Royalty Pharma (RPRX) investor relations material

Market outlook and industry trends

• Royalty financing is becoming a core part of biopharma capital structures, with significant headroom for growth as it currently represents only a mid-single-digit percentage of total capital raised in the sector.

• Expansion opportunities include partnering with large pharma for R&D funding and building a local team in China to develop the Asian royalty ecosystem.

• The market is expected to grow as more companies seek alternative funding, and recent large deals, such as a $2 billion commitment to Revolution Medicines, illustrate the increasing scale.

Competitive landscape and strategy

• Competition is viewed positively, as it helps expand the market and increases confidence among partners.

• The focus remains on growing the overall market rather than being preoccupied with competitors.

• The company leverages its low cost of capital, specialized focus, and strong diligence and business development teams to maintain its leadership.

Deal structuring and risk management

• Synthetic royalties are structured flexibly to balance upside and downside risks, tailored to each partner's needs.

• Deals often include mechanisms to mitigate underperformance, and the approach is highly collaborative, aiming for win-win outcomes.

• The company approaches each deal with a "blank sheet of paper," emphasizing fairness and partnership.