Royalty Pharma PLC (RPRX) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Royalty Pharma fourth-quarter 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.

女士們、先生們，感謝你們的支持。歡迎參加 Royalty Pharma 第四季財報電話會議。現在，我想將會議交給高級副總裁、投資者關係和傳播主管喬治·格羅菲克 (George Grofik)。先生，請繼續。

Good morning and good afternoon to everyone on the call. Thank you for joining us to review Royalty Pharma's fourth quarter and full year 2024 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.

祝電話會議中的各位早安、下午好。感謝您與我們一起回顧 Royalty Pharma 的 2024 年第四季和全年業績。您可以在我們網站 Royaltypharma.com 的投資者頁面上找到包含我們的收益結果和本次電話會議投影片的新聞稿。

Moving to slide 3, 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 differ materially from these statements. I refer you to our most recent 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 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.

前往投影片 3，我想提醒您，本次電話會議中提供的資訊包含前瞻性陳述，涉及已知和未知的風險、不確定性和其他因素，可能導致實際結果與這些陳述有重大差異。請您參閱我們向美國證券交易委員會提交的最新 10-Q 文件，其中描述了這些風險。所有前瞻性陳述均基於 Royalty Pharma 目前掌握的信息，我們不承擔更新任何此類前瞻性陳述的義務。非公認會計準則流動性指標將用於幫助您了解我們的財務結果，並且在我們網站上的收益新聞稿中提供了這些指標與我們的公認會計準則財務狀況的對帳。

And with that, please advance to slide 4. Our speakers on the call today are Pablo Legorreta, Founder and Chief Executive Officer; Chris Hite, EVP, Vice Chairman; Marshall Urist, EVP, Head of Research and Investments; and Terry Coyne, EVP, Chief Financial Officer.

請進入投影片 4。 Chris Hite，執行副總裁、副董事長； Marshall Urist，執行副總裁、研究與投資主管；以及執行副總裁兼財務長 Terry Coyne。

Pablo will discuss key highlights after which Chris and Marshall will provide updates on our transaction pipeline and portfolio. Terry will then review the financials, and following concluding remarks from Pablo, we will hold a Q&A session. And with that, I'd like to turn the call over to Pablo.

帕勃羅 (Pablo) 將討論關鍵亮點，隨後克里斯 (Chris) 和馬歇爾 (Marshall) 將提供有關我們的交易管道和投資組合的最新資訊。然後，特里將審查財務狀況，在帕勃羅作總結發言後，我們將舉行問答環節。現在，我想將電話轉給 Pablo。

Thank you, George, and welcome to everyone on the call. It gives me great pleasure to report another successful year of execution against our strategy of the leading funder of innovation in life sciences.

謝謝喬治，歡迎大家參加電話會議。我很高興地向大家報告，我們作為生命科學創新領域領先資助者的策略又取得了成功的一年。

Moving to slide 6. We're very proud of our achievements in 2024. We again delivered excellent financial performance and significantly enhanced our portfolio through strong capital deployment. We delivered Portfolio Receipts, our top line, of $2.8 billion for the year, which was at the high end of our guidance range. In underlying terms, this represents growth of 13% in Royalty Receipts and continues our track record of strong performance since our IPO.

轉到第 6 張投影片。我們全年實現了 28 億美元的投資組合收益，也就是我們的頂線，這個數字處於我們預期範圍的高點。從根本上講，這意味著特許權使用費收入成長了13%，並延續了我們自首次公開募股以來的強勁業績記錄。

I should also point out that our 13% growth significantly exceeded our initial guidance of 5% to 9%. When we look to 2025, we're expecting Portfolio Receipts of $2.9 billion to $3.05 billion. In terms of our portfolio, we added royalties on eight new therapies, including four development-stage therapies. We saw positive news across our portfolio, including FDA approvals of Voranigo for brain cancer, Cobenfy for schizophrenia, and Tremfya for ulcerative colitis, and FDA acceptance of the NDA for Cytokinetics' aficamten for obstructive hypertrophic cardiomyopathy.

我還要指出的是，我們的 13% 的成長率大大超過了我們最初預期的 5% 至 9%。展望 2025 年，我們預期投資組合收入將達到 29 億至 30.5 億美元。在我們的產品組合方面，我們增加了八種新療法的特許權使用費，其中包括四種處於開發階段的療法。我們的產品組合中出現了積極的消息，包括 FDA 批准 Voranigo（用於治療腦癌）、Cobenfy（用於治療精神分裂症）和 Tremfya（用於治療潰瘍性結腸炎），以及 FDA 接受了 Cytokinetics 公司用於治療阻塞性肥厚型心肌病變的 aficamten 的 NDA。

In terms of capital allocation, we had a very attractive year for royalty transactions, and we deployed capital of $2.8 billion to further broaden our portfolio as well as $230 million on share repurchases. Last month, we announced an evolution in our capital allocation framework, in which we will scale our buybacks depending on the discount of our shares to -- share price to intrinsic value. As part of this, our Board authorized a new $3 billion share repurchase plan, and our intention is to repurchase $2 billion in 2025.

在資本配置方面，今年我們的特許權使用費交易非常有吸引力，我們部署了 28 億美元的資本來進一步擴大我們的投資組合，並部署了 2.3 億美元用於股票回購。上個月，我們宣布了資本配置框架的變革，我們將根據股票價格相對於內在價值的折扣來擴大回購規模。作為其中的一部分，我們的董事會批准了一項新的 30 億美元股票回購計劃，我們的目標是在 2025 年回購 20 億美元。

In the past month, we also generated over $0.5 billion in cash by monetizing the MorphoSys development funding bonds, which we will redeploy. Lastly, at the start of 2025, we announced a truly transformative step in the evolution of Royalty Pharma, with a planned acquisition of our external manager to become an integrated company. We expect multiple strategic and financial benefits from this highly compelling internalization transaction, which we anticipate will close in the second quarter of this year.

上個月，我們也透過將 MorphoSys 發展融資債券貨幣化產生了超過 5 億美元的現金，我們將重新部署這些現金。最後，在 2025 年初，我們宣布了 Royalty Pharma 發展歷程中真正具有變革性的一步，並計劃收購我們的外部經理，成為一家綜合公司。我們預計這項極具吸引力的內部化交易將帶來多重策略和財務利益，預計該交易將於今年第二季完成。

Moving to slide 7. This highlights the journey we have been on since I started the business in 1996. From a closed-end serial fund to an ongoing business with an indefinite life, then moving through an expansion of our investment scope to our IPO in June of 2020. Last month's announcement of the internalization of the manager is the logical next step in our evolution and best positions Royalty Pharma for future growth and shareholder value creation. Slide 8 gives more background on Royalty Pharma's current structure. The company has been externally managed since its creation in 1996. Under this structure, which is common among alternative asset managers, Royalty Pharma owns its unique industry-leading royalty portfolio of more than 35 approved products and 14 development-stage therapies, which includes 15 blockbuster therapies, but it has no employees. Instead, it pays a management fee of 6.5% of Portfolio Receipts, its top line, to the manager, which in turn provides the platform.

轉到第 7 張幻燈片。幻燈片 8 提供了有關 Royalty Pharma 當前結構的更多背景資訊。該公司自1996年成立以來一直採用外部管理。相反，它向經理支付投資組合收益的 6.5%（即其營收）的管理費，而經理則提供平台。

Following the internalization, the intellectual capital will transfer entirely to Royalty Pharma and the company will integrate the employees and scale the investment platform into one entity. Importantly, now that Royalty Pharma will own the unique engine that drives future investments, we believe that Royalty Pharma shares should reflect the value of the world-class investment platform on top of the value of our one of a kind portfolio of royalties on leading biopharmaceutical products.

