Royalty Pharma plc

Previous wording

We are the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. We have assembled a portfolio of royalties which entitles us to payments based directly on the top-line sales of many of the industry’s leading therapies, which includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT, Gilead’s Trodelvy, among others, and 16 development-stage product candidates. We fund innovation in the biopharmaceutical industry both directly and indirectly - directly when we partner with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when we acquire existing royalties from the original innovators.

Current wording

We are the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. We have assembled a portfolio of royalties which entitles us to payments based directly on the top-line sales of many of the industry’s leading therapies, which includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT, Gilead’s Trodelvy, among others, and 15 development-stage product candidates. We fund innovation in the biopharmaceutical industry both directly and indirectly - directly when we partner with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when we acquire existing royalties from the original innovators.

Previous wording

Most of the royalties we acquire are treated as investments in cash flow streams and are classified as financial assets measured under the effective interest method in accordance with generally accepted accounting principles in the United States (“GAAP”). Under this accounting methodology, we calculate the effective interest rate on each financial royalty asset using a forecast of the expected cash flows to be received over the life of the financial royalty asset relative to the initial acquisition price. The yield, which is calculated at the end of each reporting period and applied prospectively, is then recognized via accretion into our income at the effective rate of return over the expected life of the financial royalty asset.

Current wording

Our portfolio of investments contains royalties and royalty-like terms held through different forms or instruments. Most of the royalties we acquire are treated as investments in cash flow streams and are classified as financial assets measured under the effective interest method in accordance with generally accepted accounting principles in the United States (“GAAP”). Under this accounting methodology, we calculate the effective interest rate on each financial royalty asset using a forecast of the expected cash flows to be received over the life of the financial royalty asset relative to the initial acquisition price. The yield, which is calculated at the end of each reporting period and applied prospectively, is then recognized via accretion into our income at the effective rate of return over the expected life of the financial royalty asset.

Previous wording

The Provision for changes in expected future cash flows from financial royalty assets includes the following:

Current wording

The Provision for changes in expected cash flows from financial royalty assets includes the following:

Previous wording

As discussed above, income is accreted on our financial royalty assets using the effective interest method. As we update our forecasted cash flows on a periodic basis and recalculate the present value of the remaining future cash flows, any shortfall when compared to the carrying value of the financial royalty asset is recorded directly in the statements of operations through the line item Provision for changes in expected cash flows from financial royalty assets. If, in a subsequent period, there is an increase in expected cash flows or if actual cash flows are greater than cash flows previously expected, we reverse the provision expense previously recorded in part or in full by recording a credit to the provision.

Current wording

As discussed above, income is accreted on our financial royalty assets using the effective interest method. As we update our forecasted cash flows on a periodic basis and recalculate the present value of the remaining future cash flows, any shortfall when compared to the carrying value of the financial royalty asset is recorded directly in the condensed consolidated statements of operations through the line item Provision for changes in expected cash flows from financial royalty assets. If, in a subsequent period, there is an increase in expected cash flows or if actual cash flows are greater than cash flows previously expected, we reverse the provision expense previously recorded in part or in full by recording a credit to the provision.

Previous wording

Other expenses/(income), net primarily includes the changes in fair market value of our equity securities, derivative instruments and available for sale debt securities, including related forwards and funding commitments, and interest income.

Current wording

Other income, net primarily includes the changes in fair market value of our equity securities, derivative instruments and available for sale debt securities, including related forwards and funding commitments, and interest income.

Previous wording

Income from financial royalty assets by top products is as follows, in order of contribution to income for the first six months of 2024 (in thousands):

Current wording

Income from financial royalty assets by top products is as follows, in order of contribution to income for the first nine months of 2024 (in thousands):

Previous wording

Income from financial royalty assets increased by $11.5 million, or 2.3%, in the second quarter of 2024 as compared to the second quarter of 2023, primarily due to increased income from Evrysdi attributable to the incremental royalty that we acquired in the fourth quarter of 2023. The increase was partially offset by the declines in sell-side equity research analysts’ consensus sales forecast for cystic fibrosis franchise and Tysabri.

