Royalty Pharma plc

Ladies and gentlemen, thank you for standing by. Welcome to Royalty Farma's second quarter 2025 earnings conference call. I would like now to turn the conference over to George Grofick, Senior Vice President, Head of Invest 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 Farma's second 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 royaltyfarma.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. We refer you to our most recent 10-K on file with the SEC for a description of these risks. All forward-looking statements are based on information currently available to Royalty Farma, 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 Juris, EVP, Head of Financials. 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 also be joined by Chris Height, 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 delighted to report a successful quarter of execution against our vision to be the leading partner funding innovation in life sciences. Slide six summarizes our strong business momentum in the second quarter. In terms of the financials, we delivered 20% growth in portfolio receipts, our top length to $727 million and 11% growth in royalty receipts to $672 million. This was ahead of the guidance we provided last quarter for portfolio receipts of $700 to $725 million due to the strength of our diversified portfolio. Turning to capital allocation, we purchased another 8 million shares in the second quarter, taking our total share we purchased this year to $1 billion. At the same time, in the second quarter, we deployed capital of just under $600 million on value creating royalty transactions. Looking at our portfolio, we completed the acquisition of our external manager, which combined our leading royalty portfolio with our valuable investment platform to become an integrated company, an important milestone in our evolution. In addition, we announced a groundbreaking collaboration with Revolution Medicines, which we believe represents a new funding paradigm for innovative biotech companies. Under this agreement, we will provide up to $2 billion of flexible funding anchored by a synthetic royalty on the exciting phase three oncology therapy. We also received encouraging clinical news on several portfolio therapies, including positive phase three results for Gilead-Fordelby in first-line metastatic triple negative breast cancer. Lastly, we are pleased to raise our full year 2025 top-line guidance. We now expect portfolio receipts to be between $3.05 and $3.15 billion, which represents growth of around $9 to 12%. We're also improving our guidance for full year operating and professional costs to a range of 9 to .5% of portfolio receipts, compared with around 10% previously. This reflects immediate cost savings of our internalization transaction. Third, we'll provide further guidance of the significant savings in operating and professional costs for the remainder of the year and beyond. Consistent with our standard practice, our guidance is based on our current portfolio and does not include the benefit of any future transactions. Slide seven shows our consistent track record of average double-digit growth since our IPO. As I noted earlier, we delivered 11% growth in royalty receipts in the second quarter. This takes us to 11% growth in the first half of 2025, which supports our confidence in delivering our updated full year guidance. I would also highlight that we have delivered this impressive track record of consistent growth, irrespective of the economic and financial markets' background. This really demonstrates our ability to execute it successfully and consistently against our strategy in the growing market for bio-formal royalties. With that, I will hand it over to Marshall.