RPRX - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Royalty Pharma Fourth Quarter Earnings Conference. I would like now to turn the conference over to George Grofik, Senior Vice President and Head of Investor Relations and Communication. Please go ahead, sir.

George Grofik

Good morning, and good afternoon to everyone on the call. Thank you for joining us to review Royalty Pharma's Fourth Quarter and Full Year 2024 results.

press call our of on at the slides results our find royaltypharma.com. this to the can release earnings with and website You Investors page

with information like Slide these involve that statements. SEC materially description to cause unknown the other you remind I actual to and and this our would I of uncertainties XX-Q that Moving you contains refer X, known on that a most from factors risks. presented risks, forward-looking results in call differ file to for recent these may to

are to statements. statements obligation we forward-looking to based Pharma, no All on information available assume forward-looking Royalty currently update such any and

measures available results. provided financials liquidity understand is be of on you the our help our The press earnings our GAAP Non-GAAP in financial website. release used these will to reconciliation measures to

please that, with advance to X. Slide And

are Terry call Research Head Founder on and Chairman; Chris today Chief speakers Investments; Officer. Financial EVP, and Pablo Our Urist, Officer; of Executive Coyne, Chief Legorreta, EVP, Vice Marshall EVP, the and Hite,

and a Terry remarks key on and pipeline Pablo will the transaction our session. will after portfolio. updates provide Marshall then we hold Pablo, and highlights, following will from financials review concluding Q&A will discuss which

turn to call with I'd that, And like over to the Pablo.

Pablo Legorreta

the welcome as and leading report me great funder another the innovation to pleasure George, you, strategy call. of Thank life to against execution successful on everyone It sciences. our gives year and of

high initial terms, I line In our Receipts through expecting look XX% achievements capital of of top of the billion. very significantly X%. We're our represents range. our to also of our Receipts growth Moving We should of Portfolio portfolio since XXXX $X.XX and proud X. point performance guidance IPO. our underlying at track which we're XXXX. X% was Portfolio record to for delivered billion Receipts deployment. excellent this billion significantly strong When continues to that exceeded out and the year, again we Slide in end of enhanced $X.X our guidance XX% to We or strong delivered performance our of and $X.X growth Royalty financial

portfolio, added including four therapies. for of for for for news portfolio therapy, In across including development brain royalties for we on approval FDA cardiomyopathy. schizophrenia our of positive NDA saw cancer, ulcerative aficamten, Voranigo of terms acceptance our Tremfya We and the And colitis. Cobenfy obstructive hypertrophic Cytokinetics, space FDA AD

portfolio in attractive and Last terms In of very our $X.X year allocation, we depending million framework deployed well share of on the scale as announced transactions, our repurchases. $XXX we price share discount had of shares capital to intrinsic value. buybacks royalty billion will -- evolution month, an capital in which to on our capital we a as broaden further or allocation for to we

As authorized new repurchase repurchase part of billion in share a $X Board $X is and to plan, billion our this, our intention XXXX.

generated redeploy. In MorphoSys $X.X ones, we the month, monetizing will cash by in which we the past funding billion also development over

a we company. planned an Lastly, truly of external the Royalty become with acquisition announced of in start step at integrated a evolution the our Pharma XXXX, to manager transformative of

We quarter expect second from of the this transaction, multiple close will this strategic in and which we highly compelling anticipate financial year. internalization benefits

manager the shareholder step value an our we our scope Last to logical IPO moving life future our evolution of and announcement month's in closed a have next the since investment and Pharma the the XXXX. serial is an then for best from business Slide This expansion position internalization the investment of and June creation. to an in Royalty of of growth highlights X. journey ongoing business started XXXX through Moving to in been I with on fund

XXXX. in more stage been approved its line has of it Royal portfolio receipts gives Pharma alternative background of development which fee the its more which industry-leading Royalty and XX Under unique a common this is products Pharma's externally to owns but structure, of current structure. company X The than managed it includes loyalty no pays on asset creation top Slide has portfolio among platform. since therapies, XX management the at turn which XX X.X% therapies, manager, in employees. provides managers, Instead, blockbuster

will internalization, Following the the the and Royalty capital one scale employees company entity. Pharma and platform to will the intellectual transfer integrate into entirely investment the