Current wording

Income from financial royalty assets increased by $24.5 million, or 4.8%, in the third quarter of 2024 as compared to the third quarter of 2023, primarily due to an increase in income from Evrysdi attributable to the incremental royalties that we acquired in the fourth quarter of 2023 and second quarter of 2024. The increase was partially offset by the declines in sell-side equity research analysts’ consensus sales forecast for cystic fibrosis franchise.

Previous wording

Income from financial royalty assets decreased by $111.6 million, or 9.6%, in the first six months of 2024 as compared to the first six months of 2023, primarily due to the March 2023 U.S. Food and Drug Administration (“FDA”) approval of Pfizer’s Zavzpret. This FDA approval resulted in our receipt of a $475.0 million milestone payment and $153.6 million of interest income recognized in the first quarter of 2023 which were non-recurring. The decrease was partially offset by the increase in income from Evrysdi in 2024 attributable to the incremental royalty that we acquired in the fourth quarter of 2023.

Current wording

Income from financial royalty assets decreased by $87.1 million, or 5.2%, in the first nine months of 2024 as compared to the first nine months of 2023, primarily due to the March 2023 U.S. Food and Drug Administration (“FDA”) approval of Pfizer’s Zavzpret. This FDA approval resulted in our receipt of a $475.0 million milestone payment and $153.6 million of interest income recognized in the first quarter of 2023 as reflected within other products in the above table, which were non-recurring. The decrease was partially offset by the increase in income from Evrysdi in 2024 attributable to the incremental royalties that we acquired in the fourth quarter of 2023 and second quarter of 2024.

Previous wording

Other royalty income and revenues decreased by $12.5 million, or 33.8%, in the second quarter of 2024 as compared to the second quarter of 2023, primarily related to the decrease in the income from fully amortized financial royalty assets, partially offset by the sales growth of Trodelvy.

Current wording

Other royalty income and revenues increased by $3.9 million, or 14.0%, in the third quarter of 2024 as compared to the third quarter of 2023, primarily related to the sales growth of Nurtec ODT and Trodelvy, partially offset by the decrease in the income from fully amortized financial royalty assets.

Previous wording

In the first six months of 2024, we recorded provision expense of $796.0 million, comprised of $765.8 million in provision expense for changes in expected cash flows and $30.2 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows primarily related to Evrysdi due to declines in sell-side equity research analysts’ consensus sales forecasts. We recorded provision expense for changes in expected cash flows related to the cystic fibrosis franchise, primarily due to the inclusion of consensus estimates for Vertex’s new triple combination therapy following disclosure of the Phase 3 clinical data and the conservative assumption that royalties are only collected on the tezacaftor component of the new triple combination therapy and not the deuterated ivacaftor component. Although we believe that the deuterated ivacaftor component of Vertex’s new triple combination is the same as ivacaftor and is therefore royalty-bearing, Vertex has made public statements that it believes the deuterated ivacaftor component is not royalty-bearing. If deuterated ivacaftor is determined to be royalty-bearing, we may recognize provision income in our results of operations at that time. Additionally, we recorded provision expense for Crysvita due to declines in sales forecasts. The provision expense for credit losses was primarily driven by our contingent obligation to fund the acquisition of Voranigo (vorasidenib).

Current wording

In the first nine months of 2024, we recorded provision expense of $568.4 million, comprised of $504.5 million in provision expense for changes in expected cash flows and $64.0 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows primarily related to Evrysdi due to declines in sell-side equity research analysts’ consensus sales forecasts. We recorded provision expense for changes in expected cash flows related to the cystic fibrosis franchise, primarily due to the inclusion of consensus estimates for Vertex’s vanzacaftor triple following disclosure of the Phase 3 clinical data and the conservative assumption that royalties are only collected on the tezacaftor component of the vanzacaftor triple and not the deuterated ivacaftor component. Although we believe that the deuterated ivacaftor component of vanzacaftor triple is the same as ivacaftor and is therefore royalty-bearing, Vertex has made public statements that it believes the deuterated ivacaftor component is not royalty-bearing. If deuterated ivacaftor is determined to be royalty-bearing, we may recognize provision income in our results of operations at that time. Additionally, we recorded provision expense for Crysvita due to declines in sales forecasts. The provision expense for credit losses was primarily driven by the additions of Yorvipath, Voranigo and ecopipam to our portfolio.

