Royalty Pharma at Bank of America 2025 Healthcare: Strategic Growth Insights

On Wednesday, 14 May 2025, Royalty Pharma (NASDAQ:RPRX) presented at the Bank of America 2025 Healthcare Conference. The company highlighted its strategic growth, focusing on a 17% revenue increase and a $725 million share repurchase, while addressing macroeconomic challenges like tariffs and drug pricing regulations.

Key Takeaways

• Royalty Pharma reported a 17% growth in top-line revenue for Q1.
• $725 million in shares were repurchased, reflecting strategic capital allocation.
• The company maintains over $1 billion in cash, supporting its financial strength.
• A balanced approach to capital allocation is prioritized, adapting to market conditions.
• Royalty Pharma is optimistic about the growth of the royalty financing model in the biopharmaceutical industry.

Financial Results

• Top-line revenue increased by 17% in Q1.
• Royalty receipts grew by 12%, showing consistent growth since the IPO.
• $725 million in share repurchases were executed in Q1.
• The company is targeting a total debt to EBITDA range of three to four times.
• Moody’s upgraded Royalty Pharma to VAA2, placing it in the mid-BBB territory.

Operational Updates

• An internalization transaction was approved by 99.9% of shareholders.
• The company is focusing on innovative medicines with clear regulatory pathways.
• A new asset for treating Tourette’s, targeting over 100,000 patients, is under development.
• Investment in areas of interest has increased, with a focus on quick deal execution.

Future Outlook

• Royalty Pharma plans to maintain a balanced capital allocation approach.
• The company anticipates continued growth in the royalty financing model.
• Focus will remain on growth through existing and future royalty arrangements.

Q&A Highlights

• Minimal exposure to tariffs due to the structure of royalty agreements.
• Monitoring of MFN and pricing developments is ongoing.
• Discussion on Vertex royalties and potential disputes over royalty rates for Ivacaftor.

Readers are encouraged to refer to the full transcript for a detailed understanding of Royalty Pharma’s strategic insights and financial performance.

Full transcript - Bank of America 2025 Healthcare Conference:

Jason Gerberry, Analyst, BofA: Royalty Pharma. We’ve got Terence Coyne, Executive VP and CFO and Marshall Uerst, EVP, Head of Research and Investments. My name is Jason Gerberry. I cover SpitCat Biotech and specialty pharma at BofA. And so, gentlemen, pleased to be joined by both of you.

It’s interesting times in the therapeutics landscape as we were talking about before this webcast started. I’m just kind of curious, you know, coming out of 1Q, you’ve now closed the RP internalization transaction, right, I believe? We had the shareholder vote Oh, the vote. Okay. On Monday.

All right. Yeah. And progressing with nine

Terence Coyne, Executive VP and CFO, Royalty Pharma: point 9% of shareholders voted to approve internalization transaction, which was really, I think, a great outcome for us.

Jason Gerberry, Analyst, BofA: Right. So I guess coming out of the quarter, a beat and raise quarter, you’ve got share buybacks remain an area of focus. Maybe what would you kind of like in terms of setting expectations for investors heading into this year, what are some of the key objectives? I know that sort of there’s a balanced approach to share buybacks and BD is important, right, in terms of getting more royalty deals under your belt. So maybe kind of level set going into the year what the objectives are.

Terence Coyne, Executive VP and CFO, Royalty Pharma: Yeah, so thanks Jason for having us here. We’re really excited how the year started. We had really strong performance in the first quarter, grew our top line by 17%, grew royalty receipts, which is the sort of more steady part of our top line by 12% and have been seeing very consistent royalty receipt growth every single quarter since our IPO. And so I think that that’s something we’re really proud of and think that it’s something that we’re going to focus on continuing to deliver over the long term. You mentioned sort of priorities for capital allocation.

And when we announced the internalization transaction, we had a call and we laid out what we view as our capital allocation framework, so to give investors a sense of how we’re thinking about it.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: And it

Terence Coyne, Executive VP and CFO, Royalty Pharma: puts things in four quadrants. And we look at both the share price relative to intrinsic value and the attractiveness of royalty opportunities. And right now we feel like we’re operating in an environment where our share price is attractive and is a really good investment. And there’s also really attractive royalty opportunities. I think with some of the turmoil that’s going on in biopharma markets right now, this could certainly create some additional really attractive royalty opportunities for us.