內部化之後，智力資本將全部轉移到 Royalty Pharma，該公司將整合員工並將投資平台擴展為實體。重要的是，現在 Royalty Pharma 將擁有推動未來投資的獨特引擎，我們相信 Royalty Pharma 的股票應該反映世界一流投資平台的價值，以及我們獨特的領先生物製藥產品特許權使用費組合的價值。

Slide 9 provides more details on the multiple benefits for shareholders from the internalization. Financially, we expect cash savings from extinguishing the management fee will accumulate over time. In 2026, we expect savings of over $100 million. And over the next 10 years, cumulative savings are expected to be greater than $1.6 billion. This compares to the total consideration of $1.1 billion. In addition, by ending the management fee, the net returns on royalty investments will increase for shareholders. Strategically, there are many important benefits. First, management and shareholders' alignment will be substantially strengthened given the majority of the consideration will be paid in stock vesting for five years to nine years.

投影片 9 詳細介紹了內部化為股東帶來的多重利益。從財務角度來看，我們預計，隨著時間的推移，取消管理費所節省的現金將持續累積。到 2026 年，我們預計節省金額將超過 1 億美元。未來 10 年，預計累計節省金額將超過 16 億美元。相比之下，總對價為 11 億美元。此外，透過取消管理費，股東的特許權使用費投資淨回報將會增加。從戰略上來說，有很多重要的好處。首先，由於大部分對價將以五至九年內股票歸屬的方式支付，管理階層和股東的一致性將大大增強。

Second, with all employees transferring to Royalty Pharma, this ensures continuity of personnel and operations with a long-term equity vesting to maximize retention. Third, it enhances our commitment to robust governance practices. Lastly, simplification will increase comparability of Royalty Pharma to other companies and enhance transparency. We think this transaction is highly compelling for shareholders and further strengthens our prospects for long-term value creation and success.

其次，隨著所有員工轉移到 Royalty Pharma，這確保了人員和營運的連續性，並透過長期股權歸屬來最大限度地保留員工。第三，它增強了我們對強而有力的治理實踐的承諾。最後，簡化將提高 Royalty Pharma 與其他公司的可比性並增強透明度。我們認為，這筆交易對股東來說具有很強的吸引力，並進一步增強了我們長期創造價值和取得成功的前景。

With that, I will hand it over to Chris.

說完這些，我將把它交給克里斯。

Thanks, Pablo. I want to give a brief update on our transaction pipeline and the tremendous opportunity set ahead of us. Slide 11 shows our transaction funnel. We were busy in 2024 reviewing more than 440 potential royalty transactions. This was a record for us and an increase of around 10% versus the prior year.

謝謝，帕布羅。我想簡要介紹一下我們的交易管道和我們面臨的巨大機會。幻燈片 11 展示了我們的交易漏斗。 2024 年，我們忙於審查 440 多筆潛在的特許權使用費交易。這對我們來說是一個記錄，比前一年增長了約 10%。

This speaks to the strong secular tailwinds driving the demand for royalty financing as well as our competitive moats as the clear market leader. When we then move down the funnel, these initial reviews resulted in 153 confidentiality agreements signed, 99 in-depth reviews and 42 proposals submitted.

這顯示強勁的長期順風推動了特許權使用費融資的需求，也說明我們作為明顯市場領導者的競爭優勢。當我們進一步深入研究時，這些初步審查導致簽署了 153 份保密協議、進行了 99 項深入審查並提交了 42 份提案。

We continue to be disciplined and highly selective on our approach as we executed only eight transactions, or just 2% of our initial reviews, for a total transaction value of $2.8 billion. You can see on this slide the eight potential new therapies on which we will receive royalties, which are nicely balanced between approved and development-stage therapies. Many of these have blockbuster or even multi-blockbuster potential.

我們繼續嚴守紀律，嚴格選擇交易方式，僅執行了 8 筆交易，占我們初步審查的 2%，總交易價值為 28 億美元。您可以在這張投影片上看到我們將獲得特許權使用費的八種潛在新療法，這些療法在已批准的療法和開發階段的療法之間實現了很好的平衡。其中許多影片都有可能成為一部賣座影片，甚至是多部賣座影片。

Slide 12 provides an update on one of the fastest-growing parts of our opportunity set, namely synthetic royalties. This innovative solution involves creating new royalties as a non-dilutive funding solution for our partners. There are many reasons why this represents a true win-win approach for our partners. It allows us to tailor a solution to meet their needs, provides independent validation of the asset and allows the partner to retain operational control. It aligns our long-term interest, and lastly, we can add value through our proprietary analytics.

投影片 12 提供了我們機會集中成長最快的部分之一的最新情況，即合成特許權使用費。這項創新解決方案涉及為我們的合作夥伴創造新的特許權使用費作為非稀釋性融資解決方案。有很多原因可以證明，這對我們的合作夥伴來說是一種真正的雙贏方案。它使我們能夠客製化解決方案來滿足他們的需求，提供獨立的資產驗證，並允許合作夥伴保留營運控制權。它符合我們的長期利益，最後，我們可以透過我們的專有分析增加價值。

Biopharma funding has historically been dominated by equity, licensing deals and debt. Synthetic royalties have represented less than 5% of overall funding. We are confident this proportion will increase based on our ongoing partnership discussions, which reveal that synthetic royalties are being routinely discussed at board level and C-suite as an important funding modality.

生物製藥融資歷來以股權、許可交易和債務為主。合成特許權使用費佔總資金的不到5%。我們相信，根據我們正在進行的合作討論，這一比例將會增加，這表明合成特許權使用費作為一種重要的融資方式正在董事會和高管層定期討論。

Consistent with this growing opportunity, we achieved a record year for synthetic royalty transactions of $925 million in 2024. This figure has more than doubled since 2020. With the advantages I described and the huge funding requirements for life sciences innovation, we see tremendous scope for further growth in synthetic royalty funding.

與此日益增長的機會一致，我們在 2024 年實現了創紀錄的合成特許權使用費交易額 9.25 億美元。

With that, I'll hand it over to Marshall.

說完這些，我就把它交給馬歇爾。

Thanks, Chris. I want to focus today on an exciting group of five products from recent royalty transactions that are launching this year and will contribute to Royalty Pharma's growth in 2025 and beyond. Slide 14 summarizes these five launching therapies. What stands out is their novelty, being either first or best-in-class in covering a diversity of diseases and technologies. This underscores our well-honed therapeutic area agnostic approach that focuses on transformational science and patient need.

謝謝，克里斯。今天，我想重點介紹最近特許權交易中五種令人興奮的產品，這些產品將於今年推出，並將為 Royalty Pharma 在 2025 年及以後的發展做出貢獻。投影片 14 總結了這五種啟動療法。它們的突出之處在於其新穎性，在涵蓋多種疾病和技術方面是首創或一流的。這強調了我們精心打造的治療領域不可知論方法，該方法側重於轉化科學和患者需求。

Touching on each of these, we see a large and underappreciated royalty opportunity from Voranigo in brain cancer based on our double-digit royalty potentially exceeding $150 million in annual Royalty Receipts. The Voranigo launch is tracking well, and we are excited to see additional progress in 2025. You are probably well aware of Cobenfy, Bristol's new treatment for schizophrenia. Consensus estimates point to significant sales potential, which would generate as much as $100 million in peak royalties. Geron's Rytelo and Ascendis' Yorvipath are off to a good start, and Niktimvo's launch is now underway. Putting all of this together, total consensus peak sales forecast for these five therapies amount to over $10 billion, which would add over $430 million to annual Portfolio Receipts after applying their respective royalty rates.