Pharma the will on of -- Royalty shares future our -- Royalty we Importantly, platform products. our biopharmaceutical that now of leading on world-class engine to kind investment investment, Pharma believe unique of value the the own of that volume that reflect top the value portfolio

than Slide multiple over the the total Financially, compares next $X.X we XX for benefits extinguishing expect over million. management the shareholders time. billion. X XXXX, internalization. savings $XXX more we fee from to provides savings expect This consideration be of cumulative of will to And greater from detail In are $X.X cash billion. accumulate over expected on savings the the years,

addition, returns by ending management In fee net royalty for will investments the shareholders. increase the on

benefits. are many there important [indiscernible]

be management will stock X years for in majority strengthened alignment investing X to will the paid and substantially given be First, shareholders' years. consideration of the

a employees equity maximize retention. with all Pharma, Second, of continuity this personnel Royalty vesting to and with ensures long-term transferring operations to

to robust our Third, governance commitment practices. it enhances

think for Royalty shareholders of for success. to simplification compelling transparency. enhance other and strengthens is value further and long-term We and Lastly, highly transaction creation our increase this Pharma will companies comparability prospects

it hand will Chris. to I over that, With

Christopher Hite

and a opportunity update want Pablo. of I give ahead tremendous the brief set Thanks, pipeline transaction on us. our to

XXX This prior year. demand for increase an potential XX our and record strong leader. tailwinds secular XX% a the busy as driving funnel. competitive moats financing as the in us for around clear versus Slide well shows the transactions. of more This We're the speaks to transaction as market royalty our was reviewing XXXX royalty than

move down initial agreements submitted. funnel, reviews While resulted proposals reviews XXX confidentiality in-depth signed, then these XX in we the XX and

approach reviews a our transaction total we our selective $X.X and of We value executed on only billion. just of or highly transactions as continue for to initial X be X% disciplined

You approved blockbuster therapies. between and are can slide receive therapies or this [indiscernible] stage even potential have we see new royalties, will potential. multi-blockbuster nicely on development the balanced X on which which The

XX an set, our many fastest-growing creating new Slide on as non-dilutive opportunity why this update solution involves for a reasons parts of win-win synthetic of royalties solution funding namely partners. needs, meet value can through and This are a provides control. for one long-term solution to the asset true It our partners. innovative our royalties. their a the There operational It our represents our proprietary analytics. independent approach of tailor validation allows to add lastly, us partner retain allows we aligns to And interest. provides the

historically deals than have debt. funding. dominated X% licensing equity been has Synthetic funding by overall Biopharma royalties of and represented less

feel discussions, modality. partnership discussed We are will confident important increase being based routinely that C-suite on our are the royalties synthetic this proportion an board funding level at ongoing which as and

this royalty a for XXXX. synthetic year achieved has doubled of figure since This with opportunity, we million XXXX. record $XXX Consistent transactions in growing more than

I advantages requirements and further innovation, royalty huge scope sciences the life the tremendous for we funding for growth see With described synthetic funding. in

over With to that, I'll hand Marshall. it

Marshall Urist

Pharma's today transactions from year Thanks, of will on to this growth exciting Royalty XXXX are in Chris. royalty beyond. that to group an and and I launching recent five contribute products want focus

therapeutic of out What science that a underscores their five diseases launching our novelty technologies. well-honed agnostic patient first transformational summarizes focuses best-in-class area This in either being as and or on stands therapies. and XX approach these diversity Slide covering need.

Voranigo additional of The each $XXX royalty from annual XXXX. brain in Receipts. see based launch well, in we Royalty double-digit are a in these. royalty to progress opportunity large exceeding on see on underappreciated tracking and We Touching million Voranigo excited and our cancer potentially is

You peak Putting both together, is billion, add $XXX royalties. to new Yorvipath respective applying Rytelo sales a forecast million start annual probably in and as peak treatment of amount these of Geron's well all portfolio rates. and estimates potential, over therapies Consensus million $XX Ascendis' Niktimvo five as are significant we their consensus off to schizophrenia. royalty now which Cobenfy, after launch over would much generate aware are for to sales which Bristol's to for this good received underway. $XXX point total

stage This $X.X X top Furthermore, you new very layer contribution activity clearly the of therapies, on our development of we launches context continue that base these from investment of and and Chris that year diversified just billion. generate will scale highlighted opportunity meaningful of market portfolio our feel you in returns the confident when strong XXXX of receipts of receipts revenue of is our pipeline why portfolio we XX to see can growth.

