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R&D Partnerships

How We Invest Directly In Innovation

OVERVIEW & BENEFITS

I. ROYALTY PHARMA is the premier R&D partner for the biopharmaceutical industry.

II. R&D PARTNERSHIPS are a unique form of capital. They leverage a single, at-risk, development-stage program while still achieving a highly competitive cost of capital compared with equity and debt instruments that are typically tied to all assets in a company.

R&D

III. ROYALTY PHARMA shares the same multi-year investment perspective as our partners: we understand that positive investment returns require clinical, regulatory, and commercial success.

IV. WE PROVIDE compelling cost of capital for highly innovative development-stage products across all therapeutic areas and for companies of all sizes.

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V. ROYALTY PHARMA can provide funding at scales relevant to both smaller, focused development programs as well as global pharmaceutical companies pursuing the largest, highest-complexity, and most capital-intensive development programs.

VI. WE PARTNER with small to medium-size companies looking to maximize value by retaining full global ownership of their pipeline through regulatory approval and launch.

VII. WE ACT as a passive partner for companies with full operational capabilities, or take a more active role when externalized funding and clinical trial execution are required.

Funding of late-stage pharmaceutical R&D is core to Royalty Pharma’s investment strategy. 

Case Study

R&D PARTNERSHIPS
Royalty​ ​Pharma​ ​and​ ​Pfizer: Research & Development Partnership for Breast Cancer Treatment

PARTNER: Pfizer’s Ibrance (palbociclib) is a CDK4/6 inhibitor approved by the U.S. Food and Drug administration in 2015 for the treatment of metastatic hormone receptor positive breast cancer.

Pfizer

TRANSACTION: In January 2016, Royalty Pharma and Pfizer signed a $300 million R&D partnership for the ongoing Phase III program of Ibrance in the adjuvant treatment of breast cancer. Royalty Pharma is providing fully at-risk funding for 100% of the expected program costs on a quarterly basis until the trial is completed. Upon approval for its adjuvant indication, Royalty Pharma will receive milestones and royalties on certain Ibrance sales.

RATIONALE: The Royalty Pharma-Pfizer relationship is representative of our approach to R&D partnerships: we take a long-term investment perspective on a high-priority pipeline asset, with creative structuring, a willingness to invest at a scale relevant to major Phase III programs, and genuine risk-sharing between partners.

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