Royalty Pharma (RPRX) 8 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Royalty Pharma Second Quarter 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, sir.

Good morning, and good afternoon to everyone on the call. us Royalty joining XXXX Second 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

to on to statements. other you file information of remind cause factors to XX-K forward-looking that that presented like unknown I and and results the contains that SEC forward-looking refer are description our involve you no call may information update Pharma, X. known with would for a forward-looking differ this statements. to risks, these statements obligation Moving these to such we Slide statements assume to materially Royalty All risks. any I currently from based in on uncertainties available actual and

press liquidity of our Non-GAAP The financials in performance. help will non-GAAP to website. to our earnings used available measures our provided GAAP you financial understand be release these is on to our measures reconciliation the

And Slide X. with to please that, advance

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

which after will hold review a portfolio transactions. and Terry remarks Pablo, we Pablo the concluding from the key will financials X Q&A important will discuss highlights, Chris provide then highlighting will Marshall updates, recent and following session.

over I'd to And turn call Pablo. with that, like the to

the in and Slide quarter. a the our summarizes George, be life welcome on vision call. report against innovation momentum strong successful partner business X you, Thank execution to everyone sciences. funding in our leading am of second the I to quarter delighted to

XX provided commercial strong This portfolio our receipts. are XX% products. financials, and top represents last the than was our quarter. portfolio significantly of recurring bedrock driven we single-digit we high-quality guidance by impressive royalty above of was in growth, or growth XX% which high in terms The This In this growth cash more of an performance delivered receipts our flows of line.

capital Royalty transactions. Capital paid a was to allocation. active royalties the ago. Turning $X quarter couple cash We days very be approved of to just had which Voranigo, a deployment on approximately including billion, for was for U.S. new

pursue addition, strategy, capital we the In outlook. continue disconnect up our repurchases balanced share we of stepped strong price given our allocation to share with our of and pace the fundamental

the for to therapies. aficamten, we Looking X at our filed is on spinal quarter, to Evrysdi we be cardiovascular and specifically, portfolio, X therapy, imminently. in with regulators the atrophy X blockbuster, More and muscular acquired expected exposure which royalty our development-stage approved exciting royalties to therapies including increased an

has FDA well Voranigo will could this for stage on as growth Pharma. value well see were potential which expand pleased Crohn's of these the in Pharma. in Royalty of our depression seltorexant for positive highlight details the all -- represent disease, Tremfya approval Phase as as as portfolio, significant for development events for drivers upcoming III to Chris this unlock for to In the multiple we we which new results important and week Royalty as regard,

not portfolio benefit compares X% on of our to based This include in previous and guidance on X%. XX%, diversified in happy the strong year between X% receipts expect by following of of Consistent of portfolio driven full receipts the X% guidance portfolio. based practice, transactions. which our $X.XXX does and $X.X X our to by at I'm year now with that the this with Lastly, our to the the billion. excellent guidance royalty we're be expected We of report current XXXX growth is our to standard midpoint, months billion future performance momentum around raising our first is

record Slide our our strong X since impressive of shows track IPO. growth

noted the in second I quarter. delivered XX% earlier, receipts As royalty in growth we

first consistent us successfully to in ability together strong in receipts royalty record this against quarter, growth biopharma year performance in sets royalties. This growing track guidance. execute double-digit up our with of our our to well our the speaks market Taken the strategy new to full for deliver

north or have Slide the transactions share this of we XX that million transactions XX%. X XX with continue executed royalty Of $XXX a X shows leader in market more announced to royalty valued be with at for year. more, to the clear we the large million $XXX market transactions date of

creativity since part, taken years our will You scale place an have namely our in and rapid strive also and business, of access we our our win-win partners competitive our solutions transactions the the capital. This, important our of royalty of in reflects talent note X IPO. half growing to the that also team advantage market. biopharma as It create in reflects to for substantial

where whole, market Finally, the acceleration reflects clear the it royalty we market biopharma the leader. as are a of

hand to it I will With over that, Marshall.