Terry. hand with that, And over it to I'll

Terrance Coyne

Marshall. Thanks,

XX% our the [indiscernible]. The receipts line for Slide Receipts onetime payments drivers [indiscernible] to Key portfolio. Biohaven-related shows cystic by This generates quarter franchise, substantial year fibrosis Trelegy, strength XX. move and XX% fourth year, how reflected performance reinvested. flow in the for in are Royalty to our business efficient the strong diversified be cash slide in the [indiscernible] Let's received grew reflecting of the were and top XXXX. primarily milestone portfolio model decrease

Net and was for the X.X% consistent equated $XXX payments and As the received our net the year, down we quarters. of column, and the timing costs third interest million. to in interest in the the X.X% quarter paid our quarter of reflecting in first professional fourth interest fourth move portfolio year with de operating Full guidance. was minimis,

expected first raised note with interest on that this from did incremental the we new that interest quarter tranches should this billion XXXX. in the summer, of first of reflect $X.X not You debt those payments the past

of under cash was once a down Moving interest basis, $XXX the of redeployed to total equivalent third amounted margin million, by royalties, paid. portfolio flow Capital full to our EBITDA column. further our approximately a underscores cash We've to the less think the we conversion, cash then through the again to cash of generated net deployment the the million margin efficiency in just was high into in quarter, XX%. $X.X when the quarter is value-enhancing This $X.XX of stated year billion, portfolio year business XX%. business that billion. level of we adjusted taking model. be look which flow consistently This $XXX to The

model in an period IPO IPO. shows royalty of growth XX%. X XX since the of double-digit has unique over Slide the growth our since strong delivered that with growth annual our We X our business powered years receipts average

record are proud particularly track consistent strong of this of We growth.

the more XX XXXX. provides line Slide evolution in of detail our on top

comparisons X% year-over-year Royalty well payments line. of As impacted for earlier, which guidance cash recurring portfolio initial XXXX XX%, in which Biohaven-related ahead I of our around grew Receipts, by top X%. our significant we our to inflows receipts, consider was highlighted

on you as our base performance receipts see performance can Importantly, this of driver was royalty business the primary strong in slide, XXXX.

we year, that our cash markets. business our sheet, cash our maintain generates equivalents a of million. combination the capacity balance access end of we At shows financial the the on XX through significant continue and to had debt strategy execute to Slide to and $XXX of cash

from January. We bonds MorphoSys include funding the also the proceeds development in

Our on cash and equivalents billion forma stood a at pro $X.X over just basis.

$XXX MorphoSys we an the that approximately in received sale, On XX%. bonds, funding results of million which the investment on proceeds of IRR development on

borrowing around Xx In billion. our debt terms outstanding of total position, debt have leverage at of investment $X.X stands EBITDA. we now grade to

capacity also billion We a revolver. $X.X financial have undrawn from

to repurchased take price $XX continue fourth total our million on of buybacks the on quarter, and share [indiscernible] We fundamental $XXX XXXX. the spend disconnect million our during taking in to our shares

billion As January we $X a XX. share a reminder, on repurchase announced authorization

progress an first our earnings We net on on quarter our on authorization will provide call. update new

out allocation framework. Slide our XX capital lays

on cash, cash price or growing royalty a balances other to where deals. back a have share focus dial deals, our be important for valuation and any of an intrinsic the the approach down will share to for dividend trading framework, royalty When when price at capital is our share the increasing our our available a of In share our environment discount value, its allocation. to view repurchases to buybacks an Conversely, premium available, plan against attractive options value you royalty shares or of wait part We right dynamic would deals higher are repurchases debt deals. we share returning neither intrinsic distributions. attractiveness have including our which

the through and the we're left value of effectively shareholder intrinsic operating many Ultimately, as stock. royalty value as capital focused possible. a and in we are attractive opportunities believe driving our where we Today, we efficiently to allocating on discount see quadrant, upper

last to up we to shares an XXXX new in repurchase with $X For level value. of program to this on share the of $X depending reason, and announced intention a repurchase billion discount intrinsic billion month

the on detail shareholder allocation granular more provides capital to XX balanced Slide of drive our returns. evolution framework

capital in billion We on expect of significant between capacity to maintain deployment our royalty and $X.X to guidance with financial $X execute billion XXXX, year deals per average. of consistent

also but returns, target investment in that our note IRRs years. higher maintaining recent are We have trended