Previous wording

In the first six months of 2023, we recorded provision expense of $360.0 million, comprised of $358.5 million in provision expense for changes in expected cash flows and $1.5 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows for Imbruvica, Tremfya and Trelegy primarily due to declines in sell-side equity research analysts’ consensus sales forecasts which was partially offset by provision income recorded for Evrysdi and IDHIFA due to significant increases in sell-side equity research analysts’ consensus forecasts. The provision expense for credit losses was primarily driven by an increase in the financial asset value for Tazverik which was partially offset by provision income for credit losses recorded during the second quarter of 2023 due to slight decreases in the values of certain financial royalty assets with limited protective rights.

Current wording

In the first nine months of 2023, we recorded provision expense of $637.2 million, comprised of $605.8 million in provision expense for changes in expected cash flows and $31.4 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows for Imbruvica, Tremfya and Tysabri primarily due to declines in sell-side equity research analysts’ consensus sales forecasts. The provision expense for credit losses was primarily driven by the additions of Skytrofa and Adstiladrin to our portfolio.

Previous wording

G&A expenses decreased by $21.0 million, or 15.7%, in the first six months of 2024 as compared to the first six months of 2023, primarily from lower Operating and Personnel Payments in the current period. The higher expense in 2023 was due to higher Portfolio Receipts, which included the one-time receipt of a $475.0 million Zavzpret milestone payment in the first quarter 2023.

Current wording

G&A expenses decreased by $21.5 million, or 11.3%, in the first nine months of 2024 as compared to the first nine months of 2023, primarily from lower Operating and Personnel Payments in the current period. The higher expense in 2023 was due to higher Portfolio Receipts, which included the one-time receipt of a $475.0 million Zavzpret milestone payment in the first quarter 2023.

Previous wording

Equity in earnings of equity method investees was relatively flat in the second quarter of 2024 as compared to the second quarter of 2023.

Current wording

Equity in earnings of equity method investees was $10.4 million in the third quarter of 2024 as compared to equity in losses of equity method investees of $5.2 million in the third quarter of 2023, primarily driven by an income allocation from the Legacy SLP Interest of $10.2 million in the third quarter of 2024 as compared to a loss allocation of $2.3 million in the third quarter of 2023.

Previous wording

Equity in losses of equity method investees was $12.4 million in the first six months of 2024 as compared to equity in earnings of equity method investees of $33.8 million in the first six months of 2023, primarily driven by a loss allocation from the Avillion Entities of $7.8 million in the first six months of 2024 as compared to an income allocation of $31.0 million in the first six months of 2023. The income allocation in the first six months of 2023 from the Avillion Entities was primarily driven by an $80 million payment the Avillion Entities received related to AstraZeneca’s election to exercise an option to commercialize Airsupra in the United States.

Current wording

Equity in losses of equity method investees was $2.0 million in the first nine months of 2024 as compared to equity in earnings of equity method investees of $28.6 million in the first nine months of 2023, primarily driven by a loss allocation from the Avillion Entities of $7.6 million in the first nine months of 2024 as compared to an income allocation of $28.0 million in the first nine months of 2023. The income allocation in the first nine months of 2023 from the Avillion Entities was primarily driven by an $80 million payment the Avillion Entities received related to AstraZeneca’s election to exercise an option to commercialize Airsupra in the United States.

Previous wording

Interest expense increase by $2.1 million, or 4.4%, in the second quarter of 2024 as compared to the second quarter of 2023, primarily driven by the issuance of the $1.5 billion of senior unsecured notes in June 2024. The increase was partially offset by the repayment of $1.0 billion of senior unsecured notes in September 2023 upon maturity.

Current wording

Interest expense increased by $20.5 million, or 44.5% in the third quarter of 2024 as compared to the third quarter of 2023, primarily driven by the issuance of the $1.5 billion of senior unsecured notes in June 2024. The increase was partially offset by the repayment of $1.0 billion of senior unsecured notes in September 2023 upon maturity.

Previous wording

Interest expense was relatively flat in the first six months of 2024 as compared to the first six months of 2023. The weighted average coupon rate on our senior unsecured notes outstanding as of June 30, 2024 and 2023 was 3.06% and 2.24%, respectively.

