Royalty Pharma plc
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
RPRX$67.30-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001802768-26-000009
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001802768-26-000015
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 203 previous paragraphs and 226 current paragraphs.
125 unchanged; 59 reworded; 39 added; 19 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
Other (income)/expense, net
Current report
*Percentage change is not meaningful.
Current report
Other royalty income and revenues increased by $14.7 million, or 25.8%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by the growth in Trodelvy sales.
Current report
In the second quarter of 2026, we recorded provision expense of $268.2 million, comprised of $260.3 million in provision expense for changes in expected cash flows and $8.0 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows primarily related to Adstiladrin, due to a decline in its sales forecast. In addition, we recorded provision expenses related to the cystic fibrosis franchise, due to an increase in the estimated sales forecast attributable to Alyftrek based on consensus estimates and the conservative assumption that royalties will only be collected on the tezacaftor component of Alyftrek and not on the deuterated ivacaftor component. Although we believe that the deuterated ivacaftor component of Alyftrek is the same as ivacaftor and is therefore royalty-bearing, beginning in the second quarter of 2025, we did not receive from Vertex the full amount of royalty receipts on Alyftrek net sales to which we believe that we are contractually entitled. If deuterated ivacaftor is determined to be royalty-bearing, we may recognize provision income in our results of operations at that time. The provision expense was partially offset by provision income related to Tysabri due to an increase in sell-side equity research analysts’ consensus sales forecasts.
Current report
In the first six months of 2026, we recorded provision expense of $70.7 million, comprised of $69.8 million in provision expense for changes in expected cash flows and $0.9 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows primarily related to Adstiladrin due to decline in its sales forecast. In addition, we recorded provision expenses related to the cystic fibrosis franchise, due to an increase in the estimated sales forecast attributable to Alyftrek based on consensus estimates and the conservative assumption that royalties will only be collected on the tezacaftor component of Alyftrek and not on the deuterated ivacaftor component. Although we believe that the deuterated ivacaftor component of Alyftrek is the same as ivacaftor and is therefore royalty-bearing, beginning in the second quarter of 2025, we did not receive from Vertex the full amount of royalty receipts on Alyftrek net sales to which we believe that we are contractually entitled. If deuterated ivacaftor is determined to be royalty-bearing, we may recognize provision income in our results of operations at that time. The provision expense was partially offset by provision income related to Tysabri and Evrysdi due to increases in sell-side equity research analysts’ consensus sales forecasts.
Current report
Provision for credit losses on unfunded commitments decreased by $79.5 million, or 85.9%, in the second quarter of 2026 as compared to the second quarter of 2025. In the second quarter of 2025, we entered into a funding arrangement with Revolution Medicines and recognized provision expense for credit losses of $92.5 million related to the unfunded portions of the arrangement. In the second quarter of 2026, we did not enter into any new funding arrangement that required a provision for credit losses on the unfunded portions.
Current report
Provision for credit losses on unfunded commitments decreased by $83.2 million, or 89.9% in the first six months of 2026 as compared to the first six months of 2025. In the first six months of 2025, we entered into a funding arrangement with Revolution Medicines and recognized provision expense for credit losses of $92.5 million related to the unfunded portions of the arrangement. In the first six months of 2026, we did not enter into any new funding arrangement that required a provision for credit losses on the unfunded portions.
Current report
R&D funding expense decreased by $202.6 million, or 67.4%, in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by R&D funding of $250.0 million related to daraxonrasib recorded in the second quarter of 2025.
Current report
G&A expenses decreased by $17.9 million, or 9.9%, in the second quarter of 2026 as compared to the second quarter of 2025. In the second quarter of 2025, G&A expenses were higher, primarily driven by $15.0 million of acquisition-related costs for the Internalization and $23.8 million of cash-based Management Fees recognized prior to the Internalization, which was completed in May 2025. The decrease in period-over-period G&A expenses was partially offset by higher share-based compensation expense that began to be recognized following the Internalization.
Current report
In the second quarter of 2026, we recognized $123.3 million of employee compensation expense, which included $106.5 million of share-based compensation expense and $16.7 million of cash-based compensation expense. In the second quarter of 2025, prior to the Internalization, we recognized $23.8 million of cash-based Management Fees, and following the Internalization, we recognized $108.5 million of employee compensation expense, which included $90.1 million of share-based compensation expense and $18.3 million of cash-based compensation expense. See Note 4–Share-Based Compensation for additional information.
Current report
G&A expenses increased by $30.9 million, or 10.6%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by higher share-based compensation expense recognized following the Internalization, which was completed in May 2025. The increase in period-over-period G&A expenses was partially offset by the absence of $28.7 million of acquisition-related costs for the Internalization in the prior period and the elimination of Management Fees following the Internalization.
Current report
In the first six months of 2026, we recognized $261.4 million of employee compensation expense, which included $227.9 million of share-based compensation expense and $33.6 million of cash-based compensation expense. In the first six months of 2025, prior to the Internalization, we recognized $113.6 million of cash-based Management Fees, and following the Internalization, we recognized $108.5 million of employee compensation expense, which included $90.1 million of share-based compensation expense and $18.3 million of cash-based compensation expense. See Note 4–Share-Based Compensation for additional information.
Current report
Equity in earnings of equity method investees was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025.