an a rating. maintain also to We strong credit commitment investment-grade

to to which percentage change dividend our no is [indiscernible] annually. by grow policy, mid-single-digit there's a Lastly,

year XXXX provides XX our guidance. Slide full financial

portfolio X% which expect reflects to We This growth momentum billion, billion to received to launch $X.XX Part also of takes range impact well [indiscernible] equates as portfolio. X%. D scenarios redesign. guidance for into diversified the [indiscernible] of Vertex of in our be and account $X.X to the It a of [indiscernible], generics, triple the the of Medicare range of biosimilar the as new for around

other will [indiscernible] of sale. asset receipts receipts increase million to $XXX be the funding not contractual bonds approximately XXXX as monetization and and expected million million in development portfolio in from MorphoSys in be are an $XX will to $XX treated recorded upfront XXXX. instead for

benefit of today. the does of future our with this consistent take acquisition. standard account on guidance any as Importantly, is royalty portfolio into It not based our practice,

that $XXX had the the long-term to Biohaven those XXXX. note line both IRRs relating top would approximately on been increased higher been accelerated, would And and MorphoSys You also have of in payments our which million not investments.

related Turning takes to XX% efficiency operating costs business be not figure does MorphoSys the expenses to onetime of funding This sale account of bond Payments into approximately and into increase guidance professional take XXXX, professional expected are benefit and development transaction. portfolio in account our for of seats Furthermore, around point. lending to percentage to costs X the internalization operating costs. model. the our by operating

an provide after will it We closes. update

$XXX We expected increase additional interest in into which our amounts cash first which not on $X.X year. June paid which Interest in fourth $X XXXX, million $XX does the reflects in paid billion of payments also of to the in reflect quarter. in year-over-year minimus will due full interest QX. million around This to with account balance, of and It expense, the the not XXXX QX issued notes payment internalization from XXXX be take is interest for million in the the guidance be quarter does received follow the transaction. was first

decreased count equity consideration, final be which long-term would clearly a is in our offset As the expect year. the average the program, issuance incentive while slight which from the success reflected of to the of our approximately a share count of will million awards $XX performance performance compensation investments our XXXX. repurchases reflects share XXXX, XXXX. awards, there in XXXX in of be and in It's equity value half approximately over course share that

expect deliver financial year we strong XXXX. another to performance in close, In of

share We shareholder to are excited and repurchase by transaction. the opportunity program accelerate internalization value through our new the

like would to I that, With the hand call Pablo. back to

Pablo Legorreta

Terry. Thanks,

summary Let's move have heard you for to messages Slide today. XX key a of the

significantly delivered our we which royalty performance in during with guidance. in solid X% receipts First, we exceeded growth XXXX, initial

adding capital $X.X and deployed X of substantial new diversification growth. long-term further billion also we royalties, as We acquired exciting

demand we manner. so returns, and transactions, years. to did very the our very recent fast-growing position. in Second, initial a to royalty drive continued set to Pharma, royalty for opportunity conducted which continue have have speaks leadership potential a to XXX we We on a higher disciplined In attractive record order in for which strong Royalty trended over new both reviews funding

growth have started and attractive that important is XXXX our Third, value with positioned enhance to we new value internalization increasingly deliver further I'm billion transaction. our compounding considered share Pharma confident shareholders. two to shareholder repurchase drive Also steps well program for Royalty $X and with to

take happy be that, With we to will your questions.

Operator

the question from come Meacham Instructions] first with [Operator And Geff will Citi.

Geoffrey Meacham

question. the for Thanks

maybe lot And know question, reactive guidance, stance? IRI assumed point assumptions engagement risks royalties and there Same are you're more of maybe provide or the the I had Pablo. on additional give sure a a I from lift us if on included, wasn't what coming any isn't making you for know a Just received know more policies sort [indiscernible]. bigger the estimate, administration are on want new picture out but in Terry, of or few. to of guys but the if you MorphoSys the don't any you for that I a fast other guidance? with tax I taken year. milestones of second portfolio seen D.C. new would a truck furious, had the detail you we've perspective? to say And

Terrance Coyne

Sure, Geff.

