Royalty Pharma (RPRX) 10 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Pablo Legorreta	Founder and Chief Executive Officer
Chris Hite	Vice Chairman
Terry Coyne	EVP, Chief Financial Officer
Jim Reddoch	EVP, Co-Head of Research and Investments and Chief Scientific Officer
Marshall Urist	EVP, Co-Head of Research and Investments
George Grofik	SVP, Head of Investor Relations and Communications
Chris Schott	J.P. Morgan
Andrew Baum	Citi.
Greg Fraser	Truist Securities
Steve Scala	Cowen
Geoff Meacham	Bank of America
Umer Raffat	Evercore
Charlie	Morgan Stanley

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Royalty Pharma Third Quarter 2021 Earnings Conference Call. I would now like to turn the call over to George Grofik, SVP, Head of Investor Relations and Communications. Please go ahead, sir.

George Grofik

Thank you, Josh. to 's the call. third afternoon to and good Pharma Royalty quarter morning, everyone call, on welcome Good results conference

can at to page slides find on You Investors the this of royaltypharma.com. call website our the

Moving Scientific turn Investments, and upcoming update Pablo after and provide Marshall of Urist, Officer, Terry event. discuss to involve of with that call will to Coyne, we presented description [Indiscernible] I'd you the to to information Marshall cause unknown which and materially. a X, risk also our the risks, Chief for Co-Head review Pablo, call remarks join SEC from Reddoch, the with Chairman, of session. to and advance refer hold Q&A. our a after statements and and Pablo. portfolio Chief Q&A X. file and the key our other highlights in And concluding Royalty then with differ EVP, And Slide Financial that actual today Founder financials Chris factors Research please Jim I may Investments and speakers these to will Slide will forward-looking EVP, Research over Terry that, like Officer, remind and like Hite, will the will Executive call Legorreta, on Jim factors. would on the contain Officer, Vice XX-K Chief known that, Co-Head are this you uncertainties, to I EVP, and Pablo on results an

Pablo Legorreta

and and the our despite deal quarter and am pipeline. I of to the delivered double-digit growth robust another top George, active HIV maintain report and end strategic welcome delighted We call. you, the Thank a We for of execution. on strong Royal. term financial performance bottom-line to everyone

gantenerumab III of results portfolio so expect We transactions Phase on and asthma, and development with $X.X for in designation our space year-to-date granted Alzheimer's. build far our momentum progress We announced FDA positive the to breakthrough in important to billion. strong with PTXXX saw by

another Lastly, for flow, In for based delivered % % line. our On cash can strong bottom dynamics, XX third a strong growth detail. more again quarter, cash we're receipts you guidance she The Terry our X adjusted Slide am cash see of too, momentum we this receipts, our year X, top in XXXX, guidance the XX underscores IPO impressive XXXX. deliver for financial since raised little slide XXXX. as our track the really proud power business financials speak of in performance line, business model. puts record our growth on raising our a current adjusted and us in discusses adjusted will our year. and the tremendous the growth when of I it as in -- June we position in our Slide to strong of when sets

which were As I graphic, growth largest have bottom-line our royalty in the [Indiscernible] XXXX, [Indiscernible] XX very mentioned royalties accounting our you double-digit consecutive of of the line fourth can earlier, loss X royalties, see this top strong quarters above and as we reported % growth receive. of well. source for in

life and Royalty breadth X our delivered XX the transactions. Pharma to % also months and digested investment sciences. growth recent still is around impact the our in XXXX. what It of Royalty of We existing and strength a top this in a the for part bottom-line have and momentum speaks unique first makes This of portfolio

I biopharma to Royalty explorations through s companies. to grow to hand portfolio. our diversify value-enhancing with the ability With over you to from and on impressive continuing will that, update apart us Royalty set acquisitions Jim portfolio other Our fully

Jim Reddoch

PTOXX, our DENALI clinical spend PTO-XX. co-funding dose development is and met it announced betaX-agonists. all a before significant investigational pivotal has month inhaled since We were development Phase returned to short-acting of potential Pablo, out therapy, the events. the through to Marshall for It known you both potential on as combination highlighting and XXXX. lays and is delighted patient asthma important Today, some the trials budesonide, a minutes of AstraZeneca the and everyone. stage fixed Pharma you, which and a asthma. want portfolio symptoms X been and X Royalty the We This primary billion that and targets therefore MANDALA first-in-class the I PTXXX, AstraZeneca's a albuterol, as inflammation commercial hello, Slide endpoint. updating last Thank upcoming an few ten corticosteroid, underlying for

release the single-digits first to receive filing the program, in role at return In upcoming meeting, expected Pharma medical in plans detailed regulatory half is low in an funding is clinical data to our a the royalties AstraZeneca XXXX. milestones. Royalty to for entitled success-based in of in addition

viewed estimates for since unmet that opportunities areas consensus $X.X Slide earlier meaningful are Given asthma, that overlooked are In satisfied identify for market that is inhalers. approval Over as by period, billion. investments. benchmarks, including has ability, is market potential genericized. unmet Pharma's novel will in PTO-XX, well-served rate we've been our therapies commonly XXXX therapies when of considered and compared with Royalty need to potential industry patients the segment years XX, the sometimes for racking by that and investment rate a for another scale Pharma. billion. rescue especially XX by successful of approximately of is new investments with therapeutic in royalty stream inhaler become winners, PTO-XX very our exceed On the to PTXXX XX% a or generic Royalty commercial $X the development-stage in of of were launch well then approval therapies as need before stage sales value % project the example asthma, a as This addressable our the number