Current report
Other (income)/expense, net
Current report
Other income, net of $37.9 million in the second quarter of 2026 was primarily comprised of $69.2 million of gains on equity securities and $5.1 million of interest income earned on cash and cash equivalents, partially offset by $34.9 million of losses on available for sale debt securities due to changes in fair value of the Cytokinetics Funding Arrangements.
Current report
Other expense, net of $51.2 million in the second quarter of 2025 was primarily comprised of $30.6 million of losses on equity securities and $27.4 million of losses on available for sale debt securities due to changes in fair value of the Cytokinetics Funding Arrangements, partially offset by $8.3 million of interest income earned on cash and cash equivalents.
Current report
Other income, net of $15.1 million in the first six months of 2026 was primarily comprised of $49.0 million of gains on equity securities and $11.4 million of interest income earned on cash and cash equivalents, partially offset by $41.6 million of losses on available for sale debt securities due to changes in fair value of the Cytokinetics Funding Arrangements.
Current report
Net income attributable to Continuing Investors Partnerships decreased by $5.5 million, or 56.4% in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by lower net income attributable to RP Holdings as a result of provision expense recognized in 2026 as compared to provision income recognized in 2025.
Current report
Net income attributable to Founder’s Equity increased by $7.0 million in the second quarter of 2026 as compared to the second quarter of 2025, driven by an increase in EPAs attributable to Founder’s Equity as a result of higher Net Economic Profit, reflecting higher cash receipts from portfolio investments.
Current report
Net income attributable to RP Holdings Class E Interests was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025. We issued 24.5 million RP Holdings Class E Interests in connection with the Internalization in the second quarter of 2025.
Current report
Net income attributable to Continuing Investors Partnerships decreased by $4.2 million, or 4.8% in the first six months of 2026 as compared to the first six months of 2025, primarily driven by a decline in the Continuing Investors Partnerships’ ownership of RP Holding due to the ongoing exchanges by investors in the Continuing Investors Partnerships who indirectly own RP Holdings Class B Interests for our Class A ordinary shares.
Current report
Net income attributable to RP Holdings Class E Interests increased by $16.5 million in the first six months of 2026 as compared to the first six months of 2025. We issued 24.5 million RP Holdings Class E Interests in connection with the Internalization in the second quarter of 2025.
Current report
•Jideytro. In July 2026, GSK announced that the FDA approved Jideytro (formerly known as zidesamtinib), a ROS proto-oncogene 1 (“ROS1”)-selective inhibitor, for the treatment of adult patients with locally advanced or metastatic ROS1-positive non-small cell lung cancer who have received a prior ROS1 kinase inhibitor.
Current report
•Trodelvy. In June 2026, Gilead announced that the FDA approved Trodelvy for the first-line treatment of certain patients with metastatic triple-negative breast cancer.
Current report
In June 2026, Gilead announced that the European Commission (“EC”) approved Trodelvy as a first-line treatment for certain patients with metastatic triple-negative breast cancer who are not candidates for PD-L1 inhibitors.
Current report
In June 2026, Gilead announced the discontinuation of the Phase 3 KEYNOTE-D46/EVOKE-03 study evaluating Trodelvy in combination with Keytruda for patients with previously untreated metastatic non-small cell lung cancer.
Current report
•Imdelltra. In June 2026, the EC approved Imdelltra for the treatment of adult patients with extensive-stage small cell lung cancer.
Current report
•Erleada. In May 2026, Johnson & Johnson announced that the Phase 3 PROTEUS study evaluating Erleada in combination with androgen deprivation therapy before and after radical prostatectomy, in patients with high-risk localized or locally advanced prostate cancer, met its primary endpoints.
Current report
•Tremfya. In May 2026, Johnson & Johnson announced that the FDA approved a supplemental Biologics License Application (“BLA”) for Tremfya to include the inhibition of progression of structural joint damage in adults with active psoriatic arthritis.
Current report
•Daraxonrasib. In July 2026, Revolution Medicines announced that the FDA accepted for review the company’s New Drug Application (“NDA”) for daraxonrasib, an oral RAS(ON) multi-selective inhibitor, for previously treated metastatic pancreatic ductal adenocarcinoma.
Current report
In July 2026, Revolution Medicines announced that the European Medicines Agency (“EMA”) started an accelerated assessment of daraxonrasib.
Current report
•Neladalkib. In July 2026, GSK announced that it completed the acquisition of Nuvalent for approximately $10.6 billion, including neladalkib and Jideytro (formerly known as zidesamtinib), two highly selective ROS1 and anaplastic lymphoma kinase inhibitors for the treatment of non-small cell lung cancer.
Current report
In May 2026, Nuvalent announced the FDA accepted its NDA for neladalkib for filing and granted the application Priority Review with a PDUFA date of November 27, 2026.
Current report
•TEV-’408. In July 2026, Teva Pharmaceuticals (“Teva”) announced plans to advance TEV-’408 into a Phase 2b study in patients with non-segmental vitiligo, following positive Phase 1b results.
Current report
•Deucrictibant. In July 2026, Pharvaris announced that the FDA accepted its NDA for deucrictibant immediate-release for the on-demand treatment of hereditary angioedema attacks and assigned a PDUFA date of April 23, 2027.
Current report
•Ecopipam. In June 2026, Teva announced the completion of its acquisition of Emalex Biosciences for up to $900 million, including $700 million at closing, which added ecopipam and other neuroscience therapies to its portfolio. Furthermore, Teva announced the submission of an NDA to the FDA for ecopipam for the treatment of pediatric Tourette syndrome.