So very you normal be not the for Royalty that's contributor contributor term. on we to Pharma. as to for as guidance specific be will I far XXXX a But of a important important those be specific looked will and haven't can as there, for to anything expect for of the both range continue we product-by-product [ looked that franchise also, imagine, will a a our provided and also given very CF yes, scenarios. they at And ] a just believe haven't guidance, long [indiscernible], practice, the that Alyftrek continue continue you Tysabri but scenarios at we of Royalty range and Pharma over

In terms guidance, in of of XXXX we assumed assumed $XX million so milestones. milestones or our

year. of guidance So not component large the portfolio received for particularly this a

Pablo Legorreta

also the excluding MorphoSys... And

Terrance Coyne

Right. that a from will portfolio not [indiscernible] funding It's so it's going asset Yes. in the large first quarter. not we show relatively that process -- $XXX receipts. of up development there They're the an sale, MorphoSys of guidance as but was more treated but in our part sale -- small, did payment get is related bonds million to the to

Pablo Legorreta

to administration early So closely. with It's respect question picture days, of care. and very to the Geff, bigger your the related following initiatives health new we're

In our in any question impact don't or of regarding the terms foresee any your we business. change of taxes, taxation

we're thing to is on who Bio. Board, Chairman the [indiscernible], say that would I is the have And our other fortunate of

how get administration. the industry get bio to involve And infect we to another into plan through with that is industry discussions So and to much I've been on just what's and reacting. thing do in is him the with going

Operator

question And from our with Schott JPMorgan. next comes Chris

Christopher Schott

how Just get synthetics breadth can returns more for royalties. of of assets talk trying can't know the as -- source to then compared royalty is question Alyftrek Maybe my sense the a kind higher us you many returns know two maybe the you pursue just newer too I about this second you little arbitration the the synthetic think Street of your a about expanding with royalty think more Vertex have or of the royalties when details, and some well? might the on going have me. process to but bit if walk is in I'm I we here also about the was just of the launch. play TAM how you you and more can growth situation questions timing Can the out. And should just just on if visibility how structures. through Can provide on about to traditional

Pablo Legorreta

for question. Thanks Sure. the

why talk So of the returns. question Chris, on take you timing Vertex synthetic opportunity can the about and then royalties, don't the And scale Terry we expect. the and the

Christopher Hite

a The question, opportunity, last for Thanks Yes. the year. year said, synthetic we as Chris. record we had

You and mind a we've but talked -- positive. We've trends really bit, this in seen just saw really we've I shift very little seen about very, a sector. the think the

as So when has considering namely with X or or equity capital raising when capital, embraced capital. fund you debt business opposed synthetic last to pharma they're royalties sector alternative the forms just really over the think to raising partnering their years, of

control, pharma, typically U.S. some giving Obviously, partnering up rights. when operational you're you're with

control, our think, deals partner, ability extremely States us we as I with partner they create, to an continue all retain in evidenced year. for capital an last them we maintain example. our they because a solutions the marketing just the find operational United by did win-win the and And as being So attractive

on the our them of able to I've return returns, didn't win-win all wouldn't Obviously, relates returns. about achieve we we it that nature like we the transactions, be as transactions. return if mentioned we really benefits as feel those of profile. returns, And to good we to them discuss profile doing we're the And the the highlight those

front it. about about excited really We're excited really set of we're the in and the So returns us. opportunity

Terrance Coyne

And then of arbitration. just track timing on

about strongly previously, same to to continue feel [indiscernible] what as really [indiscernible]. reiterate just is So this. we the said we thing

do feel we in that position. confident so very And

of update draw-out have process, typical right In arbitration, arbitration is what court that arbitration unlike But really not timing any is can't timing. now. a of the don't process, we long can specifics terms a provide but potential an right we now any we around say

Operator

Michael will TD question And come our Nedelcovych with next Cowen. from

Michael Nedelcovych

is have Is my initial I margin. going again. XXXX, first on least by in fair back two. My process. the what guidance screening given healthy conservative? may your for transactions year-end the then question a to you say is believe line a top is X performance from at And ended XXXX that not second year pursue assume on to common transaction? [indiscernible] Royalty to each outstripping impressive, it you I reasons are guidance Pharma's very up somewhat XXX guidance be would reviews your only that do most

Pablo Legorreta

take question then Sure, guidance Terry, process. and the on why selection the funnel you don't on Marshall our and one the

Terrance Coyne

Yes.

that types have starting to the So now. invest the early you're the just portfolio. right It's in, kind tended historically we that's We're just of in that we just outperform. I products the correct nature And of year. of think

about bit towards But right We're how and And portfolio. we confident imagine. range days a numbers, momentum we things is in very now. it's can hope you there's so of evolves, the can but year going that wider heading early are be lot a like our just feel as higher the great little as