So we’re going to take a balanced approach. We repurchased around $725,000,000 worth of shares in the first quarter, and we’re happy with the price that we were able to buy back the stock for that repurchase. And I think, going forward, we’re going to continue to kind of assess the sort of relative attractiveness of each of those two things and try to be disciplined and smart allocators of capital and put that capital to use where we think we can generate the highest returns.

Jason Gerberry, Analyst, BofA: Yep. So maybe when you think about the deal pipeline and kind of how you conduct day to day business, This business that we’re in, especially when current administration’s in office, lends itself to periods of uncertainty. And when there is periods of uncertainty, I know that like as the dynamics change, right, future deal structures can change, valuations change, right? And you can flex up and down depending upon that. But when you’re in this period of uncertainty, how hard is it to do deals?

And do you feel like it’s a let’s wait and see what comes of tariffs, what comes of MFN through the executive order? Or do you feel like you can still get deals done in an environment where you have so much uncertainty?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, I think we can definitely, it’s a great question. I think we can definitely still get deals done. Certainly, I think one of the advantages we have is our flexibility to be able to react to and try to incorporate the best information that we have out there. As you said it, this announcement on Monday and certain things we will hear from here create uncertainty, but you know, we’re going to continue to look for opportunities, you know, where we still see really important medicines that bring a lot of value to patients. And, you know, we will certainly be cognizant of these, these newer risks that are out there.

And certainly there might be things where we something, but the current environment kind of creates too much long term uncertainty, and that’s something we don’t, that’s probably, that’s something we won’t do. But I think we have the advantage of one, we have such a strong business today. We don’t have to do any given deal. And we’re going to continue to stay patient and disciplined as you’ve seen us in the past.

Jason Gerberry, Analyst, BofA: And not to get too cute here with this question, but like do you feel like there’s, know, when there is elements of uncertainty when it comes to just company acquisitions, oftentimes the mechanisms like CVRs are put in place, right, to sort of toggle risk factors. Do you look at like different exotic mechanisms to factor into deals that like, hey, you guys need capital. We want to be there. And maybe there’s something that you can structure a deal so that it’s fluid depending upon how some things may play out in the macro landscape.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, and we definitely think that this environment is gonna create a lot of opportunities for us. And I think something, if you followed us over time, we’ve been really creative and forward thinking in how we structure our deals. So I don’t know that I would use the word exotic but certainly we will find the right structure that works for us, works for our partners. But I do think that flexibility and structuring, especially in environments like this, can really help get deals done.

Jason Gerberry, Analyst, BofA: Yeah. So maybe, you know, there’s a laundry list here of macro news flow items between tariffs, tax reform, drug pricing, FDA disruption, right, in terms of what do you guys see as like the real theoretical risks of the model that could fundamentally change the space as we know it today? Sure.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: I don’t know, Jerry, you want to start maybe on some of that?

Terence Coyne, Executive VP and CFO, Royalty Pharma: Mean, I could start on tariffs and then turn it over to It is actually easier for royalty farm because we don’t think we really have any exposure. And it’s just a function of how the supply chain works. Where we receive our royalties, the royalty bearing sale is not typically going to be a tariff bearing sale. So the way that the supply chain typically works is ex US affiliate sells into The US to a US affiliate, that transfer into The US is the point where there will be a tariff. Where we receive our royalties is the sale from The US affiliate to a third party.

And that’s, there’s no expectation that there would really be tariffs on that sale.

Jason Gerberry, Analyst, BofA: And that’s sort of a boilerplate thing you put in all your agreements, I imagine?

Terence Coyne, Executive VP and CFO, Royalty Pharma: Yeah. The definition of net sales is always going to be the sales from the manufacturer to a third party. That is very consistent throughout those documents. And so, we’re in the fortunate situation where we really don’t think we have much exposure to tariffs at this point.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Okay.

Terence Coyne, Executive VP and CFO, Royalty Pharma: And how that impacts the rest of the pharma ecosystem, that’s tough to say from where we are now.