Current report
•Obexelimab. In May 2026, Zenas BioPharma announced the submission of a BLA to the FDA for obexelimab for the treatment of Immunoglobulin G4-related disease.
Current report
•In July 2026, we acquired a portion of Neurimmune AG’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront. Cliramitug is a Phase 3 first-in-class TTR-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy, a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart.
Current report
We may enter into funding agreements where we are contractually obligated to fund R&D activities performed by our development partners. As of June 30, 2026, we have unfunded commitments of $502.6 million for JNJ-4804 and TEV-’408.
Removed paragraphs (19)
Previous report
Other expense, net
Previous report
Provision for credit losses on unfunded commitments was $3.7 million in the first quarter of 2026, related to our funding arrangement with Revolution Medicines entered into in June 2025.
Previous report
G&A expenses increased by $48.8 million, or 44.1%, in the first quarter of 2026 as compared to the first quarter of 2025, primarily driven by additional share-based compensation expenses recognized following the Internalization which was completed on May 16, 2025. G&A expenses in the first quarter of 2025 primarily consisted of Management Fees, including a $33.0 million payment related to the sale of the MorphoSys Development Funding Bonds.
Previous report
Other expense, net
Previous report
Other expense, net of $40.9 million in the first quarter of 2025 was primarily comprised of $45.9 million of losses on equity securities partially offset by $11.3 million of interest income on cash and cash equivalents.
Previous report
Net income attributable to RP Holdings Class E Interests was $16.4 million in the first quarter of 2026. The RP Holdings Class E Interests were issued in connection with the Internalization.
Previous report
In February 2026, Cytokinetics announced that the European Commission (“EC”) approved Myqorzo for the treatment of symptomatic obstructive hypertrophic cardiomyopathy in adult patients.
Previous report
•Spinraza. In March 2026, Biogen announced that the FDA approved the high dose regimen of Spinraza for SMA.
Previous report
In January 2026, Biogen announced that the EC granted marketing authorization for a high dose regimen of Spinraza for SMA.
Previous report
•Avlayah. In March 2026, Denali Therapeutics announced that the FDA granted accelerated approval of Avlayah (tividenofusp alfa) for the treatment of Hunter syndrome. Avlayah is the first FDA-approved biologic specifically designed to cross the blood-brain barrier and reach the whole body, including the brain.
Previous report
•Tazverik. In March 2026, Ipsen announced that it was voluntarily withdrawing Tazverik from all Ipsen markets based on emerging data from the ongoing Phase Ib/III SYMPHONY-1 trial. In addition, Eisai announced plans to discontinue sales of Tazverik in Japan. In the first quarter of 2026, we recorded $69 million of non-cash impairment charges related to Tazverik.
Previous report
•Neladalkib. In April 2026, Nuvalent announced the submission of an NDA to the FDA for neladalkib, an investigational anaplastic lymphoma kinase (“ALK”)‑selective inhibitor, for tyrosine kinase inhibitors pre‑treated advanced ALK‑positive non-small cell lung cancer.
Previous report
•Litifilimab. In March 2026, Biogen reported positive Phase 2 results from the AMETHYST Phase 2/3 study (Part A) of litifilimab in cutaneous lupus erythematosus (“CLE”), demonstrating reductions in skin disease activity through week 24.
Previous report
In January 2026, Biogen announced that the FDA granted Breakthrough Therapy Designation for litifilimab for the treatment of CLE.
Previous report
•Ampreloxetine. In March 2026, Theravance Biopharma (“Theravance”) reported that the Phase 3 CYPRESS study evaluating ampreloxetine in patients with symptomatic neurogenic orthostatic hypotension due to multiple system atrophy did not meet the primary endpoint. As a result, Theravance will wind down the ampreloxetine program.
Previous report
•Pelabresib. In January 2026, Novartis announced plans to submit a European Union regulatory filing for pelabresib in 2026, and that it would begin a new Phase 3 study in the United States, China and Japan.
Previous report
•Obexelimab. In January 2026, Zenas BioPharma (“Zenas”) announced positive results from the Phase 3 INDIGO trial of obexelimab in Immunoglobulin G4-related disease (“IgG4-RD”), which met the primary endpoint demonstrating a clinically meaningful and highly statistically significant reduction in risk of IgG4-RD flare. Zenas anticipates submitting a Biologics License Application in Q2 2026 and a Marketing Authorization Application to the European Medicines Agency in the second half of 2026.
Previous report
In March 2026, we entered into an R&D funding arrangement with Johnson & Johnson to provide $500 million in eight fixed quarterly payments commencing in the second quarter of 2026, for the development of JNJ‑4804. As of March 31, 2026, $500 million of the commitment remained unfunded.
Previous report
We may have other funding arrangements where we are contractually obligated to fund R&D activities performed by our development partners. We also have funding arrangements related to our equity method investments in the Avillion Entities. As our committed capital requirements are based on phases of development, the completion of which is highly uncertain, only the capital required to fund the current stage of development under such funding arrangements is considered committed capital, which wasapproximately $112.3 million as of March 31, 2026.
Reworded paragraphs (59)
Previous wording
Total income and other revenues is primarily comprised of interest income from our financial royalty assets and royalty income generally arising from successful commercialization of products developed through research and development (“R&D”) funding arrangements. Most of our royalties are classified as financial assets as our ownership rights are generally passive in nature.