談到上述每一個方面，我們看到 Voranigo 在腦癌領域存在巨大且被低估的特許權使用費機會，基於我們兩位數的特許權使用費，每年的特許權使用費收入可能超過 1.5 億美元。 Voranigo 的發布進展順利，我們很高興看到 2025 年取得更多進展。一般預期該款產品具有巨大的銷售潛力，最高可產生 1 億美元的特許權使用費。 Geron 的 Rytelo 和 Ascendis 的 Yorvipath 取得了良好的開端，Niktimvo 的發布也正在進行中。綜合所有這些因素，這五種療法的預期高峰銷售額總額將超過 100 億美元，在應用各自的特許權使用費率後，將為年度投資組合收入增加超過 4.3 億美元。

This scale of revenue contribution from just one year of new investment activity is clearly very meaningful in the context of our 2024 Portfolio Receipts of $2.8 billion. Furthermore, when you layer these launches on top of our development-stage pipeline of 14 therapies, our diversified base of Portfolio Receipts and the market opportunity that Chris highlighted, you can see why we feel confident that we will continue to generate strong returns and growth.

在我們 2024 年 28 億美元的投資組合收入背景下，光是一年的新投資活動就能帶來如此規模的收入貢獻，顯然非常有意義。此外，當您將這些產品與我們處於開發階段的 14 種療法、多樣化的投資組合收入基礎以及 Chris 強調的市場機會結合起來時，您就會明白為什麼我們有信心繼續獲得強勁的回報和成長。

And with that, I'll hand it over to Terry.

說完這些，我就把麥克風交給特里。

Thanks, Marshall. Let's move to slide 16. This slide shows how our efficient business model generates substantial cash flow to be reinvested. Royalty Receipts grew by 12% in the fourth quarter and 13% for the year, reflecting the strength of our diversified portfolio. Key drivers were the strong performance of Evrysdi, the Cystic Fibrosis franchise, Trelegy, Xtandi and Tremfya.

謝謝，馬歇爾。我們來看第 16 張投影片。特許權使用費收入在第四季度增長了 12%，全年增長了 13%，反映了我們多元化投資組合的實力。主要驅動因素是囊性纖維化藥物 Evrysdi、Trelegy、Xtandi 和 Tremfya 的強勁表​​現。

The decrease for the year in Portfolio Receipts, our top line, primarily reflected one-time Biohaven-related milestone payments received in 2023. As we move down the column, operating and professional costs equated to 9.8% of Portfolio Receipts in the fourth quarter and 8.4% for the year, consistent with our guidance.

我們的頂線—投資組合收入的年度下降主要反映了 2023 年收到的一次性 Biohaven 相關里程碑付款。

Net interest in the fourth quarter was de minimis, reflecting the timing of our interest payments in the first and third quarters. Full year net interest paid was $113 million. You should note that this did not reflect interest on the $1.5 billion of incremental debt that we raised this past summer, with the first interest payments from those new tranches expected in the first quarter of 2025.

第四季的淨利息很少，反映了我們在第一季和第三季支付利息的時間。全年支付的淨利息為1.13億美元。您應該注意到，這並不反映我們去年夏天籌集的 15 億美元增量債務的利息，這些新債務的首筆利息預計將在 2025 年第一季支付。

Moving further down the column. We've consistently stated that when we think of the cash generated by the business to then be redeployed into value-enhancing royalties, we look to Portfolio Cash Flow, which is Adjusted EBITDA less net interest paid. This amounted to $678 million in the quarter, equivalent to a margin of 91%. On a full year basis, Portfolio Cash Flow was $2.45 billion, a margin of just under 88%. This high level of cash conversion, once again underscores the efficiency of our business model. Capital deployment in the third quarter was $552 million, taking our total through the year to approximately $2.8 billion.

繼續沿列向下移動。我們一直表示，當我們考慮將業務產生的現金重新部署到增值版稅中時，我們會考慮投資組合現金流，即調整後的 EBITDA 減去支付的淨利息。本季的數字為 6.78 億美元，相當於 91% 的利潤率。全年來看，投資組合現金流為 24.5 億美元，利潤率略低於 88%。如此高水準的現金轉換再次凸顯了我們商業模式的效率。第三季的資本配置為 5.52 億美元，使我們全年的資本總額達到約 28 億美元。

Slide 17 shows that our unique business model has powered strong Royalty Receipts growth since our IPO. We delivered double-digit growth in three of the four years since our IPO with an average annual growth over the period of 12%. We are particularly proud of this track record of consistent and strong growth.

投影片 17 顯示，我們獨特的商業模式自首次公開募股以來推動了特許權使用費收入的強勁成長。我們上市以來的四年中，有三年都實現了兩位數的成長，年均成長率為 12%。我們對這一持續強勁成長的記錄感到特別自豪。

Slide 18 provides more detail on the evolution of our top line in 2024. As I highlighted earlier, significant Biohaven-related payments in 2023 impacted year-over-year comparisons for Portfolio Receipts, our top line. Royalty Receipts, which we consider our recurring cash inflows, grew by 13%, which was well ahead of our initial guidance of around 5% to 9%. Importantly, as you can see on this slide, strong base business performance was the primary driver of our Royalty Receipts performance in 2024.

投影片 18 詳細介紹了我們 2024 年營收的變化。特許權使用費收入（我們視其為經常性現金流入）增加了 13%，遠高於我們最初預期的 5% 至 9% 左右。重要的是，正如您在這張投影片上看到的，強勁的基礎業務表現是我們 2024 年特許權使用費收入表現的主要驅動力。

Slide 19 shows that we continue to maintain significant financial capacity to execute our strategy through a combination of cash on our balance sheet, cash that our business generates and access to the debt markets. At the end of the year, we had cash and equivalents of $929 million. If we also include the proceeds from the MorphoSys development funding bonds in January, our cash and equivalents stood at just over $1.4 billion on a pro forma basis. On the MorphoSys development funding bonds, we received proceeds of $511 million on the sale, which results in an IRR on that investment of approximately 25%. In terms of our borrowing position, we have investment grade debt outstanding of $7.8 billion. Our leverage now stands at around three times total debt to EBITDA. We also have undrawn financial capacity from a $1.8 billion revolver.

投影片 19 顯示，我們透過資產負債表上的現金、業務產生的現金以及債務市場准入，持續保持強大的財務能力來執行我們的策略。截至年底，我們的現金和等價物為 9.29 億美元。如果我們還包括 1 月 MorphoSys 發展融資債券的收益，我們的現金和等價物在準備考試基礎上將略高於 14 億美元。在 MorphoSys 開發融資債券中，我們獲得了 5.11 億美元的銷售收益，這使得該投資的內部殖利率 (IRR) 約為 25%。就我們的借款狀況而言，我們未償還的投資等級債務為 78 億美元。我們的槓桿率目前約為總債務與 EBITDA 比率的三倍。我們也擁有18億美元循環信貸中尚未動用的財務能力。

We continue to take advantage of the fundamental disconnect on our share price and repurchased $50 million of our shares in the fourth quarter, taking our total spend on buybacks to $230 million during 2024. As a reminder, we announced a $3 billion share repurchase authorization on January 10. We will provide an update on our progress on that new authorization on our first quarter earnings call.

