Royalty Pharma (RPRX) 8 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Royalty Pharma Third Quarter 2023 Earnings Conference Call. I would like now to turn the conference over to George Grofik, Senior Vice President, Head of Investor Relations and Communications. Please go ahead.

Good morning, and good afternoon to everyone on the call. us Royalty joining XXXX Third for results. you to Pharma's review Quarter Thank

the our of release slides can press You find with royaltypharma.com. call the at of on earnings Investors website page our this and results

you to statements we Moving statements. you to to that and our performance. financial GAAP statements information SEC presented results assume to information website. may forward-looking unknown forward-looking such differ would release I understand currently risks, to this and to from contains The are that, other provided our involve X. to on remind cause non-GAAP of file obligation press factors Royalty And call used that update you advance on earnings any in that Pharma with with measures X. on in please a help based no Slide Slide for I available refer these financial like known these uncertainties the forward-looking All our materially available risks. XX-K and are statements. Non-GAAP actual the reconciliations to be to will description

EVP, Hite, speakers Founder and Chris Pablo on are Chairman; Investments; EVP, Terry Research of Legorreta, Vice Chief the Marshall Officer; Executive Our Financial Officer. and Chief call Urist, and Head EVP, today Coyne,

which discuss highlights. after other on will Marshall Chris partnership, key will PTC discuss Pablo updates. will update then an the provide portfolio

from concluding with Next, Pablo. the we Terry over that, turn will to remarks hold Pablo, like call the review following and session. I'd financials will Q&A And the to

again our financial portfolio Sciences. Slide tremendous successful Innovation am momentum our everyone quarter call. X leading funder Life which another of delighted in underscore achievements third report and summarizes strategy George, to a welcome I you, the quarter, the and our as Thank of business. in portfolio execution against and to on

our adjusted adjusted EBITDA flow grew cash grew by financial XX%. delivered top Adjusted by cash receipts, we First, and X% strong line performance. by X%,

the to we Biohaven third XXXX. prior in the are of metrics these quarter received which related of All payments,

months Second, muscular enhances the long-term on incremental royalties $X.X on capital with treatment growth allocation, attractive generate therapies spinal diversifies we Evrysdi, our acquired is had billion. few where This and announced our particularly recently is to of transaction partnership, a with which I our am pleased active acquiring for royalties past PTC of expanded we very double an the return unlevered atrophy. digits. portfolio on expected in transactions attractive

also ability later, we this example upfront basis, for acquisitions synthetic create As ever X a transaction On billion Adstiladrin. our busiest $X.X approved unique transactions our including exciting tailored billion of payments. explain to Chris This Royalty with solutions. Royalty transaction year-to-date will to $X.X of up Skytrofa great a quarter was in was announced win-win and therapies, have on

an our shares quarter, to repurchased third night's we continue total Lastly, fundamentally believe $XXX we undervalued our $XXX taking to million shares orders last are as additional of million our of close. repurchases and the in year-to-date

between billion. billion Third, cash year our we're to guidance adjusted for $X.XX raising and received $X be full

EBITDA Biohaven impact a to by quarter the around including XX% of period this does line, our line payments if the We the to X% in financials growth related the detail. foreign benefit exchange we related include practice, growth. we acquisitions. On Similar on the you X% Slide our payments. payments. prior is not payment. with prior and grew this standard delivered future our Our our portfolio line Consistent see in prior X, on our from more and had X% several X% guidance guidance in negligible quarters, in and of the to prior top our impact of Unlike portfolio Biohaven growth underlying based expected current top the top reflects any to last our Biohaven payments related can include our growth adjusted

biopharma, and flow XX% We growth line the XXXX. speaks payments. Slide to by the XXXX. Lastly, adjusted payment and X payment record Biohaven to in strong prior the related X strategy impressive the this first against of Biohaven-related execute Royalty. delivered prior in to our quarters our growth since development period XXXX in consistently track of after shows in a and payment, quarter including market the ability and through of our XXXX growing growth successfully our both X% top This X% the stage prior strong IPO grew for included cash this quarter June to