Current wording
Total income and other revenues is primarily comprised of interest income from our financial royalty assets and royalty income generally arising from successful commercialization of products developed through research and development (“R&D”) funding agreements. Most of our royalties are classified as financial assets as our ownership rights are generally passive in nature.
Previous wording
Other royalty income and revenues primarily includes income from financial royalty assets that have been fully amortized and income from synthetic royalties and milestones arising out of R&D funding arrangements. Occasionally, a royalty asset may be amortized on an accelerated basis due to collectability concerns, which, if resolved, may result in future cash collections when no financial royalty asset remains. Similarly, we may continue to collect royalties on a fully amortized financial royalty asset beyond the estimated duration. In each scenario where a financial royalty asset has been fully amortized, income from such royalty is recognized as Other royalty income and revenues.
Current wording
Other royalty income and revenues primarily includes income from financial royalty assets that have been fully amortized, on which we may continue to collect royalties beyond the estimated duration, and income from synthetic royalties and milestones arising out of R&D funding agreements.
Previous wording
The provision for credit losses on unfunded commitments, a non-cash item, represents the current expected credit losses on the unfunded portions of our funding arrangements with Revolution Medicines, Inc. (“Revolution Medicines”). Because we have limited protective rights with respect to each unfunded portion once the committed funding is provided, we are required to recognize an allowance for current expected credit losses based on our estimate of probability of future funding. We estimate this allowance using the probability of default and loss given default method. We are required to reassess our estimate of current expected credit losses as of each reporting date and any subsequent change to such allowance, which can be income or expense, is reflected within Provision for credit losses on unfunded commitments in the condensed consolidated statements of operations.
Current wording
The provision for credit losses on unfunded commitments, a non-cash item, represents the current expected credit losses on the unfunded portions of a two part funding arrangement we entered into with Revolution Medicines, Inc. (“Revolution Medicines”) in the second quarter of 2025. As of June 30, 2026, the unfunded commitments include the potential purchase of additional royalty interests on daraxonrasib, which, if funded, will be accounted for as financial royalty assets, and funding of senior secured term loans. Because we have limited protective rights with respect to each unfunded portion once the committed funding is provided, we are required to recognize an allowance for current expected credit losses based on our estimate of probability of future funding. We estimate this allowance using the probability of default and loss given default method. We are required to reassess our estimate of current expected credit losses as of each reporting date and any subsequent change to such allowance, which can be income or expense, is reflected within Provision for credit losses on unfunded commitments in the condensed consolidated statements of operations.
Previous wording
R&D funding expense consists of certain development-stage funding payments that we have made to counterparties to acquire royalties or milestones on product candidates. The payments can be made on an upfront basis, upon pre-approval milestones or over time as the related product candidates undergo clinical trials.
Current wording
We enter into R&D funding agreements with counterparties to acquire royalties or milestones on product candidates. R&D funding expense consists of development-stage funding costs recognized under these agreements, which may be made upfront, as milestones upon achievement of certain predefined criteria, or over time as the related product candidates undergo clinical trials.
Previous wording
Approximately 22.8 million RP Holdings Class E Interests with an aggregate fair value of approximately $755.4 million, which are expensed over vesting periods on a straight-line basis of generally five to nine years. As of March 31, 2026, we had $609.8 million of unrecognized compensation expense related to 18.4 million RP Holdings Class E Interests that are expected to vest over a weighted average period of 5.3 years.
Current wording
Approximately 22.8 million RP Holdings Class E Interests with an aggregate fair value of approximately $755.4 million, which are expensed over vesting periods on a straight-line basis of generally five to nine years. As of June 30, 2026, we had $570.9 million of unrecognized compensation expense related to 17.2 million RP Holdings Class E Interests that are expected to vest over a weighted average period of 5.0 years.
Previous wording
The vesting of the Employee EPAs over their remaining service periods and the subsequent change in their fair value. The fair value of the Employee EPAs is driven by the performance of the investments within the Portfolio and will fluctuate based on the timing and amount of investments made during the investment period as well as the actual and expected returns on the investments.
Current wording
The vesting of the Employee EPAs over their remaining service periods and the subsequent change in their fair value. The fair value of the Employee EPAs is driven by the projected performance of the investments within the Portfolio and will fluctuate based on the timing and amount of investments made during the investment period as well as the actual and expected returns on the investments.
Previous wording
Additionally, as each new Portfolio commences after the Internalization, any related Employee EPAs will also be recognized as share-based compensation expense over the required service periods of generally four years and included within General and administrative expenses in the condensed consolidated statement of operations. Lastly, G&A expenses include rent, legal fees and other expenses for professional services.
Current wording
Additionally, as each new Portfolio commences after the Internalization, any related Employee EPAs will also be recognized as share-based compensation expense over the required service periods of generally four years and included within General and administrative expenses in the condensed consolidated statements of operations. Lastly, G&A expenses include rent, legal fees and other expenses for professional services.
Previous wording
Other expense, net primarily includes the changes in fair value of our equity securities and available for sale debt securities, including related forwards and funding commitments, and interest income.