我們繼續利用股價的基本脫節，並在第四季度回購了價值 5,000 萬美元的股票，使我們在 2024 年的回購總支出達到 2.3 億美元。 提醒一下，我們在 1 月 10 日宣布了 30 億美元的股票回購授權。

Slide 20 lays out our capital allocation framework. We have a dynamic framework, which balances our view of the share price valuation against the attractiveness of royalty deals. When our share price is trading at a discount to its intrinsic value, share buybacks will be an important part of our capital allocation.

投影片 20 展示了我們的資本配置架構。我們有一個動態框架，它可以平衡我們對股價估值的看法和特許權使用費交易的吸引力。當我們的股價低於其內在價值時，股票回購將成為我們資本配置的重要組成部分。

Conversely, when our shares approach a premium to intrinsic value, we would plan to dial back our share repurchases and focus on higher returning royalty deals. In an environment where neither attractive royalty deals nor share repurchases are available, we have other options available for our cash, including growing cash to wait for the right deals, paying down debt or increasing dividend distributions. Ultimately, we are focused on driving shareholder value through allocating capital as efficiently and effectively as possible.

相反，當我們的股票接近內在價值的溢價時，我們計劃減少股票回購，並專注於回報率更高的特許權使用費交易。在沒有有吸引力的特許權使用費交易和股票回購的環境下，我們還有其他可用的現金選擇，包括增加現金以等待合適的交易、償還債務或增加股息分配。最終，我們專注於透過盡可能有效率、有效地分配資本來推動股東價值。

Today, we believe we're operating in the upper left quadrant, where we see many attractive royalty opportunities and a discount to the intrinsic value of our stock. For this reason, we announced a new $3 billion share repurchase program last month with an intention to repurchase up to $2 billion of shares in 2025 depending on the level of discount to intrinsic value.

今天，我們相信我們正處於左上象限，在這裡我們看到了許多有吸引力的特許權使用費機會和對我們股票內在價值的折扣。為此，我們上個月宣布了一項新的 30 億美元股票回購計劃，計劃在 2025 年回購高達 20 億美元的股票，具體金額取決於內在價值的折扣程度。

Slide 21 provides more granular detail on the evolution of our balanced capital allocation framework to drive shareholder returns. We expect to maintain significant financial capacity to execute royalty deals in 2025, consistent with our guidance of between $2 billion and $2.5 billion of capital deployment per year on average. We are maintaining our investment target returns but also note that IRRs have trended higher in recent years. We also maintain a strong commitment to an investment-grade credit rating. Lastly, there's no change to our dividend policy, which is to grow by a mid-single-digit percentage annually.

投影片 21 更詳細地介紹了我們平衡資本配置框架的演變，以推動股東回報。我們預計在 2025 年將保持強大的財務能力來執行特許權使用費交易，這與我們平均每年 20 億美元至 25 億美元的資本部署指導一致。我們維持投資目標回報，但也注意到近年來內部報酬率呈現上升趨勢。我們也堅定致力於投資等級信用評級。最後，我們的股利政策並沒有變化，即每年以中等個位數的百分比成長。

Slide 22 provides our full year 2025 financial guidance. We expect Portfolio Receipts to be in the range of $2.9 billion to $3.05 billion, which equates to growth of around 4% to 9%. This guidance reflects the momentum of our diversified portfolio.

投影片 22 提供了我們 2025 年全年財務指引。我們預計投資組合收入將在 29 億美元至 30.5 億美元之間，相當於成長 4% 至 9% 左右。該指引反映了我們多元化投資組合的發展動能。

It also takes into account a range of scenarios for the launch of Alyftrek, the new Vertex triple, as well as for Promacta generics, biosimilar Tysabri and the impact of Medicare Part D redesign. Milestones and other contractual receipts are expected to increase from $31 million in 2024 to approximately $60 million in 2025.

它還考慮了 Alyftrek、新的 Vertex 三聯療法、Promacta 仿製藥、生物仿製藥 Tysabri 的推出以及 Medicare Part D 重新設計的影響的一系列情景。里程碑和其他合約收入預計將從 2024 年的 3,100 萬美元增加到 2025 年的約 6,000 萬美元。

The $511 million upfront for monetization of the MorphoSys development funding bonds will not be recorded in Portfolio Receipts and will instead be treated as an asset sale. Importantly and consistent with our standard practice, this guidance is based on our portfolio as of today and it does not take into account the benefit of any future royalty acquisition.

用於 MorphoSys 發展融資債券貨幣化的 5.11 億美元預付款將不會記錄在投資組合收據中，而是將被視為資產出售。重要的是，與我們的標準實踐一致，該指引基於我們今天的投資組合，並未考慮任何未來特許權使用費收購的利益。

We would also note that our top line would have been approximately $150 million higher in 2025, if the long-term payments relating to Biohaven and MorphoSys had not been accelerated, which increased the IRRs on both of those investments.

我們還要指出的是，如果與 Biohaven 和 MorphoSys 相關的長期付款沒有加速，從而增加這兩項投資的內部收益率，那麼到 2025 年我們的營業額將增加約 1.5 億美元。

Turning to operating costs. Payments for operating and professional costs are expected to be approximately 10% of Portfolio Receipts in 2025, reflecting the efficiency of our business model. This figure takes into account one-time expenses related to the MorphoSys development funding bond sale to increase operating and professional costs by around one percentage point.

談到營運成本。預計到 2025 年，營運和專業成本支付將佔投資組合收入的約 10%，這反映了我們業務模式的效率。該數字考慮了與 MorphoSys 發展融資債券銷售相關的一次性費用，這將使營運和專業成本增加約一個百分點。

Furthermore, our guidance does not take into account the benefit of the internalization transaction. We will provide an update after it closes. Interest paid in 2025 is expected to be around $260 million with de minimis amounts due in Q2 and Q4. Year-over-year increase reflects interest payments from the $1.5 billion of notes issued in June of 2024 for which the first payment will be paid in the first quarter. This guidance does not take into account interest received on our cash balance, which was $9 million in the fourth quarter of 2024, $46 million in the full year. It also does not reflect the additional interest expense, which will follow the internalization transaction. As a final consideration, while share repurchases would clearly decrease our average share count in 2025, there will be a slight offset from the issuance of equity performance awards, which is our long-term incentive compensation program, which reflects the success of our investments in 2020 and 2021. We expect equity performance awards to be approximately $45 million in 2025, with approximately half of that value reflected in the share count over the course of the year. To close, we expect to deliver another year of strong financial performance in 2025. We are excited by the opportunity to accelerate shareholder value through our new share repurchase program and the internalization transaction.

此外，我們的指導也沒有考慮到內部化交易的好處。我們將在結束後提供更新資訊。預計 2025 年支付的利息約為 2.6 億美元，其中第二季和第四季應付的最低金額為。同比增長反映了 2024 年 6 月發行的 15 億美元票據的利息支付，首筆付款將在第一季支付。該指引未考慮我們現金餘額所收到的利息，2024 年第四季的現金餘額為 900 萬美元，全年為 4,600 萬美元。它也沒有反映內部化交易後產生的額外利息支出。最後要考慮的是，雖然股票回購會顯著減少我們 2025 年的平均股票數量，但股權績效獎勵的發放將略有抵消，股權績效獎勵是我們的長期激勵薪酬計劃，反映了我們在 2020 年和 2021 年投資的成功。最後，我們預計 2025 年將再次實現強勁的財務表現。

With that, I would like to hand the call back to Pablo.