Marshall Urist

Great. your question Thanks for on funnel. the

clinical the is And core discipline So the data, something entails investment never that it's the of the potential property. process. is feel profile, that really to the product, clinical strength quality question. the anything is focusing a never of do intellectual our the we on it's funnel of to commercial our partners, We to compelled the patients, important the good absolutely

and of what we you look think top if I skinnies the the So all opportunities down looked the at. that at funnel

broadly think across do pretty I of spread just it's those probably I all mentioned. things that

one. important be an important factor. IP is development of stage think can I another

a profile development product plan. or commercial it's stage stage if And either terms in a of I think then the

adding But North our high-quality is that across year of discipline and on Star and I really guide to sort this the to think portfolio board. only it focus our continue products will So process and that is important beyond. the really what

Pablo Legorreta

If I process the on investment the briefly couple just maybe add a of and other very can just perspectives funnel.

and teams their XX because here at is practice is to about come a the And management that we told in held really that's X, look perspective that a but that have technology, what and to potentially Royalty this that really with of, products for years long team we've decades learn their there, I ecosystem to the everything good things science Pharma We from behind do how us now. we us be their for whole all gives developing, and to out successful at on a time the products. spend need time. really it going are opportunities

perspective, an sometimes, tell actually they was it's able hearing There's So X, hour going look but whether hours we what also we early, X allows looking and in see to they were get spend story deliver do. us at and the many meet what but they plan to hear listen early the management, of to allows And opportunity or everything. that -- had early when do. stage, at year things then a them to their told are we to having us we'll then we management sorry, on do to on things us to those to

and a really it very of is breadth process, dynamic also So the it's important.

Operator

from comes with question next Goldman Shibutani Sachs. Chris our And

Chris Shibutani

growth decelerating. subsequent And the slide strong expect the quarter and is reviews year, if back to that was those the constraints increased highlight funnel. what every And this to of of it potentially continue though numeric I through And that? appreciate with the pace at Numerically, in initial always of about XXX, mid-XXXs has initial level, a the are reviews stages. past I XXX, and Great. from your starting we should this capacity to year year slide XXX, since in been removed. to this it that IPO, there's over talks also go the last each growth every

been what searching to partnering with And constraints, of assets you perhaps embracing you And can look in is from to active? second China. certainly us ecosystem access and particular royalty-based more talk thoughts? question is your become a would of late have there? approach? has is regard the not to about an be, Any industry exposure we and lot a that footprint should scope globally, of you Do the that for Or doing necessarily

Pablo Legorreta

on funnel take initial the question should the reviews. Marshall and

Our [indiscernible] not at with acquiring business investing HUMIRA, have yet is great for mean having transaction Without successful in presence in a that in and ago, global, make were we physical have a investments we but example, for to been Europe, years decades. in able technologies. signed [indiscernible] from a doesn't now China. things [indiscernible] in and We presence Europe, we're up, not in that looking globally

them all U.S., the just when obviously And what travel meet the to which they happens and and meet do time. come we go companies is done and have and has

them look keep in with had Western I and we interactions if do and China So the that we And to biotech known licensing companies. are plan to be to them there -- think increase at companies this XX and have technologies them, for Chinese year really years, years, actually developing you dialogues XX great in intend again. touch. Marshall? top our We've

Marshall Urist

Yes. Chris, your question. thanks for

think is out you exactly right. I what point

size the I opportunities of I capital the that X that big has have alternative and of in funding the think the last biopharma that is something we public, went thought how scaled we in opportunity at, of since looked think forms royalty-based how opportunity IPO for has we I what saw the was number were we about the things and for And our excited since has number market what went everyone the that proven which think, public, the think really was we when -- our hopefully, capturing. years record I -- growth track about over out. we convinced of