Current wording

Interest expense increased by $19.8 million, or 14.2% in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by the issuance of the $1.5 billion of senior unsecured notes in June 2024. The weighted average coupon rate on our senior unsecured notes outstanding as of September 30, 2024 and 2023 was 3.06% and 2.24%, respectively.

Previous wording

Other income, net of $150.2 million in the second quarter of 2023 was primarily comprised of $82.9 million of gains on available for sale debt securities, $41.3 million of gains on equity securities and $25.7 million of interest income. The gains on available for sale debt securities were primarily driven by the changes in fair value of the MorphoSys Development Funding Bonds.

Current wording

Other income, net of $127.4 million in the third quarter of 2024 was primarily comprised of $57.7 million of gains on available for sale debt securities, $50.8 million of gains on equity securities and $17.5 million of interest income. The gains on available for sale debt securities were primarily driven by the changes in fair value of the Cytokinetics Funding Arrangements.

Previous wording

Other income, net of $99.9 million in the first six months of 2024 was primarily comprised of $46.2 million of gains on available for sale debt securities, $30.6 million of gains on equity securities and $20.8 million of interest income. The gains on available for sale debt securities were primarily driven by the changes in fair value of the MorphoSys Development Funding Bonds.

Current wording

Other income, net of $227.3 million in the first nine months of 2024 was primarily comprised of $103.9 million of gains on available for sale debt securities, $81.5 million of gains on equity securities and $38.3 million of interest income. The gains on available for sale debt securities were primarily driven by the changes in fair value of the MorphoSys Development Funding Bonds.

Previous wording

Net income attributable to the Legacy Investors Partnerships increased by $17.2 million in the second quarter of 2024 as compared to the second quarter of 2023, primarily driven by higher net income attributable to Old RPI and RPI ICAV.

Current wording

Net income attributable to the Legacy Investors Partnerships increased by $61.3 million in the third quarter of 2024 as compared to the third quarter of 2023, primarily driven by higher net income attributable to Old RPI as a result of lower provision expense in the current year period.

Previous wording

Net income attributable to the Continuing Investors Partnerships decreased by $45.1 million in the second quarter of 2024 as compared to the second quarter of 2023, primarily driven by lower net income attributable to RP Holdings in the second quarter of 2024 and a decline in the Continuing Investors Partnerships’ ownership of RP Holdings resulting from the exchanges by investors in the Continuing Investors Partnerships who indirectly own RP Holdings Class B Interests for our Class A ordinary shares.

Current wording

Net income attributable to the Continuing Investors Partnerships increased by $151.3 million in the third quarter of 2024 as compared to the third quarter of 2023, primarily driven by higher net income attributable to RP Holdings in the third quarter of 2024, partially offset by a decline in the Continuing Investors Partnerships’ ownership of RP Holdings resulting from the exchanges by investors in the Continuing Investors Partnerships who indirectly own RP Holdings Class B Interests for our Class A ordinary shares.

Previous wording

Net income attributable to RPSFT was $3.4 million in the second quarter of 2023. In December 2023, RPI 2019 ICAV acquired the remaining interest in RPCT owned by RPSFT and, as such, RPSFT no longer holds a non-controlling interest in RPCT.

Current wording

Net income attributable to RPSFT was $0.3 million in the third quarter of 2023. In December 2023, RPI 2019 ICAV acquired the remaining interest in RPCT owned by RPSFT and, as such, RPSFT no longer holds a non-controlling interest in RPCT.

Previous wording

Net income attributable to the Legacy Investors Partnerships decreased by $37.5 million in the first six months of 2024 as compared to the first six months of 2023, primarily driven by lower income attributable to Old RPI as a result of higher provision expense.

Current wording

Net income attributable to the Legacy Investors Partnerships increased by $23.9 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by higher income attributable to Old RPI as a result of lower provision expense in the current year period.

Previous wording

Net income attributable to the Continuing Investors Partnerships decreased by $166.9 million in the first six months of 2024 as compared to the first six months of 2023, primarily due to lower net income attributable to RP Holdings as a result of higher provision expense and lower interest income recognized in 2024. The higher interest income in 2023 was primarily driven by $153.6 million of interest income recognized following the FDA’s approval of Pfizer’s Zavzpret, which was non-recurring. Additionally, the exchanges by investors in the Continuing Investors Partnerships who indirectly own RP Holdings Class B Interests for our Class A ordinary shares resulted in a decline in the Continuing Investors Partnerships’ ownership of RP Holdings.

