ROYALTY PHARMA REPORTS THIRD QUARTER 2020 RESULTS Double-digit growth in Net cash provided by operating activities (GAAP) and Adjusted Cash Receipts (1) Increased 2020 guidance: Adjusted Cash Receipts (1) expected to be

ROYALTY PHARMA REPORTS THIRD QUARTER 2020 RESULTS

NEW YORK, NY (November 10, 2020) - Royalty Pharma plc (Nasdaq: RPRX) today reported financial

results for the third quarter of 2020 and updated full-year 2020 guidance for Adjusted Cash Receipts(1) (a non-GAAP financial measure).

Our performance in the third quarter underscored the strong momentum in the business , said Pablo Legorreta, Royalty Pharma founder and

Chief Executive Officer. Net cash provided by operating activities increased by 17%, while Adjusted Cash Receipts increased 12%, driving Adjusted Cash Flow growth of 27%. At the same time, we strengthened our balance sheet through our

inaugural bond offering, locking in an attractive cost of debt and more than doubling our maturity profile. We also achieved notable success with our hybrid funding strategy as a result of Gilead s acquisition of Immunomedics, which not only

provides an accelerated return for our shareholders but also enhances the prospects for Trodelvy, an innovative new therapy for cancer patients. Following the recent deal to expand our cystic fibrosis (CF) royalties, we have now announced

$2.3 billion in new transactions this year. This speaks to the growing role of royalties as an important tool in the funding of innovation which is supported by our robust transaction pipeline .

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

Non-GAAP financial results driven by strong, broad-based

growth across the portfolio

Portfolio continues to expand with new royalty

acquisitions and regulatory and clinical milestones achieved

Third quarter 2020 financial results

Net cash provided by operating activities (GAAP) was $509 million in the third quarter of 2020

compared to $436 million on a pro forma basis in the same period of 2019. The increase over the prior period resulted from higher cash collections from financial royalty assets, primarily from the CF franchise, Imbruvica and Promacta and a

decline in interest paid due to a change in the payment schedule to semi-annual interest payments. This was partially offset by higher payments for operating and professional costs in the third quarter of 2020 incurred in connection with Royalty

Pharma s initial public offering and debt refinancing.

Total Royalty Receipts were $588 million, an increase of 7% in

the third quarter of 2020 compared to the same period of 2019 on a pro forma basis. This was largely attributable to the performance of the CF franchise, Imbruvica, Promacta 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 third quarter of 2020 are

discussed below, based on commentary from the marketers of the products underlying the royalties in the preceding quarter (as royalty receipts generally lag product performance by one calendar quarter).

Distributions to non-controlling interests, which reduces royalty receipts to arrive at Adjusted Cash Receipts, were $116 million in the third quarter of 2020, a decrease of 9% compared to the same period of 2019 on a pro

Adjusted Cash Receipts (non-GAAP) (1) were $472 million in the third quarter of 2020, an increase of 12% compared to the same period of 2019 on a pro forma basis, reflecting growth in Total Royalty Receipts and lower

Distributions to non-controlling interests.

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 third quarter of 2020, Adjusted EBITDA was $413 million, a 7% increase compared to Adjusted EBITDA of $386 million on a pro forma basis in the same period of 2019:

(2) is a non-GAAP measure which is comprised of Adjusted EBITDA less development-stage funding payments ongoing, net interest

paid and miscellaneous other items relating to swap arrangements, investment in non-consolidated affiliates plus contributions from non-controlling

interests R&D. In the third quarter of 2020, Adjusted Cash Flow was $394 million, a 27% increase compared to Adjusted Cash Flow of $309 million for the same period of 2019 on a

pro forma basis. The increase primarily resulted from the growth in Adjusted Cash Receipts as well as lower net interest paid and development-stage funding payments. Items in the period included:

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

Key Developments Relating to the Portfolio

The key developments impacting cash receipts and income and revenue from royalty interests are discussed below:

In September 2020, Gilead and Immunomedics announced that Gilead would acquire Immunomedics for $88.00 per share in cash, which

valued Immunomedics at approximately $21 billion. In 2018, Royalty Pharma entered into a partnership with Immunomedics whereby it acquired a tiered, sales-based royalty on Trodelvy for $175 million and acquired 4,373,178 shares of

Immunomedics common stock for $75 million. The acquisition closed in October 2020, resulting in gross cash proceeds of $385 million related to Royalty Pharma s equity position in Immunomedics.

Summary of Recent Royalty Acquisition Activity

Liquidity and Capital Resources

2020 Financial Outlook

Royalty Pharma has updated guidance for full-year 2020 as follows:

Royalty Pharma also expects that payments for operating and professional costs will be approximately 10% of

Adjusted Cash Receipts in 2020.

Royalty Pharma today provides this guidance based on its nine-month performance and on its most up-to-date view on its 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. Royalty Pharma is 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.

Financial Results Conference Call

Royalty Pharma will host a conference call and simultaneous webcast to discuss this financial results release at 8:00 a.m., Eastern Time on

November 11, 2020. A live webcast may be accessed from the Investors page of the company s website at

https://www.royaltypharma.com/investors/news-and-events/events. 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 conference call can be accessed live over the phone by dialing (833)

519-1253, or for international callers by dialing (914) 800-3826. The passcode to access the conference call is 8067315.

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, Orkambi, Symdeko and Trikafta, and three development-stage product candidates.

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 Royalty Pharma s

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 Royalty Pharma s 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

For further information, please reference Royalty Pharma s reports and documents filed with the U.S.

Securities and Exchange Commission ( SEC ) by visiting EDGAR on the SEC s 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 Royalty Pharma s 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 operating performance is a function of liquidity, the non-GAAP measures used by management are presented and defined as

supplemental liquidity measures. Royalty Pharma cautions readers that amounts presented in accordance with the 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 Royalty Pharma uses in the same manner. Royalty Pharma compensates 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.

Royalty Pharma believes that Adjusted Cash

Receipts and Adjusted Cash Flow provide meaningful information about its 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 its operating results. Management strongly believes that Royalty Pharma s significant operating cash flow is one of the attributes that attracts potential investors to its business.

In addition, Royalty Pharma believes 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