Royalty Pharma plc - Ordinary Shares - Class A

Strong Q2 performance & continued double-digit growth - Portfolio receipts (top line): +6% YoY to $773M (slightly ahead of expectations). - Royalty receipts (recurring cash inflows): +14% YoY, helped by strong performances from Tremfya, Voranigo, Imdelltra, Evrysdi. - Key headwinds were absorbed: despite pressure from Promacta and Imbruvica, they still delivered double-digit royalty growth. - Business efficiency remains high: operating & professional costs = 4.8% of portfolio receipts (benefiting from internalization synergies); net interest paid de minimis.

Generous capital deployment + shareholder returns (and guidance raised) - Capital deployed: $349M in Q2, and $877M in 1H 2026 into royalty deals / funding. - Shareholder returns: ~$367M in 1H including ~$100M buybacks; company noted ~25% of portfolio cash flow returned to shareholders this year. - Full-year 2026 guidance raised again (2nd consecutive quarter): - Portfolio receipts expected $3.40–$3.50B (up from $3.325–$3.45B). - Assumes royalty receipt growth ~7–10% (vs prior 4–8%), despite: - Loss of Promacta exclusivity - US launch of biosimilar Tysabri - Potential impact of IRA - Expected drop in milestones/other receipts: from $128M (2025) to ~ $60M (2026). - Operating costs expected 5.5%–6.5% of portfolio receipts (unchanged), interest paid ~$350M–$360M in 2026.

Major new investment: cliramitug royalty (AstraZeneca) adds upside to TTR amyloidosis - Royalty acquisition: up to $425M consideration for a 3.75% royalty on worldwide net sales. - Payment structure: $125M upfront, $125M in Q1 2027, up to $175M on clinical/regulatory milestones. - Rationale / expected economics: - Phase III outcomes trial fully enrolled (~1,200 patients); results expected 2028. - Management described biomarker/amyloid-clearing evidence in Phase I as supportive for mechanism and translating to outcomes (they cited experience across TTR therapies). - AstraZeneca peak sales expectation: $3B–$5B ⇒ management cited peak annual royalties ~ $110M–$190M and mid-teens IRR (development-stage target range).