Duke Capital Regulatory News (DUKE)

1 July 2021

Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

New Royalty Agreement with Fairmed Healthcare AG

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce that it has further diversified and increased its revenue base by entering into a €10 million royalty financing agreement (the "Financing") with Fairmed Healthcare AG ("Fairmed"). Formed in 2012 and based in Zug, Switzerland, Fairmed provides high quality generic prescription medicines, over-the-counter pharmaceuticals, dermocosmetics and dietary supplements in various EU countries.

Highlights:

· Duke was selected as Fairmed's capital partner because of the long-term nature of its capital and because it was able to structure a non-dilutive solution for management while maintaining its required internal rate of return.

· Fairmed is majority owned by Strides Pharma Global Pte Ltd ("Strides Pharma Global") which is in turn a wholly-owned step-down subsidiary of Strides Pharma Science Limited ("Strides"), a listed public company.

· Incorporated in 1990, Strides is a global pharmaceutical company with more than 3,000 employees, headquartered in Bangalore, India. Strides has a global manufacturing footprint with eight manufacturing facilities spread across three continents with a strong footprint across 100 countries.

· Strides Pharma Global acquired its interest in Fairmed in 2019 to provide it with a platform for distribution of its pharmaceutical products in the EU, post-Brexit.

· The €10 million royalty is a 30-year senior secured financing, with monthly payments commencing immediately in July 2021 on Duke's typical investment terms.

· Duke has negotiated a comprehensive security package as the senior lender to Fairmed.

Neil Johnson, CEO of Duke Royalty, said:

"Fairmed's long history of operating in the EU generic/over-the-counter pharmaceutical sector and the well-established underlying demographic growth characteristics of the market in which it operates, makes this an ideal investment opportunity for Duke. Fairmed has reached an inflection point in the evolution of its business plan that allowed Duke to propose its alternative financing solution to support the business without diluting management's equity stake.

"The business has an established track record of effectively delivering growth, providing Duke with confidence in the team's ability to continue this trend in the months and years ahead. Strides' vision and strong backing of Fairmed in the post-Brexit EU medical regulatory environment has given us additional confidence in completing the opportunity.

"Duke is well positioned to make more investments in due course as we focus on further deploying capital and diversifying the portfolio to create value for shareholders."

Oren Weininger, CEO of Fairmed, said:

"Duke's investment solution has been a great fit for our group of companies. Using the proceeds from this investment, we are excited to take Fairmed's business plan to the next level and build on the excellent reputation of the firm in the EU."

Further information regarding Fairmed

https://www.fair-med.com/

Formed in 2012 and based in Zug, Switzerland, Fairmed provides high quality generic prescription medicines, over-the counter pharmaceuticals, dermocosmetics and dietary supplements in c. 15 core markets. The combination of Strides' vast international product portfolio and Fairmed's market access, particularly in the Germany/Austria/Switzerland region, provides a strong growth platform in continental Europe.

About Strides

Incorporated in 1990, Strides Pharma Science Limited is a global pharmaceutical company with over 3,000 employees, headquartered in Bangalore, India. The company has a global manufacturing footprint with eight manufacturing facilities spread across three continents with a strong footprint across 100 countries.

About the Financing

Duke has committed €10 million of capital to enable the current management team to maintain its minority equity interest and shape the future growth of the business with support from Strides Global in the form of supply of products and strategic alignment.

The terms of the Financing are in line with Duke's typical royalty investment criteria whereby Duke will be entitled to monthly distributions (the "Distribution") beginning in July 2021. The Financing is provided as a senior secured loan with appropriate covenants and rights.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners are now included for reference on our Partners page of our website: www.dukeroyalty.com/partners

This announcement contains inside information.

***ENDS***

For further information, please visit www.dukeroyalty.com or contact:

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.