rate well positioned why debt shows credit investment-grade environment, higher existing cost inevitably low-cost from interest long-duration, our profile. That investments a and borrowing committed will Slide to when said, in evolving benefits We're a capital in rate rise. the we're environment. making being X of marginal our rating maintaining an structure

us recognize that of to adjust environment. critical above allows is expectations is our to our to and of returns deliver to our what continue rate However, attractive This Royalty this higher cost capital. return also

other consider has industry needs opportunity for Royalty. the huge and financing biopharma This accelerated by which been aspect the our has is of other sources The of that of has by increased dramatically, cost the expanded important the capital increased companies. trend the driven macro to of environment, set role

that strongly shareholders. that quickly continue business ability our we changing to we spreads remain the we cost of in macro so for excess investments, capital. we Slide capital our to Pharma confident to in we're thrive value able the of environment. generate about make and then will on create of adjust evolving our want of focus and can When XX, beauty cost to we're that an is The we why unpack rate compounding environment. On together, taken perform excited So to Royalty our

period low to at take XXXX We look XXXX, low-cost capital the and of at around long-duration, locking we our fortunate X%. cost in roughly when of XXXX rate to Historically, from were environment all-time interest debt advantage X.XX%. in very XXXX, was

cost investments the we therapies this period, effective environment, generate X%, of made our funded to to capital X% as this to look When was consistently has with capital. When business to for with at to approved cost debt. of over our expected debt increased X% most them cost current period, to time for increased of around threats shift above marginal However, our the X%. X% the returns got we of we around we

the of down. the set our However, transactions approved opportunity returns risen maintain as well, of we're of expanded targeting on cost spreads to our that nearly dramatically important royalties us Xx is capital. allowing slowing pipeline signs no announced above Equally have the attractive showing with with value has of

result will hand to With I it you value these together, greater factors to on Chris in over shareholders. Taken should for PTC update partnership. creation the our that,

of Evrysdi us Pablo. finish XXXX. Royalties has the remaining getting XX% without our our cease than royalties $X.X we in the Evrysdi a equated first in cusp transaction or Since any on quite was global launch that the for of X.X% focus ownership reached double now with validated we Evrysdi cap. Thanks, now global Evrysdi billion initial More from sales. approaching I Evrysdi This $X.X early original category approval. Royalty sales Royalty the would $X upfront this to extends investment. At royalties exciting time conviction our now to X.X% leadership had of to of billion substantially the that Royalty The we of cap gained to of X.X% structured been Pharma $XXX over consensus to July investment, XX% XX% risen XX have global of the tier in Evrysdi. in we or received was PTC's Evrysdi have interest exciting royalties to upfront of the once XXXX XXXX. Last aggregate returns call, royalty $X.X acquired the to to million our giving XXXX sales so Slide busy with the We for of an our FDA Since of to XXXX on month been on last sales. to forecast effective This duration then, on expanded payment by XXXXs. SMA an expected our want therapy billion royalty before when reach transactions line. really in partnership of exposure by by our global PTC now earnings has XXXX been billion, and acquired PTC profile strong takes with some and XX% royalty patients Roche. XX,XXX treated is

This us Additionally, by XXXX its royalties option the This $XXX all there to creative our joint in to of interest. to PTC PTC's of royalties to royalty highlights million we purchase quarter structure is a unique for residual partners. our of remainder exercise less royalty the received. end sell allows for less solutions to if royalty payment received. Alternatively, the PTC's the remaining option, with for XX% have tailor half chooses right a XXXX, return and residual win-win million this of the PTC of first not $XXX ability structure of

our a double excess digits in to with to financial product we diversifies clearly boxes As the us a of million. It Evrysdi this for royalty aligning a become receipts XXXX our with to of for $XXX is all top cash by result X to ticks expected contribution of adjusted transaction, in I'll expect selection deliver And growth, that, over the purely framework. sales our and it portfolio, with based hand consensus a unlevered basis, it enhances On an it return forecast. Marshall. on us,