I excited on acquiring Pablo. repeat royalty now are today the as Thanks, Vorasidenib business about why a focus so Servier’ Voranigo. our to to want commercially and we value on of model available

with strong an transactions aspect with from transaction with what PTC. nearly partners. Agios and and If over back further, of record Slide differentiates our important of track X with go our Recently, we a our us have business completing completed repeat second Cytokinetics decades our we our partners. shows competition, XX namely we transaction third multiple

be billion have it'd $X that announced of XXXX has billion repeat since $XX shows been transactions around approximately nearly we XX% with partners. or XX Slide

resulting multiple transacting both deals as of Pharma. knowledge products Our higher benefits, one in-depth and is our subsequent both grow probability of time. partners partner-centric including in the first of over approach speed values Royalty a partner, of and brings core our our at and execution It

acquire we the XX of sales which commercial has glioma. recent their Slide Voranigo, low-grade with to royalty treatment blockbuster U.S. our potential on Agios summarizes Servier’'s transaction believe net in of

Tuesday, patient high was on FDA following will based approval on III and Phase Voranigo's remarkable which We need. pay unmet the million results $XXX

on billion. a royalty up to greater to XX% entitled which XX% royalty down $X to than sales a U.S. on steps sales are We billion, $X

and of greater than duration royalties with we and protection through an sales XXXX, Furthermore, a expect IRR patent peak Voranigo long teens. $X billion forecast the in has

another $XXX Importantly, transactions XXXX. example Voranigo have completed or of just XX more in and or consistently million since of we large ability transactions our $X as execute to greater our great transactions IPO is billion X of

us have for As advantages, have royalty leader Pablo allowed competitive market discussed earlier, clear remain the strong we large transactions. which to

an Slide of Voranigo why could think commercial a blockbuster we XX represent opportunity. provides overview

and overall therapies. targeted young approved relatively years First, XX survival approximately there's patients patient high need for of with low-grade unmet glioma with no

estimated mutations incident low-grade an by in drive and gliomas XX% over U.S. patients, resulting IDH to prevalent are in Voranigo. addressable Second, XX,XXX patients of estimated X,XXX

have Fourth, other duration of years the therapies late-stage There a over median to no we Third, and given into expect manageable treatment months are development. of XX safety III X Phase long of potentially in profile. progression-free Voranigo clinical survival competing

indicates for broad We deep have and performed deep many and uptake due of expected survey, subsets low-grade across diligence, physician including demand excitement patients. a Voranigo which comprehensive glioma

Voranigo's the segments tend I'll depth IRA. status to and Lastly, the therapy to given that We low-grade any hand it do Chris. patient glioma launch across from from expect we low-grade upside with see FDA, the be that, orphan from relatively of prescribing young additional over duration impact in not ramp, glioma. patients of and And

therapy $XXX expand and to first XXXX and development pipeline. involving want when partnership in I Marshall. of our broader highlights with aficamten exciting Slide highlights our potential stage on million. recent to We our this for Evrysdi of PTC on PTC's exposure our interest transactions acquired XX XX% Evrysdi. growing growing royalty we Thanks, gained

In XX% royalty. with this royalty also into to of from upfront PTC's the billion, remaining entered PTC. It early XXXX, extended a return royalty the acquired second an we to XXXXs. transaction for case, we $X of duration payment XXXX In XXXX in

for structure this $XXX part and June third a allow This a received. residual transaction royalty payment all royalty XXXX to by of of of us royalties PTC's this interest. included return the PTC would Importantly, end In million its as a year, the remainder for joint less of sell receive we to investment the payment option quarter unlevered an digits. low $XXX return which deliver of return the made expected in Evrysdi, is option new for This in XXXX. of that we million, investment double in royalties structure, on to third we to our start acquired additional of a will

and $X.X This investment it Tysabri. across largest cystic history X our in and our to increases takes after effective Evrysdi makes royalty billion fibrosis XX.X%. our total, the third to In transactions of X.X% investment the rate

PTC royalties us to Furthermore, the retains its of end XXXX. structure sell Evrysdi means the the remainder the to of option by right

months atrophy recently of disease or leader growing is those and the by reported treatment the first of in familiar, X spinal Evrysdi For $XXX of called approximately global Roche XX%. SMA. muscular million, less XXXX a rare the

$X expect royalties to we a plus Given to tracking consensus of million. $XXX on Evrysdi billion around by are XXXX, receive peak forecasts annual now

Slide is with deals. great to access across another have than highlights May billion long-standing business including example of in total and partnership how have Cytokinetics, provided repeat our transaction, we funding XXXX more strengthened we XX our $X X

the a demonstrate which to As cardiomyopathy. we recently potential for aficamten, be its reminder, Cytokinetics believe III best-in-class Phase presented pivotal results the therapy for hypertrophic