Biotechs symptoms suppress to facilitates delivery NURTEC was felt asthma another inflammation existing market However, inhaler to be is the drugs. steroid at example PTXXX where exacerbations. of that combination times increased novel satisfied by subsequent as prevent the uniquely to

significant the from opportunities CGRP the the in forward NURTEC PTXXX need However, has people to of migraine. like and more NURTEC, unmet look among revealed come. And including identifying to years we launch suffering strong oral inhibitors,

Our success extensive team our also but reason on science to rate. We rigorous process through for primary internally, investments and evaluation diligence, leading high experts experienced external conduct the need. and the is both due gain comfort the our research patient through

opportunities To risk-return business pursue balance therapies. to industry. of benefit, is X development-stage on to stream are builds the track of continue slide, profile. medicines this close to discuss development Our with therapy most where a on successes choose the to maintaining a on highlighted few stage Evrysdi. stage additional order Marshall will an being can record that's investment from now clinical portfolio successful have we more always development [Indiscernible] that we And the will appropriate so I opportunities important our optimize Trodelvy royalties available starting today and benefit therapies our point to here, large. overall upcoming also need of compelling including while in we But events. over and agnostic from the strong And turn area in recently, And across improved we it

Marshall Urist

months the lays next clinical morning. or good and for Slide portfolio over events regulatory upcoming so. our out XX Thanks, And XX Jim. the

carcinoma, for XXXX for And to This expect the we of breast arthritis milestone as of metastatic prostate Phase Phase intranasal year, positive Yervoy results HR line II in Tremfya very and next balance with important gantenerumab, ulcerative cancer, a to with third lung colitis as likely in rheumatoid includes gantenerumab well in and Crohn's, depression. migraine. combination self-direct results in looking reach and Opdivo Trodelvy for a renal X-X For Phase from portfolio. III in and first-line and otilimab is cell here cancer. readouts number Cabometyx XXXX, Alzheimer's, in be our in

a in pleased expect we In Vydura reach the some, Vydura. mentioned will the decision actions, the positive, a PTXXX, breast cancer. will In the regulatory a expect to a to of partnership migraine, for expect triple-negative many and see of significantly Trodelvy if filing could of important around of flow. Biohaven medicines see European outlook Turning a [Indiscernible] in long-term out adjusted also outside the these this next Pfizer We're world. where and decision maximize as marketed on of regulatory between on name be we to on to partner brand to regulatory be we class market by Jim our news new XXXX, European number to of earlier, it year, milestones add quarter, cash the strong efficient Pfizer U.S. over the

been drug comments it receiving few I on that turning Reform to before that wanted U.S. pricing investor Terry, over given our a the Now was -- retention. make has final portfolio's Medicare Legislation significant exposure, to proposed

language, minimal Royalty Part we the duration While D. this a based patient X has strategy. top and access. some of our only initial U.S. drug increase X our would and business aggregate strengths Xtandi headwind legislation to in B considering and importantly, business products, nothing by the the the seen or our is change across business drugs view model improved in through in reminder, finalized, from And in has draft Xtandi's what Medicare expect any Imbruvica have to as exposure we pricing potentially Part is only But without anticipate volume be small been XXXX. very From legislation, to a And that to proposed potential XXXX Medicare would spending. we more highlights on our

product means the and uniquely that to rapidly continually we're the First, fact adding to environment portfolio in positioned our that any to our we're react forecast changes to valuations. reimbursement royalties new

of our of commercial means span legacy therapeutic constraints that area open model without agnostic or therapeutic is area, R&D, full to innovation the Second, infrastructure. us the business biopharma

continue respond over with course, appropriately. to hand And Washington in I'll Of we'll the and that, to it developments Terry. monitor

Terry Coyne

Marshall. Thanks,

Soliqua. payments Slide than largest royalties, Growth XX factors offset quarter the decline HIV of as well payment diabetes new royalty our versus These royalty move Tysabri million more the cystic X-time Let's our year-ago % and Sanofi's the to $XX receipts franchise, positive in from fibrosis, as franchise. legacy therapy grew related receipts from included drivers Biohaven, in to Total a XX. period. milestone

last quarter in XXXX. mentioned the milestone call, this Soliqua quarter's As on we previously was received expected

our $XXX adjusted royalty we how line be third quarter. receipts product's XXXX royalty For the between Slide therefore would XX in other your to the consideration, expect to cash in receipts modeling strong $XXX translated flow shows million million. to

