Royalty Pharma (RPRX) Corporate presentation summary

Market position and growth outlook

• Holds a leading position in biopharma royalty funding, with a 48% market share from 2020-2025 and a diversified portfolio spanning over 50 approved and development-stage products.

• Portfolio duration averages 13 years, supporting compounding growth through royalty expirations.

• Capital deployment averaged $2.5bn annually from 2022-2025, with a projected $30bn capacity through 2030.

• Royalty funding market is expanding rapidly, driven by innovation, R&D fragmentation, and growing capital needs exceeding $1 trillion over the next decade.

• China is emerging as a significant driver for royalty creation, with increased licensing activity and a new regional head appointed in 2026.

Investment approach and risk management

• Highly selective investment process, with only ~2% of initial reviews resulting in transactions and a focus on products with strong scientific rationale and commercial potential.

• Capital is deployed primarily in approved products (66%) and post-proof-of-concept development-stage therapies (34%), minimizing risk.

• Rigorous due diligence leverages internal and external expertise, proprietary analytics, and comprehensive market data.

• Flexible structuring and long investment horizons enable tailored solutions and risk mitigation, including milestones and tiered royalties.

• Strong track record with ~90% success rate in development-stage investments and consistent outperformance of consensus sales estimates.

Financial performance and returns

• Delivered double-digit annual growth in Royalty Receipts and Portfolio Receipts since IPO, reaching $3.3bn in 2025.

• Adjusted EBITDA margins remain high at 91%, with Portfolio Cash Flow per share projected to exceed $7.50 by 2030.

• Average annual ROIC was 14.9% (2019-2025), and ROIE averaged 21.5%, reflecting efficient use of leverage.

• Over 90% of transactions since 2020 are expected to exceed cost of capital, with blended unlevered IRRs in the mid-teens and >2x cash-on-cash multiples.

• Substantial financial capacity supports ongoing royalty acquisitions, share repurchases, and dividends, with a clear path to at least mid-teens annual total shareholder return.