$X are billion transaction, up our X% billion. royalty X.X% entitled and to $X on we royalty a recent now sales above to sales Following net most a on

Pharma potential the in peak annual of analyst $XXX research million. to consensus, on to excess Based royalties Royalty has generate aficamten

We million to funding, and an been is development expected on over have $XXX provided of range this X.Xx between which return time. payments drawn X.Xx funding million remains has and available. to additional fixed also on launch $XXX The based

Cytokinetics our funding Taken structure ability underscores solution of funding with together, the to our and third capabilities. transaction our creative highlights breadth

regulatory long-term next On for upcoming schizophrenia 'XXX dates I multiple exciting colitis over In the to point and regulatory clinical safety months development FDA which move action FDA EMA to and important particular, expect for filings and and XX ulcerative for and Teva to would Tremfya stage the in I Crohn's. in aficamten our portfolio Slide schizophrenia. data KarXT the for now we want or XX, so. events

Alzheimer's We end also of Roche's expect year. trontinemab the this for Phase I/IIb in the results before

we for pelacarsen, be in outcome potential -- to the significant XXXX, very which which a data we for And portfolio. expect royalty our has

potential value Royalty for Pharma. As events very the these significant unlock have you to can see,

to receive. Slide development shows the by pipeline XX could and we expect potential associated late-stage sales royalties peak our

assets on many these months you my of or potential next the As events previous derisking have major in saw XX so. will slide,

first all programs marketers. the Importantly, or here are supported by and best-in-class have world-class potential listed

translate The Royalty to a Pharma majority basis. peak billion peak estimate the contributors. $XX with rates, royalties respective have nonrisk-adjusted we on potential. over over this in $X.X being could billion potentially multi-blockbuster Based sales largest potentially olpasiran individual aggregate, frexalimab royalty at And to the the annual on in combined and

contribute to in the attractive our products these to We compounding of expect many years ahead. growth

With over would to like it to that, Terry. I hand

Thanks, Chris.

Let's generates move XX. shows reinvested. Slide slide model to be substantial cash This to business our efficient how flow

receipts reflecting you by of our heard the grew in growth of base strength franchise, a and As and Tremfya receipts, performance business, our Evrysdi, line drivers the our receipts notably The XX% second $XXX strong contractual Pablo, fibrosis Trelegy, key cystic quarter, diversified by royalty the portfolio. including of were portfolio to from other XX% contribution milestones grew our modest million. top from

move the receipts. the payment the to and of column, with our first reflected due falling portfolio of received costs Net third X.X% operating and quarters. we As interest equated semiannual in $XX down timing payments of schedule million professional interest

million the that high stated call our redeployed cash interest down This $XXX of EBITDA to then model. further consistently it, royalties, cash Moving to This the we've as when conversion generated flow. we margin underscores around level in amounted adjusted of look by value-enhancing to equivalent once efficiency we portfolio of a again XX%. be to paid of the quarter, net the plus column, cash business or we into think business the

the would Capital quarter month the our And of billion. million for as approximately Marshall was $XXX Voranigo. $XXX will second deployment following to year total in take highlighted, this This pay $X the we million. approval FDA

of debt future for cash combination continue of we Slide our under $X through cash maintain capacity the business of a balance equivalents that cash and markets. access have we shows total, the billion generates quarter, our and end available had billion. $X.X At we significant acquisitions. the In on XX sheet, royalty the second just to to financial approximately

debt weighted a payment pro million $XXX take to When to $X.X the Following we borrowing this investment-grade the position, notes on $XXX equivalents our X.X%. will to a we billion and cash cost of basis. with billion issued Voranigo, of our to second million our quarter, related increased of outstanding $X.X forma which in turn debt

with portfolio. average weighted around duration years, Our XX our aligns of maturity royalty the which is

Our total we Xx and around take up right -- our to arose. opportunity stands we stated at be Xx net at leverage leverage now stands the pro if prepared and that Xx, would forma have to

have we from additional Furthermore, billion capacity $X.X revolver. the undrawn financial

we in As million year-to-date Pablo of in a we have price disconnect the for second royalty noted, up also the the despite a took and spent fundamental advantage acquisitions, share repurchases busy quarter basis, stepped pace $XXX our of On quarter. on buybacks. share