low you're adjusted amounted last us, This a the As noted at deducting and receipts metric arrive a XX adjusted in level. with The to with when I to revised receipts, which note non-GAAP non-controlling we offering growth in of reflected cash left with R&D right, billion semiannual third Pablo million operating of remained equated X.X% compared speak consistent our cash year's guidance $XX $X the is will is XXXX. of $XX after as the at quarter, for to costs we in step-up momentarily. move interest major % interest earlier, associated million to net million $XXX unsecured funding interest. professional full-year payment aware, key quarter,

in these reminder, the a and payments As quarters. third first are paid

which which attributable $XX $XX in to Adjusted cash translates payment was margin This was million, million line largely other The per an flow XX.X%. to July. a $XXX -- $X.XX of cash bond offering one-time adjusted cash was earnings, flow, million related or share. largely our to bottom-line our

we debt model. At billion the July. over that XXXX. the to financial in cash billion underscores the similar of of On cash equivalent of securities, was adjusted of Major the position billion included of to of payment, $X.X strong the cash on XX, conversion adjusted to interest at our $X.X which % end quarter acquisitions business margin plus inflows billion payment. deployed despite bond cash September, in the $X.X one-time XX our firepower had slide This proceeds semi-annual around maintain Given our in capital and from receipts, innovative of continue $X our end royalty X the included months marketable year-to-date. net cash we the flow the financing

to call. quarter's our of included capital social million reflects commitment the deployed we offset ESG combined bond on a net on $X.X which times net on and on and a dividends currently distributions. a investment-grade a a Hence, the $XXX social this the have X.X a EBITDA As and total debt on X which and We limited coupon by $X.X billion with bond reminder, of the corporate change weighted These X.XX% period discussed debt, to broadly inflows billion basis. X.XX royalty and were basis average EBITDA %. leverage times acquisition we basis, of responsibility, of last issuance over

very gives My us sets position, untapped, full-year making final our XXXX to cash-on-hand billion billion billion of well-positioned guidance. business the driven an our We be $XX of Our to $X.X which strong guidance. plan. us a credit approximately revolving to now execute in in of increase to expect $X.XX in receipts strong of facility raised our our out slide liquidity addition guidance midpoint is at is range cash underlying increase previous performance adjusted our portfolio. the by million $X.XX on The

cash XX in % new represents the Our adjusted XXXX. delivered growth over guidance between receipt we % billion XX and of $X.X

guidance $XXX due X we approximately for timing various X guidance these operating but fourth around cash to implies that $XXX million practice, previous is the the bond of comments. based a costs on of Net to around call offering net is established XXXX at expected the you Pablo is a be expect interest closing step-up This Turning not to the back his take XX we line quarter year that, hand increase just still and does costs, now this at of any with in our expect %. line future paid interest discussed. into % a guidance With note, to in our million, of expenses. to be the which July to acquisitions. adjusted end in paid in portfolio receipts, for between should following low % to this like our In the today to I I'd and account for as

Pablo Legorreta

Thanks, Terry.

to event. And will the [Indiscernible] to growth you opportunity and deployment lay we participants outlook opportunity by about Investor has our safe. XXXX. that I ask of virtual include all, capital we interact comfortable pandemic Whether life we're on hold a up above Day possible, the to you delighted with hope me compelling date can call have guided we with we'll want of you, spring the Investor very course, of able details presentation much future be join and and the inviting growth excited closer discussion backdrop, close by to the follow funding the and like our prospects We're by additional for date. engage to will, the excited or the additional targets. Royalty Back how will we're With in of many in as would am investor be I our first We'll why, in sciences in as to to objective, to Let very feel have We specific us as as that, secondly, XXXX. plan hope for our you how the Day We updated with business. in-person, to am open business with I progress and, of course, by confident And questions so but a of we all reiterating innovation, plenty to long-term for questions. I person management. George. out

George Grofik

Thank questions. now your Pablo. the you, to Josh And call open will up

question. the first If you please take could

Operator

Our Instructions] Morgan. comes with first [Operator J.P. question Schott Thank you. from Chris

may question with your proceed You

Chris Schott

billion my about receipts thinking I Company your controversy how the your maybe you've emerged or about diversify every capital And translating of adjusted Pablo bit rates, over about that, elaborate talked think story, question X that XX that business talked the later. deployment of deployed was emerge of can years business $XXX has of obviously and its go in Terry. as you've you I to next X any quickly a cash as here may in risks the framework dollars part I Oh, CF Thanks you're more and or million etc. questions. from the so to a potential Can the a about years. much first the -- guess capital ability great. diversify significantly for kind about away for

at Thanks deals what or payoff of different past. lens over about or going than think few to I now you're so we years. thinking capital decent looking that could that to on think much. was Is the in we've as how about think past cash adjusted profiles been based the type deals quickly receipts either that different about having just a forward, deployment translate timelines the