Current wording

Net income attributable to the Continuing Investors Partnerships decreased by $15.5 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily due to lower net income attributable to RP Holdings as a result of lower interest income recognized in 2024. The higher interest income in 2023 was primarily driven by $153.6 million of interest income recognized following the FDA’s approval of Pfizer’s Zavzpret, which was non-recurring. Additionally, the exchanges by investors in the Continuing Investors Partnerships who indirectly own RP Holdings Class B Interests for our Class A ordinary shares resulted in a decline in the Continuing Investors Partnerships’ ownership of RP Holdings.

Previous wording

Net income attributable to RPSFT was $4.4 million in the first six months of 2023. In December 2023, RPI 2019 ICAV acquired the remaining interest in RPCT owned by RPSFT and, as such, RPSFT no longer holds a non-controlling interest in RPCT.

Current wording

Net income attributable to RPSFT was $4.7 million in the first nine months of 2023. In December 2023, RPI 2019 ICAV acquired the remaining interest in RPCT owned by RPSFT and, as such, RPSFT no longer holds a non-controlling interest in RPCT.

Previous wording

Our portfolio consists of royalties on more than 35 marketed therapies and 16 development-stage product candidates. The therapies in our portfolio address therapeutic areas such as rare disease, cancer, neuroscience, infectious disease, hematology and diabetes, and are delivered to patients across both primary and specialty care settings. The table below shows Portfolio Receipts, including Royalty Receipts by product and milestones and other contractual receipts, in order of contribution to total Royalty Receipts for the first six months of 2024 (in thousands):

Current wording

Our portfolio consists of royalties on more than 35 marketed therapies and 15 development-stage product candidates. The therapies in our portfolio address therapeutic areas such as rare disease, cancer, neuroscience, infectious disease, hematology and diabetes, and are delivered to patients across both primary and specialty care settings. The table below shows Portfolio Receipts, including Royalty Receipts by product and milestones and other contractual receipts, in order of contribution to total Royalty Receipts for the first nine months of 2024 (in thousands):

Previous wording

(2)Other products primarily include Royalty Receipts on the following products: Cimzia, Crysvita, Emgality, Entyvio, Farxiga/Onglyza, IDHIFA, Lexiscan, Prevymis, Nesina, Soliqua and distributions from the Legacy SLP Interest, which are presented as Distributions from equity method investeeson the statements of cash flows.

Current wording

(2)Other products primarily include Royalty Receipts on the following products: Cimzia, Crysvita, Emgality, Entyvio, Farxiga/Onglyza, IDHIFA, Letairis, Lexiscan, Mircera, Nesina, Prevymis, Soliqua and distributions from the Legacy SLP Interest, which are presented as Distributions from equity method investeeson the statements of cash flows.

Previous wording

•Cystic fibrosis franchise – Royalty Receipts from the cystic fibrosis franchise, which includes Kalydeco, Orkambi, Symdeko/Symkevi and Trikafta/Kaftrio, and is marketed by Vertex for patients with certain mutations causing cystic fibrosis, increased by $45.9 million in the first six months of 2024 as compared to the first six months of 2023. The increase was primarily driven by the continued U.S. performance of Trikafta and the strong uptake of Kaftrio outside of the United States, including its uptake in younger age groups.

Current wording

•Cystic fibrosis franchise – Royalty Receipts from the cystic fibrosis franchise, including Kalydeco, Orkambi, Symdeko/Symkevi and Trikafta/Kaftrio, which are marketed by Vertex for patients with certain mutations causing cystic fibrosis, increased by $57.0 million in the first nine months of 2024 as compared to the first nine months of 2023. The increase was primarily driven by the continued U.S. performance of Trikafta and the strong uptake of Kaftrio outside of the United States, including its uptake in younger age groups.

Previous wording

•Trelegy – Royalty Receipts from Trelegy, which is marketed by GSK for the maintenance treatment of chronic obstructive pulmonary disease and asthma, increased by $34.2 million in the first six months of 2024 as compared to the first six months of 2023, primarily driven by strong patient demand, single inhaler triple therapy class growth and increased market share.