$XX of Slide our of a we expected capacity, Investor period a through billion capital generation this over expect XX have our that we to our and in we At drive is XXXX, shareholder of strategy access allocation around reminder to X-year capital. debt Day combination value and how creation. outlined cash to a

slide, capital to this deploy acquisitions of a $XX over invested royalty billion $XX we to value-enhancing with see on of you As on majority expect the period. billion our the target can

of As on you this actual billion billion Having transactions track are capital of to or $X.X many we since are XXXX. of aware, with exceed target. deployment announced meet $X.X

The We to and investments. focus aim combination our payments to shareholders on through with on returning certain capital a primary acquisitions of this dividends Royalty difference represents of repurchases. share contingent balance

latter, buyback which in $X March to million share over Board the program date. up the a to of billion through multiyear of we just XXXX, spent have $XXX Regarding authorized

intrinsic repurchases value program priority. we current disconnect in our stock a our #X investing use tactically the royalties While between for share our and is see We buyback price. when

in against stock from quarter as today. through shareholder believe is mission shares price. will the intrinsic of And well the have strong -- current the significant on we executing innovation value strategy, while generating we deliver returns We life creating excess of of repurchased continue $XXX in this value. accelerating to sciences, By result, stock of our a second our capital our are allocation and confident we million

raised provides billion $X.X now of year in our XX range to billion. Slide guidance. $X.XXX We financial receipts be portfolio to XXXX full expect the

Let me assumptions. walk you our through

First, within our the in increase XX%. around to reflects of guidance, we top diversified deliver to receipts our guidance to line royalty momentum The strong portfolio. of previous X% expect from growth X% our of X%

Second, of result when payments receipts, we to of comparison face high as received a we we the $XXX a million year. move portfolio base Biohaven-related of last

expected to from approximately other and million $XX XXXX Milestones around to contractual million receipts $XXX are, therefore, XXXX. decline in in

Lastly, impact. our assumes a guidance negligible foreign exchange

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

close, interest minimis quarter first on not in amount costs. $XXX $XX successful we pleased in the approximately around portfolio for June received de guidance a This with not to the does our interest to Turning million payment in notes first first the momentum million on of of portfolio balance to receipts is be execution paid for to also be of the of any the paid are was our year. which to which into on of our able costs for XXXX. To very be QX. expected account continued billion the strategy. cash and take raise reflect to diversified excellent operating Payment expected based and Royalty Interest against be to year payments X% due issued full XXXX. in professional XXXX X% X operating are XXXX the of $X.X months does It is in

back to to hand I the With would Pablo. like call that,

Terry. Thanks,

months being we of our remarks strengthened first Let in is and in the am by exciting performance powerful portfolio we tailwinds. our our growing X which maintained double-digit pipeline, secular how position the We stage development receipts, growth proud and XXXX. leadership of me royalty market, delivered including the concluding saying begin my driven by royalty I in rapidly

ways roster of My slide commercially to highlights participate. transformative history exciting of track in most and finding and incredible our the The listed industry. biopharma of the our successful record waves final here include identifying therapies innovation consistently of some of

more to Gilead's spinal HUMIRA we atrophy. to life-changing cancer, fibrosis of this for today antibody to Rituxan, therapies list, when for first cystic with or disease, to transforming muscular cancer, franchise HIV as look such join Evrysdi a multiple sclerosis Trikafta monoclonal From the expect for recent the patients exciting we ahead, see discussed others. cardiovascular lives of we the therapies among schizophrenia, number brain and And

transformative portfolio and our therapies novel in identify waves ability The to innovation DNA. to is our with of new replenish constantly

Taken together, to remainder decade we our and growth confident the compounding attractive of to we're but access continue with our model powerful beyond. over and will capital, simple deliver deep this business

that, take your questions. to happy we be will With

Operator, question. please take the first

the Instructions] with will question first Sachs. Chris [Operator Shibutani And Goldman come from

strong of consistent the performance appreciate is keen outlook more valuations, royalties. you? is the to seeing I how understand what's discipline. you're you opportunities, in scientific to aspect have I to to raised model, terms receptivity, seeing environment just continue here. But that everyone One the and what you know guidance gather are general of terms the in available overall

the to Thank I'll Marshall And to Chris a to question. I'm you say. ask is one going to add for better Chris, the maybe or bit what little add maybe

invested quantified and materials some year about there billion have per both Sciences. I and biotech we needs is One this large from requires at biotech R&D with past, the the our our in out capital But X,XXX are the in key in business. that pharma that there's the ecosystem, massive which in X or things of companies happening innovation life think $XXX-plus actually Life sciences, so

a And growing. figure so massive it's

that's you front talking side, at billion it's that fund, we're billion we by that's investment at by institutions, capital $XXX funded us, look ecosystem. When that billion when There's another a to is the the need in required year. something But about trillion corporate is the $XXX every of -- look $X invested decade the we academic $X by fund the but not government.