Chris. Thanks,

combined acquired Their record discuss of is $XXX Adstiladrin of this clear quarter, approved in to XX value Ferring first for This sales bladder portfolio. we to attractiveness a Slide sets is believe synthetic $XXX move of form Royalty and August, we million, transaction. up financing In synthetic the growing of X.X% for on funding. our for Let's of now gene therapy our Royalty Royalty is million in which a a to cancer. up recent from the U.S. to evidence

model, million. which increase significant multiple of the of early X.XX% mid-XXXXs. Then extends Evrysdi sales strong growth balanced our approved products. development in since around us strategy. cases, a This is my namely of to Of reflected hormone attractive of flexible demonstrated step in schizophrenia (a) cancer, capital manufacturing acquired aspects Royalty we their risk-adjusted unique and achieved a migraine, maintain Skytrofa we business is $XXX emerging had capital contribution XX to therapy Ascendis provides funding we $XX how weekly prostate deployed unmet feature product. illustrates million our and a our expected approximately needs able Life including the and in therapeutic on our underscore our a in ability forecast around back example has Our We've sclerosis, need, Slide to in is SMA partner XX% addresses need I class, a these across return stage even of started patient to XXXX, Royalty provide opportunity by and approach of solution therapies innovation. investing to take growth area in same for U.S. LP latest business pediatric therapeutic their been met for sustain perspective consensus therapies expanded growth. On non-dilutive this approved to development XXXX. In in in invest and has unique the and multiple for important wanted XX, September, milestone the slide, $XXX both were Science to advance the in areas, stage billion the transaction number the of the we times first for returns portfolio from This investment approach our final a model. Slide the assuming FDA-approved to growth that and sales in allowed fund strategy, same commercial our to of Evrysdi our the to and on to the an X% is is a to requirements. On and

the we with ever. Over X transactions have years be the in tracking of increase to our a past among XXXX announced substantial best value years, seen

hand the past as Terry. the speaks Sciences. is to We it the funding prior of way X that, X like to double almost I'd to an Life the the value to years. over which secular growth over have behind transactions averaged royalty-based years, With to fund $X.X attractive announced This billion compared powerful

Thanks, Marshall.

in versus quarter year third Let's receipts move period. ago Total to grew XX. the X% Slide Royalty the

Excluding to royalties newly the fibrosis Royalty Spinraza. year Biohaven-related grew performance period, as the payment acquired strong cystic approximately well prior due X%. and receipts of Trelegy in was franchise mainly on The the as the increase

Lexiscan, us partially to business, offset other growth We Evrysdi, also Cabometyx. to positive Trodelvy, of into the primarily of in base Royalty Biohaven-related our Tremfya, provides moving Imbruvica payment. Promacta a majority key new of growth Royalty in acquisitions a show before our the These X% quarter headwind around deeper our top of Royalties, parts. impact prior were weakness saw dive top Tysabri. Slide XX from solid growth deliver expiries, performance the the and line including to together factors various performance The allowed contributions by represented with period the line X%. and

exchange As how cash to underlying of replenish impact the of our power growth. Slide These generates drive substantial the and strong unique was Pablo noted, negligible quarter. redeployed. efficient highlight our foreign dynamics business shows portfolio again flow the this model XX to model to be business once compounding

aware, for you're growth we cash As deducting million noncontrolling prior of third with arrive last interests. representing Biohaven-related adjust to we amounted to compared X% if in receipts distributions X% quarter at payment. This adjusted year's after period or the $XXX the quarter,

of approximately costs professional were in and X% quarter. adjusted the receipts cash Operating

net top EBITDA adjusted cash received on in interest of When in generated we value-enhancing reflected our the by unsecured and the on semiannual line our of the look the paid notes, As occur balance. a quarter into interest broadly $XX cash in with less EBITDA be the interest new X% in redeployed first royalties, paid. and consequence, the growth consistent Net quarters our business third think to adjusted growth. million the which quarter, we timing we reported of to payments

share the Aficamten You initiation stands quarter quarter, funding which of balance the at billion should account, efficiency our resulted that repaid now in study so an these the our $XX the the stage payments highlights line flow, cash million bottom all our to into model. we adjusted of per to billion. Development in flow in note substantially amounted $X.X of the million that of business related of to XX%, X% cardiomyopathy. cash non-obstructive notes in $XXX by pivotal $X $X.XX grew Taking for this quarter. or of which margin hypertrophic again, This adjusted

move our XX financial to now on Slide Let's position.