Unidentified speaker: Sure, sure.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: You mentioned a couple other things. I think on FDA, it is still early. We’re probably hearing that from a lot of people on stage at this conference. But on the FDA, I think we tend to take the view that drugs with great data that really show that they help patients are advancing the field are gonna get approved regardless of how the administration may change at FDA. We’ve always taken, I think, a little bit more of a cautious view on opportunities that required, what’s the term, regulatory flexibility, right?

We’ve wanted to have a pretty clear path from a regulatory perspective when we evaluate investments. So I think from that perspective, I think we feel comfortable that ultimately great drugs are still gonna get approved. And that’s where we wanna kind of focus the portfolio in our time. MFN and pricing, you know, anyone’s guess at this point. I think we’re still living in a world where the breadth of outcomes is pretty wide right now.

So I think we’re gonna, we will be cautious, you know, certainly respectful of what could happen out there, but you know, we’re gonna take a little bit of a wait and see approach right now.

Jason Gerberry, Analyst, BofA: Yep, okay. So it sounds like as long as share price is where it is, maybe a more balanced approach with buybacks and BD going forward.

Terence Coyne, Executive VP and CFO, Royalty Pharma: Yeah. And it also depends on deal flow too. So, you know, I think that we didn’t, we announced one deal in the first quarter and there’s quarters where we’ll announce five deals. So it was tough to say. I mean, that is the nice thing about our business is we can be flexible.

If I’m We’re well capitalized and so deals come along or shares are really attractive, we have plenty of capital to pursue one or both of those.

Jason Gerberry, Analyst, BofA: Right, so talk about that a little bit. If a really compelling deal came along or multiple, how much dry powder do you have in the balance sheet right now?

Terence Coyne, Executive VP and CFO, Royalty Pharma: So we have a lot of leverage capacity. We’re at three times total debt to EBITDA. We had over a billion dollars of cash. And so we feel like it would be hard to imagine that a deal would come along we couldn’t easily fund it, you know, with a combination of cash on the balance sheet and debt. And, you know, we’ve never really had a difficult time funding ourselves over And we’re much stronger.

We’re much more well capitalized now than we ever were in the past.

Jason Gerberry, Analyst, BofA: Is there a certain ceiling you don’t want to lever the company beyond?

Terence Coyne, Executive VP and CFO, Royalty Pharma: Yeah, so what we’ve said is that we are sort of targeting, operating in the three to four times range. We’ve been closer to three for a while now. As the business continues to scale, it’s harder to imagine that we would get to four, but we would for the right deal. But then we would kind of delever from there. And we just had a very positive development.

We were upgraded by Moody’s to VAA2, which was a great development. So now sort of solidly in that mid BBB territory. And, you know, again, that speaks to the strength of the portfolio and the strength of the balance sheet.

Jason Gerberry, Analyst, BofA: Yeah. Okay. And maybe, Marshall, are there certain areas of the biopharma ecosystem that you’re more attracted to in terms of channel mix, disease and TA specifically? Or is that something where you don’t want, like typically want to tip your hand to your competitors as it pertains to what really like?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, it’s a good question. And it’s not that we don’t want to tip our hand, but it’s more about how we have approached business development, how we have approached finding new investments, which is to take a really open, flexible approach and say, what are the most kind of exciting, most important new medicines and opportunities that we’re seeing at any given time? And so the advantage of that is that we don’t go out and take sort of a top down perspective and say, this year I have to go out and find something in oncology, something approved in cardiovascular and sort of kind of curate the portfolio that way. It’s more, let’s have a team and a structure that allows us to go after anything that we see out there that’s exciting that we want to add to the portfolio. So that when you look back has generated the highly diversified portfolio of really great products that we have today.

And so no change in the business that way. I think we’ll continue to approach it the same way.

Jason Gerberry, Analyst, BofA: Yep, okay. And then maybe shifting gears to your largest royalty from Vertex, just curious either of you, just the early adoption of the new triplet product, how that’s going relative to early expectations.