I So think from here. that's the message

did important I great products continue year we important adding year, to But at. do of that the to thing exactly what think is products of the have when look that that's kind will as I every are thing well very a development-stage to pipeline, of really well. launching at portfolio. broad products scope a really think very, impactful, the want we to as attractive we you look adding to as opportunities to And example of last we add finding our

seen example great that and Chinese how to pharma think companies the licensing deals I to I from -- licensing products we of there how and mentioned, and opportunity we're source royalties us. from a us in another that further world adds multinational we've And And So think continues royalties excited of as in being about China that is expands the think for really the just front the the what as opportunity. of see market terms I Pablo expand. in is ecosystem created are of

the really excited So are we about us. in opportunity front of

Pablo Legorreta

our is teams way one team, our Royalty size team a that of life there, the to very another of is in focused adding amount sciences. investments just would take also exist life the to really I able XXX-plus as this [indiscernible] maybe Chris, here the year that and mention are of investment last of important is significant what in that Pharma sciences is to said, the opportunities out things on global. specific be our at business of and advantage is that I actually largest angle team that, scale And matters we say has making that looked a of totally

that don't of we invest another in don't that are as requires you there's companies skill biotech equities, we know, thousands set. Obviously, public and --

global large We investing the have is very and specific of we and a team a way reach. has have

another mention. that's I So to wanted thing

Operator

Securities. Bank And of come with Jason from will our America next Gerberry question

Unknown Analyst

on amicable Dina impact olanzapine there view ]? provide D is you official resolution. versus us. believe matter. for of definitely then with the IRA by expectations products redesign you there on process an the D material? mismodeled redesign be Vertex redesign, exposure Are will Two the you are arbitration a be your you quick This the elements LAI on that Part the One, such impacting probability do the follow-up And any could more high do there Jason. from color any to [ as Part How And that just able as a are Street? products on

Pablo Legorreta

Sure.

So Marshall, IRA. you to maybe, And Vertex, the on impact on do question or take you Terry the question the George, want take of actually.

Marshall Urist

Great.

anything about how for quickly can just for we Terry it terms and in thought guidance IRA, of So XXXX. add on

in portfolio. -- a It blockbusters ours broad multi as we we as portfolio some with is some the So in have with and important watching. the are products something

D then important is a we've I is actually which and take exposure, on Xtandi when think back year. X things the the price initial and one Part of for overall portfolio, pretty We've at that Imbruvica, highlighted look last modest. this year, was, there, for the highlighted step negotiation the products the exposure and IRA list of course, Trelegy. you

negative more we we're beyond against balanced expected in that watch the then and revenue So perspective, something And positives think as the this completely how some in terms I evolves the definitely us. will for lower how the from as but watch. that's to continuing out-of-pocket of to portfolio, aspects continue a well of and exposure

Terrance Coyne

[indiscernible], around If that any we point. investors the arbitration we at is specifics can't can't there update, get time. something this update we where at -- will On just definitely in a have we -- to

Operator

And our Ash will UBS. from next with question Verma come

Ashwani Verma

progress. Congrats on all the

XX% Alyftrek, guide of I or to due internalization that versus on previously have $XXX operating can becomes I at can royalty the this One two reflect questions. beyond not I And then is XQ? received costs make mentioned you wanted receipt. portfolio then savings is So were does the it yet? XX% that mean, had million the before to the that rate sure level extent that and just the for before? you you have at go X.X% resolved X% would first Or this to comment, that? And to be the the at the prior professional

Pablo Legorreta

don't Terry, take that why you question?

Terrance Coyne

Sure.

be not operating call around that the the internalization mentioned would X%. to XX% that, the As internalization we reflect guidance think number professional cost we X% So on on following our does internalization,

We to that believe continue case. be the would

be that's post which So year think the to example, first about full internalization. what as for probably would an XXXX

just -- gave. is $XXX in it's tough reflected to and pre- of the number And split I the to because of that kind going million it's year, X% a little savings This it's savings, that post-internalization. X% a year be of

We would again, at track, the at any is lift the recognize can't uptake. of time if here terms and timing. appropriate provide an are In specifics there investors we the that update just more about to learn investors time

Operator

further no to show back I I remarks. would at questions in this over closing for time. the queue like turn call to Pablo the

Pablo Legorreta

to I'd the few end in maybe just forward months. Thank in to on closing Royalty that capital share as our call exciting operator, of start next repurchase to your the transaction an exciting say see the thank interest then really you our we into everyone look ahead continuation we for internalization and And And products. you, program. the share buyback then benefits like internalization, to the -- Pharma. the on continued deployment to the you of of update to year

please And George. so any you to questions, [indiscernible] to you. feel have reach now. out if free Thank follow-up

Operator

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

You may now disconnect.

Royalty Pharma (RPRX) 11 Feb 252024 Q4 Earnings call transcript