IP Group asset value grows, remains confident in biotech potential

(Alliance News) - IP Group PLC on Tuesday highlighted a successful acquisition by portfolio holding Pfizer Inc, as the investor in science and technology companies posted an improved annual performance.

London-based IP Group said net asset value was GBP975.1 million at the end of December, up from GBP952.5 million a year prior. This equates to 110.4 pence per share, up 13% from 97.7p on-year.

IP Group shares were up 8.0% to 53.20p on Tuesday morning in London and are up 24% over the past 12 months.

The company swung to a net profit of GBP66.9 million from a loss of GBP207.0 million in 2024. Chief Executive Greg Smith called 2025 "a notable year", pointing specifically to investee Pfizer's acquisition of Metsera Inc.

According to Smith, the acquisition "highlighted the strength and value of licensing activities in the obesity drug space where we hold valuable rights to several promising programmes".

Pfizer bought New York-based GLP-1 drug developer Metsera back in November, after a bidding war with Danish rival Novo Nordisk AS. The deal gave Metsera an enterprise value of USD7.0 billion in total, or USD65.60 per share, plus a contingent value right of up to USD20.65 per share based on development milestones. Pfizer expects the purchase to be dilutive to earnings through to 2030, as it invests in Metsera's drug candidates.

Pfizer shares are up 2.2% over the past 12 months.

IP Group has a positive view on the acquisition, as it sees potential for royalty payments through a GLP-1 programme at Pfizer. It has recognised the discounted value of future royalty and milestone income at GBP128.2 million.

CEO Smith continued: "A further highlight was the successful IPO of Hinge Health [Inc] on the NYSE, an investment from which we have now fully exited following the sale of our remaining holding in early 2026.

"We also delivered strong cash realisations, allowing us to retire almost a tenth of our shares in issue through buybacks, while maintaining a robust liquidity position. We are also pleased to be working with Aberdeen to manage a portfolio of early‑stage and growth investments in the UK, further extending our ability to support the next generation of innovation‑led businesses."

The CEO added: "We remain focused on creating long-term value for our shareholders while driving innovation that addresses some of society's most pressing challenges."

IP Group aims to complete more than GBP250 million in disposals between 2025 and the end of 2027. In 2025, cash exit proceeds totalled GBP68.1 million, down from GBP183.4 million in 2024.

By Holly Munks, Alliance News reporter

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