Royalty Pharma plc

ladies and gentlemen thank you for standing by welcome to the Royalty Pharma second quarter 2026 earnings conference call i would like now to turn the conference 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 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. On slide two, 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 these 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 three. Our speakers on the call today are Pablo Legorreta, Chief Executive Officer and Chairman of the Board, Marshall Urist, EVP, Head of Research and Investment, Chris Hite, Chairman Partnering and Investment, and Terry Coyne, EVP, Chief Financial Officer. Pablo will discuss the key highlights after which Marshall will provide a portfolio update. Chris will then discuss our development stage pipeline and Terry will review the financials. Following concluding remarks from Pablo, we will hold the Q&A session. And with that, I'd like to turn the call over to Pablo.

Thank you, George, and welcome everyone. I am pleased to report another quarter of strong financial performance and disciplined execution. Our 25th consecutive quarter as a public company with strong predictable double-digit growth, and we're achieving this as we continue to deliver on our goal of being the premier capital allocator in life sciences, driving consistent compounding growth. Slide five summarizes our strong business momentum in the second quarter. Starting with the financials, we delivered 6% growth in portfolio receipts, our top line, and 14% growth in total receipts, which are our recurring cash flows. Our top line performance was ahead of our guidance for the quarter and reflects the tremendous momentum of our diversified portfolio. We also maintained attractive returns in our business with return on invested capital of 14.2% and return on invested equity of 20.1%. By consistently delivering strong growth and superior returns, we believe we have a clear path to drive continued shareholder value creation. Turning to capital allocation, we have deployed $1.1 billion of capital on royalty acquisitions so far this year, with an announced value of $1.7 billion. Most importantly, we acquired a royalty on AstraZeneca's Clearamitude, a potential blockbuster therapy for trans Doritin Amyloid Cardiomyopathy. As we look ahead, our deal pipeline remains robust. Under our value-driven capital allocation framework, we also returned around $370 million to shareholders in dividends and share repurchases in the first half of the year. Moving to our portfolio, we continue to see a number of positive updates. Our partner, Revolution Medicines, completed its rolling submission for Dyrexon Rossi and Pancreatic Cancer with accelerated review also underway in Europe. We were also delighted to see key regulatory approvals for Gilead, Fradelvi, GSKs, Gydatro and Amgen Simdeltra. We look forward to these therapies contributing to our top line in the years ahead. Looking ahead, we're increasing our 2026 full year guidance for the second consecutive quarter based on the strong business momentum I just highlighted. Slide 6 is one that I return to each quarter as it demonstrates our consistent double digit growth on average since our IPO. We have delivered this impressive record year in and year out regardless of the market backdrop. This reflects the quality of our asset selection and our unique business model. Slide 7, my final slide, underscores the quality of our diligence process and our deep understanding of the life sciences ecosystem. In short, we've been ahead of the curve in identifying some of the most exciting innovators. Nuvalent and Emalex are just the latest examples of companies whose therapies we acquired royalties on that were subsequently acquired by large pharma companies. This of course validated our internal views of their programs and will also likely increase the value of our royalties as large pharma bring significant clinical resources and commercial scale. With that, I will hand it over to Marshall.