ROYALTY PHARMA REPORTS SECOND QUARTER 2020 RESULTS Strong double-digit growth in Net cash provided by operating activities (GAAP) and Adjusted Cash Receipts (1) (non-GAAP) Company introduces 2020 guidance: Adjusted Cash

ROYALTY PHARMA REPORTS SECOND QUARTER 2020 RESULTS

NEW YORK, NY (August 12, 2020) Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the second quarter of 2020 and introduced

full-year 2020 guidance for Adjusted Cash Receipts(1) (a non-GAAP financial measure).

2020 has been a landmark year for Royalty Pharma , said Pablo Legorreta, Founder and Chief Executive Officer. We achieved a major milestone

with our initial public offering which raised $1.9 billion in capital to drive future growth. We have also announced approximately $1.7 billion in new transactions this year which reflects our unique position in the life sciences

ecosystem. At the same time, we continue to see strong performance in our business. In the second quarter, Net cash provided by operating activities grew 33% and Adjusted Cash Receipts increased 24%, supporting Adjusted Cash Flow growth of nearly

50%. Additionally, the FDA approvals of Evrysdi, Trodelvy, Nurtec ODT and Tazverik during 2020 have expanded our portfolio of long duration assets and provide further diversification. As the biopharma industry experiences an extraordinary period of

scientific advancement, Royalty Pharma expects to play a key role in funding innovation and to deliver attractive and sustained long-term growth for its shareholders, Pablo Legorreta added.

GAAP financial results demonstrate strong operating cash flow generation and revenue growth

Non-GAAP financial results driven by double-digit increases across multiple products in the

Portfolio continues to expand with new approvals and royalty acquisitions

Second quarter financial results

Net cash provided by operating activities (GAAP) was $489 million in the three months ended June 30, 2020

compared to $368 million on a pro forma basis in the same period of the prior year. The primary driver was an increase in cash collections from financial royalty assets, primarily from the cystic fibrosis franchise and Imbruvica, as discussed

below. In the second quarter of 2020, payments for interest were lower under the refinanced credit facilities while Development-stage funding payments reduced as a result of the completion of the funding arrangement with Pfizer in 2019.

Total Royalty Receipts were $585 million, an increase of 20% in the second quarter of 2020 compared to the same period of 2019 on a pro forma

basis. This was largely attributable to the performance of the cystic fibrosis franchise, Imbruvica and the addition of new royalties, partially offset by a decrease in royalties for Lyrica and Letairis resulting from losses of exclusivity.

Drivers of royalty receipts in the quarter are discussed below, based on commentary from the marketers of the products underlying the royalties in the

preceding quarter (as royalty receipts lag product performance by one calendar quarter).

Distributions to non-controlling interests were $123 million in the second quarter of 2020, an increase of 8% compared to the same period of 2019 on a pro forma basis, which reduces royalty receipts to arrive at Adjusted

Adjusted Cash Receipts (non-GAAP) (1)

were $462 million in the second quarter of 2020, an increase of 24% compared to the same period of 2019 on a pro forma basis, primarily as a result of performance of the cystic fibrosis franchise, Imbruvica and Other Products. This was

partially offset by the increase in distributions to non-controlling interests as discussed above, as well as the decrease in royalty receipts from Lyrica and Letairis resulting from their losses of

Adjusted EBITDA (5) is a

non-GAAP measure used by Royalty Pharma which comprises Adjusted Cash Receipts less payments for operating costs and professional services. In the second quarter of 2020, Adjusted EBITDA was $418 million,

a 25% increase compared to Adjusted EBITDA of $333 million on a pro forma basis in 2019:

Adjusted Cash Flow (2) is a non-GAAP

measure which is comprised of Adjusted EBITDA less R&D funding, Net interest paid and miscellaneous other items relating to swap arrangements, investment in non-consolidated affiliates and contributions

from non-controlling interests. In the second quarter of 2020, Adjusted Cash Flow was $369 million, a 47% increase compared to Adjusted Cash Flow of $250 million for the same period of 2019 on a pro

forma basis. The increase was primarily driven by the growth in Adjusted Cash Receipts as well as lower Net interest paid and Development-stage funding payments. Items in the period included:

A more comprehensive discussion of the non-GAAP measures utilized by Royalty Pharma to manage its business can be

found in the section of this earnings release entitled Use of Non-GAAP Measures .

Related to our Portfolio

Summary of Recent Royalty Acquisition Activity

Liquidity and Capital Resources

2020 Financial Outlook

Royalty Pharma has provided

guidance for 2020 as follows:

The company also expects that Payments for operating and professional costs will be approximately 10% of Adjusted Cash

Royalty Pharma today provides this guidance based on its first-half performance and on its most up-to-date view on the company s prospects. This guidance assumes no major unforeseen adverse events and excludes the contributions from transactions announced subsequent to the date of this press

release. Furthermore, Royalty Pharma reserves the right to amend its guidance in the event it engages in new royalty transactions which have a material near-term financial impact on the company.

