Core Viewpoint - Royalty Pharma plc has announced a $2.0 billion offering of senior unsecured notes, which is expected to close on September 16, 2025, subject to customary closing conditions [1]. Group 1: Offering Details - The offering consists of three tranches: $600 million of 4.450% Notes due 2031, $900 million of 5.200% Notes due 2035, and $500 million of 5.950% Notes due 2055 [7]. - The net proceeds from the offering will be used for general corporate purposes [2]. - The offering is being managed by BofA Securities, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, and TD Securities as joint lead book-running managers [3]. Group 2: Company Background - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a significant funder of innovation in the biopharmaceutical industry [6]. - The company collaborates with various entities, including academic institutions and leading global pharmaceutical companies, to fund innovation and acquire royalties [6]. - Royalty Pharma's portfolio includes royalties on over 35 commercial products, such as Vertex's Trikafta and GSK's Trelegy, as well as 17 development-stage product candidates [6].

Group 1 - Royalty Pharma's board of directors has approved a dividend of $0.22 per Class A ordinary share for Q3 2025, to be paid on September 10, 2025, to shareholders of record by August 15, 2025 [1] Group 2 - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical industry, collaborating with various entities from academic institutions to leading global pharmaceutical companies [2] - The company has a portfolio of royalties linked to over 35 commercial products, including notable therapies such as Vertex's Trikafta, GSK's Trelegy, and Roche's Evrysdi, among others [2] - Royalty Pharma funds innovation both directly by co-funding late-stage clinical trials and indirectly by acquiring existing royalties from original innovators [2]

Core Points - Royalty Pharma plc will report its second quarter 2025 financial results on August 6, 2025, before U.S. financial markets open [1] - A conference call and webcast will be held at 8:00 a.m. Eastern Time on the same day [1][2] Company Overview - Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation in the biopharmaceutical industry [3] - The company collaborates with various innovators, including academic institutions, research hospitals, non-profits, small and mid-cap biotechnology companies, and leading global pharmaceutical companies [3] - Royalty Pharma's portfolio includes royalties on over 35 commercial products, such as Vertex's Trikafta, GSK's Trelegy, Roche's Evrysdi, and others, as well as 16 development-stage product candidates [3]

Core Viewpoint - Royalty Pharma has successfully completed the acquisition of its external manager, RP Management, with 99.9% shareholder approval, marking a significant milestone in the company's evolution and positioning for long-term growth [1][2]. Group 1: Acquisition Details - The acquisition of RP Management allows Royalty Pharma to internalize its management structure, enhancing transparency, accountability, and alignment with shareholders [2]. - The company will update its full-year 2025 guidance to reflect the internalization in its upcoming financial results [2]. Group 2: Historical Context - Royalty Pharma has operated under an external management model since its founding in 1996, paying fees based on portfolio receipts and security investments [3]. - Following the internalization, all employees of RP Management have transitioned to Royalty Pharma, strengthening the company's operational capabilities [3]. Group 3: Management and Equity Structure - Prior to 2024, Pablo Legorreta was the sole owner of RP Management, but equity interests were granted to 35 team members to support succession planning [3]. - Management, excluding Pablo Legorreta, will receive approximately 50% of the equity issued in the transaction, with vesting continuing through 2033, while Legorreta's equity will vest over five years [3]. Group 4: Company Overview - Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical industry [4]. - The company collaborates with various entities, including academic institutions and leading pharmaceutical companies, and holds royalties on over 35 commercial products [4].

Core Viewpoint - Royalty Pharma plc has received overwhelming shareholder approval (99.9%) for its transition from an external management model to an integrated corporate structure, marking a significant milestone for the company [1][4]. Financial Impact - The internalization transaction is expected to generate cash savings exceeding $100 million in 2026 and over $175 million in 2030, with cumulative savings projected to exceed $1.6 billion over the next ten years [3][8]. - The total transaction value is approximately $1.1 billion, which includes 24.5 million shares of Royalty Pharma equity, $100 million in cash, and the assumption of $380 million in existing Manager debt [5][6]. Corporate Governance and Structure - The internalization is anticipated to enhance corporate governance, increase transparency, and align the leadership team more closely with shareholder interests [2][3]. - Following the transaction, all employees of the external Manager will become direct employees of Royalty Pharma, simplifying the corporate structure [7][8]. Shareholder Benefits - The acquisition is expected to strengthen shareholder alignment and ensure management continuity, with shares received by management vesting over 5 to 9 years [3][9]. - The internalization may also expand Royalty Pharma's shareholder base and enhance the company's valuation over time [3][8]. Background Information - Royalty Pharma has operated under an external management model since its founding in 1996, paying quarterly fees to the Manager based on portfolio receipts and security investments [7].