Pablo Legorreta

Chris, thanks can can I and me and question for specific so initial about bit make more some your take over Terry fibrosis. cystic let a remarks be

also model So, looked receipts could of $XXX of billion what you our periods about capital is use a a the deployment. We've over conservative I out made there I time. and pretty at number different And million fairly reasonable -- it's many and to happens what a is but amount cash out think would the that per range, think with we calculation reasonable. X-years actually periods invested capital of

to comment last have we when guided you at quarter, by look other just you over capital initially make billion $X.X of years and year, $X.X this is been X of at you to every up if billion, IPO. far, XXXX, and every And XXXX, X deployed, as billion. well have billion so look $X And year, $X.X meaningful billion year, obviously year per actually year excess IPO following exceeding a really deployed investments this deployed. in in the year, after The way the was we capital us, per And our had $X.X doing that of year. years of in at capital $X.X in the billion we're seen we're $X deployed about so billion capital which billion-and-a-half last we're obviously our

billion excited We're now mean, very way close the about over we're I we're progressed. -- has of deployed. $X the very So, to business capital

billion of and a in XX matter so. or billion $X $X that deployed course, sort months of Of goal

that of that ahead I us. feel are delivering rich, think expectations I in our And also guidance and we we just have pipeline that of and confident think very investor on -- So, strong had. industry very tailwinds the this Terry, exist a broad, so exciting

years, it year just happen. I happen fibrosis to much going fairly than quickly look think product. start that of question companies There's royalties very products lower X exciting you really by per were we're comments sciences. There this to with strongest and Terry, add just what now. it's reliance the with our additional life on And quality, top you why of is interesting capital very going really high up dynamics exciting much out going some diminish. to CF? marketed in deploying is some if about that's And cystic the growth very no to tier years, lower But, much, make to product it adding amount is -- indications some in X going don't

Terry Coyne

Yeah, sure. for good such a Thanks question.

I where think months few X 's -- low been top-line based difficult suggest is too on data, that off, full conclusions was Xst it's Phase by think data that on patient presented. saw data Vertex numbers new ago, with efficacy the disclosed hasn't a nothing is to saw a relatively Trikafta. superior and we Vertex the But draw to we of triple the many study we the there

our deuterated also on Royalty the are is If rate Kalydeco and Kalydeco X new case, be speaking, simply Tezacaftor if royalty-bearing Trikafta, X different should X new are deuterated much the Vertex it the that's that the triple be Kalydeco royalty-bearing We the which over components and deuterated at and and % be Tezacaftor same Kalydeco. as triple the our Kalydeco will even believe isn't where Vertex hypothetically is portion Royalty little royalty-bearing, Royalty than this is a royalty-bearing, %. on will not on %. But is only

in risk Remember, is We long-term efficacy disease, for long considering be the triple downside their to clear given experience significant potential that understand the XX achieved. CF option role will the recognize of it's cash impressive to without even a when not will said, treatment investors of play important market appreciate new a back the take our capture will material decade, safety per Trikafta. term, of patients improvement the there's 's to so for that being in many over really the that we That XX potential new adjusted pills day have and once-daily under share believe Trikafta want patients to half scenarios. a continue triple efficacy, receipts to if especially the it's how in CF and the the long approved, Vertex with we

all end that in adjusted the triple were have estimate the towards could if of -- be couple the Tezacaftor triple what we components decade royalty-bearing. So, of year is new by new $XXX the our only the million Vertex triples per they would component reduced cash approved bearing, Royalty a to if new versus receipts the versus been

will So, the to adding dollars X.XX estimated to context, adjusted as range X.XX many cash into of to are dozens per the blockbusters. year our be every of in investing put just products be X this billion. to Pablo And year, of receipt we're billions mentioned, this of years, portfolio which

to grow exclusivity our HIV total risks. Royalty and the We This overcome midpoint really our XXXX, believe have lose we're year, still at every of is guidance. expected business model, Pharma to in year. adjusted our the share This HIV face our a or we products highlights I of is receipts to And to continue that by that these and $XXX to positioned received resilience are example. this a expected think and uniquely XX loss of adjusted % market cash million actually cash decline competitors great by nearly from Royalty expired

Pablo Legorreta

for think And issue. and lost revenue, big a just through double-digit really a sailing and comments that and was year, is and HUMIRA, that. things decades. Terry and that HIV, one with our high of which on other over performance understand well. think this we $XXX our business. I strong X this reflects we has lost investors something patents, over seen patents, delivering important person, like loss I've been made excellent, growth expiration million potential [Indiscernible] the to And We then still of the again over many Chris, how And were in sailed no a through of

with stop sciences And businesses very, predictable have growth. has business resilience very unique, this life the think combined very there. that I'll I in few incredible So, strong, that's

Chris Schott

the color. for much so Thanks Great.