for continue maintain we significant Following the transaction, financial recent Royalty to PTC acquisitions. capacity future

sheet, With of quarter, the third we the on to business of cash combination cash the and balance our around our end the through million. a access the At markets. $X billion generates available $XXX had cash debt equivalents and of

draw on After If of to upfront a quarter approximately end, $XXX facility. billion the million net to $X $XXX transaction, through revolving PTC this million on fourth quarter. balance and adjust a we together payment our sheet we funded million in $XXX business our cash with cash projected for from credit flow the

Xx end around We plus expect to billion have million $XXX this XXXX. of $XXX investment-grade draw, projected results cash revolver and of million With $X.X the and to equivalents acquisition the at in of in bonds $XXX million EBITDA prepayable leverage forma comfortable are gross taking pro around debt Xx to Keep for total right of on around opportunity. both basis. we net up Royalty the that leverage a mind

our highlighted. the Furthermore, well we about ability to the $X.XX of transactions generation capacity and good financial to as as value. create have the additional strong billion from continue balance cash I've that shareholder already we revolver execute feel Consequently,

XXXX to year received billion. adjusted the in cash $X range billion to be guidance. of full We updates our XX $X.XX financial expect Slide now

of We previous the million have on compared guidance the $XX by performance. midpoint raised approximately strong range our the based portfolio with

As $XXX guidance a Zavzpret we quarter. million this the the milestone received reminder, first in includes

Additionally, for expectations the want provide includes royalties. products we bit on your consideration, a more XX modeling line, around to other our which color for

product million to Royalty $XXX to ahead estimating around receipts. million other are XXXX, $XXX Looking in we currently

portfolio this Royalty Importantly, does of standard of take and account based and not future on practice, the any consistent acquisitions. with as guidance our our is benefit into today

no previous relates paid, it to and guidance. change there operating interest our costs to and is As professional

received payments side, our base for billion. to XXXX. cash base we $X.XX slide account outlook down and XXXX underlying $XX drills balance, million illustrative, brings The is on Biohaven-related these guidance adjusted note take our but graphic adjusted million further XXXX. due out please guidance. of which the cash a received cash for received our pushes behind Adjusting final pulls Starting However, interest which left-hand $XXX receipts to paid the that year-to-date. My not the in the with on interest high of payments, face sets comparison was does for into the various we

if $XXX billion guidance expect to line to arrived from the On of $X.X for the right-hand space growth XX% at underlying year. cash side, Including million comments. our on to payment raised With X% the receipt to closing prior we the we billion. of Zavzpret, his Biohaven, would adjusted we this hand back call start I top Pablo to that, $X.XX like

Terry. Thanks,

a stage the level approved transactions the the model new exciting also on since be announced highlights of remarks our capital of billion for tailwinds next am between XXXX concluding you report. $XX start to my and deployment capital perspective. Slide well by of worth I deployment. in one puts therapies. track start of Today, meet X-year ever years to to have My with which slide best healthy extraordinary as into business XX our really XXXX billion. our some how quarter pleased It have us $X.X puts financial up $XX or to put Royalty with me about billion power development balance Let saying heard the exceed track strong transactions, and that as third our of we industry. target activity performance by highlights on this This

with of our since makes key My fast final me set and strong competitive taken XXXX. The highlights some slide confident. our expanding accomplishments performance together highly moat powerful opportunity

XX% our we questions. we that, will XX% That over and top XXXX. long-term deliver to when a With happy plus XX% means be XXXX your outlook. will to financial We CAGR of attractive take line to XXXX to look

We question. questions. take Operator, for open up please first will now the

JPMorgan. with comes The from Schott first question Chris

me. for X just Maybe

set I'm of to seeing the talked see you're kind maybe opportunities. the your macro And dramatically. just opportunity interested greatest about incremental where you First, expanding environment

launch PTC Is needing like out deals to company's deals to over that of the to need I just stage like trying get companies products one of the where funding? development existing Or standing monetize royalties. ground? this deal really is companies is other? is it looking the off the those capital of buckets more sense a So

question on then competitive my was just second And environment.

