Royalty Pharma : 2024 Corporate Responsibility Report pdf
RPRX
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Corporate
Responsibility
Report
A Message from Our Chairman and Chief Executive Officer
The life sciences sector continues to drive remarkable innovations in patient care, propelled by groundbreaking research and technological advances.. As the largest buyer of biopharmaceutical royalties and a leading funder of innovation in life sciences, we play a vital role across this ecosystem. Our creative funding solutions enable our partners to accelerate the development and delivery of life- changing therapies and transform patient lives.
Royalty Pharma's unique business model combines deep
scientific expertise with flexible funding capabilities,
allowing us to support innovation across the spectrum
-from academic institutions and non-profits through
small- and mid-cap biotechnology companies to leading
global pharmaceutical companies. We focus on creating
substantial value for our stakeholders by driving innovation
Pablo Legorreta
across the biopharmaceutical industry with investments in
Chairman of the Board and
both development-stage therapies and approved products
Chief Executive Officer
that provide significant benefits to patients.
This year marked several significant milestones in our corporate responsibility journey.. We are particularly proud of our MSCI ESG rating upgrade to AA from a BBB, which recognizes our comprehensive approach to environmental, social, and governance practices and disclosures..
This achievement reflects the dedication of our entire organization to decreasing sustainability-related risk while advancing human health..
Our commitment to developing exceptional talent was furthered in 2024. We launched our Employee Engagement Committee, bringing together seven professionals from
a wide range of backgrounds and departments to further enhance our organizational culture.. Their initiatives have enhanced our collaborative environment by fostering important connections across teams.. We also expanded our professional development offerings, including our executive coaching program and enhanced performance review processes for all employees.
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The impact of our work extends beyond our investment portfolio. We maintain a strong commitment to philanthropic initiatives towards organizations promoting access to high quality care for all. We understand
that addressing health inequities requires sustained, multifaceted efforts, and we remain dedicated to supporting initiatives that create lasting positive change.. In addition, through our gift matching program, we've achieved record levels of employee participation in charitable giving, supporting over 58 organizations that align with the interests and priorities of our employees.
Our governance framework is guided by our independent directors whose extensive experiences strengthen our decision-making and risk management. Our oversight mechanisms, combined with our values-driven culture, position us to pursue opportunities responsibly while managing risks effectively.
As we look forward, we see meaningful opportunities to expand our impact in the life sciences ecosystem.
Our position as a leading funder of innovation, coupled with the unprecedented growth of our industry, provides us with an incredible opportunity to engage in partnerships that accelerate the development of lifesaving therapies while generating sustainable value for all stakeholders. Further, in the beginning of 2025, we took a transformative step in our evolution by announcing the acquisition of our external manager.. Once complete, this acquisition will increase shareholder alignment, enhance corporate governance, ensure management continuity and simplify our corporate structure..
We appreciate your continued support as we work to fulfill our mission of transforming patient lives through strategic partnerships and investments in scientific innovation.
Sincerely,
Pablo Legorreta
Chairman of the Board and Chief Executive Officer
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Our Company
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Company
Innovation
Talent
Business
Environment
Transparency
Our Unique Business Model
WHO WE ARE
Royalty Pharma has been a pioneer in the pharmaceutical royalty market since our founding in 1996. We are the largest buyer of biopharmaceutical royalties and a leading funder of innovation in life sciences.
We play a unique role at the heart of funding life sciences innovation and believe significant opportunities exist to develop partnerships that provide patients with access to innovative medicines..
Our highly flexible, capital-efficient business model supports product development and market commercialization through two distinct approaches:
We operate at the intersection of science, medicine and investing, searching for important medicines in underserved markets and therapeutic areas.
Our portfolio of royalties entitles us to payments based directly on the top-line sales of many of the industry's leading therapies. Since 2012, when we began acquiring royalties on development-stage product candidates, we have entered into agreements to acquire biopharmaceutical royalties with an aggregated transaction value of over $29 billion. This represents approximately 56% of all royalty transactions by value announced during this period, establishing our position as the partner of choice for biopharma funding solutions.
Our capital-efficient approach allows us to remain agnostic to therapeutic area and treatment modality, direct funding toward the most promising innovations and support access to transformative medicines.
