Royalty Pharma (RPRX) Corporate presentation summary

Market position and growth outlook

• Holds a leading 48% share of the biopharma royalty market from 2020-2025, with a diversified portfolio and a 30-year track record of value compounding.

• Portfolio duration averages 13 years, with consistent growth through royalty expirations and 15 blockbuster products generating over $1bn in annual sales.

• Capital deployment averaged $2.5bn annually from 2022-2025, with a cumulative $10bn invested and a 91% adjusted EBITDA margin in 2025.

• Royalty funding has grown rapidly, reaching a 5-year average annual announced value of $10bn by 2025, driven by innovation, fragmentation, and capital needs.

• Synthetic royalties are a key growth driver, with a 37% CAGR in announced value and significant underpenetration in biopharma funding.

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 deployed in both approved (65%) and development-stage (35%) therapies, with a ~90% success rate for development-stage investments since 2012.

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

• Flexible structuring allows for risk mitigation through milestones, royalty tiering, and option periods, supporting win-win solutions for partners.

• Conservative leverage enhances returns, with an average annual ROIC of 14.9% and ROIE of 21.5% from 2019-2025.

Financial performance and shareholder value

• Portfolio Receipts reached $4.7bn in 2025, with a path to over $7.50 Portfolio Cash Flow per share by 2030, representing a 55% increase from 2025.

• Consistent mid-teens IRR and ROIC, with over 90% of deals since 2020 exceeding cost of capital and a blended unlevered IRR tracking to mid-teens.

• Substantial financial capacity with $30bn projected through 2030, supporting royalty acquisitions, share repurchases, and dividends.

• Efficient business model generates significant cash flow, with 91% adjusted EBITDA margin and strong bottom-line growth.

• Dynamic capital allocation framework balances royalty investments, share repurchases, and dividends to maximize long-term shareholder value.