XML 47 R31.htm IDEA: XBRL DOCUMENT v3.22.4
Financial Royalty Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Summary of Financial Royalty Assets, Net
The gross carrying value, cumulative allowance for changes in expected cash flows, exclusive of the allowance for credit losses, and net carrying value for the current and non-current portion of financial royalty assets as of December 31, 2022 and 2021 are as follows (in thousands):
As of December 31, 2022
Estimated Royalty Duration (1)
Gross Carrying ValueCumulative Allowance for Changes in Expected Cash Flows (Note 7)
Net Carrying Value (4)
Cystic fibrosis franchise
2037 (2)
$5,333,535 $(10,908)$5,322,627 
Tysabri
(3)
1,683,441 (212,283)1,471,158 
Trelegy2029-20301,284,054 (24,126)1,259,928 
Tremfya2031-2032894,160 — 894,160 
Imbruvica2027-20321,436,969 (660,703)776,266 
Xtandi2027-20281,009,168 (235,625)773,543 
Other2023-20415,134,980 (1,332,815)3,802,165 
Total$16,776,307 $(2,476,460)$14,299,847 
Less: Cumulative allowance for credit losses (Note 7)(115,422)
Total current and non-current financial royalty assets, net$14,184,425 
(1)Durations shown represent our estimates as of the current reporting date of when a royalty will substantially end, which may depend on clinical trial results, regulatory approvals, contractual terms, commercial developments, estimates of patent expiration dates (which may include estimated patent term extensions) or other factors and may vary by geography. There can be no assurances that our royalties will expire when expected.
(2)Royalty is perpetual; year shown represents Trikafta expected patent expiration and potential sales decline based on timing of potential generic entry.
(3)RPIFT acquired a perpetual royalty on net sales of Tysabri. We have applied an end date of 2031 for purposes of accreting income over the royalty term, which is periodically reviewed.
(4)The net carrying value by asset is presented before the allowance for credit losses. Refer to Note 7–Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets for additional information.
As of December 31, 2021
Estimated Royalty Duration (1)
Gross Carrying ValueCumulative Allowance for Changes in Expected Cash Flows (Note 7)
Net Carrying Value (5)
Cystic fibrosis franchise
2037 (2)
$5,335,641 $(48,636)$5,287,005 
Tysabri
(3)
1,846,069 (16,617)1,829,452 
Imbruvica2027-20321,438,730 (236,871)1,201,859 
Xtandi2027-20281,100,065 (172,101)927,964 
Tremfya2031-2032881,671 — 881,671 
Evrysdi
2030-2035 (4)
727,774 — 727,774 
Other2023-20414,697,591 (909,916)3,787,675 
Total$16,027,541 $(1,384,141)$14,643,400 
Less: Cumulative allowance for credit losses (Note 7)(310,804)
Total current and non-current financial royalty assets, net$14,332,596 
(1)Durations shown represent our estimates as of the current reporting date of when a royalty will substantially end, which may depend on clinical trial results, regulatory approvals, contractual terms, commercial developments, estimates of patent expiration dates (which may include estimated patent term extensions) or other factors and may vary by geography. There can be no assurances that our royalties will expire when expected.
(2)Royalty is perpetual; year shown represents Trikafta expected patent expiration and potential sales decline based on timing of potential generic entry.
(3)RPIFT acquired a perpetual royalty on net sales of Tysabri. We have applied an end date of 2031 for purposes of accreting income over the royalty term, which is periodically reviewed.
(4)Key patents on Evrysdi in the United States expire in 2035, but our royalty will cease when aggregate royalties paid to us equal $1.3 billion.
(5)The net carrying value by asset is presented before the allowance for credit losses. Refer to Note 7–Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets for additional information.