Royalty Pharma plc (NASDAQ:RPRX) Q1 2023 Earnings Call Transcript

Pablo Legorreta: Chris, why don’t you take the question?

Chris Hite: Yes. Sure. Thanks, Ash, for the question. Generally speaking, the pharmaceutical universe, right? I mean, just the history, and I think we actually covered this in our Analyst Day last year with the slide showing just a number of partnerships and royalties associated with products that are getting developed these days because the – such a fragmented R&D process that there there’s oftentimes royalty is associated with every product or partnership profits or however you want to find that. And that’s just the nature of the universe that pharmaceuticals – that’s just the nature of the universe that we live in. And so when pharmaceutical companies are looking at acquiring a company, they are modeling whatever the economics of that product are.

And most of the acquisitions has come with an encumbered product. So that’s just very regular way for large pharma when they’re looking at a target and they’re used to that. And so is the companies that we talk to. And obviously, we had deals with Biohaven and Immunomedics both where we have royalties and both ended up being acquired. But as a former person who did a lot of those transactions representing large pharma on the banking side – it’s just part of the way they think about it’s just the universe that they live in. And so it’s not really something that prevents M&A, and it’s not really something that prevents a company to do a transaction with us on the royalty side. So it doesn’t prevent our business flow and it’s not a chill to the M&A environment either.

Ash Verma: All right. Thank you.

Operator: At this time, I’d like to turn it back over to Pablo for further comments.

Pablo Legorreta: Sure. Thank you, operator. And thank you to everyone on the call for your continued interest in Royalty Pharma. If you have any follow-up questions, please feel free to reach out to George. Thank you.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.