Current wording
Other (income)/expense, net primarily includes the changes in fair value of our equity securities 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 quarter of 2026 (in thousands):
Current wording
Income from financial royalty assets by top products is as follows, in order of contribution to income for the first six months of 2026 (in thousands):
Previous wording
Income from financial royalty assets increased by $55.5 million, or 10.3%, in the first quarter of 2026 as compared to the first quarter of 2025, primarily due to $19.3 million of interest income from Imdelltra, which was acquired in the third quarter of 2025 and is reflected within other products in the above table, as well as increases in interest income from the cystic fibrosis franchise and Voranigo. The increase in income from the cystic fibrosis franchise was primarily driven by higher interest income following the reversal of the allowance for changes in expected cash flows related to the FDA approval of Alyftrek in the fourth quarter of 2024. The increase from Voranigo reflects the asset’s strong performance since its FDA approval in August 2024.
Current wording
Income from financial royalty assets increased by $143.1 million, or 13.1%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by $46.9 million of interest income from Imdelltra, which was acquired in the third quarter of 2025 and is reflected within other products in the table above, as well as increases in interest income from Tremfya and the cystic fibrosis franchise. The increase in income from Tremfya was primarily driven by an increase in sell-side equity research analysts’ consensus sales forecasts. The increase in income from the cystic fibrosis franchise was primarily driven by higher interest income following the reversal of the allowance for changes in expected cash flows related to the FDA approval of Alyftrek in the fourth quarter of 2024.
Previous wording
Other royalty income and revenues increased by $6.8 million, or 23.7%, in the first quarter of 2026 as compared to the first quarter of 2025, primarily driven by income from fully amortized financial royalty assets.
Current wording
Other royalty income and revenues increased by $7.9 million or 27.9% in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by the growth in Trodelvy sales.
Previous wording
In the first quarter of 2026, we recorded provision income of $197.5 million, comprised of $190.4 million in provision income for changes in expected cash flows and $7.1 million in provision income for current expected credit losses. We recorded provision income for changes in expected cash flows primarily related to Evrysdi, Tysabri and Xtandi due to increases in sell-side equity research analysts’ consensus sales forecasts, partially offset by provision expense related to Adstiladrin due to changes in sales forecasts.
Current wording
In the second quarter of 2025, we recorded provision income of $203.9 million, comprised of $196.0 million in provision income for changes in expected cash flows and $7.9 million in provision income for current expected credit losses. We recorded provision income for changes in expected cash flows primarily related to Evrysdi and Xtandi due to increases in sell-side equity research analysts’ consensus sales forecasts.
Previous wording
In the first quarter of 2025, we recorded provision income of $127.1 million, comprised of $113.6 million in provision income for changes in expected cash flows and $13.5 million in provision income for current expected credit losses. We recorded provision income for changes in expected cash flows primarily related to cystic fibrosis franchise due to increase in sell-side equity research analysts’ consensus sales forecasts. The provision income for changes in expected cash flows was partially offset by provision expense related to Evrysdi due to declines in sell-side equity research analysts’ consensus sales forecasts.
Current wording
In the first six months of 2025, we recorded provision income of $331.1 million, comprised of $309.7 million in provision income for changes in expected cash flows and $21.4 million in provision income for current expected credit losses. We recorded provision income for changes in expected cash flows primarily related to the cystic fibrosis franchise and Trelegy due to increases in sell-side equity research analysts’ consensus sales forecasts. The provision income for changes in expected cash flows was partially offset by provision expense related to Tysabri due to declines in sell-side equity research analysts’ consensus sales forecasts.
Previous wording
R&D funding expense decreased by $10.7 million, or 21.2% in the first quarter of 2026 as compared to the first quarter of 2025, primarily due to lower R&D funding for litifilimab, partially offset by R&D expense for TEV-’408.
Current wording
R&D funding expense decreased by $213.4 million, or 60.8%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by R&D funding of $250.0 million related to daraxonrasib recorded in the second quarter of 2025.
Previous wording
We recognized a financial royalty asset impairment charge of $69.4 million in the first quarter of 2026 related to Tazverik following announcements by Ipsen and Eisai in March 2026 of the voluntary withdrawal of Tazverik across all indications and markets. We did not recognize impairment charges in the first quarter of 2025.
Current wording
We recognized a financial royalty asset impairment charge of $69.4 million in the first six months of 2026 related to Tazverik following announcements by Ipsen and Eisai in March 2026 of the voluntary withdrawal of Tazverik across all indications and markets. We did not recognize impairment charges in the first six months of 2025.
Previous wording
Equity in earnings of equity method investees increased by $15.3 million, or 237.7%, in the first quarter of 2026 as compared to the first quarter of 2025. Equity in earnings of equity method investees in the first quarter of 2026 was primarily driven by a $15.2 million gain related to our portion of the Airsupra sales-based milestone that the Avillion Entities received from AstraZeneca. Equity in earnings of equity method investees in the first quarter of 2025 was primarily driven by an income allocation from the Legacy SLP Interest of $8.2 million.
Current wording
Equity in earnings of equity method investees increased by $16.7 million, or 182.8%, in the first six months of 2026 as compared to the first six months of 2025. Equity in earnings of equity method investees in the first six months of 2026 was primarily driven by a $15.2 million gain related to our portion of the Airsupra sales-based milestone that the Avillion Entities received from AstraZeneca. Equity in earnings of equity method investees in the first six months of 2025 was primarily driven by an income allocation from the Legacy SLP Interest of $10.6 million.
