Royalty Pharma (RPRX) Bank of America Global Healthcare Conference summary

Policy and market environment

• Monitoring U.S. pharma policy developments, especially MFN, with scenario-based modeling for pricing and geographic impacts.

• OUS (outside U.S.) pricing and launch dynamics remain uncertain but are factored into deal models using multiple scenarios.

• U.S.-China policy risks are mitigated by structuring royalties outside China; current focus is on passive royalties from Chinese companies.

• Policy changes could slow deal activity but are not expected to disrupt existing royalty pools.

Strategic initiatives and partnerships

• AI investments aim to enhance due diligence, speed, and quality of deal assessment, with future plans to offer AI tools to partners.

• Hired an AI lead from IQVIA to drive internal and partner-facing AI capabilities, especially for clinical trial design.

• Emphasizes being a strategic partner, especially for smaller biotechs, by providing resources beyond capital.

• R&D co-funding and partnership models are areas of growth, particularly for pre-launch biotech companies.

Geographic expansion and China focus

• Building a local team in Hong Kong to educate and access the growing pool of passive royalties from China.

• Focused on royalties from licensing between Chinese firms and Western multinationals, with expectations for future deal flow as assets mature.

• China is not yet included in annual capital deployment targets due to the early stage of market development.

• Evaluates Chinese royalty deals case-by-case, applying the same risk-return criteria as in Western markets.