Unidentified Analyst: This is for Chris Schott. The first one is — just generally, wanted your thoughts on the current deal environment. Are you surprised we haven’t seen more deals given some of the funding challenges out there?
Pablo Legorreta: Sure. And I’ll ask Chris and Marshall, if they feel appropriate to add to my comments. But I think we have definitely seen a very significant increase in our funnel as you see from prior years which reflects the challenging funding environment today in life sciences. And I think consistent with that, we have deployed significantly more capital than we had in the past. If you look at sort of the average deployment maybe at the time of our IPO, we were talking about something like $1.5 billion. We guided to $1.5 billion, $7 billion over 5 years. And obviously, the increased activity has enabled us to increase our guidance to more like $10 billion to $12 billion deployment over the next 5 years and $2 billion to $2.5 billion guidance now.
We reported today that we really deployed something like $3.5 billion last year. So it does reflect a lot more activity and significantly more capital deployed on our side. And I think the key thing for us and we’ve been very clear about this with investors and analysts is that what really is critical is the quality of the underlying product. And while we have seen many, many more opportunities discussions. At the end of the day, we remain very disciplined with our capital deployment. And that obviously results in and the deals we’re excited about where we see significant upside. And Marshall, this morning talked about Lp(a) which we think is going to be a very significant class and we have 2 royalties now in the 2 — really the 2 drugs that are being developed for that class is and maybe a few others much earlier.
What’s interesting also is that we ended up having much larger royalties than we had historically in those 2 products but anyway .
Christopher Hite: Yes. The only thing I would add to that is I actually think the royalty market has been really robust. I mean last year was a record year in 2022. As I said in my prepared remarks and the Slide 12 highlights the number of transactions has grown sixfold since 2015. And the dollar value of those transactions is up tenfold since 2015 and last year was a record year for the market as a whole. So the level of activity is really strong. So we think there’s real — and we think the growth is going to continue actually.
Operator: Our next question comes from Terence Flynn with Morgan Stanley.
Terence Flynn: Two for me. I was wondering maybe either for Pablo or Chris, if you think the IRA is going to impact your analysis of royalty opportunities as you think about how to look at returns under this new law? And then maybe for Marshall. Again, I appreciate all the background on Lp(a). Just wondering how you think about market creation here versus the PCSK9 drugs? Obviously, those have been less robust than people initially anticipated. So how do you think Lp(a) plays out relative to PCSK9s?
Pablo Legorreta: Sure. So regarding the IRA question, Chris, I am going to take that question and then Marshall can provide the other answers. But I think one very profitable comment regarding changes in — that are occurring in our sector is that as you know, we have been incredibly creative in helping people address challenges, issues, problems. And that just is a really good framework for us to try to work with companies to help them achieve their goals. And obviously, the challenges forced by IRA not only I mean, they end up also creating opportunities for us. But go ahead, Chris.
