Item 2.06 Material Impairments.
On December 1, 2022, Royalty Pharma plc (the "Company") concluded that a
non-cash impairment charge related to the financial royalty asset associated
with gantenerumab is required under generally accepted accounting principles of
the United States ("GAAP") in the three months ending December 31, 2022. This
non-cash impairment charge will not impact the Company's non-GAAP financial
results. On November 30, 2022, Roche stated that it would discontinue clinical
trials of gantenerumab after the GRADUATE I and II studies evaluating
gantenerumab in people with early Alzheimer's disease did not meet their primary
endpoint of slowing clinical decline, which led the Company to conclude its
financial royalty asset is impaired. The Company expects that the non-cash
impairment charge will be $273.6 million, which was the net carrying value of
the asset as of September 30, 2022. No portion of the impairment charge relates
to future cash expenditures.
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