Royalty Pharma : 2023 Corporate Responsibility Report

A Message from Our Chairman and Chief Executive Officer

Pablo Legorreta

Chairman of the Board and

Chief Executive Officer

2023 Corporate Responsibility Report

We are funding the next wave of biopharma innovation and positively impacting patient lives worldwide. To achieve this mission, we strategically collaborate with academic institutions, research hospitals, non-profit organizations and biopharmaceutical companies. We aim to create substantial value for our stakeholders by investing in promising therapies that are capable of allowing people to live longer, healthier lives.

We believe that our scale, adaptable business model and expertise uniquely position us to accelerate innovation. We do this both directly and indirectly

• directly by partnering with companies to co-fundlate-stage clinical trials and new product launches in exchange for future royalties, and indirectly by acquiring existing royalties from the original innovators. We extend our impact through our philanthropic and volunteer initiatives which contribute to organizations that enhance people's lives.

In evaluating investment opportunities, we focus on many characteristics, including whether the underlying therapy provides a strong scientific rationale, offers a compelling proposition to the biopharma ecosystem and delivers significant benefits to patients.

Royalty Pharma has an enduring commitment to our philanthropic efforts. We have dedicated approximately $30 million to alliances that address complex healthcare challenges, such as improving access to care and medicine for underserved communities. We recognize how socioeconomic status, race and ethnicity contribute to disparities in health outcomes around the world and we are committed to addressing these issues.

We also recognize the importance of integrating responsible business and social initiatives into our business model. We are encouraged by our achievements to date and remain committed to further strengthening our responsible business policies and practices.

In 2023, we focused on advancing human capital development through employee engagement, professional development and internship opportunities to foster a work environment in which employees experience professional fulfillment and genuinely feel valued. Efforts on this front contribute to low employee turnover. To strengthen our emerging and executive leaders at Royalty Pharma, we formed our Senior Leadership Committee to foster collaboration, tackle challenges and contribute to strategic initiatives.

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In 2023, we formed a Diversity, Equity and Inclusion (DEI) Task Force. Comprising a cross-section of employees from different departments, tenures and levels, this advisory group will help shape our DEI efforts by offering recommendations to further embed DEI into Royalty Pharma's culture.

Our robust governance, risk management and compliance programs serve as the cornerstones of our success. Our diverse Board, predominately comprised of independent members, delivers strategic guidance for our business and rigorous oversight of our responsible business practices.

As the largest buyer of biopharmaceutical royalties and a leading funder of innovation in life sciences, we possess a unique potential for business expansion and advancement in the future. We look forward

to our continued engagement with you, our valued stakeholders, as we make progress on our goals and enable our partners to transform patient lives.

Sincerely,

Pablo Legorreta

Chairman of the Board and

Chief Executive Officer

Who We Are

Royalty Pharma has been a pioneer in the pharmaceutical royalty market since our founding in 1996. We collaborate with innovators ranging from academic institutions, research hospitals and non-profit organizations to small- and mid-cap biopharmaceutical businesses and leading global pharmaceutical companies.

Our portfolio of royalties entitles us to payments based directly on the top-line sales of many of the industry's leading therapies. Since 2012, when we began acquiring royalties on development-stage product candidates, we have entered into agreements to acquire biopharmaceutical royalties with an aggregated transaction value of approximately $26 billion.

2023 Corporate Responsibility Report

Our Vision

To be the leading

partner funding innovation

in life sciences.

35+

Commercial Products

Our Mission

By collaborating to accelerate

innovation, we enable our partners

to transform patient lives.

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Development-Stage Product

Candidates

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Strong 2023 Financial Profile

1Please refer to Royalty Pharma's Current Report on Form 8-K dated February 15, 2024, for our GAAP to non-GAAP reconciliations.

2023 Corporate Responsibility Report

INNOVATING AND COLLABORATING

TO MAKE A POSITIVE IMPACT ON SOCIETY

Teamwork: Our interdisciplinary teams, comprised of individuals with a wide range of experience, educational and professional backgrounds, contribute diverse perspectives in an inclusive environment of trust and respect.

Trusted Partner: Our reputation as a dependable partner is essential. We seek to create lasting relationships with partners who will return for repeat transactions.

Critical Thinking: We encourage debate and critical thinking and insist that colleagues challenge assumptions to achieve better outcomes.

Innovation: We approach each new investment with a blank sheet of paper and intellectual curiosity in an effort to find creative funding solutions for our partners.

Pursuit of Excellence: We apply high ethical standards and rigorous scientific analysis in order to deliver superior results for our partners and stakeholders.

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Our Approach to Responsibility and Sustainability

ALIGNING WITH UN SDGS

As we refine our responsible business

In 2023, responsibility and sustainability issues remained in focus across our organization. Since performing our first materiality assessment in 2022 to determine our most important social and governance priorities, we strengthened our emphasis on social initiatives. We have improved our internal and external social practices, such as further engaging with our employees, expanding our internship opportunities, and improving access to healthcare by supporting philanthropic initiatives aligned with our mission.

Our Board oversees all responsible business-related initiatives, our leadership team manages the initiatives, and our workforce actively integrates them into our operational activities. In 2023, the Senior Leadership

Committee and DEI Task Force were implemented to assist in our management, including corporate responsibility and sustainability-related risks and opportunities. In 2023, these committees enabled new and diverse leaders to contribute to the leadership of our organization.

Responsible investments are key priorities to the business. Sustainability and responsible business risks and opportunities extend beyond our immediate operations as they are also manifested in our partners' businesses. In early 2023, we published our Responsible Investment Policy, which further formalized our robust due diligence process. For more information, please refer to page 14.

efforts, we remain committed to aligning our sustainability initiatives with four of the United Nations (UN) Sustainable Development Goals (SDGs) based on

a comprehensive assessment of where our business, strategy and expertise can have the most significant impact.

Engaging Our Stakeholders

To understand what matters most to our stakeholders, we conducted our first ever materiality assessment in 2022. This included a series of surveys, interviews and workshops as well as discussions with internal and external stakeholders.

In 2023, we leveraged these findings to enhance our policies and improve transparency with our stakeholders. For more information on our policies, please visit our corporate governance websiteand responsibility resource center website. We published our first corporate responsibility report in 2023, which showcased various initiatives from recent years. We intend to continue to report our ongoing commitment to our responsible business policies and practices and to provide a clear and consistent overview of our progress each year.

2023 Corporate Responsibility Report

Throughout the year we continued to engage our key stakeholders as follows:

Employees

We conducted an engagement survey to improve our understanding of employee satisfaction and foster a culture of collaboration.

Community

Through philanthropic endeavors and strategic organizational partnerships, we strove to improve access to healthcare.

Shareholders

Through routine investor meetings, quarterly financial results calls, press releases, and participation in investor conferences, roadshows and special events, we continued to create opportunities for engagement

and connection.

ENHANCING OUR RESPONSIBLE

BUSINESS PRIORITIES

Throughout 2023, we prioritized key areas of focus for improving and differentiating our sustainability initiatives based on our unique business model. These included:

Business Oversight

• Corporate Governance
• Sustainability Governance

Patients

• Responsible Investment
• Access to Health and Medicine

Talent

• Diversity, Equity and Inclusion
• Human Capital Management

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