So thing. that's one

The royalties. now second way us and their them, late-stage That has thing the is acceptance fund trials, driver out today know synthetic of There about developed go their royalties that is call and we what with very that clinical or very many is and visit out funding among to biotech definitely a that to using in get discussions fund way. are business. them that so attractive an to reach know to companies them companies this have important a attractive business we

then now of schizophrenia drug big pharmas recently transactions. also other and anything there's answer your side But us with transactions And to that's Teva other from question. and acceptance And my you seen that? to you've Chris, to add a real for do the schizophrenia this the program, drive the do growth. want Merck to

have always, the and The highly Pablo, for The question, Thanks, Sure. as know, over history as new predict a we acquisitions, a robust. that's lot to about pipeline period. And multiyear we deal But really shown we variable. it. that think the deploy be of timing to thanks you can encourage you and be to over very Chris. of capital, our way continues particularly difficult can

increase since by XXXX. And just since And witnessed transactions of billion the about our in-depth those $XX.X of reminder, seen as announced if about a about think and billion reviews every transactions in XXXX. we've increased funnel, since deployed over in year. you XXXX, of deal up has significant opportunities $XX.X And XXX% our we've as a XXXX value

quality opportunity at the deals about that we've and looking currently. the done one excited and that the the we're super of certainly set we're So

Schott question from next JPMorgan. with our And Chris comes

Schott. Chris for in Parikh Hardik is This

leverage And additional if your forward How think in of ask $X.X flow? of And this to said invest raise debt the then issued Just to ForEx raising a about billion Xx. you internal about internal to willing you as beyond deal you're you -- targets, of kind your is probability? flow reasonable kind continues do going cash exceed about wanted to just about that you debt June.

Terry, take you Right. don't for please? the question. why Thank this you question,

Yes.

generates the just business every significant flow fortunate that a So we're quarter. reminder, pretty cash

to used opportunities going come And new leverage so first investments. when But we're time, right fund that's of over going we the along. source have the how to be

And to take number, there and at. we level that when mentioned I plan came we needed for about to Xx. would was I we when put not acquisition if operate But that that up it along fund, out and we that excited the that's that, a to Xx were really that's certainly large

couple Over or years, Xs in been than the we've of low even last that. the lower

time if to I think a higher probably take normal come time, along. that from So we will right more of that's opportunities range. the it But

level which us. to And is totally rating, leverage investment-grade with consistent by is of really, the that way, higher really our important

And our Morgan with question next comes Terence from Flynn Stanley.

in X/X for here. Slide revenue Great. on XX represents of helpful numbers. future the opportunity me. the pipeline Maybe for terms of was of X framing your assets the opportunity very based about some Lp(a)

a just data Marshall. could Novartis from Phase III your positive for confidence maybe So us you Can in remind level question in seeing year. next

And question January PDUFA second has franchise. in a relates then the date the CF now. to Vanzacaftor

might So how royalty play Vertex. with any of situation have here update the we on timing out visibility might when on

is first suggested you second the please. Terry, the question one that and Terence Marshall, for for

Thanks, question. Good Terence.

on in Amgen's olpasiran, space We and outcomes as which from we this cardiovascular sometime a everyone, data data or Novartis' program have which where then XXXX. a year pelacarsen opportunities from X data reminder, we programs, leading of is the X next we -- So a just following have new the reminder in -- this expect expect X in actually just for class emerging program year quick drugs. as an reminder, Lp(a)

data. we to opportunity the And an see attractive. point it that as a is we that things few I exciting eagerly await

both drugs of think pretty first provide profound in I Lp(a). reductions all,

on So the data really to is biomarker compelling. date the

Lp(a) that data cardiovascular a cardiovascular events. there's of to clinical disease links lot having genetic of and risk Second, epidemiological

which validated look obviously in does have to target. Lp(a), highly is a a Finally, LDL, of parallels it if at what's you lot

to back important could Lp(a), a couple exciting really I of is, put about thing excited the a if And in our pipeline keep take just next think and is I over so it meaningful certainly, -- chart years. all we're and you be us. is of Lp(a) step together, an seeing about you think mind, for data to that But that contributor

