio receipts between 14% and 16% [4] - **Return Metrics**: Reported return on invested capital at 15.7% and return on invested equity at 22.9% for the last 12 months [4] - **Capital Deployment**: Deployed $2.6 billion in value-creating royalty transactions, acquiring eight new royalties [5] - **Shareholder Returns**: $1.2 billion in share repurchases and growing dividends [5] Strategic Developments - **Internalization of Management**: Significant cost reductions and improved governance following the internalization of the external manager [5] - **Long-term Financial Goals**: Targeting compounded annual growth in portfolio receipts of 10% or more from 2020 to 2030, aiming for a top line of $4.7 billion by 2030 [7] Market Dynamics - **Royalty Funding Advantages**: Royalties provide a non-dilutive funding option with flexibility compared to traditional debt and equity [9][10] - **Market Growth**: The average value of announced royalty transactions has doubled over the past five years, reaching $10 billion in 2025 [11] - **Synthetic Royalties**: Significant growth in synthetic royalty transactions, with a 50% increase to $4.7 billion in 2025 compared to 2024 [11] Investment Strategy - **Investment Focus**: Emphasis on late-stage opportunities with a high success rate; 90% of development-stage investments have received approval [14][16] - **Risk Management**: Investments are made in opportunities with compelling proof-of-concept data, focusing on approved products [16] Pipeline and Future Potential - **Development Pipeline**: 20 products in development, with several expected to generate royalties in the near future [18] - **Upcoming Trials**: Anticipated pivotal trial readouts for several key therapies over the next 24 months [19] Financial Capacity and Capital Allocation - **Future Capital Deployment**: Capacity to deploy around $30 billion by 2030, with a focus on royalties [23] - **Dynamic Capital Allocation Framework**: Adjusts capital allocation based on the attractiveness of royalties versus equity buybacks [23] Market Expansion - **China as Growth Opportunity**: Significant potential in the Chinese biotech market, with around 3,000 biotech companies needing funding [39] - **Royalty Structure in China**: Royalties are seen as a less risky investment compared to equity, allowing for partnerships with local companies [43] Other Important Insights - **Conservative Projections**: The $4.7 billion target is considered conservative, with expectations to exceed this figure based on current growth trends [27] - **Market Education**: Continuous efforts to educate the market on the benefits of royalty funding, especially in regions where Royalty Pharma is less known [34] This summary encapsulates the key points discussed during the Royalty Pharma conference call, highlighting the company's strategic direction, financial performance, and market opportunities.

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].