說完這些，我想把電話交還給巴勃羅。

Thanks, Terry. Let's move to slide 24 for a summary of the key messages you have heard today. First, we delivered solid performance with 13% growth in Royalty Receipts in 2024, during which we significantly exceeded our initial guidance. We also deployed substantial capital of $2.8 billion as we acquired eight exciting new royalties, adding further diversification and long-term growth.

謝謝，特里。讓我們轉到第 24 張投影片來總結大家今天聽到的關鍵訊息。首先，我們表現穩健，2024 年特許權使用費收入成長了 13%，大大超出了我們最初的預期。我們也投入了 28 億美元的大量資本，收購了八項令人興奮的新特許權使用費，進一步實現了多元化和長期成長。

Second, we continue to have a very attractive opportunity set. We conducted initial reviews on over 440 potential royalty transactions, a new record for Royalty Pharma, which speaks both to the fast-growing demand for royalty funding and to our continued leadership position. We did so in a very disciplined manner. In order to drive strong returns, which have trended higher in recent years. Third, we have started 2025 with two important steps to further enhance shareholder value with our new $3 billion share repurchase program and our internalization transaction. All things considered, I'm confident that Royalty Pharma is increasingly well positioned to deliver attractive compounding growth and to drive value for shareholders.

其次，我們繼續擁有非常有吸引力的機會。我們對 440 多筆潛在特許權使用費交易進行了初步審查，這對 Royalty Pharma 來說是一個新紀錄，這不僅表明對特許權使用費融資的需求快速增長，也表明我們繼續保持領先地位。我們以非常有紀律的方式做到了這一點。為了獲得強勁的回報，近年來回報呈上升趨勢。第三，我們在 2025 年開始了兩項重要舉措，即新的 30 億美元股票回購計畫和內部化交易，以進一步提升股東價值。綜合考慮所有因素，我相信 Royalty Pharma 正越來越有能力實現具有吸引力的複合成長並為股東創造價值。

With that, we would be happy to take your questions.

我們很樂意回答您的問題。

We will now open up the call for questions. Operator, please take the first question.

我們現在開始提問。接線員，請回答第一個問題。

(Operator Instructions)

（操作員指令）

Geff Meacham, Citi.

花旗銀行的 Geff Meacham。

Hi, guys. Thanks for the question. Just had a few. Terry, on the guidance, I know you don't want to provide a point estimate, but maybe if you give us any additional detail on the Alyftrek assumptions that you're making for the year. Same on Tysabri. And I know MorphoSys isn't included, but are there any milestones assumed in the '25 Portfolio Receipts guidance? And the second question, more bigger picture for Pablo. I know we've seen a lot of new policies coming out of DC sort of fast and furious, what would you say are the risks to royalties from maybe a tax or IRA perspective? I wasn't sure if you guys had engagement with the new administration or taken more of a reactive stance? Thank you.

嗨，大家好。謝謝你的提問。只吃了一些。特里，關於指導，我知道您不想提供點估計，但也許您可以向我們提供有關您對今年做出的 Alyftrek 假設的更多細節。 Tysabri 也是如此。而且我知道 MorphoSys 不包括在內，但是 '25 投資組合收據指南中是否假設了任何里程碑？第二個問題，對 Pablo 來說，有更宏觀的認識。我知道我們已經看到華盛頓特區迅速發布了很多新政策，您認為從稅收或個人退休帳戶 (IRA) 的角度來看，特許權使用費面臨的風險是什麼？我不確定你們是否與新政府進行了接觸，還是採取了更多的被動立場？謝謝。

Sure, Geoff. So on the guidance, we haven't provided specific product by product guidance, that's not our normal practice, I would just say for Alyftrek and Tysabri, as you can imagine, you looked at a range of scenarios for both of those and continue to believe that they will be - the CF franchise will continue to be a very important contributor for Royalty Pharma 2025 and also over the long term. And also, we expect that Tysabri will continue to be a very important contributor for Royalty Pharma. But yeah, as far as specifics there, we haven't given anything but looked at a range of scenarios. In terms of milestones assumed in our 2025 guidance, we assumed $60 million or so of milestones. So not a particularly large component of the Portfolio Receipts guidance for this year.

當然，傑夫。因此，在指導方面，我們尚未提供針對具體產品的指導，這不是我們的正常做法，我只想說，對於 Alyftrek 和 Tysabri，正如您所想像的，您研究了這兩種產品的一系列情景，並繼續相信它們會是 - CF 特許經營權將繼續成為 Royalty Pharma 2025 以及長期的重要貢獻者。此外，我們預計 Tysabri 將繼續成為 Royalty Pharma 的重要貢獻者。但是的，就具體情況而言，我們沒有給出任何東西，只是研究了一系列的情況。就我們 2025 年指引中假設的里程碑而言，我們假設的里程碑金額約為 6,000 萬美元。因此，這並不是今年投資組合收入指導中特別重要的一環。

And also excluding the MorphoSys.

並且也排除了 MorphoSys。

Right. Yeah. They're -- we did get a payment for MorphoSys in the first quarter. It's relatively small, but there will -- but the large $511 million related to the sale of MorphoSys development funding bonds is not part of that guidance. That was treated as an asset sale, so it's not going to show up in our Portfolio Receipts.

正確的。是的。他們 - 我們確實在第一季收到了 MorphoSys 的付款。雖然金額相對較小，但肯定會有——但與出售 MorphoSys 發展融資債券相關的 5.11 億美元巨額資金並不在該指導範圍內。這被視為資產出售，因此不會出現在我們的投資組合收據中。

So with respect to your bigger picture question of the new administration and the initiatives related to health care. It's early days, Geoff, we're following it very closely. In terms of your question regarding taxes, we don't foresee any impact or any change in the taxation of our business. And the other thing I would say is that we're fortunate to have on our Board, Ted Love, who is the Chairman of BIO. So I've been in discussions with him just to get insights into what's going on and how the industry is reacting. And another thing that we plan to do is to get much more involved through BIO with industry and the administration.

所以關於您關於新政府和與醫療保健相關的舉措的更大問題。現在還為時過早，傑夫，我們正在密切關注此事。關於您提到的稅務問題，我們預計我們的業務稅不會受到任何影響或變化。我想說的另一件事是，我們很榮幸能有 BIO 董事長 Ted Love 加入董事會。因此，我一直在與他進行討論，只是為了了解正在發生的事情以及行業的反應。我們計劃要做的另一件事是透過 BIO 更多地參與工業界和政府部門的事務。

Thank you.

謝謝。

Chris Schott, JP Morgan.

摩根大通的克里斯·肖特 (Chris Schott)。

Great. Thank you so much. Just two questions for me. Maybe just on the synthetic royalties. Can you just talk a little bit about how your returns on the synthetics have compared to maybe more traditional structures. I'm just trying to get a sense if the growth in this newer source of royalties is more about expanding kind of the TAM and breadth of assets you can pursue or if you can also think about higher returns here as well? And then my second question was on the Vertex royalty with the Alyftrek launch. Can you just walk us through -- I know I know you can't provide too many details, but just how we should think about the timing of the arbitration process and when the Street might have more visibility on how the royalty situation is going to play out. Thank you.