build the our do year and we business But to you've frexalimab, that that's this example, continue with just really like continue add to to portfolio will opportunities like pipeline other portfolio, exciting as really build continue we and seen for we'll continue of us opportunities. exciting add to the with to part that,

then, And that on for through on everyone, there's Vanza past no Terence, different as the sensitivity there. various the reminder of from on question to our out your scenarios timing a just a walk triple, But here. side update sort we could provided in the play just

way, we strongly we're As area believe on you royalties We debate take are there. is new feel . There royalty, we the of we on all all we are are, royalty wrong, that the if components by a Trikafta. of not know, if debate. And would an we're and are also with we our a out about triple to that whether royalty on triple. component X the our X% triple But deuterated royalty. portion, that, ivacaftor the on new the on that versus but position paid X% said vanzacaftor on what we've of is is old which, to very

the triple the time, couple significant a and over wrong, we're share our to that top to be line conversion, there's XX% would on new If hundred XX% dollars. million impact conversion

of embedded look we assets, the growth growth billion new and today, pipeline, about the all adding that's business And highlighted new our that at from the and you mean of so think over of I from assets if the we're the you $X that that when there. potential royalties perspective,

it's position, we million about material of it's couple our going something either Royalty hundred the be is particularly to Pharma. for way, dollars over long and good feel term this a So but not

And the next with DiFiore question comes Evercore. from Michael

you're to the with development footing Two their in here? it Congrats if Promacta to launch your XX, continues this for regarding on space, receipt to portfolio more One, on seem reflects regard quarter. indications, scenarios equal of says the biosimilar CDXX be and on a continued of seeing any development the it guidance And become most that for opportunities Slide widespread. since autoimmune me. for generics especially collaboration Tysabri. that companies questions separately, range progress starting Wondering

So could further about to current thinking that has changed? if on elaborate especially can, Tysabri you this, competitiveness extent the you're the of you biosimilar

Sure.

CDXX. growth. the Marshall, guidance take on the don't why will So take question you then contributors and to Terry And on the the question the

Mike. Absolutely,

So of we'd closely we the bispecifics. been And all emerging with therapies follow agree that's that on and exciting there of are programs out. data we space kind certainly the various the to sense certainly going various play and the how us And something you. clinical players in compelling. understand for are the cell for to that We've CDXX, will make that data watching continuing really between and is certainly, look been opportunities because

us terms approach terms which also science, is of that, drive our us portfolio, all that's come where the there. about having the and in the along that really on but emerging exciting building a of building But to to really right and being But not we've in thing -- our partner. for where innovation discipline like the smart we wait to stick happening we we're educated had emerging going exciting science locked win-win can certainly for

of on And many just have, headwinds. your speaks portfolio. are products think some question our were then, there Mike, momentum have the raise all to like on various strong the And But that I as with we guidance, businesses to really guidance. as the we excited it

don't Tysabri. were have visibility called of when on we potential We perfect Promacta or that Promacta X and So generics Tysabri biosimilars of out could launch.

highlighted. And so that sure that's we make why to we wanted

we in same have the that basically those you situations, information we And do.

the of companies said. have So what going we're off

think look potential product, unique is competitive to past we the products. Tysabri, biosimilar and U.S., do like we a just in that In well in that of that seen -- that it's it holding be think case of time we highlighted unique it's the I we in coming this highlighted does of that but the more durable We've -- over so we've is biosimilar some things it's And product. seem despite sensitivities going I competition. outside of because potential U.S. those the one launches been think the And of the at the of of aspects around

be we'll so watching as closely well. And that

And the next question comes from TD Michael Nedelcovych Cowen. with

My whether curious might a point at the we've advisory question is passed the on you committee? FDA an have expect if I'm KarXT we to ask which for sense

other when compound what long muscarinics, we it comes Cerevel's from around and case more base now, from the assumption a should have to readout term AbbVie's you And imminently competition, on particularly expect compound? do

for you. Sure. a Marshall, this question is

the Thanks question. Absolutely. for

your question some on Bristol. on of question think a the first I for I specifics around certainly think ADCOM, So better that's the and KarXT

on competition. second, And

I is exciting to patients of in create first maximize happened commercial on in opportunities medicine Bristol, of think create is we're kind led about KarXT company on with competition, class broadly a is really the your opportunity with possible. about impact important exactly we KarXT that the question a -- in when hope and invest and new to thinking of in has that most the the now this its landscape about profound this attractive the patients. competitive really really an medicines, impact we class, what's where hands which

