Royalty Pharma has created a rapidly growing company within the biopharmaceutical industry through the acquisition of revenue producing intellectual property – principally royalty interests in marketed and late stage development biopharmaceutical products. Royalty Pharma does not discover, develop, manufacture or market products. Instead, the Company provides liquidity to royalty owners, and assumes the future risks and rewards of ownership. Royalty Pharma has been working with research institutions, inventors, and biotechnology and pharmaceutical companies for over eight years and now owns royalty interests in ten marketed products and four products in late-stage clinical trials.

STRATEGY
Royalty Pharma’s strategy is straightforward and simple: acquire royalty interests in leading pharmaceutical and biotechnology products and hold these interests as part of a diversified portfolio. We seek to diversify our revenue base across product and therapeutic classes and can leverage these investments through borrowing under our AAA-rated securization debt facility, thereby enhancing our return to our shareholders. The value proposition to the seller is equally compelling: we provide holders with the opportunity to achieve liquidity for their interests and alleviate the substantial risk of owning a single-product royalty.

Through our strategy, Royalty Pharma has earned a reputation as the industry leader and has achieved rapid and profitable growth while maintaining a manageable risk profile. In 2006, the Company’s revenue based increased 24.1% over 2005.