During 2024, we deployed capital of approximately $2.8 billion. Eight transactions were completed for royalties on eight new therapies across five therapeutic areas, including four development-stage royalties. This performance and execution against our strategy allowed us to deliver strong financial results and raise our financial guidance three times during the year..
35+
COMMERCIAL
PRODUCTS
15
DEVELOPMENT-STAGE PRODUCT CANDIDATES*
* As of the date of this publication
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Company
Innovation
Talent
Business
Environment
Transparency
Deep Network Across the Biopharma Ecosystem
Our deep network across the biopharma ecosystem spans the full spectrum of innovation-from academic institutions, research hospitals and non-profits, through small and mid-cap biopharmaceutical companies to leading global pharmaceutical companies..
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Company
Innovation
Talent
Business
Environment
Transparency
Our Vision and Mission Drive Every Aspect of Our Work
Our vision and mission guide our partnerships, through which we have built an extensive portfolio of royalties that entitles us to payments based directly on the top-line sales of many of the industry's most important therapies. Through this combination of strategic vision, operational flexibility and resolute values, we continue to expand our impact on the future of medicine while creating sustainable value for all stakeholders..
We pursue this mission through a distinctive set of operating principles..
TEAMWORK
Our interdisciplinary teams, comprised of individuals with a wide range of experience, educational and professional backgrounds, contribute to an environment that fosters trust and respect.
TRUSTED PARTNER
Our reputation as a dependable partner is essential. We seek to create lasting relationships with partners who will return for repeat transactions.
CRITICAL THINKING
We encourage debate and critical thinking and insist that colleagues challenge assumptions to achieve better outcomes..
INNOVATION
We approach each new investment with a blank sheet of paper and intellectual curiosity to find creative funding solutions for our partners.
PURSUIT OF EXCELLENCE
We apply high ethical standards and rigorous scientific analysis to deliver superior results for our partners and stakeholders..
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Company
Innovation
Talent
Business
Environment
Transparency
2024 Financial Highlights
$2..8bn
$2..6bn
$2..5bn
PORTFOLIO RECEIPTS
ADJUSTED EBITDA
PORTFOLIO CASH FLOW
$2..8bn
8
13%
CAPITAL DEPLOYMENT
NEW ROYALTIES ACQUIRED
ROYALTY RECEIPTS GROWTH
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Company
Innovation
Talent
Business
Environment
Transparency
Our Corporate Responsibility Approach and Priorities
Building on the foundation established by our 2022 materiality assessment, we advanced our social initiatives through enhanced employee programs, expanded learning opportunities and strategic philanthropic partnerships that align with our mission to improve access to healthcare and outcomes..
AREAS OF FOCUS
To understand our stakeholder priorities, we conducted our first materiality assessment in 2022. Our process included a series of surveys, interviews and workshops with internal and external stakeholders to understand what sustainability matters are important to them. Throughout 2024, we continued to leverage our materiality assessment and concentrated our efforts on key priorities that align with our business model and stakeholder interests..
Through these focused initiatives and partnerships, we continue our efforts to create sustainable value while advancing our mission of transforming patient lives.
Our Board oversees all responsible business-related initiatives, our leadership team manages these initiatives, and our workforce actively integrates them into our operational activities..
Responsible investments are key priorities for our business. Sustainability and responsible business risks and opportunities extend beyond our immediate operations as they are also manifested in our partners' businesses. Our Responsible Investment Policy was implemented in 2023 to further formalize our robust due diligence process. For more information, please refer to page 17..
CORPORATE
RESPONSIBLE
ACCESS TO
HUMAN CAPITAL
ENVIRONMENTAL
GOVERNANCE
INVESTMENT
HEALTHCARE
DEVELOPMENT
STEWARDSHIP
Maintaining robust
Integrating
Supporting
Fostering an
Managing our
oversight and
sustainability
initiatives that
engaging workplace
operational impact
risk management
considerations
expand treatment
responsibly
practices
into investment
availability
decisions
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Disclaimer
Royalty Pharma plc published this content on April 14, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 14, 2025 at 20:54 UTC.