Terence Coyne, Executive VP and CFO, Royalty Pharma: Yeah, I think so. We’ve obviously been tracking that closely. We’re one quarter in, it’s still really early days. But I think, you know, what we’re seeing is that the launch is going to be gradual or at least it is gradual so far. And I think that that reflects the strength of TRIKAFTA and the amazing impact that that product has had on patients living in CF has totally transformed the disease.

And so, we’ve said that we think that TRIKAFTA will continue to be a very important product over the long term and still feel that way today. As far as a LiftTrak goes, where it gets to, it’s just tough to say at this point. But I think that Trikafta will continue to play a big role in CF treatment. As you’re probably wondering around any potential dispute around the royalty rate. Just for everyone’s background, we feel really strongly that the deuterated form of IVOCAFTA, which is a component of a LiftTrak, is the same as Ivacaftor, and we should get the same royalty rate.

And so, you know, that’s something that we feel really strongly in our position and we’re gonna, you know, we will certainly, over time, we’ll see how that ultimately plays out, but we feel good about our legal position there.

Jason Gerberry, Analyst, BofA: So, yeah, mindful, know on your one your recent call, like your earnings call, much you can say on that front. But maybe a broader question, generally speaking, when you strike royalty agreements with with parties, does it typically contemplate, you know, life cycle management into, you know, existing APIs and and things like that that sort of underpins your confidence that the follow on product would be encompassed within the deal, the original

Terence Coyne, Executive VP and CFO, Royalty Pharma: terms of

Jason Gerberry, Analyst, BofA: the

Terence Coyne, Executive VP and CFO, Royalty Pharma: deal is different. But certainly in this case, we feel really strongly that de rated Ivacaftor is the same as Ivacaftor and should have the same royalty rate.

Unidentified speaker: Okay.

Terence Coyne, Executive VP and CFO, Royalty Pharma: But yeah, I mean, every transaction is different. The reality is a lot of times the deals have already been done between another party and, we’re buying that contract. So we don’t really get to negotiate the specifics there. But in this case, we feel strongly about our position.

Jason Gerberry, Analyst, BofA: Stepping back beyond Vertex, any trends that you’d highlight in the royalty space, broadly speaking, your competitive positioning versus others? I imagine market share is holding firm. Any trends in deal terms that maybe are shifting or you feel like it’s business as usual kind of holding your market share or even growing your market share in the royalty garnering space?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, mean, think the biggest trend is that the market is just getting bigger and growing, right? And the role and the use and the number of opportunities that are being created out there is growing a lot. And so that’s exciting. We’ve been talking about that a lot, that we think royalties will have a bigger and bigger role in funding of our ecosystem over time, and we’re certainly starting to see that. Beyond that, I don’t know that there’s any big trends.

I know we continue to feel very confident in our strategy, competitive positioning, our ability to win the deals that we really want to lean into. So I think the sort of secular story of the growth of royalties is very much alive and well. And we are really excited about what’s in front

Jason Gerberry, Analyst, BofA: of us. And how much of that do you think that trend is independent or dependent on the drying up of the capital markets for IPOs and secondaries for biotechs, right, which is your feeder of these deals most frequently, right?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, there’s kind of two answers to that. I think one is if you look historically, it is not related to the background environment. You look since we went public in 2020, you just take that period to now. You know, we’ve seen some pretty robust, you know, capital availability cycles in biotech and biopharma, and we thrived and did great deals and grew the portfolio during those periods. And the same thing has been true when the markets have tightened, when capital availability has tightened.

So I think it’s unrelated. And I think why that is, is in our view, for a long time, you’ve had more companies being created, more innovation, more need for capital, but there hasn’t been a lot of innovation on the type of capital that’s available. And I think one thing we offer is a really unique type of capital to fund a given project on a sort of project by project or drug by drug basis. And that’s kind of what royalties are in a way, is like equity in a single product. And that’s an option for building capital structure that wasn’t available historically.

And I think the reason why it’s growing is not simply because of the waxing and waning in the cycle, but because I think we offer something and our kind of part of the world of funding biopharma offers something that kind of the market needed.

Jason Gerberry, Analyst, BofA: Yeah, okay. So maybe we’ll jump to some portfolio specific questions. First, maybe starting off with the Tourette’s asset that you guys highlighted on your most recent earnings call. How did that deal come about? What attracted you to the asset?