of would with So be given importance be investment, that statements, certainly, seems in what's there we launch, when public terms But think the of the visible additional what to are to excited it like a we product, class, just to pipeline this this in mechanism. great going part this part of really really their it others and commercially enthusiasm. we of was in excited made we're portfolio, also assumed in in happen and this this I Bristol share see they the

question comes Zhao with our And UBS. Di next from

I Ash of on entities? fund is X from maybe have want different behalf large have investment Clearly, reached like you market. UBS. you a to into considered just This from share splitting investment ask, your scale Di a are and royalty lion's like

like look active constraint scale group. you role capacity of [ share space, management if capital like into key like [ lion's like the ] like funds have So into and lot and at large ] X asset a split

you like do perhaps? provide clinical instance, drugs, for can were dividing your you like think terms creditors So portfolio and your you commercial get like, up if into only only you better

getting to question? better better the So I of us the than rating this us to in better and agencies rating rating. Chris, the want actually, agencies do lenders a terms give terms think to lenders our terms, give you take

when is the at Pharma sciences, business compare companies to Like Royalty have strong. sciences. life players I it many you so think and other look we in life in

blockbusters on XX We more our typically at really blockbuster is or XX their And like more big than they even have XX XX, think, X.Xx more we pharmas, strong for the -- portfolio of an reliant I for well super, have have incredible like then products or of the XX, majority when X look the really portfolio, of we super or X.X that like with, diversified you like in have big portfolio to than be pharmas more big pharma. half diversification, some X the may the that better than revenues. vast products

But pretty it's of our to cost of I efficient. attractive. credit in the the parts for our on think Chris, of debt rating pass So I'll capital, it you other and very, question. It's very terms

covered it, Pablo. think I you've

answer the there. covers that think I

Schott next our JPMorgan. Chris question from comes with And

This is Hardik again.

do So peak I Voranigo, question. you billion. On how just mentioned had wondering $X ramping. was estimates one see those of sales And I of you more kind sales

lead the So more laid that is a there Or other groundwork bolus like to a has the launch? launch? kind some is hand, of there that for on be of very patients can to quick

this Yes. you should Thank you, Marshall, question. take

see happy obviously product. really the Thanks it, this We're Absolutely. strong excited launch week see Servier’ Yes. approval to for the we're behind label Voranigo. the on the follow-up and and question to

the with at. -- are multiple multiple they are about There drivers kind peak ways of and about sales. multiple specifically that in commercial talked there your So and ended we $X potential question billion

and I their think wait thought patients about we a near patients asked to relatively it on who believe the you like on we who with doctor who just wasn't one about are lot term. this in prevalent of one was ramp there are opportunity about there, about that out therapy following that with we are of attractive things watch therapy, there, are coming incident the come could who up existing mentioned,

look But products, do do we we opportunity. an we we lots different of think that's when exciting at always consider scenarios. like So

also some that around are about we mentioned, we there indications patient as And There here potentially. driver glioma duration upside like indication. are then populations as of certainly, that talked there's the So attractive. are -- another core well that that, therapy some important around has

ways of lots there's to commercial the help forward attractive patients, So going I opportunity, looking we're to think Voranigo be that is launch. but also and an

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

excited in and call very the One by many a are and is Pharma team performance. the that for everyone business. going on strong I'll continued Thank your Royalty you, incredibly just operator, thank at interest saying Pharma. myself Royalty our things with close on about

just $X.X now year over the us guidance middle billion the on in million, base. of saw $XXX increase $XXX by meaningful million billion, a $X.X amount You our the

super market. and relationships pharma biotech very the capital. partner management teams to high-quality them about the ability deploy about we're excited to opportunities in and our We're with we're Very in continue excited with building continued also this the and ability assets and to strong seeing our dominate very

successful the very term. this believe work me great the then it that their the reflects business our over look connections business the today of helps to for and because portfolio, significant to And make there portfolio and have stock, network, -- day deliver the that And qualifications, their come and Royalty the you Pharma X that they we upside the the business experience, they at is of this business. And components own. and every -- the value long that this has industry throughout a only when of our ability you, very price really of investors run strong at really our team

you that Grofik. So have you, just to please Thank reach I'll finish to that say George if everyone. with and any other feel free questions, out

concludes you today's Thank participating. conference for call. This

now disconnect. may You