I think environment, sure different that you're you're in I'm which an kind self-fund. peers. a is in capital recycle enviable of than not to bit [indiscernible] this position and able

X were just where what deals for And you're there? So all set can year environment a seeing or out for talk at we you the has that about changed competitive versus ago?

you, Thank Chris.

So take question. part first I'll the Chris ask of the to Hite

Chris. macro funnel. monetization looked between royalties launch environment a greater top the existing at stage, Thanks greater we're Sure. Thanks, PTC slide of that opportunities we XX than think Pablo. that the The our for it's yes, I development like -- we question, -- showed last year, capital, of the look, than deal,

with more that billion And upfront. the nearly $X that. and deal as opportunity and that of announced any don't can funding and like we volume really when we've has we're And you of Merck deals tell the year since synthetic XXXX, grown done would fact nearly did just really monetization might opportunities and stage you different in entire think, all stage year. and Pablo dramatically billion development we the more we've those getting evidenced with or set It's $XX the the -- right like opportunities you now. All say deployed done last of see environment highlighted, sets is for of royalties I comprise deals in development like as can is we've me hard slowdown increasing. deals imagine, What around to I this tell by I is it's R&D amount

the I in sort of pudding, So the guess. that's proof

your part Yes. environment. Marshall related the to can answer second competitive And Chris, of the question

change question. good is message environment. the real think a the Overall, it's competitive in Chris, I no

versus environment. business of our really kind about we've always but important really bigger we have competition we continues past as continue advantages think the on it the and I competitive as to think of the bigger, execute I a deal, market. the gets real the our talked the type change. But operated complexion thing I is strategy think to of And in the competitive changes depending of certainly, rest expand against in the no

companies flexibility, our to with our to of work continue meet partners, large we do our the to across Science to deals, ability of needs term terms how partner ability the long space. with In our creativity, our innovators to really Life evolve

feel no overall, front. we where really I and are confident competitive on So think real about we change the

comes with next Stephen from The Scala Cowen. TD question

assume questions. endpoints, suggest Vertex readout. analysis analyzes Pharma what their have likely that prior studies? you they achieve is clinical I I Royalty your new analysis If then most will Does What don't they telling trials readouts endpoints. the reason. the their to is achieve on the that X your their of triple

is Your don't you answer material trials, may other companies' be but your stock. to about that this talk

would So your your be I view think shareholders. to useful

list influence be future surprised And from of question Second what or the what included progression how it drugs XX whether negotiation is, curious your I'm was does regarding you the -- procedure, initial it excluded. investments? IRA to relative

Sure.

will talk Terry then drugs IRA. IRA the question related the can take fibrosis to Marshall in of and So about list cystic first XX the

Steve. Sure, Yes.

focused we're many investors course, this readout sure of as as are. well I'm yes, So on

Our seen that to is clearly what trial, And of the at think to we've based it's wait have get But full trial hard of this sort II a data say in better Phase overall on will we'll Trikafta. to benefit. than the the sense that expectation it's to point I the see succeed.

good scenarios. this feel any still business by we and our good described more, under feel of still is we've we and we've really this or the business where I But really decade of that And how last very wait and hundred under the Pharma quarter, even very, that. including scenario to grow what really patients about we'll and manageable. under to for over of really share think a that rate couple our to on a conversion switch there. those dollars potential good we million we royalty So about A pointed scenarios. And the Royalty XX% to still is scenarios also is impact impact key our see about also unpack it scenarios range is thing feel lower tried ability lot

we'll Trikafta, So but sounds something the and in XQ. obviously wait high bar early really it full data. with see we'll see The is like