Previous wording
Interest expense increased by $28.5 million, or 43.6%, in the first quarter of 2026 as compared to the first quarter of 2025, primarily driven by the issuance of $2.0 billion of senior unsecured notes in September 2025 and the $380 million term loan that we assumed as part of the Internalization. The weighted average coupon rate on our senior unsecured notes outstanding as of March 31, 2026 and 2025 was 3.75% and 3.06%, respectively.
Current wording
Interest expense increased by $53.4 million, or 39.9%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by the issuance of $2.0 billion of senior unsecured notes in September 2025 and the $380 million term loan that we assumed as part of the Internalization. The weighted average coupon rate on our senior unsecured notes outstanding as of June 30, 2026 and 2025 was 3.75% and 3.06%, respectively.
Previous wording
Other expense, net of $22.8 million in the first quarter of 2026 was primarily comprised of $20.2 million of losses on equity securities and $6.7 million of losses on available for sale debt securities primarily driven by the changes in fair value of the Cytokinetics Funding Arrangements, partially offset by $6.2 million of interest income earned on cash and cash equivalents.
Current wording
Other expense, net of $92.1 million in the first six months of 2025 was primarily comprised of $76.4 million of losses on equity securities and $30.7 million of losses on available for sale debt securities primarily driven by the changes in the fair value of the Cytokinetics Funding Arrangements, partially offset by $19.6 million of interest income on cash and cash equivalents.
Previous wording
Net income attributable to Continuing Investors Partnerships was relatively flat in the first quarter of 2026 as compared to first quarter of 2025.
Current wording
Net income attributable to Legacy Investors Partnerships was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025.
Previous wording
Net income attributable to Legacy Investors Partnerships decreased by $13.6 million in the first quarter of 2026 as compared to first quarter of 2025, primarily driven by lower net income attributable to Old RPI as a result of impairment charges related to Tazverik.
Current wording
Net income attributable to Legacy Investors Partnerships decreased by $12.1 million, or 9.6% in the first six months of 2026 as compared to the first six months of 2025, primarily driven by lower net income attributable to Old RPI as a result of impairment charges related to Tazverik.
Previous wording
Net income attributable to Founder’s Equity decreased by $25.6 million in the first quarter of 2026 as compared to first quarter of 2025, primarily driven by the Internalization completed in May 2025. In the first quarter of 2025, net income attributable to Founder’s Equity included both Mr. Legorreta’s retained EPAs and employee participation in the EPAs. In the first quarter of 2026, Founder’s Equity includes only Mr. Legorreta’s retained EPAs.
Current wording
Net income attributable to Founder’s Equity decreased by $18.6 million, or 43.9%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by the Internalization completed in May 2025. Prior to the Internalization, net income attributable to Founder’s Equity included both Mr. Legorreta’s retained EPAs and employee participation in the EPAs. In the first six months of 2026, Founder’s Equity includes only Mr. Legorreta’s retained EPAs.
Previous wording
Our portfolio consists of royalties on more than 35 marketed therapies and 19 development-stage product candidates. The therapies in our portfolio address therapeutic areas such as rare diseases, neuroscience, oncology, hematology, immunology, respiratory 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 quarter of 2026 (in thousands):
Current wording
Our portfolio consists of royalties on more than 35 marketed therapies and 19 development-stage product candidates. The therapies in our portfolio address therapeutic areas such as rare diseases, neuroscience, oncology, hematology, immunology, respiratory 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 2026 (in thousands):
Previous wording
(2)Other products primarily include Royalty Receipts on the following products: Crysvita, Emgality, Erleada, Farxiga/Onglyza, IDHIFA, Niktimvo, Nurtec ODT, Orladeyo, Skytrofa, Soliqua, Yorvipath and distributions from the Legacy SLP Interest, which are presented as Distributions from equity method investeeson the condensed consolidated statements of cash flows.
Current wording
(2)Other products primarily include Royalty Receipts on the following products: Crysvita, Erleada, Farxiga/Onglyza, IDHIFA, Nesina, Niktimvo, Nurtec ODT, Orladeyo, Prevymis, Soliqua and distributions from the Legacy SLP Interest, which are presented as Distributions from equity method investeeson the condensed consolidated statements of cash flows.
Previous wording
•Cystic fibrosis franchise – Royalty Receipts from the cystic fibrosis franchise, including Kalydeco, Orkambi, Symdeko/Symkevi, Trikafta/Kaftrio and Alyftrek, which is marketed by Vertex for the treatment of cystic fibrosis, increased by $3.5 million in the first quarter of 2026 as compared to the first quarter of 2025. The increase was primarily due to strong cystic fibrosis patient demand, a modest benefit from channel inventory and higher net prices in the United States, while ex-U.S. saw solid performance across multiple geographies.
Current wording
•Cystic fibrosis franchise – Royalty Receipts from the cystic fibrosis franchise, including Kalydeco, Orkambi, Symdeko/Symkevi, Trikafta/Kaftrio and Alyftrek, which is marketed by Vertex for the treatment of cystic fibrosis, increased by $3.6 million in the first six months of 2026 as compared to the first six months of 2025. Performance was relatively consistent versus the prior year period, as growth in overall cystic fibrosis franchise sales reflected a mix shift toward Alyftrek, resulting in a lower blended royalty rate.
