Royalty Pharma plc

Ladies and gentlemen, thank you for standing by. Welcome to the Royalty Pharma Second Quarter Earnings Conference call. I would now like to turn the call 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. Thank you for joining us to review Royalty Pharma's Second Quarter 2023 results. You can find the press release with our earnings results and slides to this call on the investor's page of our website at royaltypharma.com. Moving to slide three, I would like to remind you that information presented in this call contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from these statements. I refer you to our 10-Q on file with the SEC for a description of these risks. All forward-looking statements are based on information currently available to Royalty Pharma and we assume no obligation to update any such forward-looking statements. Non-GAAP financial measures will be used to help you understand our financial performance. The GAAP to non-GAAP reconciliations are provided in the earnings press release available on our website. And with that, please advance to slide four. Our speakers on the call today are Pablo Legareta, Founder and Chief Executive Officer, Marshall Uris, EVP, Head of Research and Investment, and Terry Coyne, EVP, Chief Financial Officer. Pablo will discuss key highlights. Marshall will then provide a portfolio update after which Terry will review the financials. Following concluding remarks from Pablo, we will hold a Q&A session when we will be joined by Chris Tite, EVP, and Vice Chairman. With that, I'd like to turn the call over to Pablo.

Thank you, George, and welcome to everyone on the call. I am delighted to report another solid quarter of execution against our strategy as the leading funder of innovation and life sciences. Slide six summarizes our financial achievements in the second quarter, which again demonstrates our strong momentum and the power of our business model. First, we delivered solid financial performance prior to the Biohaven-related payment we received in the second quarter of 2022. Adjusted cash receipts, our top line, grew by 7%. Adjusted EBITDA by 6%, and adjusted cash flow grew by 9%. Second, on capital allocation, year-to-date, we announced royalty acquisitions of up to $1.7 billion, including $659 million in upfront payments. We also initiated our $1 billion multi-year share repurchase program. As of last night's close, we have repurchased approximately 6 million shares for a total spend of about $185 million. Third, we're raising our full-year guidance for adjusted cash receipts to between 2.9 and 2.975 billion. Our guidance reflects expected underlying growth from our portfolio of between 6% and 10% prior to the biohaven-related payments. Consistent with our standard practice, our guidance is based on our current portfolio and does not include the benefit of any future acquisitions this year. On slide seven, you can see our financials in more detail. We delivered 7% growth in our top line prior to the Buy Heaven-related payment in the prior period, and 4% if we include this payment. Foreign exchange continued to represent a headwind, impacting our top line by around minus 1 to minus 3% in the quarter. If we also adjust for the foreign exchange impact, we would have delivered approximately 9% top line growth in the quarter. underscoring the strong underlying momentum in the business. Similar to our top line, we grew our adjusted EBITDA by 6% in the quarter prior to the Biohaven related payment and 4% including this payment. Adjusted EBITDA is an important non-GAAP measure for us, which is arrived at by deducting payments for operating and professional costs from our top line. Lastly, our adjusted cash flow, our bottom line, grew by 9% in the quarter prior to the Biohaven-adjusted payment and 6% including this payment. Slide 8 shows our impressive track record of strong top-line growth since our IPO in June of 2020. Despite foreign exchange headwinds and losses of exclusivity, we delivered 9% growth prior to the Biohaven-related payment in the first quarter of 2023. This reflects our ability to consistently execute against our strategy. With that, I will hand it over to Marshall to update you on our portfolio performance.