Current wording

•Trelegy – Royalty Receipts from Trelegy, which is marketed by GSK for the maintenance treatment of chronic obstructive pulmonary disease and asthma, increased by $66.5 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by strong patient demand, single inhaler triple therapy class growth and increased market share.

Previous wording

•Tysabri – Royalty Receipts from Tysabri, which is marketed by Biogen for the treatment of multiple sclerosis, decreased by $7.4 million in the first six months of 2024 as compared to the first six months of 2023, due to pricing pressure and competition.

Current wording

•Tysabri – Royalty Receipts from Tysabri, which is marketed by Biogen for the treatment of multiple sclerosis, decreased by $10.6 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily due to pricing pressure and competition.

Previous wording

•Imbruvica – Royalty Receipts from Imbruvica, which is marketed by AbbVie and Johnson & Johnson for the treatment of blood cancers and chronic graft versus host disease, decreased by $9.4 million in the first six months of 2024 as compared to the first six months of 2023, primarily due to competitive pressures.

Current wording

•Imbruvica – Royalty Receipts from Imbruvica, which is marketed by AbbVie and Johnson & Johnson for the treatment of blood cancers and chronic graft versus host disease, decreased by $14.4 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily due to competitive pressures.

Previous wording

•Xtandi – Royalty Receipts from Xtandi, which is marketed by Pfizer and Astellas for the treatment of prostate cancer, increased by $10.2 million in the first six months of 2024 as compared to the first six months of 2023, primarily driven by growth in all regions.

Current wording

•Xtandi – Royalty Receipts from Xtandi, which is marketed by Pfizer and Astellas for the treatment of prostate cancer, increased by $14.7 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by growth in all regions.

Previous wording

•Evrysdi – Royalty Receipts from Evrysdi, which is marketed by Roche for the treatment of spinal muscular atrophy, increased by $39.3 million in the first six months of 2024 as compared to the first six months of 2023, driven by strong performance in Europe, the United States and Japan, partially offset by lower international sales. Incremental royalties acquired on Evrysdi in the fourth quarter of 2023 yielded royalties beginning in the first quarter of 2024.

Current wording

•Evrysdi – Royalty Receipts from Evrysdi, which is marketed by Roche for the treatment of spinal muscular atrophy, increased by $71.5 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily attributable to royalty receipts on the incremental royalties we acquired in the fourth quarter of 2023 and the second quarter of 2024. The increase is further driven by gains in patient share across all regions.

Previous wording

•Promacta – Royalty Receipts from Promacta, which is marketed by Novartis for the treatment of chronic immune thrombocytopenia purpura (ITP) and aplastic anemia, increased by $0.3 million in the first six months of 2024 as compared to the first six months of 2023. Performance was driven by an increased use of Promacta in chronic ITP and severe aplastic anemia in the United States, partially offset by higher revenue deductions.

Current wording

•Promacta – Royalty Receipts from Promacta, which is marketed by Novartis for the treatment of chronic immune thrombocytopenia purpura (ITP) and aplastic anemia, decreased by $2.5 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily due to higher revenue deductions, partially offset by an increased use of Promacta in chronic ITP and severe aplastic anemia in the United States.

Previous wording

•Tremfya– Royalty Receipts from Tremfya, which is marketed by Johnson & Johnson for the treatment of plaque psoriasis and active psoriatic arthritis, increased by $12.1 million in the first six months of 2024 as compared to the first six months of 2023, due to market growth, market share gains and favorable patient mix.

Current wording

•Tremfya– Royalty Receipts from Tremfya, which is marketed by Johnson & Johnson for the treatment of plaque psoriasis and active psoriatic arthritis, increased by $19.2 million in the first nine months of 2024 as compared to the first nine months of 2023, due to market growth, market share gains and favorable patient mix.

Previous wording

•Cabometyx/Cometriq – Royalty Receipts from Cabometyx/Cometriq, which is marketed by Exelixis, Ipsen and Takeda, increased by $3.6 million in the first six months of 2024 as compared to the first six months of 2023, primarily due to continued revenue and demand growth in the United States and globally by broad uptake in combination with Opdivo in first-line renal cell carcinoma across clinical risk groups and practice settings.

