Financial royalty assets consist of contractual rights to cash flows relating to royalties derived from the expected sales of patent-protected biopharmaceutical products that entitle us and our subsidiaries to receive a portion of income from the sale of such products by third parties.

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 are as follows (in thousands):


		As of December 31, 2025
	Estimated Royalty Duration(1)	Gross Carrying Value		Cumulative Allowance for Changes in Expected Cash Flows (Note 9)		Net Carrying Value(3)
Cystic fibrosis franchise	2039-2041(2)	$	4,901,121	$	—	$	4,901,121
Evrysdi	2035-2036	2,331,262		(494,123)		1,837,139
Voranigo	2038	982,802		—		982,802
Trelegy	2029-2030	993,629		(17,356)		976,273
Imdelltra	2038-2041	924,239		—		924,239
Tremfya	2031-2032	909,607		—		909,607
Other	2025-2042	9,417,689		(2,674,043)		6,743,646
Total		$	20,460,349	$	(3,185,522)	$	17,274,827
Less: Cumulative allowance for credit losses (Note 9)						(211,959)
Total current and non-current financial royalty assets, net						$	17,062,868

(1)Durations shown represent our estimates as of the current reporting date of when a royalty will substantially end, which may vary by geography and may depend on clinical trial results, regulatory approvals, contractual terms, commercial developments, estimates of regulatory exclusivity and patent expiration dates (which may include estimated patent term extensions) or other factors. There can be no assurances that our royalties will expire when expected.

(2)Royalty is perpetual. We estimate royalty duration of 2039-2041 due to expected Alyftrek patent expiration and potential generic entry thereafter leading to sales decline.

(3)The net carrying value by asset is presented before the allowance for credit losses. Refer to Note 9-Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets for additional information.

As of December 31, 2025, the balance of $17.1 billion above for total current and non-current financial royalty assets, net included $1.4 billion in unapproved financial royalty assets held at cost related to frexalimab for $522.6 million and other assets, including primarily olpasiran, pelacarsen, neladalkib and olanzapine (TEV-’749).


		As of December 31, 2024
	Estimated Royalty Duration(1)	Gross Carrying Value		Cumulative Allowance for Changes in Expected Cash Flows (Note 9)		Net Carrying Value(4)
Cystic fibrosis franchise	2039-2041(2)	$	5,126,521	$	(259,353)	$	4,867,168
Evrysdi	2035-2036	2,085,851		(378,565)		1,707,286
Trelegy	2029-2030	1,121,980		(66,647)		1,055,333
Tysabri	(3)	1,319,298		(276,134)		1,043,164
Voranigo	2038	946,588		—		946,588
Tremfya	2031-2032	935,069		(77,895)		857,174
Other	2025-2042	8,164,902		(2,492,565)		5,672,337
Total		$	19,700,209	$	(3,551,159)	$	16,149,050
Less: Cumulative allowance for credit losses (Note 9)						(238,122)
Total current and non-current financial royalty assets, net						$	15,910,928

(1)Durations shown represent our estimates as of December 31, 2024 of when a royalty will substantially end, which may vary by geography and may depend on clinical trial results, regulatory approvals, contractual terms, commercial developments, estimates of regulatory exclusivity and patent expiration dates (which may include estimated patent term extensions) or other factors. There can be no assurances that our royalties will expire when expected.

(2)Royalty is perpetual. We estimate royalty duration of 2039-2041 due to expected Alyftrek patent expiration and potential generic entry thereafter leading to sales decline.

(3)Royalty is perpetual. We have applied an end date of 2035 for purposes of accreting income over the royalty term, which is periodically reviewed based on our estimates of impact from biosimilars.

(4)The net carrying value by asset is presented before the allowance for credit losses. Refer to Note 9-Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets for additional information.