• Strong growth in net cash provided by operating activities and Adjusted Cash Receipts(1)
  • Announced transactions of up to $2.5 billion year-to-date, including $1.7 billion in upfront payments
  • Increased 2022 guidance: Adjusted Cash Receipts(1) expected to be $2,275 to $2,350 million
 

NEW YORK, NY,  August 04, 2022 - Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the second quarter of 2022 and raised full-year 2022 guidance for Adjusted Cash Receipts(1) (a non-GAAP financial measure).

“We continue to make excellent progress against our strategic and financial objectives,” said Pablo Legorreta, Royalty Pharma’s founder and Chief Executive Officer. “Our diverse portfolio of royalties delivered strong growth in the second quarter. In addition, we further cemented our leading position in the royalty funding market with $2.5 billion in announced transactions year-to-date, including the addition of Trelegy, a rapidly growing blockbuster therapy. Looking forward, the tailwinds behind our business remain strong, fueled by the significant capital requirements of the biopharma industry and our ability to create “win-win” funding solutions. By executing against our mission to accelerate innovation and transform patient lives, we are confident in the power of our unique business model to drive long-term, compounding growth.”

Second quarter 2022 GAAP financial results demonstrate robust operating cash flow growth

  • Net cash provided by operating activities increased 8% to $575 million; Net cash used in investing activities was $30 million; Net cash used in financing activities increased to $228 million.
  • Total income and other revenues decreased 3% to $536 million.

Second quarter 2022 non-GAAP financial results show strong performance

  • Adjusted Cash Receipts(1) increased 10% to $524 million, driven by a double-digit increase in royalties from the cystic fibrosis franchise, Xtandi and the addition of Tremfya, which more than offset royalty expirations.
  • Adjusted EBITDA(4) grew 10% to $480 million, driven by strong growth in Adjusted Cash Receipts(1).
  • Adjusted Cash Flow(2) increased 12% to $482 million.

Significant deal activity expands portfolio with two attractive, approved therapies

  • Acquired royalties on GSK’s Trelegy, the leading triple combination therapy in COPD and asthma, and ex-U.S. and ex-Greater China royalties on Gavreto, a precision oncology therapy marketed by Roche.

Positive updates across royalty portfolio

  • Pfizer announced the acquisition of Biohaven, accelerating value creation for Royalty Pharma shareholders.
  • FDA filings accepted for Biohaven’s zavegepant in migraine and AstraZeneca’s PT027 in asthma.

Raising financial guidance for 2022

  • Royalty Pharma now anticipates full-year 2022 Adjusted Cash Receipts(1) to be between $2,275 million and $2,350 million (~+7% to 10% year/year), excluding transactions announced subsequent to the date of this release.
  • This guidance reflects an estimated foreign exchange impact of ~-3% to -4% (-$65 million to -$85 million)(9) for FY 2022 year/year Adjusted Cash Receipts(1) growth, assuming current exchange rates prevail for the balance of 2022.
Financial Summary Three Months Ended June 30,
  (unaudited)
($ and shares in millions) 2022 2021 Change
Net cash provided by operating activities (GAAP) 575 532 8%
Net cash (used in)/provided by investing activities (GAAP) (30) 126 (124)%
Net cash used in financing activities (GAAP) (228) (224) 2%
Total income and other revenues (GAAP) 536 555 (3)%
Adjusted Cash Receipts(1)(non-GAAP) 524 475 10%
Adjusted EBITDA(4)(non-GAAP) 480 436 10%
Adjusted Cash Flow(2)(non-GAAP) 482 429 12%
Weighted average Class A ordinary shares outstanding - diluted 607 607 0%