Royalty Pharma (RPRX) investor relations material

Company evolution and business model

• Founded 30 years ago to acquire royalty streams from universities, hospitals, and biopharma, providing upfront capital and taking on commercial risk.

• Business expanded to include synthetic royalties, offering capital in exchange for contractually created royalty streams to support R&D or drug launches.

• Went public in 2020, now with over $30 billion equity value and investment-grade rating, guiding to $3.4 billion revenue this year.

• Recent deals include $0.5 billion R&D funding each with Teva and J&J, reflecting growth in R&D funding partnerships.

Market dynamics and growth opportunities

• Royalty and synthetic royalty markets have grown significantly, with synthetic royalties now 5% of biopharma funding, translating to $15 billion over five years.

• Large pharma increasingly seeks co-funding for late-stage R&D, valuing passive financial partnerships to expand R&D capacity.

• The total addressable market is large, with $2 trillion projected R&D spend by large pharma and $1 trillion by unprofitable biotech over the next decade.

• China identified as a major growth opportunity, with a new team on the ground to pursue royalty streams from out-licensed compounds to Western pharma.

Deal sourcing and competitive landscape

• Evaluated 480 opportunities last year, nearly double from five years ago, reflecting increased acceptance of royalty funding.

• Competition is welcomed as it helps educate the market and expand opportunities; focus remains on disciplined, win-win deal structuring.

• Repeat business is common due to strong relationships and fair deal terms.