I know it was sort of a, you get a pretty substantial royalty if revenues exceed 400,000,000 on that asset. And it seems like it’s a pretty underserved population and not many options to go to.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah. And that’s a great story to kind of understand one of the things that Royalty Pharma does well, because we had that opportunity came to us and we had all of the kind of resources internally in terms of the data resources to be able to understand a market where there really were no approved drugs, right? So there was no precedents you could look to. There was no big companies talking about the epidemiology, right? We could sort of build our conviction conviction in the size of the market, which we highlighted over one hundred thousand Tourette’s patients out there, and there hasn’t been a new drug approved in over ten years.

And so I think that really shows kind of our ability to build and identify opportunities that might be overlooked because just they haven’t been paid a lot of attention to. So we were excited to have that, and it’s funded by a team that’s done this before, right? So we were, it kind of brought together a lot of positive attributes.

Jason Gerberry, Analyst, BofA: And how important is speed of your operation to getting deals done versus either competition or even other forms of financing coming into these companies that might be, I guess, an indirect form of competition. If they go to do a secondary offering, there’s no need necessarily for royalty financing. So maybe can you speak to the organization, how it’s right sized to do these types of deals, to do them in an expeditious manner? I imagine time’s of the essence.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, no, it’s a great question. And it’s something several years ago that we as a team kind of identified strategically as somewhere we needed to invest, which was, I think it would grow our market and create more opportunities if we could move a little bit faster. Now, we’re never going to be able to move as fast as an overnight equity offering, but we’ve built the team and invested in resources around the team to be able to move faster. And by growing the team, the other thing we were able to do is do work ahead of time on areas and opportunities that we think are interesting. Because if you put that sort of, you do the groundwork ahead of time when the opportunity is actionable, you can move much more quickly.

So definitely been able to speed up and I think it’s been important to be able to be responsive to our partners.

Jason Gerberry, Analyst, BofA: Yeah. Maybe shifting to the Cytokinetics partnership and I guess some of the recent updates, It looks like CamZiOS gets a little potential loosening of its label around echos and afikamtan with the delay and request for REMS. These kind of two factors as you think about sort of the opportunity and how that maybe shifts any competitive balance. Was this all maybe in line with how you kind of saw all this kind of netting out in this space or does this come as a surprise in any way?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, think maybe take a step back from that to just to help everyone, because to help everyone understand how we look at the world. I think this is a good kind of case study that And so the thing is we think about our investments and our partnerships in ten, fifteen, twenty year kind of frames. Right? And I think that’s really powerful because our partners, the companies, that’s exactly the way they see the world, right? And sometimes the equity investment world is kind of a little bit more focused on the near term, let’s say, about So I think we’re still very excited about that opportunity because what we’re really thinking, what we’re really focused on are the kind of big picture things, which are, this is a big market.

Aficamptan in this case is a great drug. We think the team at Cytokinetics is doing a great job. And so it wasn’t necessarily determinative for us that the Bristol Myers product, has a certain kind of limitations on its use right now, we sort of could take the, we had to take the view that in the fullness of time was that always gonna be true or whatever it might So

we’re, you know, that we think about the world in such a long term way that some of these changes don’t really necessarily really impact our thesis.

Jason Gerberry, Analyst, BofA: Okay. And then KobinFi, this is a I used to cover Karuna back in the day, so I knew this space well. I guess our thesis was always the low hanging fruit was going to be, I think like a third of the market uses combination D2s, right? So to swap something in with a novel mechanism of action kind of create a built in market opportunity for Cope and Fi. Now the Arise trial having a negative outcome, I guess we can interpret that one or two ways.

Does it impact the adjunctive utilization, which we saw as kind of this logical market slot for Coben Phi? Or if in the end doctors are still gonna trial two combination agents because they were doing it with two D2s anyways in the absence of real good evidence that that even worked.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah. Look, I think what I’d remind everyone on CoBemfy was we couldn’t be more thrilled with what’s happened since we made that investment. To your point, we made an investment in that product and it was in the hands of a small independent company that’s subsequently been bought by Bristol and their major competitor is now delayed, right? Or maybe forever delayed, right? And so when we make investments in those kinds of products, this is a great outcome for us, right?