Current wording

•Cabometyx/Cometriq – Royalty Receipts from Cabometyx/Cometriq, which is marketed by Exelixis, Ipsen and Takeda, increased by $4.9 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by continued demand growth in the United States and globally by broad uptake in combination with Opdivo in first-line renal cell carcinoma across clinical risk groups and practice settings.

Previous wording

•Trodelvy – Royalty Receipts from Trodelvy, which is marketed by Gilead for the treatment of adult patients with metastatic triple-negative breast cancer and pre-treated hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative metastatic breast cancer, increased by $6.6 million in the first six months of 2024 as compared to the first six months of 2023. The increase was primarily driven by continued demand in second-line metastatic triple-negative breast cancer and pretreated HR+/HER2- metastatic breast cancer.

Current wording

•Trodelvy – Royalty Receipts from Trodelvy, which is marketed by Gilead for the treatment of adult patients with metastatic triple-negative breast cancer and pre-treated hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative metastatic breast cancer, increased by $8.9 million in the first nine months of 2024 as compared to the first nine months of 2023. The increase was primarily driven by continued demand in second-line metastatic triple-negative breast cancer and pretreated HR+/HER2- metastatic breast cancer.

Previous wording

•Spinraza – Royalty Receipts from Spinraza, which is marketed by Biogen for the treatment of spinal muscular atrophy, increased by $3.7 million in the first six months of 2024 as compared to the first six months of 2023. Sales of Spinraza in the United States were relatively consistent, while performance outside the United States was impacted by the timing of shipments, competition and pricing pressure. We acquired the Spinraza royalty in the first quarter of 2023 and began receiving royalties in the second quarter of 2023.

Current wording

•Spinraza – Royalty Receipts from Spinraza, which is marketed by Biogen for the treatment of spinal muscular atrophy, increased by $2.6 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily due to relatively consistent U.S. sales, while performance outside the United States was impacted by the timing of shipments, competition and pricing pressure. We acquired the Spinraza royalty in the first quarter of 2023 and began receiving royalties in the second quarter of 2023.

Previous wording

•Erleada– Royalty Receipts from Erleada, which is marketed by Johnson & Johnson for the treatment of patients with prostate cancer, increased by $7.1 million in the first six months of 2024 as compared to the first six months of 2023, primarily driven by continued share gains and market growth in metastatic castration-sensitive prostate cancer. We acquired incremental royalties on Erleada in the second quarter of 2023 and began receiving these additional royalties in the third quarter of 2023.

Current wording

•Erleada– Royalty Receipts from Erleada, which is marketed by Johnson & Johnson for the treatment of patients with prostate cancer, increased by $9.4 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by continued share gains and market growth in metastatic castration-sensitive prostate cancer. We acquired an incremental royalty on Erleada in the second quarter of 2023 and began receiving the additional royalty in the third quarter of 2023.

Previous wording

•Orladeyo– Royalty Receipts from Orladeyo, which is marketed by BioCryst for the treatment of hereditary angioedema, increased by $3.9 million in the first six months of 2024 as compared to the first six months of 2023, primarily driven by continued strong patient uptake.

Current wording

•Orladeyo– Royalty Receipts from Orladeyo, which is marketed by BioCryst for the treatment of hereditary angioedema, increased by $6.5 million in the first nine months of 2024 as compared to the first nine months of 2023, primarily driven by continued strong patient uptake.

Previous wording

•Nurtec ODT/Zavzpret– Royalty Receipts from Nurtec ODT, which is marketed by Pfizer for the acute treatment of migraine, increased by $2.1 million in the first six months of 2024 as compared to the first six months of 2023. The increase was primarily driven by strong patient demand in the United States, largely offset by lower net price due to unfavorable changes in channel mix. Recent launches in markets outside the United States also contributed to growth.

Current wording

•Nurtec ODT/Zavzpret– Royalty Receipts from Nurtec ODT, which is marketed by Pfizer for the acute treatment of migraine, increased by $4.7 million in the first nine months of 2024 as compared to the first nine months of 2023. The increase was primarily driven by strong demand in the United States, as well as recent launches in international markets, partially offset by lower net price in the United States due to unfavorable changes in channel mix.