偉大的。太感謝了。我只有兩個問題。或許只是關於合成版稅。能否稍微談談合成資產的報酬率與更傳統的結構相比如何？我只是想知道，這種較新的特許權使用費來源的增長是否更多地是為了擴大 TAM 和您可以追求的資產廣度，或者您是否也可以考慮在這裡獲得更高的回報？我的第二個問題是關於 Vertex 和 Alyftrek 推出後的特許權使用費。您能否簡單介紹一下——我知道您不能提供太多細節，但我們應該如何考慮仲裁過程的時間安排，以及華爾街何時才能更清楚地了解特許權使用費的情況將如何發展。謝謝。

Sure. Thanks for the question. So Chris, why don't you take the question on synthetic royalties, the scale of the opportunity and the returns. And then Terry can talk about Vertex and the timing we expect.

當然。謝謝你的提問。那麼克里斯，你為什麼不回答關於合成特許權使用費、機會規模和回報的問題呢？然後 Terry 可以談談 Vertex 和我們預期的時間。

Yeah. Thanks for the question, Chris. The synthetic royalty opportunity, as we said, we had a record year last year. You saw the trends, very, very positive. We've really seen just -- and I think we've talked about this a little bit, but we've really seen a mind shift in the sector. So when you just think over the last five years, the sector has really embraced alternative forms of capital, namely synthetic royalties, when they're considering raising capital to fund their business as opposed to partnering with pharma or raising equity or debt capital. Obviously, when you're partnering with pharma, you're giving up some operational control, typically US rights. So they find our capital and our partner -- us being a partner with them extremely attractive because they retain operational control, maintain the ability to continue marketing in the United States, as an example. And we just create, I think, win-win solutions for them as evidenced by all the deals we did last year.

是的。謝謝你的提問，克里斯。正如我們所說，合成特許權使用費機會去年創下了紀錄。您看到了非常非常積極的趨勢。我們確實看到——我想我們已經談論過這個問題一點了，但我們確實看到該領域的思維轉變。因此，回顧過去五年，當該行業考慮籌集資金來資助其業務而不是與製藥公司合作或籌集股權或債務資本時，他們確實接受了替代形式的資本，即合成特許權使用費。顯然，當你與製藥公司合作時，你會放棄一些營運控制權，通常是美國權利。因此，他們發現我們的資本和合作夥伴——我們作為他們的合作夥伴極具吸引力，因為他們保留了營運控制權，並保持了繼續在美國行銷的能力。我認為，我們為他們創造了雙贏的解決方案，正如我們去年達成的所有交易所所證明的那樣。

And as it relates to returns, we feel really good about the returns, the return profile that we're able to achieve on those transactions. Obviously, we wouldn't be doing them if we didn't like the returns. And we highlight to them the win-win nature of those transactions, all of those benefits I've mentioned, as we discuss our return profile. So we're really excited about it. We're really excited about the returns and the opportunity set in front of us.

就回報而言，我們對這些交易所能實現的回報以及回報狀況感到非常滿意。顯然，如果我們不喜歡回報，我們就不會這麼做。在討論我們的回報狀況時，我們向他們強調了這些交易的雙贏性質以及我提到的所有這些好處。所以我們對此感到非常興奮。我們對於眼前的回報和機會感到非常興奮。

And then just on Alyftrek, timing of arbitration. So just to reiterate what we said previously, we continue to feel really strongly about this. Deuterated Kalydeco is the same thing as Kalydeco. and so we do feel very confident in that position. In terms of the timing of any potential arbitration, we don't have an update right now. But what we can say is that arbitration, unlike a typical court process, arbitration is not a long drawn-out process, but we can't really provide any specifics right now around timing.

然後就在 Alyftrek 上討論仲裁時間。因此，我們只是想重申一下之前說過的話，我們仍然對此深有感觸。氘代 Kalydeco 與 Kalydeco 是同一物質。因此我們對這立場非常有信心。關於任何潛在仲裁的時間，我們目前還沒有最新消息。但我們可以說的是，與典型的法庭程序不同，仲裁不是一個漫長的過程，但目前我們無法提供有關時間的任何具體細節。

Michael Nedelcovych, TD Cowen.

邁克爾·內德爾科維奇（Michael Nedelcovych），TD Cowen。

Thank you for the questions. I have two. My first is on guidance again. Going back at least to 2022, I believe Royalty Pharma's year-end performance in each year ended up outstripping your initial guidance by a healthy margin. Is it fair then to assume that the top-line guidance for 2025 may be somewhat conservative?

感謝您的提問。我有兩個。我的第一件事是再次進行指導。至少回顧 2022 年，我相信 Royalty Pharma 每年的年終業績最終都會遠遠超出您的最初預期。那麼，是否可以合理地假設 2025 年的營收預期可能有些保守？

And my second question is on your screening process. Winnowing from 440 reviews to only eight transactions is very impressive, what would you say are the most common reasons that you do not pursue a given transaction?

我的第二個問題是關於你們的篩選過程。從 440 則評論中篩選出僅 8 筆交易是非常令人印象深刻的，您認為不進行某筆交易的最常見原因是什麼？

Sure, Terry, why don't you take the question on guidance and then Marshall the one on the funnel and our selection process.

當然，特里，你為什麼不先回答關於指導的問題，然後再回答關於漏斗和我們的選擇過程的問題呢？

Yeah. So you're correct that historically we have tended to outperform. And I think that's just kind of the nature of the types of products that we invest in, in the portfolio. It's just early right now. We're just starting the year. And so our range is a little bit wider as you can imagine. But we feel like there's a lot of great momentum in the portfolio. We're very confident about how things are going and hope that as the year evolves, we can be heading towards higher numbers, but it's just early days right now.

是的。因此您說得對，從歷史上看，我們的表現往往優於其他。我認為這只是我們在投資組合中投資的產品類型的本質。現在還早。我們才剛開始新的一年。因此，正如您所想像的，我們的範圍更廣一些。但我們感覺投資組合中有很多強勁的發展勢頭。我們對事情的進展非常有信心，並希望隨著時間的推移，我們能夠邁向更高的數字，但現在還為時過早。

Great. Thanks for your question on the funnel. So it's a good question. And the discipline that the funnel entails is something that is absolutely core to our investment process. We never feel compelled to do any single deal, it's really focusing on the quality of the product, its importance to patients, the strength of our partners, the clinical data, the clinical profile, the commercial potential, the intellectual property. So I think if you looked at the top of the funnel and what skinnies down all the opportunities that we look at, I do think it's probably spread pretty broadly across all of those things that I just mentioned. I think stage of development is an important one. IP can be another important factor. And then I think the product profile either in terms of if it's a development stage or a commercial stage product. So it really is across the board. But I think that discipline and that focus on only adding really high-quality important products to the portfolio is sort of our North Star and what will continue to guide our process this year and beyond.

偉大的。感謝您就漏斗提出的問題。所以這是一個好問題。漏斗所蘊含的紀律是我們投資流程的核心。我們從來沒有覺得有必要做任何單筆交易，我們真正關注的是產品的品質、產品對患者的重要性、合作夥伴的實力、臨床數據、臨床概況、商業潛力和智慧財產權。因此，我認為，如果你看漏斗的頂部以及我們所看到的所有機會，我確實認為它可能廣泛地分佈在剛才提到的所有事物中。我認為發展階段是一個重要階段。 IP 可能是另一個重要因素。然後我認為產品的概況要不是處於開發階段，就是處於商業階段。所以這確實是全面的。但我認為，這種紀律以及專注於只在產品組合中添加真正高品質的重要產品就像是我們的北極星，它將在今年及以後繼續指導我們的進程。

If I can just maybe very briefly add just a couple of other perspectives on the investment process and the funnel. We have a practice here at Royalty Pharma that we've held for decades of, and this is what I told the team for a long time that we need to really look at everything that's out there, all opportunities that come to us and spend time with management teams to learn about their products and their technology, the science behind their products. And we do that because it gives us a really good perspective on how the whole ecosystem is developing, but things are potentially going to be really successful in five, ten years from now. So we look at everything.