Operator

Thank you.

question comes Andrew Baum with from Citi. next Our

proceed with question. may your You

Andrew Baum

questions. of couple A you. Thank

you thoughts you comment Vertex take more about but prices Firstly, on API's of seeing triple. Perhaps And for still could the some you problematic, any Royalty to new But near the on competition, broad Maybe talk - talk data you out you you whether attractive presence deals. the be chiefs increased compete. commented the more are interesting. that in building the then, there posted any are product 's could within Is Blackstone opportunities will have know I MorphoSys. is on it's you broadly, asset any that just than so [Indiscernible] could it pushing more for I second, what portfolio, there's saying? the area a to term risk, room X? or available

Pablo Legorreta

of that on to great our investors’ Terry public, really we been ask and but to has your billions question at XXX, have ability that that decades. that question can. % fact of regards minds, year that just is see again, we for to And our it's were $X few us risk or investors unique revenue growing cost obviously very to with really unique of a what's %. % make that And attributes been new generate to enter we capital I somewhere think XXX, portfolio, market exiting, that unapproved some cost size strong. to there's being how the Avi been the I is times it's competition was million think and very and risks cost dollars a X to now competitors X of are and an I'll products in comes per allows flavors. billion investors. very investors but XX X of we and invest scale, The with in public capital of rates private low The And it with all I the of been strong strong topic single-product about Yes. many fixed of our take that and like taking EBITDA also X have not us the to where and concerned this private, incredibly tried you competition, of XXX joined to competitors, overall margin with we of remind we're our ended them. range. because and would from of minds, us there's up that's borrow again, have people's capital, of Many think plus % goes the is we And comments that the very able in when

some not promising locked teams mid are X in a if money's money are you if for also we efficient, X, and We are teams period have the which be -- if X, private equity investors raising years when that's Those high locked be don't to are -- liquidity cannot very a you going up there's other and capital deliver, the with going the no if market, where people us they're plus the in tax important and makes them entrants return. that's to no funds And give asking fund, time. this to of as return, liquidity. structured money will of structure and many competitive. for Peoples very investors not the give -- things invest is capital, up

very which of can the very very we now high predictably, As you and get for know, stable, that that have have have the can one sell many in our of investors, Because returns. to hospital, to of low high we high-quality teens, asset, products, the a because cost of to a to told even university, is Company, able thing a at that the XXs it willing transaction can level, double-digit we're complete do that repeatedly royalties IRR double-digit attractive when be really the return, to really lever a royalty capital. returns, very we be still easily be you in proof single-digit, buy single-digit, seller that attractive, but and low we the high

they returns promised Someone it's single-digit, with deliver low to at leverage their investors as the a -- still super investors, returns, royalty lack and returns attractive having given high a given able leverage. and low-cost them of teens the what to fund double-digit buy for promised -- difficult to be

We competitive there of really together intangible, we can where more a are also so Terry some other a lot add and decade, things have than for has we and strong have I'll have and the net Avi. very worked team -- which about relationships, on. maybe that comments of stop the cohesively

Terry Coyne

following to that So point, this haven't something tough certainly, we any data. at just we're seen it's say

we bar. I patients many been to the very disclose to beginning, of earlier, be for to made I with back But in interested see data XXXX. long We'll think, has in term. that Trikafta role important point continue so hopefully to think think guess, go the treatment the I really CF, the just high over will a it the that transformative Trikafta they a play CF of we sets

George Grofik

the we'll question. take Operator, next

Operator

Thank you.

question comes next Greg Securities. from with Truist Fraser Our

proceed may with You your question.

Greg Fraser

the question. thinking Thanks portfolio street the to diversification Is on for folks. ability morning, Good between taking years? the portfolio Where say would significantly follow-up next I your the and question. is disconnect over of few expand current you plan? potential or the growth the wanted bigger to it the your

Pablo Legorreta

that unique. high ability deliver and growth think growth, not Royalty of I appreciated this is really life analysts which to Pharma very think In businesses consistent, I sciences, where characteristic. definitely investors is there's have many the predictable, an area not have

very not has Is growth our drive and drugs, the a one X because our growth, We diversity case, have, expectations very growth, and very on And reliant but products. often bigger we've of but few product. then, didn't you are it's it's there played out that X have our XX PD-Xs obviously, much also, high because that's again, will the example, much X is the the because Company predictable. reliant same margins. again, experience our pan over reliant X. with reliant on margin. how duration big of line thing companies unique, some drugs was drive derived of Royalty And X see which what profitability growth, the with that the it also where to Yes, growth really they companies the growth. growth, X, the bottom attributes. Pharma portfolio, a much that that situations In is PD-X, more lower drug. all interesting even level unique to were of growth other is hurts launching And And the on had is biotech X be to of that for % very attractive drugs they or for are companies, reason our X, broad so that X seen very X, -- is going X the last predictable than other. portfolio, growth big in But well-diversified on of That years, high or even obviously X more obviously out. the from the is of very shows

duration ours. you We have to that's winter [Indiscernible] weigh companies see our that very, Many have winner XX of it's a years when as -- but duration average rare average a as revenues portfolio of very unique. X, long by of has durations X, XX which years, is big companies X,

or not classes of to classes, the showed as and or by companies more is model, as about entire few of no revenues X of have faster think is then portfolio, of And is can where to roadshow, openness have interesting in Pharma. again, And or that big teams constrained And again also and billion develop of products or look that there's times appreciated. therapeutic the force consistently [Indiscernible] few blockbusters element landscape [Indiscernible] much XX question us in therapeutic the And which blockbusters at capital -- our that or clinical we classes, in that's in add openness really -- X our which number growth our we're had and So, X of deploy many I our add how X held has. billion not drugs a what's we the really is Big business our is deploy any many $X a more, them. times groups therapeutic that we typical $X life an the rate portfolio. can sciences sales ability add and for clinical because the third-party on continue and understood, to well Big the of that X than capital infrastructure, Pharma X that classes classes, a budgets