So to answer your question specifically, no, we weren’t dependent on the combination therapy. We were thinking it would be corona marketing it in the monotherapy market. And where it sits today, I think we’re thrilled with where it is and our fundamental view is that people are going to experiment with combination therapy because that’s what these psychiatrists do. I don’t think the outcome of that trial really is gonna impact And was

Jason Gerberry, Analyst, BofA: part of the thesis around this asset Alzheimer’s psychosis, because I know there’s differing views on the clinical risk profile of that trial, Between the old Vinomoline data that was generated, it’s imperfect in a lot of ways. And then commercially, there’s, you know, a lot of these people are in nursing homes, right? Like there’s some challenging kind of payer constructs as we understand them. So I don’t know, it was more of the sort of valuation predicated around schizophrenia in the more near to market opportunity?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, schizophrenia was really the focus. If there’s anything beyond that, think we’ll be very happy with that. But it was really just schizophrenia that we were focused on.

Terence Coyne, Executive VP and CFO, Royalty Pharma: Okay.

Jason Gerberry, Analyst, BofA: And then LP next year should be the year, hopefully of LP. I think both of LP, yeah. Interims are now out of the way with Pelicarson. We caught up with Ionis this morning. Yeah, I guess, do you just kind of see this as let’s play both horses and we win either way in terms of funding both Amgen and

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: No, we actually, not we win either way. We think we’ll win both ways, right? Was we sort of made, was our view was, to our discussion before about how we approach it, with the first one, with the Ionis, pelicarcin, first in class drug gonna be the first card turn over to prove the value of LP in the hands of one of the best resourced cardiovascular marketers out there. And we actually bought it in a really nice sort of risk reward protective structure. And then second was we also had the opportunity for olpasiran, which is the Amgen program that also another huge scaled marketer that I think they’re both going to be kind of synergistic in making this market bigger.

And it’s dosed quarterly, right? So that’s a great profile as well. So I think that’s something unique about our business that’s worth just touching on, which is we uniquely can multiple products in the same class.

Jason Gerberry, Analyst, BofA: You mind me, are the royalties similar on the two?

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: No, actually are, the pelicarcin is mid single digits. Olpasiran, think we’ve said is high single, low double. So definitely a SharePoint to Amgen is worth more to than to Novartis. But I think the cool thing is, right, something super unique about our business that you’ve seen us do is yeah, we can own two LP products and who knows one day if we had an opportunity to do another one, we would certainly consider that as well.

Jason Gerberry, Analyst, BofA: Okay. Last one on the portfolio side, one that we’re excited about is olanzapine, LAI.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: So are we. When

Jason Gerberry, Analyst, BofA: we think about who needs an LAI, it’s usually somebody that’s very sick, very difficult, struggling with compliance with their therapy, and olanzapine is the heavy hitter of antipsychotic therapies. And so it seems, I think the MEDNCELL consensus on this product is 2 to 3,000,000,000. It’s much higher than the Teva consensus. But nonetheless, I guess do you see this as something that could be as potentially as large as Invega from a peak sales perspective? Invega has been the kind of the gold standard.

And the LAI space had the broadest suite of offerings, and maybe they were there at the right timing and struck lightning in a bottle, so to speak. But nonetheless, are seeing pretty good traction with Teva launching Uzetti, that may sort of portend good things with Alanspine.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah. So I think the last thing you mentioned is important. I think Teva has done a phenomenal job competing in the risperidone LAI market. And so we’re certainly super excited to be partnered with them and have this product in their hands. And I think I guess the way I think about the peak sales is we certainly don’t need it to be as big as you mentioned for this to be a successful investment.

But look, I totally agree with you. The olanzapine market needs this. I think you don’t have to talk to many physicians to get that feedback that there’s a lot of unmet need for this product. So we’re excited to see a launch.

Jason Gerberry, Analyst, BofA: All right. Well, we’re out of time, gentlemen. So thanks so much for joining us.

Marshall Uerst, EVP, Head of Research and Investments, Royalty Pharma: Yeah, thanks a lot. Appreciate it. Of

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