Non-Consolidated Affiliates

3 Months Ended

Mar. 31, 2026

Equity Method Investments and Joint Ventures [Abstract]

We have equity investments in certain entities at a level that provide us with significant influence. We account for such investments as equity method investments or as equity securities over which we have elected the fair value option.

The Legacy SLP Interest

In connection with the Exchange Offer, we acquired a special limited partnership interest in the Legacy Investors Partnerships (the “Legacy SLP Interest”) from the Continuing Investors Partnerships for $303.7 million in exchange for issuing shares in our subsidiary. As a result, we became a special limited partner in the Legacy Investors Partnerships. The Legacy SLP Interest entitles us to the equivalent of performance distribution payments that would have been paid to the general partner of the Legacy Investors Partnerships and an income allocation on a similar basis. Our income allocation is equal to the general partner’s former contractual rights to the income of the Legacy Investors Partnerships, net of amortization of the basis difference. The Legacy SLP Interest is accounted for under the equity method as we have the ability to exercise significant influence over the Legacy Investors Partnerships. The Legacy Investors Partnerships no longer participate in investment opportunities from June 30, 2020 and, as such, the value of the Legacy SLP Interest is expected to decline over time. The Legacy Investors Partnerships also indirectly own a non-controlling interest in Old RPI.

The income allocation from the Legacy SLP Interest is based on an estimate as the Legacy Investors Partnerships are private partnerships that report on a lag. Our estimate of equity in earnings from the Legacy SLP Interest for the current period will be updated for historical results in the subsequent period.

The Avillion Entities

We account for our partnership interests in Avillion Financing I, LP and its related entities (“Avillion I”) and BAv Financing II, LP and its related entities (“Avillion II” and, together with Avillion I, the “Avillion Entities”) as equity method investments because RPIFT has the ability to exercise significant influence over the Avillion Entities.

Avillion I’s only operations are the collection of cash and unwinding of the discount on the series of fixed annual payments due from Pfizer under its co-development agreement, following the FDA's approval of a supplemental New Drug Application (“NDA”) for Pfizer’s Bosulif in December 2017.

Avillion II is a party to a co-development agreement with AstraZeneca to develop Airsupra for the treatment of asthma in exchange for royalties, a series of success-based milestones and other potential payments. Under our agreement with Avillion II, as amended, we agreed to fund a total of $155 million over multiple years for a portion of the costs of Phase 2 and 3 clinical trials to advance Airsupra. Following the FDA’s approval of Airsupra in 2023, we began receiving distributions from Avillion II related to the Airsupra royalty in the first quarter of 2025.

Our maximum exposure to loss at any particular reporting date is limited to the carrying value of our equity method investments plus the unfunded commitments. As of March 31, 2026 and December 31, 2025, we had unfunded commitments related to the Avillion Entities of $10.3 million.

Equity in earnings is recorded within Equity in earnings of equity method investees on the condensed consolidated statements of operations and cash distributions are recorded within Distributions from equity method investees on the condensed consolidated statements of cash flows. The following tables summarize equity in earnings and cash distributions from our equity method investees (in thousands):


	For the Three Months Ended March 31,
		2026		2025
Equity in (earnings)/losses of equity method investees
The Legacy SLP Interest		$	(5,688)	$	(8,195)
The Avillion Entities		(16,070)		1,752
Total		$	(21,758)	$	(6,443)


	For the Three Months Ended March 31,
		2026		2025
Distributions from equity method investees
The Legacy SLP Interest		$	6,059	$	8,337
Avillion I		13,396		13,396
Avillion II(1)		26,573		27,925
Total		$	46,028	$	49,658

(1)For the first quarter of 2026, amount includes approximately $10.3 million, representing our pro rata portion of the $22 million milestone payment Avillion II received from AstraZeneca following the FDA's approval of a supplemental NDA for Airsupra. For the first quarter of 2025, amount includes approximately $27.4 million, representing our pro rata portion of the $55 million milestone payment Avillion II received from AstraZeneca following Airsupra meeting the primary endpoint in the Phase 3 clinical trial.