create being has we it if of life that way deploy the but is -- that a them, infrastructure entire on Royalty exists it's about that that new landscape could have So, or R&D very we where of And royalty product actually capital already unique think and entire to also and &D entire have, the drugs think actually industry the actually I We're think developed. really one can Pharma, you developing business. acquire developed, constantly sciences, R&D is again. landscape us for we find either Royalty a a data to

think I the really it's not Pharma time. of of and the drives And has over period the very -- Royalty well what and understood extended strong unique investors growth success very that's driven So that. have an

Greg Fraser

Great, color. thanks for the

Operator

you. Thank

Cowen, with question may you Scala question. your next Steve from Our comes proceed with

Steve Scala

your have Thank few upside you. a all I on questions opportunity. focused

potential to then with as any far for on on, helpful. benefit high-level even as stands? decision Pharma lastly, impact potential have to OUS clarified. could extension you Similarly, from points that looking you about helpful. do benefit And how be partnership the a think be provide I'd the Again, get if business? any time quantification Royalty Pfizer patent it Biohaven if to will And would gantenerumab bigger how and would Nurtec with like First, quantification as Avi goes your rights 's few Imbruvica of

are sales is asset rights in global? the are the the secondly, Thank weather And the you. gantenerumab royalty gantenerumab to or First, your shuttle? same

PabloLegorreta

questions, to one. the answer Marshall I first think even X or last Yes, the ideal is

Marshall. go So ahead,

Marshall Urist

through. question down Thanks going I for were so Yeah, you write trying the Steve. to was as them

on news. on first Imbruvica the So Imbruvica one the patent --

first that upheld our just Imbruvica the everyone patents. and then expected of court level had set the The there, some previously for XXXX recently we to about news decision we point Imbruvica is to between expire that Avi's got XXXX. And the Royalty

generic XXXX. until XXth, in March U.S. has don't the expect disclosed that publicly Now entry Avi they

So, our position is that we are entitled to royalties on Imbruvica in XXXX. the U.S. until

to hard might kind about that mean think at but that this and look the model. that model point, your you at you for think quantify the might what So, what can in forecast I necessarily of

I that's hope So, helpful.

in of on takes often to and in out drug Biohaven what And seeing driven think make relationship. by think - our of broad, than and I that's was really patients play Biohaven years better infrastructure companies U.S. what's global to certainly deep history Pfizer years over many think as bigger the to is Pfizer. question countries And on I partner we appreciating there be, But than as perspective possible. a the very second the it companies certainly a help can times products the and happen this get multiple medicines with out can't for and even your long opportunity that for

we were about our see news are the very the impact business, our certainly that. global think we to on and so, I happy royalties And think as on

you so, the the was enhance else of of that the question collaboration. value -- from presentation come -- can't on Nurtec from from and And portion the Then the gantenerumab. of our ex-U.S.-- on help ex-U.S. that but third whatever may royalties

beyond on answer gotten to to which look works haven't moving yes, are -- specific Roche along, to that, Pharma. royalty forward is so first developments that, yes. the on early And is -- the we'll as the into we sounds just they're shuttle, sounds to the like worldwide further sales, I is so, is how Shuttle to exactly is royalty-bearing And and simply, Royalty Roche is shuttle, I on there. the think very say great -- Still that then like question our details and it

Steve Scala

you. Thank

Operator

you. Thank

Meacham Our comes with from America. question Geoff Bank next of

with proceed your You may question.

Geoff Meacham

I much the strategy and Thanks model. so just for on mostly business guys. have question. X, Hey, the the and

a quickly. second maybe there guess just areas and being what across biopharma? and one, healthcare novel evolved you I follow-up How say are fast-track a first of some maybe evolved more earlier focus to is: are biopharma, become for on realm? competition. of Pablo at to all investments bit your in in guys. the you for has a little of many Marshall have For that increased the mechanism look there PTXXX, diligence opportunities rather higher is s When question and high-impact outside for your opportunities nimbler that the play Thanks, a therapeutic risk; of example as And the these COVID's look therapeutic thoughts formulation some technologies in it's this, are or the of process an the one, than

Pablo Legorreta

the want you first do Marshall, to figure question?

Marshall Urist

Sure.