我可以非常簡短地補充一些關於投資流程和管道的其他觀點。我們在 Royalty Pharma 已經有幾十年的實務經驗，我很早就告訴團隊，我們需要真正審視現有的一切，所有出現在我們面前的機會，並花時間與管理團隊一起了解他們的產品、技術以及產品背後的科學。我們這樣做是因為它能讓我們很好地了解整個生態系統的發展情況，而且五年、十年後事情可能會取得真正的成功。因此我們觀察一切。

There's many things that are early stage, but looking at those things also allows us to -- when we listen to management, we spend an hour, two hours hearing their story to get a perspective on what they plan to do. And then sometimes, we tell them it's early, we'll meet in one year or two, but having had the opportunity to hear their story early on allows us then to actually see whether management was able to deliver and do what they told us they were going to do. So it's a very dynamic process, and the breadth of it is also really important.

許多事情都處於早期階段，但觀察這些事情也使我們能夠——當我們聽取管理層的意見時，我們會花一個小時、兩個小時聽他們的故事，以了解他們計劃做什麼。有時，我們會告訴他們現在還為時過早，我們會在一兩年後見面，但是，既然有機會提前聽到他們的故事，我們就能真正了解管理層是否能夠履行他們的諾言，並按照他們的意願去做。所以這是一個非常動態的過程，它的廣度也非常重要。

Chris Shibutani, Goldman Sachs.

高盛的 Chris Shibutani。

Great. Thank you very much. I always appreciate this quarter with the funnel. And if I go back to every slide every year over the past since the IPO, there's been a subsequent slide that talks about the growth and your capacity through each of those stages. And starting last year and also in this year, the highlight of strong growth in initial reviews was removed. Numerically, it has increased from mid-200s to 300, 350, 400. Should we expect that pace of initial reviews to continue at this numeric level, though it is decelerating? And what are the constraints potentially to that? And with regard to constraints, the second question would be, can you talk to us about what your scope of access and exposure is globally, industry certainly has been doing a lot more of searching and partnering of assets in particular of late, from China. Do you have a footprint there? Any thoughts? And should we look for you to perhaps become active? Or is that not an ecosystem that necessarily is embracing the royalty-based approach? Thank you.

偉大的。非常感謝。我一直很欣賞這個帶有漏斗的季度。如果我回顧自 IPO 以來每年的每一張投影片，都會發現後續投影片討論了每個階段的成長和能力。而且從去年開始，以及從今年開始，初步審查中強勁成長的亮點就被消除了。從數字上看，這一數字已從 200 多增長至 300、350、400。 儘管初步審查的速度正在減慢，但我們是否應該預期初步審查的速度將保持在這個數字水平上？那麼，可能存在哪些限制呢？關於限制，第二個問題是，您能否與我們談談您在全球範圍內的准入和曝光範圍，業界最近確實在進行更多的資產搜索和合作，尤其是來自中國的資產搜索和合作。那裡有你的足跡嗎？有什麼想法嗎？我們是否應該期待您變得活躍？或者這不是一個必然採用基於特許權使用費的方法的生態系統？謝謝。

Marshall should take the question on the funnel and initial reviews. Our business is global, and we have been successful in investing globally for decades. Without having a physical presence in Europe, we were able to make great investments years ago, for example, in Humira, a transaction with acquiring that royalty from AstraZeneca Cambridge Antibody Technologies. We now have presence in Europe, not yet in China, but that doesn't mean that we're not looking at things in China. And what we have done and do is just travel and go and meet companies and meet them when they come to the US, which has obviously happens all the time. So we do -- if you look at the top Chinese biotech companies that are really developing great technologies and licensing them to Western companies, we've known them for 10 years, 15 years, have had dialogues with them, and keep in touch. And I think we intend to actually increase our interactions in China and plan to be there this year again. Marshall?

馬歇爾應該回答有關管道和初步審查的問題。我們的業務是全球性的，幾十年來我們在全球投資方面取得了成功。儘管我們在歐洲沒有實體業務，但我們多年前就進行了大規模投資，例如對 Humira 的投資，這項交易是從阿斯特捷利康劍橋抗體技術公司收購 Humira 的使用權的交易。我們目前已在歐洲開展業務，但尚未進入中國，但這並不代表我們沒有關注中國市場。我們所做的就是出差、去見公司並在他們來美國時與他們會面，這顯然一直在發生。我們也確實如此——如果你看看那些真正開發出偉大技術並將其授權給西方公司的中國頂尖生物科技公司，你會發現我們已經認識他們 10 年、15 年了，與他們有過對話，並保持聯繫。我認為我們實際上有意增加與中國的互動，並計劃今年再次前往中國。馬歇爾？

Yeah. Chris, thanks for your question. I think what you point out is exactly right. I think our track record since the IPO and the growth in the number of opportunities, I think hopefully, has convinced everyone about what we saw when we went public, which is we thought the opportunity for royalty-based funding for alternative forms of capital in biopharma was a big opportunity and something that we were excited about capturing. And I think that -- I think how the number of things that we have looked at, how the size of our market has scaled over the last five years since we went public, has really proven that out. So I think that's the message from here. I think we will continue to have a very, very broad scope of opportunities to look at. But the important thing is that are we finding really impactful, important products to add to the portfolio. And I think when you look at what we did last year, that's a great example of exactly the kind of thing that we want to do every year adding really attractive launching products as well as adding to our pipeline, of development-stage products as well. So that -- I think that is how we see the world and I think we're really excited about the opportunity in front of us.

是的。克里斯，謝謝你的提問。我認為你的指出是完全正確的。我認為，我們自 IPO 以來的業績記錄和機會數量的增長，希望能夠讓所有人相信我們上市時看到的情況，那就是我們認為以特許權使用費為基礎的生物製藥替代形式資本的融資機會是一個巨大的機會，我們很高興能夠抓住它。我認為——我們所研究的事物的數量，以及我們上市以來過去五年來市場規模的擴大，已經真正證明了這一點。所以我認為這就是這裡要傳達的訊息。我認為我們將繼續擁有非常非常廣闊的機會可供關注。但重要的是我們是否找到了真正有影響力、重要的產品來添加到產品組合中。我認為，當你回顧我們去年所做的事情時，你會看到，這是一個很好的例子，它恰恰說明了我們每年都想做的事情，即增加真正有吸引力的新產品，並豐富我們的產品線和處於開發階段的產品。所以——我認為這就是我們看待世界的方式，我認為我們對眼前的機會感到非常興奮。

And as Pablo mentioned, I think what we've seen in terms of the licensing of Chinese products is a great example of how the ecosystem continues to expand. And as there are royalties being created in licensing deals from China to multinational pharma companies that just adds another source of royalties for us and further expands the market opportunity. So we are really excited about the opportunity in front of us.

正如帕勃羅所提到的，我認為我們在中國產品許可方面所看到的就是生態系統如何不斷擴大的一個很好的例子。而且，由於中國與跨國製藥公司在許可協議中產生了特許權使用費，這為我們增加了另一個特許權使用費來源，並進一步擴大了市場機會。因此，我們對眼前的機會感到非常興奮。

Chris, maybe just adding in. Of course, we have another angle that is important to mention here is that, as I said, our business is global. And what really matters to be able to actually take advantage of the very significant amount of opportunities that exist that are out there, this 400-plus things we looked at last year is the size of our team and the scale of our team. I would say that Royalty Pharma has one of the largest investment teams in life sciences and also a team that is totally focused on a specific way of making investments in life sciences. Obviously, we don't -- as you know, we don't invest in equities, there's thousands of biotech companies that are public and that requires another skill set. We have a very specific way of investing and the team we have is large and has a global reach. So that's another thing I wanted to mention.

