Royalty Pharma (RPRX) TD Cowen 46th Annual Health Care Conference summary

Strategic expansion and market opportunities

• Announced hiring of Ken Xuan as Head of Asia to drive growth in China and Asia, leveraging his experience from Morgan Stanley.

• Identified China as a significant future market for royalty deals, building on the first transaction with BeiGene and anticipating more opportunities.

• Emphasized the explosion of licensing and partnership activity in Asia, viewing it as a greenfield opportunity for royalty creation.

Recent transactions and portfolio highlights

• Closed a $250 million royalty deal with Zymeworks for zanidatamab, a HER2-positive gastric cancer therapy, securing 30% of global royalties.

• Highlighted the $2 billion+ Revolution Medicines deal as a model for emerging biopharma, offering an alternative to traditional partnerships.

• Noted a $1 billion royalty acquisition on Imdelltra, a lung cancer product, and a funding deal with Biogen for lupus R&D.

Capital deployment and financial outlook

• Tracking ahead of five-year capital deployment goals, driven by the growing recognition of royalties as a funding source.

• Projects annual capital deployment of $2–2.5 billion, with flexibility to adjust based on deal quality.

• Maintains long-term revenue guidance of $4.7 billion by 2030, with about half of growth from existing assets and half from new investments.

• Operates with 95% adjusted EBITDA margins and expects interest expense of $360–370 million, supporting strong cash flow and optionality for dividends and share repurchases.