Jeff. Good and thanks Hey, I the question. for think morning they're -- X

aspects think I there's X question. to your

therapeutic that so thinking momentum on opportunities side and we are aspects side X quickly, about to there has, is, the either like the how is COVID on can first or The that. gather vaccine

Do in would our first past, things value And -- patients? is is I does how I with meaningful box? is aspect your those very team fast they be quickly do portfolio, to from at And treat if diligence a things we part handle how our opportunity those to our second, The come we which an for develop, able Xnd is, that think things, see check to not -- it's way of that attractive we think good enhancing your opportunities do we think they science too, that approach we've the no and perspective. which this -- is makes a is, looked of the always coming we approach how the our same does in the consistent matter something question can structure this meaningful for sense? to it X, that the Xnd and miles and be do long-term is there away. velocity --

team in that the adding network the external question. we've Pablo to quickly lot like And and we resources our that internal And think and a as expand we've just a deepen the able to that And strategy have well. past. about good continuing a about that. talked been move analytics that's mentioned also been lot so I we to by then are evolving thinking And be

or they in the think we're developing happens So, something therapeutics of stead part I not or whether are good new that landscape quickly. slow

Pablo Legorreta

of all technologies I we sorts Geoff, devices the and maybe we've looked past that just for therapeutics. no Marshall There's as to in royalties answer restriction produce that do. really not can provided. the to only to add mean, what

would We're in year. over many different as could drug, -- to are sometimes that's things, percentage example and about the MSCI, but -- the to composition-of-matter next they the that things of not be near result indexes created. end, of launch going things, things looked the a investment know, quickly, generate grow at in very And for patents going an is progress term, end revenue some open-minded a in anybody the But months. that I a few tied of on is, royalty. many that the on where give think at can to And very the management under at assets life comments But other move with if I many could Royalty. like you And But many be only to in great will anything that on start make very to issued decades. are to that it as the patent and sciences, with collaboration rise of Edward not revenue, other so we've which have made MSCI like quickly. anyway, there's

because that is to some talking have it constantly team where is that up products In and of very opportunities. just reacting have opportunities it's there built we a to react can us, many we quickly models cases, to interest. and companies we are know, to You already do

for that once Company assets Company therapeutic because a issues Company antitrust with companies. We in the the of that leaving is MS are the things we -- investment and us in can can to a an on into therapeutic thing wants have Company we're a complicated, decide think up XX But that making having therapeutic why we about have go it new acquisition now in hematology that's for exciting therapeutic to and to difficult, with -- are model area. it's this way But allows as additional for M&A with new in and years. can easier into we've a to any talking obviously generating therapeutic a and us comments drugs. and it make product an us, Biogen already X so that the that where all a so developed, very over companies product time? areas very about we get the investors life to investments therapeutic like we're add gene It think competitive in obviously, invest new clinical maybe interested of a occurring few most that was a much have area, -- business toXX exciting area, more view to But sciences. moment the product excited helping and and have we're we this innovation development that even really our us launch [Indiscernible] very investments is the and that they not unique -- matter a the this, have can anyway, perspective and and that you we create allows decades M&A, that are so mid-cap it. life -- Company make that quickly. years at and have constraint, royalty And of the make interesting want for the new If all That's there's in they made years for a big create in recover M&A on following are it. takes we're drugs Then to about Alzheimer's. quickly, to because of in a into make can solid [Indiscernible], recent we that's they many end market companies in if to react that is attractive big acquire Company. than new and by right very, buy a were a area given new potentially us tumor it get is what's year is very can aside of flow, Royalty We like investment and and that getting the other areas there lack that a Chris can quick. the therapies. Or more can If create have to the a in about we a look our that's today, like a to our and things of incredible to if then that's go exposure cases, at you unique attractive cash there's companies approved or in of your and get and so going if take month, them time, take to in that, is areas. opportunity trials, the diversify model biases, some if to was have M&A every point model they constraints, discussions a Is -- underappreciated move But asset, are those to in holder in [Indiscernible] they're But like drugs very, the for with in being and solid are an week. finance years. inflammation. area. it X quickly. take they really interested great some But sciences, openness that into investors, business In when tumors comes in, invest -- that an -- we case, We have clinical They can our

Chris Hite

for Pablo, question, Thanks, Geoff. thanks and Sure. the

I of that. think covered Pablo lot a

not market look is at that decade really a cumulative I the the looked We synthetic new to as actual as new sector, huge fractured will exist that, environment have And tremendous that that necessarily new either. look royalty get the we spend. you roughly But created we next the think that there's highlight opportunities, royalties technologies outside space. of over the is total involved really we're R&D if it's royalties over opportunity $X thing at a that spend in started be to that is and a sector at just the trillion. and opposed to given in one there just R&D at the how -- through whether opportunity is as addressable this other therapeutic the

Geoff Meacham

Okay, Thanks, guys. great.

