Royalty Pharma plc

Ladies and gentlemen, thank you for standing by. Welcome to the Royalty Pharma first 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 first quarter 2025 results. You can find the press release with our earnings results and slides to this call on the investors page of our website at royaltypharma.com. Moving to slide three, I'd 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 the statements. We refer you to our most recent 10-K on file with the SEC for 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 liquidity measures will be used to help you understand our financial results, and the reconciliation of these measures to our GAAP financials is 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 the key highlights after which Marshall will provide a portfolio update and Terry will review the financials. Following concluding remarks from Pablo, we will hold a Q&A session in which we will be joined by Chris Tite, EVP Vice Chairman. And with that, I'd like to turn the call over to Pablo.

Thank you, George, and welcome to everyone on the call. I am happy to report a successful start to 2025 as we execute against our vision to be the leading partner funding innovation in life sciences. Moving to slide six, we delivered excellent financial performance in the first quarter while continuing to expand our portfolio and returning substantial capital to shareholders. In terms of the financials, we delivered 12% growth in royalty receipts. This represents our recurring cash flow, and the strong performance in the quarter reflects the quality of our diversified portfolio. Milestones and other contractual receipts, which are more variable and included and include a larger payment this quarter, lifted growth in portfolio receipts, our top line, to 17%. Turning to capital allocation, in January we announced an evolution to a more dynamic capital allocation framework. This flexible framework allows us to scale our efforts to address the discount of our share price to intrinsic value while also pursuing attractive royalty acquisitions. At that time, We also announced our intention to repurchase up to 2 billion of shares in 2025, depending on market conditions, out of an authorized total of 3 billion. Consistent with this, we repurchased 723 million of our shares in the first quarter. At the same time, we deployed capital of just over 100 million on value-creating royalty transactions, and we increased our dividend in line with our commitment to mid-single-digit growth. Looking at our portfolio, we expanded our development stage pipeline through a new phase three R&D funding collaboration with Biogen for litophilimab in lupus. As Marshall will discuss, this is a potential blockbuster therapy in a disease space with unmet patient needs, and we're excited to add this to our portfolio. We also received encouraging regulatory and clinical news on several portfolio therapies, including FDA and EC approval of Trenfaya and Crohn's and EC approval in ulcerative colitis, positive phase three result for a copypam in Tourette's syndrome, and confirmation that Roche is advancing trantinamab into phase three in Alzheimer's disease. Lastly, I'm pleased to raise our 2025 full year guidance. We now expect portfolio receipts to be between 2.975 billion and 3.125 billion. based on expected growth in portfolio receipts of around 6% to 12%. This guidance increase is driven by the strength of our diverse portfolio and a tailwind from weakening US dollars. Consistent with our shared standard practice, our guidance is based on our current portfolio and does not include the benefit of any future transactions. Slide seven shows our impressive track record of average double-digit growth since our IPO. As I noted earlier, we delivered 12% growth in royalty receipts in the first quarter. This is at the high end of the run rate included in our full year guidance and sets us up well to deliver another successful result in 2025. Overall, our track record underscores our ability to execute successfully and consistently against our strategy in the growing market for biopharma royalties. With that, I will hand it over to Marshall.