And on briefly Pharma. IRA, Steve to impact the focused so were on we really the Royalty

on Xtandi I this was could for products we have there, year Imbruvica, their had and think not. Imbruvica highlighted that Xtandi. was, X obviously been

I little that bit with a have thereafter, was like a anyway. Royalty a impact so shortly to really guess But Xtandi's of end surprise. And we being said wasn't life, it material patent Pharma

terms the Beyond what list the or approach there. we that, in together, was list was that on of will taken from to the commenting put refrain probably

I early come the Royalty There to added there. so of isn't is was like insight in. a what But terms lot list it's think certainly, to felt generated, constructive in Pharma, with be a respect factors it how outcome. we just of

question Baum Citigroup. with from The Andrew comes next

of couple A questions.

just comments stock. ability your given to Firstly, upsizing deployment Should a a capital I on the the leverage for guide on of at following big the increase read buyback even Terry, Royalty. of the comments your about alternatively larger to this undervaluation into

could us shareholders. from the on Second, cap just finally, your you confirm And could removal impact Medicaid your no pre-IPO there's if the in AMP just you portfolio? update then on sell-down of

Sure.

on a have lot the is there message powder about and that financial lot a of question think I dry flexibility. So we leverage, of the

if like lot those take we've have we Chris any of capital deploying seeing that of come And we'll along to so been a capital. need opportunities not advantage mentioned, We and the slowing when if access right we're as opportunities feel to signs that down. they themselves. present And and the of

really that. feel good we So about

about On a the around buyback. million year-to-date. $XXX repurchased question share little We've over

like balance buy made opportunities, on to really authorization. repurchase think opportunities billion on ago couple a announcement continue other I against And we Evrysdi. that $X to have opportunistic We royalties that we'll products particularly exciting weeks and be of the

to repurchases as these So attractive share is some you #X our know, time But that to do buying we it's that levels, at also at from is with capital certainly tool stock really our shareholders look will returning a we think priority time. royalties. through

Yes, on on question shareholders. pre-IPO pre-IPO Your second shareholders.

we this major like mostly base, shareholder -- see really has course years. it So actually, couple a did last the at over in shift feel it's its the We of that run run point.

there's but obvious the is us. saw a for not really But largely that's we was we its transition, course. to as definitely something business that left run do really headwind that much feel was like that So that

on And your Andrew. question, last quickly then just

there's The of we've think So material say always there. any caveat perfect and into exposure I only of no, royalties. have of the discussed answer is kind insight payer before major is some this that we that would our the don't don't we mix

So, lack impact. a don't we But of no, right precision of some now, as there. there's there is material think

The next question comes Raffat from Umer with Evercore.

question development one despite This has stage been Royalty Mike asked questions. is change driven? And Two or II, risk or on picture a rate The XXXX One DiFiore increasingly there could it fundamental the compelling greater have a deals becoming mean, a growing be pipeline. my increasingly quarter. dovetails in little Pharma progress one III Umer. the pursuing less follow-up. more Pharma's since this opportunity are what clearly, Phase in capital. been interest And Or set? big on Congrats opportunities despite deploying picture, has high-conviction for big a on was macro Royalty I previously scarce tolerance? I bit. Or is,

Sure. Thank question? you. do Marshall, take want you that to

Sure, question. the Mike. Thanks for

and We've strategy approved it investments. slides from there's really So year-to-year. varied no, from versus you has see no unapproved of or the approved how about unapproved prepared one about overall, in remarks how we when think shown change the in

about strategic excited that past in really It interpret we've levels sort in finding products years. about greater any time. is approved wouldn't But permanent most I the a are past. as talked positioning, of we of have of about that over seen We in investment that's couple of period to the the things say

do what the And that think looked over many over time. we about business a at past strategy think of years the the so years. But that's and like couple I

would And be historically. like to so investments continue I to expect seen development in you've and from there approved stage some year-to-year variance