Royalty Pharma has not reconciled its non-GAAP 2020 guidance to the most directly comparable GAAP measure, Net cash

provided by operating activities, at this time due to the inherent difficulty in accurately forecasting and quantifying certain amounts that are necessary for such reconciliation, including, primarily, Payments for operating and professional costs,

Distributions from non-consolidated affiliates, and Interest received. We are not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to project net cash provided by

operating activities at this time.

Earnings Conference Call

Royalty Pharma will host a conference call and simultaneous webcast to discuss this earnings release today at 8:00 AM, Eastern Time. A link to the webcast may

be accessed from the Investors page of Royalty Pharma s website or at https://edge.media-server.com/mmc/p/2ujdenpf. Please allow at least five minutes for registering and accessing the presentation. A replay of the conference call

and webcast will be archived on the company s website for at least 30 days.

To ask a question during the live broadcast or listen without Internet access, please dial in at least 15

minutes in advance to ensure a timely connection to the call. The dial in number to join the call is (833) 519-1253 from within the United States; the number for international callers is + 1 (914) 800-3826. Enter the passcode 6299563 when prompted.

About Royalty Pharma plc

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry,

collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap

biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the

industry s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly directly when it partners with companies to co-fund late-stage clinical

trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma s current portfolio includes royalties on more than 45 commercial products,

including AbbVie and J&J s Imbruvica, Astellas and Pfizer s Xtandi, Biogen s Tysabri, Gilead s HIV franchise, Merck s Januvia, Novartis Promacta, and Vertex s Kalydeco, Symdeko and Trikafta, and four

development-stage product candidates. For more information, visit www.royaltypharma.com.

Forward-Looking Statements

The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as

of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any

time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof.

This document contains statements that constitute forward-looking statements as that term is defined in the United States Private Securities

Litigation Reform Act of 1995, including statements that express the company s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect

historical facts. Examples include discussion of our strategies, financing plans, growth opportunities and market growth. In some cases, you can identify such forward-looking statements by terminology such as anticipate,

intend, believe, estimate, plan, seek, project, expect, may, will, would, could or should, the negative

of these terms or similar expressions. Forward-looking statements are based on management s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of

our performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the

statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company s control and could cause its actual results to differ materially from those it thought would

occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any

revisions to any such statements to reflect future events or developments, except as required by law.

Certain information contained in this document

relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date

of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this

document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been

verified by any independent source.

For further information, please reference our reports and documents filed with the U.S. Securities and Exchange

Commission (SEC). You may get these documents by visiting EDGAR on the SEC website at www.sec.gov.

Use of Non-GAAP Measures

Adjusted Cash Receipts, Adjusted EBITDA and Adjusted Cash Flow are non-GAAP measures presented as supplemental measures

to our GAAP financial performance. These non-GAAP financial measures exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. In each case, because our operating

performance is a function of our liquidity, the non-GAAP measures used by management are presented and defined as supplemental liquidity measures. We caution readers that amounts presented in accordance with

our definitions of Adjusted Cash Receipts, Adjusted EBITDA, and Adjusted Cash Flow may not be the same as similar measures used by other companies. Not all companies and analysts calculate the non-GAAP

measures we use in the same manner. We compensate for these limitations by using non-GAAP financial measures as supplements to GAAP financial measures and by presenting the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures, in each case being Net cash provided by operating activities.

We believe that Adjusted Cash Receipts and Adjusted Cash Flow provide meaningful information about our operating performance because the business is heavily

reliant on its ability to generate consistent cash flows and these measures reflect the core cash collections and cash charges comprising our operating results. Management strongly believes that our significant operating cash flow is one of the

attributes that attracts potential investors to our business.

In addition, we believe that Adjusted Cash Receipts and Adjusted Cash Flow help identify

underlying trends in the business and permit investors to more fully understand how management assesses the performance of the company, including planning and forecasting for future periods. Adjusted Cash Receipts and Adjusted Cash Flow are used by

management as key liquidity measures in the evaluation of the company s ability to generate cash from operations. Both measures are an indication of the strength of the company and the performance of the business. Management uses Adjusted Cash

Receipts and Adjusted Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, voluntary debt repayments, dividends and other discretionary investments. Further, these non-GAAP financial measures help management, the audit committee, and investors evaluate the company s ability to generate liquidity from operating activities.

Management believes that Adjusted EBITDA is an important non-GAAP measure in analyzing our liquidity and is a key

component of certain material covenants contained within the company s Credit Agreement. Noncompliance with the interest coverage ratio and leverage ratio covenants under the credit agreement could result in our lenders requiring the company to

immediately repay all amounts borrowed. If we cannot satisfy these financial covenants, we would be prohibited under our credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making

certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the assessment of our liquidity.

Adjusted Cash Flow to evaluate its ability to generate cash and performance of the business and to evaluate the company s performance as compared to its peer group. Management also uses Adjusted Cash Flow to compare its performance against non-GAAP adjusted net income measures used by many companies in the biopharmaceutical industry, even though each company may customize its own calculation and therefore one company s metric may not be directly