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 $12.4 million in the first quarter of 2026 as compared to the first quarter of 2025, primarily driven by continued strong volume growth across all regions, reflecting 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 $14.1 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by continued volume growth across all regions, reflecting patient demand, single inhaler triple therapy class growth and increased market share.
Previous wording
•Evrysdi – Royalty Receipts from Evrysdi, which is marketed by Roche for the treatment of spinal muscular atrophy, increased by $27.0 million in the first quarter of 2026 as compared to the first quarter of 2025, attributable to growth in international markets due to tender-related buying and strong performance in Europe. Additionally, Royalty Receipts benefited from the incremental royalties we acquired in the fourth quarter of 2025.
Current wording
•Evrysdi – Royalty Receipts from Evrysdi, which is marketed by Roche for the treatment of spinal muscular atrophy, increased by $40.8 million in the first six months of 2026 as compared to the first six months of 2025, attributable to continued growth in Europe and tender-related buying in international markets. Additionally, Royalty Receipts benefited from the incremental royalties we acquired in the fourth quarter of 2025.
Previous wording
•Tysabri – Royalty Receipts from Tysabri, which is marketed by Biogen for the treatment of multiple sclerosis, decreased by $1.7 million in the first quarter of 2026 as compared to the first quarter of 2025, due to increased competition in rest of world, partially offset by continued resilience in the United States.
Current wording
•Tysabri – Royalty Receipts from Tysabri, which is marketed by Biogen for the treatment of multiple sclerosis, increased by $9.0 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by favorable channel dynamics globally and pricing adjustments in the United States, partially offset by increased competition in the rest of world.
Previous wording
•Tremfya– Royalty Receipts from Tremfya, which is marketed by Johnson & Johnson for the treatment of plaque psoriasis, active psoriatic arthritis and inflammatory bowel disease, increased by $28.3 million in the first quarter of 2026 as compared to the first quarter of 2025 driven by market share gains and market growth, including strong uptake across recently launched inflammatory bowel disease indications.
Current wording
•Tremfya– Royalty Receipts from Tremfya, which is marketed by Johnson & Johnson for the treatment of plaque psoriasis, active psoriatic arthritis and inflammatory bowel disease, increased by $48.0 million in the first six months of 2026 as compared to the first six months of 2025, driven by market share gains and market growth, including strong uptake across recently launched inflammatory bowel disease indications.
Previous wording
•Xtandi – Royalty Receipts from Xtandi, which is marketed by Pfizer and Astellas for the treatment of prostate cancer, decreased by $1.5 million in the first quarter of 2026 as compared to the first quarter of 2025, attributable to lower sales in the United States, partially offset by continued growth across ex-U.S. regions.
Current wording
•Xtandi – Royalty Receipts from Xtandi, which is marketed by Pfizer and Astellas for the treatment of prostate cancer, increased by $1.2 million in the first six months of 2026 as compared to the first six months of 2025, relatively consistent with the prior year period.
Previous wording
•Voranigo – Royalty Receipts from Voranigo, which is marketed by Servier for the treatment of low-grade glioma, increased by $27.3 million in the first quarter of 2026 compared to first quarter of 2025, primarily driven by its strong launch in the United States.
Current wording
•Voranigo – Royalty Receipts from Voranigo, which is marketed by Servier for the treatment of low-grade glioma, increased by $46.4 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by its strong launch in the United States.
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 $7.9 million in the first quarter of 2026 as compared to the first quarter of 2025, primarily due to continued competitive dynamics and Medicare Part D redesign.
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 $15.1 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by continued competitive pressures.
Previous wording
•Cabometyx/Cometriq – Royalty Receipts from Cabometyx/Cometriq, which is marketed by Exelixis, Ipsen and Takeda, primarily for the treatment of advanced renal cell carcinoma, hepatocellular carcinoma and neuroendocrine tumors, increased by $1.9 million in the first quarter of 2026 as compared to the first quarter of 2025, primarily driven by continued demand growth from uptake in combination with Opdivo in first-line renal cell carcinoma and previously treated advanced neuroendocrine tumors.
Current wording
•Cabometyx/Cometriq – Royalty Receipts from Cabometyx/Cometriq, which is marketed by Exelixis, Ipsen and Takeda, primarily for the treatment of advanced renal cell carcinoma, hepatocellular carcinoma and neuroendocrine tumors, increased by $4.5 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by continued demand growth from uptake in combination with Opdivo in first-line renal cell carcinoma and previously treated advanced neuroendocrine tumors.
Previous wording
•Imdelltra– Royalty Receipts from Imdelltra, which is marketed by Amgen for the treatment of extensive-stage small cell lung cancer (“ES-SCLC”) were $16.7 million in the first quarter of 2026, primarily driven by its strong global launch as it establishes a new standard of care in second-line ES-SCLC. We acquired the Imdelltra royalty in the third quarter of 2025 and began receiving Royalty Receipts in the fourth quarter of 2025.
Current wording
•Imdelltra– Royalty Receipts from Imdelltra, which is marketed by Amgen for the treatment of extensive-stage small cell lung cancer were $33.3 million in the first six months of 2026, primarily driven by its strong global launch as it establishes a new standard of care in second-line extensive stage small cell lung cancer. We acquired the Imdelltra royalty in the third quarter of 2025 and began receiving Royalty Receipts in the fourth quarter of 2025.