ARIA. little from my is helpful. Got on CTAD And The question it. trontinemab Super very showed Roche. product-specific data

out and rates some given gives Cmax. investment got folks trontinemab Roche is, will the there in And that notably My competitive? remain confidence what low simply question remain lucky, high will you this think ARIA that that

We trontinemab I to the data. think looking were excited forward And Mike. more. see Sure, to we seeing are

to to very generalize ARIA, right specific on As now. question your hard

technology, the hard the up just have the historical think very moves drug to we're taken given Roche to think And into to is see given probably I compare how the it sets. dynamics It's of brain. going forward. data it to how I

at do nice portfolio think the do us I that to in do development things we flexibility forward. portfolio build value and a like and But option have how how level, trontinemab high as speaks that moves give to it's it some really the really

question next comes Terence from Stanley. Flynn Morgan The with

This Dan Terence. for is on

Just from us. X

set, partnerships? the you opportunity of on maybe are First, a talk can those discussions. current the state for coming up more that about pharma in the common And company large set little opportunity any themes

about you're And Crohn's from versus following head-to-head then [indiscernible]. can hoping disease second, in the data to what study from talk maybe on Stelara recent the pipeline, you see Tremfya

Dan. you, Thank

Tremfya. will answer the on the first take question the So and Marshall Chris opportunities about set question can then Stelara and

it a the question. in slowed Look, to see Dan, probably pharma but continue pipelines. large I invest Sure. think answer opportunities little we of not the bit my Thanks, to That questions to referenced has with for earlier, their down. one I

share I think us. probably growing there's amongst partner them a and -- with risk fact, interest to in there's

us. very most and excited thoughtful the -- we assets really high pick a to that keeping us, really that's For about. And want bar for very are quality they it's be really

the making are of It's we very asset increasing fund sure choose being right to help seeing an So R&D. question and disciplined. just a of opportunities set we

one up. And thanks is that our This for portfolio of yes, bringing products. Tremfya, on

going are spectacular. as IBD as to point going past, is interesting other pretty to has growth studies really discussed And you I see And gets we've about growth. reason the drive the no going excited from and in in label not seen to really that to out, the wave is participate We think been as Tremfya that IL-XXs think of that the forward. it's into another head-to-head we've

marketer we're that Tremfya can and to big type we're to to with think it. the studies development that Johnson expand to super incredible marketplace. excited is like about patients, the looking benefit add exactly to head-to-head a continue strong again, support label portfolio I So product the incredible in really who this run science, of And

the that in for come. years excited to So to we're really have portfolio

comes question America of Meacham with Bank from Securities. next The Jeff

is Susan Jeff. for on This

a question. Just related

in on on the catalysts we if then [indiscernible]. If when upcoming the should a So catalysts follow-up positive? the the products, to one are of just line see And fourth contributions Is top quarter, growth or saw [indiscernible] primary economics the are are there there to aware should milestone we sort mixed be of any on payments? endpoints additional add of? any as expect we with optionality royalties continuing special

on and Sure. Thank Terry, do you Marshall, then growth the question. to the want question take the question. you for second

Sure.

the was So yes, you upcoming to as data of mentioned another. as aficamten, one there collaborative catalysts, are in them, fourth Phase a III quarter, number going Tremfya we're see of the

they hopefully, more would go they're if So to readouts. Tremfya excited approval positive, probably we're process, the is to And that so maybe and that growth others, regulatory like that, little expectation need our beyond. a contributing XXXX sooner. start obviously, the through see would to those think I And

regular of great So we have the that growth that's sort within we of is portfolio about the lot flow well. just how as but these, also build of of portfolio a the catalysts a organic like thing sort

So strengths our model. of that's business of the one

part I transaction MorphoSys as -- question. of everyone, the respect Tremfya, we centered our just [indiscernible] And your their Tremfya last discussed on on question which royalty, then collaborative And was acquired it really nothing in on the that the remind with of with special just acquisition we program. to agreement in would to that support Royalty the nothing outcome.