Operator

Our may Evercore bottling next question. from new with you HUMIRA your comes proceed question

Umer Raffat

expect perhaps side. Hi, should guys. question. I since like that my that's in catalyst And heading Thanks scenario then MorphoSys big if curious. announcement It on do into looks the the wonder M&A to Thank on Phase as very product? Phase bigger quiet in III we I year. secondly, may, this deal I'd I sign you of much. the And a works, you've on be your MAB taking goes two well, three, first be multi-billion-dollar very something been pipeline for if you fairly a Again, perceive June. assuming have next

Pablo Legorreta

Omar. question Good you, about And to MorphoSys. hear interesting

years. be sciences about $X in I decade. when is to and in billion there billion over M&A look of per next an sorry, the It's $XXX next the The industry, billion -- pulls think X $XXX medics in by another governments, spends, it trillion Chris trillion $X that investors I'm much Pharma Large I think -- and by Big you foundations. $XXX is government and And how it's year, -- mentioned general just at going what and investment R&D -- Biotech Pharma, about it's NIH life over globally.

the so, planet, look year tens around When in they of invest an you R&D. many, industries of billions it's the in other number. And dollars many per incredible at

hundreds One is the the of at companies billions help of R&D of becoming of choice middle in up a part investment. year scale Biosciences, fund is industries of we're of partner dollars per that at Pharma the few invest and that this. Royalty to

a more more more huge MorphoSys. interesting years. a new deals that us every of to to able with that driver for quarter, doing $X.X every that year, the to what billion, But So, important deals to we're we're mid-cap than X it's is something It's invest probably every to And there. opportunity be $X some billion will like conventional happened could tell. opportunity, that And have or add going X probably per really than going us become I big hard but the are that is year. -- per realizing we're be And we M&A more are And one or or going are to is X have thing the M&A, things predict year. X X out do to ones that there or think is the difficult transaction. that then X year conventional reality every to

where of those we've there two to one They're Now of questions. them be spark been to looking transactions a coupler opportunities because things think to I there for successful, and other And the but missed attractive I to are potentially have the something and then that -- we it's a front time difficult and that's us. was also, deal very at, lot there line help will another question? in have, partner was transact guess where personally, to be spend, Sorry, we to really where I I think of I experience companies able we them. has honest, happen want it's with things very,

Operator

Maybe on Gantenerumab.

Umer Raffat

expectation Gantenerumab And my trial around for holds. your commercial if was question opportunity the

Pablo Legorreta

Yeah Marshall?

Marshall Urist

this excited like forward looking question, MorphoSys have are the data of post as part answer next the morning. And Absolutely. the now On Umer. to the yes. script, Good we're portfolio in we and year. mentioned Gantenerumab, your Hey, to to really deal,

been bring into multi-billion-dollar an And is shows multi-blockbuster can all at the safety past, dosing really efficacy we [Indiscernible] portfolio. and it those that has when has Like profile and this look thesis and a that class product it attractive by big Gantenerumab. we've clear But we on very checks in the mentioned supported potential support a a Company anything is to has certainly, be always certainly anti-amyloid like products. consistent whenever in had that boxes, the global dataset a a this potential. Our and scenario,

Umer Raffat

Thank you.

George Grofik

Operator, for one time question. we have last

Operator

Your with Matthew question comes Morgan Harrison from last Stanley.

question. your with proceed may You

Charlie

Hi, taking is [Indiscernible] This Matthew. the question. thanks for for Charlie

follow guess, question. Just up X, I

your could there. to about little about can in biologist then high think how launch little bit dynamics a given it cystic a that arbitration fibrosis I bit if just maybe a discuss you that one, the the ultimately talk how step. at just if second, can royalties you Thank procedure you. and gets impact maybe And view of level terms

Pablo Legorreta

maybe you it's Terry, gantenerumab Jim, picking on then respect talk potential about CF. also mind arbitration with would the can question to

Jim Reddoch

I -- the to came its Maybe I question. that profile of efficacy issues going market it We're being with a shows reimbursement real as what out, was viewed and had the has is that had the by Sure. big a over to some compelling than that mean, practitioners and and of that yeah, its that roll I surprise with a in come Biogen just had sorry, that has payers hopeful improvements showing. and is product invested am to expected to sub-optimal. efficacy we're recall differentiated slower Gantenerumab package market one because kind not in product rollout.

be it there possibility the could that a So, unmet I what has data. correctly really I acting been patients, antibody huge 's wouldn't has an with quality is valuable developed need Alzheimer's, a is is. view amyloid good think what in still possible Biogen and as And experience is product which in to

Pablo Legorreta

I'll unmet the medical world -- has of characteristics a huge of the And ask biggest that the in Really know. works you a this something as and I'll very patients X ask There's drug a need world. the Gantenerumab. that Maybe quickly. in drug need the

So, be we're drugs profile it one biggest holds, one the become our healthcare. portfolio become very best-in-class could it the drugs and excited the of biggest of about could it having because that in if in could

have in Marshall. it's exciting -- But go it's ahead, portfolio. to So, really that our

Sorry.

Terry Coyne

to discuss appropriate I'm mechanism really the this us but in it's Terry. at going for address a not is resolution legal to There the This is CF question. contract, strategy. dispute any point Yeah.

Charlie

Thank you.

Operator

And call at this I back turn like over any questions would I'm Pablo to the for further time. Thank to further not any showing now you. remarks.

Pablo Legorreta

Operator. you, in And your My thank team forward and Thank everyone you share our to to with to progress Royalty Pharma. for the continued call look continuing on interest you. I

very Relations, George to If any reach to Thank feel our Goodbye. you Investor you much. questions, out please team. free follow-up and have

Operator

today's Thank participating. you. for concludes Thank you This call. conference

now may You disconnect.

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