Previous wording
•Trodelvy – Royalty Receipts from Trodelvy, which is marketed by Gilead for the treatment of metastatic triple-negative breast cancer and pre-treated hormone receptor-positive, human epidermal growth factor receptor 2 (“HER2”)-negative metastatic breast cancer, increased by $0.8 million in the first quarter of 2026 as compared to the first quarter of 2025, primarily driven by higher demand in breast cancer treatment.
Current wording
•Trodelvy – Royalty Receipts from Trodelvy, which is marketed by Gilead for the treatment of metastatic triple-negative breast cancer and pre-treated hormone receptor-positive, human epidermal growth factor receptor 2 (“HER2”)-negative metastatic breast cancer, increased by $4.4 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by higher demand.
Previous wording
•Promacta – Royalty Receipts from Promacta, which is marketed by Novartis for the treatment of chronic immune thrombocytopenia purpura and aplastic anemia, decreased by $27.0 million in the first quarter of 2026 as compared to the first quarter of 2025, primarily due to generic competition as well as revenue deduction adjustments in the United States.
Current wording
•Promacta – Royalty Receipts from Promacta, which is marketed by Novartis for the treatment of chronic immune thrombocytopenia purpura and aplastic anemia, decreased by $51.6 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by generic competition.
Previous wording
•Spinraza– Royalty Receipts from Spinraza, which is marketed by Biogen for the treatment of spinal muscular atrophy (“SMA”), decreased by $1.2 million in the first quarter of 2026 as compared to the first quarter of 2025, primarily due to higher sales in the first nine months of 2025 as compared to the first nine months of 2024, which resulted in less royalty-bearing sales in the fourth quarter of 2025 due to the $1.5 billion sales cap, which was achieved in both years.
Current wording
•Spinraza– Royalty Receipts from Spinraza, which is marketed by Biogen for the treatment of spinal muscular atrophy, decreased by $2.5 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by lower U.S. demand and the timing of shipments in certain international markets, as well as Spinraza achieving the $1.5 billion sales cap earlier in 2025 than in the prior year.
Previous wording
•Amvuttra– Royalty Receipts from Amvuttra, which is marketed by Alnylam for the treatment of transthyretin (“TTR”) amyloidosis with cardiomyopathy and for hereditary TTR amyloidosis with polyneuropathy were $8.3 million in the first quarter of 2026, mainly due to strong performance in the United States following its second quarter 2025 launch in transthyretin amyloidosis cardiomyopathy. We acquired the Amvuttra royalty in the fourth quarter of 2025 and began receiving Royalty Receipts in the first quarter of 2026.
Current wording
•Amvuttra– Royalty Receipts from Amvuttra, which is marketed by Alnylam for the treatment of transthyretin (“TTR”) amyloidosis with cardiomyopathy and for hereditary TTR amyloidosis with polyneuropathy were $17.2 million in the first six months of 2026, primarily driven by continued growth in U.S. patient demand following its second quarter 2025 launch in TTR amyloidosis cardiomyopathy. We acquired the Amvuttra royalty in the fourth quarter of 2025 and began receiving Royalty Receipts in the first quarter of 2026.
Previous wording
•Other products– Royalty Receipts from other products increased by $11.9 million in the first quarter of 2026 as compared to the first quarter of 2025, driven by Niktimvo, Skytrofa and Yorvipath, partially offset by the timing of Soliqua royalty payments.
Current wording
•Other products– Royalty Receipts from other products increased by $42.0 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by strong contributions from Niktimvo and Yorvipath, partially offset by the expiration of the Farxiga and Soliqua royalties.
Previous wording
•Milestones and other contractual receipts decreased by $12.8 million in the first quarter of 2026 as compared to the first quarter of 2025. and includes payments for Airsupra, Bosulif and Cytokinetics. The change is primarily attributable to the $9.7 million quarterly repayment on the MorphoSys Development Funding Bonds received in the prior year period.
Current wording
•Milestones and other contractual receipts decreased by $63.5 million in the first six months of 2026 as compared to the first six months of 2025, primarily attributable to a one-time distribution related to the Legacy SLP Interest and the quarterly repayment on the MorphoSys Development Funding Bonds, both received in the prior year period. Current period Milestones and other contractual receipts include payments for Airsupra, Bosulif and Cytokinetics.
Previous wording
•Myqorzo. In May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. ACACIA-HCM met both dual primary endpoints, demonstrating statistically significant improvements from baseline to Week 36 compared to placebo.
Current wording
•Myqorzo. In May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal Phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. The study met both dual primary endpoints, demonstrating statistically significant improvements from baseline to week 36 versus placebo.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Income from financial royalty assets increased by $87.6 million, or 15.9%, in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by an increase in interest income from Tremfya and the cystic fibrosis franchise, as well as $27.6 million of interest income from Imdelltra, which was acquired in the third quarter of 2025 and is reflected within other products in the table above. The increase in income from Tremfya was primarily driven by an increase in sell-side equity research analysts’ consensus sales forecasts. The increase in income from the cystic fibrosis franchise was primarily driven by higher interest income following the reversal of the allowance for changes in expected cash flows related to the FDA approval of Alyftrek in the fourth quarter of 2024.
Current report — wording carried from elsewhere
We did not recognize impairment charges in the second quarter of 2026 or 2025.
Current report — wording carried from elsewhere
Interest expense increased by $24.9 million, or 36.3%, in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by the issuance of $2.0 billion of senior unsecured notes in September 2025.