really see are others the anchored I to we overall, But outcome like we are. transaction it. excited with really many a remain know Tremfya like MorphoSys great happy royalty So the that and

question from Sachs. next comes Shibutani Chris Goldman with The

the the communicating tackling pre-IPO stock, think in the the debates, rate the Vertex guys has et -- we when been of I addressing triple, which challenging, think interest cetera. you been shareholders, environment, some effectively about have of terms

about standpoint? with companies are of there instance, if of kind for debates of us when that address. the feel are you in exactly right that And in part sort Explorer, of is who an though, some These investment because and up One comment are a obviously in this Metal this think and profile Oil comparable which risk that from vehicle other similar not trust, And how the we premium. Can Mining Royalty are created came you recent comes same. you a the see of maybe questions that any have metals the for comps? you question discussion up to

structures Does existing creativity with kind expand circumstances relationship lets about of thinking additional were multiple you existing same grow players creativity you proactive that a with expand the entities, on on perhaps obviously, double particular the that there diligence, book? Is of cetera, for due the that into further into have the secondly, also , [indiscernible] of have the part part opportunity. other that to then your you royalties dip sort assets? or to given extend create the your et some and upon with of effort relationships And fact that that

Yes.

second And think question way well, teams, capital approach have decades of ideas I I'll of dialogue the done blank see mind, them is piece help and we are we with they we and this know always they they're paper running, need. best same tell problem we've we understand the with developing way always them reflect let's challenges, that then up need. can get then briefly the the need the that structures. how with then on face, So with the management the see super with challenges answer not the to constant we to the and programs a the solve and they first, we preconceived problems. And products their any dialogue come the And know a can a to creative get fund come understand approach companies open to sort team, And about issues, for and business, creativity. I try several the it that the how really start

the business where recently unique business, multiple companies MSK, repeat and slide, others, which has the very very also had significant. I volume Cystic And when many think, we've deals. is even the transaction this PTC we think Foundation a Fibrosis I done of announced But we of characteristic of repeat and business with

become those companies it very So with management once definitely is to I'll us that and teams for guess partnership they a with easy turn challenges because other can for something believe of are us, known think yes. establish was to I each it and we've they and lot and these with that I Terry, face. a question we creative. work then first them the They very continue to helping time over But over other work and with know

Yes.

a So we've the thought Chris, you And about raised it's is a really we really [indiscernible]. good and something lot are point, comps.

And look a of elements are And pharma. an our or And sort different. that of like then manager. mining lot are so like are asset there royalty there elements gold even elements look there another that company business are alternative that

hopefully, you just how the some this And squarely it. being taking to stronger with into going business, education think to so that's require so the well. execute and exposure We benefit is people biopharma with start more price to at sort much be of the does can it part elements business time. the also In of to of we we're of and sector a that And challenges get think rewarded continue fit meeting continuing we really a over one we're share bucket. out without faces. And to work front some on don't like any meantime, of explaining in and of that, the unique performance. amazing why that investors investors that's but biopharma and And time, I our feel

Because is is you just I often. just But performance that, the one one here. no and important more pharma I'll said, what I much critical when And of as Royalty said, Terry Pharma. products of what think add sales pharma really is of it's comps about getting biopharma one -- fundamental the an to you Yes. company you're really a that a it, drives really concept think think and question consideration of than the pharma products. what drives company, different sales

It's penetration markets. indications, new into new

invest many in many new so have portfolio. generated. always most able every exciting that innovation has in to decades of our the new over We products We've therapies been wave

this So we we're strong growth. the and pointed of the penetrated, very, and some top drivers And then industry. again, as exposed of that exist to as very driven is by they which have not the have didn't they markets new products underlying get biopharma, Terry of line headwinds

Pharma, presents very, down and Life realize really we and a growth investors it's investment I attractive, with unique think what's I unique unique with predictable way sit significant in Royalty investors in Sciences this think diversified opportunity them they very invest a when understand about very a and low that So that very proposition one risk. to

back at this I to would like no over now show closing I to questions further for remarks. turn call Pablo time. the

and Pharma. call thank operator, on interest in for you, Thank you Royalty the your to everyone continued

any free George. follow-up reach to out to If questions, feel you have please

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