克里斯，也許只是補充一下。而為了能夠真正利用現有的大量機會，真正重要的是我們團隊的規模和規模。我想說 Royalty Pharma 擁有生命科學領域最大的投資團隊之一，同時也是一支完全專注於以特定方式進行生命科學投資的團隊。顯然，如你所知，我們不投資股票，有數千家上市的生技公司，這需要另一套技能。我們有非常獨特的投資方式，而且我們的團隊規模龐大，影響力遍佈全球。這是我想提的另一件事。

Thank you.

謝謝。

Jason Gerberry, Bank of America Securities.

美國銀行證券公司的傑森·格貝利（Jason Gerberry）。

Hi. Good morning, this is Dina on for Jason. Thanks for taking our questions. Two from us. One, on the impact of the IRA Part D redesign, do you view the redesign as material? And are there any products you believe are mismodeled by the Street? How do you redesign elements impacting products with high Part D exposure such as olanzapine LAI?

你好。早安，我是黛娜，為您播報傑森的節目。感謝您回答我們的問題。我們有兩個。第一，關於 IRA Part D 重新設計的影響，您是否認為重新設計具有實質意義？您認為華爾街對哪些產品的評價是錯誤的？如何重新設計影響高 Part D 暴露產品（如奧氮平 LAI）的元素？

And then just a quick follow-up on the Vertex matter. Are you able to provide any color on your expectations that there will definitely be an official arbitration process versus the probability that there could be a more amicable resolution. Thank you.

然後對 Vertex 問題進行快速跟進。您能否說明一下您預期肯定會有一個正式的仲裁程序，還是可能會有一個更友善的解決方案。謝謝。

Sure. So Marshall, do you want to take the question on the impact of IRA. And maybe, George, you take the question on Vertex, or Terry actually.

當然。那麼馬歇爾，你想回答有關愛爾蘭共和軍 (IRA) 影響的問題嗎？也許，喬治，你會回答有關 Vertex 的問題，或者實際上是有關 Terry 的問題。

Great. So just quickly on IRA, and Terry can add anything in terms of how we thought about it for guidance for 2025. So in a portfolio as broad as ours with some -- with the some multi blockbusters and important products we have in the portfolio, it is something we are watching. I think one of the important things we've highlighted overall is that when you take a step back and look at the portfolio, the IRA exposure, the initial Part D exposure is actually pretty modest. We've highlighted three products there, Imbruvica, which was, of course, on the list last year for price negotiation and then for this year, Xtandi and Trelegy. So completely as expected for us. And then I think beyond that in the portfolio, we will continue to watch how this evolves and some of the positives in terms of the lower out-of-pocket exposure as well and how that's balanced against the more negative aspects from a revenue perspective, but something we're definitely continuing to watch.

偉大的。因此，我只想快速談談 IRA，Terry 可以就我們對 2025 年指導的看法進行補充。我認為，我們總體上強調的一件重要事情是，當你退一步看看投資組合時，IRA 風險敞口、初始 D 部分風險敞口實際上相當溫和。我們重點介紹了三種產品，Imbruvica，當然，它在去年的價格談判名單上，然後是今年的Xtandi 和 Trelegy。所以完全符合我們的期待。然後我認為，除了投資組合之外，我們將繼續觀察這種情況如何發展，以及在降低自付費用風險方面的一些積極因素，以及如何從收入角度平衡這些消極因素，但我們肯定會繼續關注這些因素。

And then on Alyftrek, we can't -- we just can't get in any specifics around arbitration at this point. If there is a -- when we have something to update, we will definitely update investors at that time.

然後關於 Alyftrek，我們目前無法了解有關仲裁的任何具體資訊。如果有—當我們有需要更新的內容時，我們一定會及時向投資者更新。

Ash Verma, UBS.

瑞銀的 Ash Verma。

Hi. Thanks for taking my question. Congrats on all the progress. So I have two questions. One is just on the guide for operating and professional costs at 10% of the Portfolio Receipts, I wanted to make sure this does not reflect the internalization yet? And then the $100 million savings that you had mentioned previously is that versus the 10% level or the prior 8% to 8.5% rate that you were at before? And then Alyftrek, to the extent that you can comment, I mean, would this have to be resolved before the first Royalty Receipt becomes due at 1Q? Or can it go beyond that? Thank you.

你好。感謝您回答我的問題。祝賀你取得的所有進展。我有兩個問題。一個只是關於營運和專業成本佔投資組合收入 10% 的指南，我想確保這還沒有反映出內部化？那麼，您之前提到的 1 億美元節省是與之前的 10% 或 8% 到 8.5% 的利率相比嗎？然後 Alyftrek，就您可以評論的程度而言，我的意思是，這個問題是否必須在第一季第一筆特許權使用費收據到期之前解決？或者說它能超越這個嗎？謝謝。

Terry, why don't you take that question?

特里，你為什麼不回答這個問題？

Sure. So the 10% operating professional cost guidance does not reflect the internalization. As we mentioned on our call on the internalization, we think that, that number following internalization would be around 4% to 5%. We continue to believe that would be the case. So that's probably what to think about for 2026 as an example, which would be the first full year post internalization. This year it's just a little tough because it's kind of -- it's going to be a split year of pre- and post-internalization.

當然。因此，10%的營運專業成本指引並未反映內部化。正如我們在內部化電話會議上提到的那樣，我們認為內部化後的數字將在 4% 到 5% 左右。我們仍然相信情況會如此。因此，這可能就是以 2026 年為例所要考慮的問題，2026 年將是內部化後的第一個完整年份。今年的情況有些困難，因為今年將是內化前和內化後的分裂年。

And the savings, the $100 million savings is reflected in that 4% to 5% number that I gave. In terms of Alyftrek, again, I recognize that investors are eager to learn more about timing. We just can't provide any specifics at the time, and we would update investors at the appropriate time if there is an update.

而節省的 1 億美元就反映在我給出的 4% 到 5% 的數字中。就 Alyftrek 而言，我再次認識到投資者渴望了解更多有關時機的資訊。我們目前無法提供任何具體信息，如果有任何更新，我們會在適當的時候向投資者通報。

I show no further questions in the queue at this time. I would like to turn the call back over to Pablo for closing remarks.

顯示隊列中目前沒有其他問題。我想將電話轉回給 Pablo，請他做最後發言。

Thank you, operator, and thank you to everyone on the call for your continued interest in Royalty Pharma. I'd just like maybe to end to say that we look forward to the closing of the internalization transaction in the next few months. And then to update you on an exciting year ahead as we start to see the benefits of the internalization, our share buyback -- share repurchase program. And then the continuation of our capital deployment into really exciting products.

謝謝接線員，也感謝電話中每個人對 Royalty Pharma 的持續關注。最後，我想說，我們期待在未來幾個月內完成內部化交易。然後，當我們開始看到內部化、股票回購——股票回購計畫帶來的好處時，我們將向大家介紹令人興奮的未來一年。然後我們繼續將資本部署到真正令人興奮的產品中。

And so if you have any follow-up questions, please feel free to reach out to George Grofik and Dana. Thank you.

因此，如果您有任何後續問題，請隨時聯繫 George Grofik 和 Dana。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。