The university spinout investor posted a 13% increase in net asset value per share after Pfizer's acquisition of obesity drug developer Metsera
IP Group PLC (LSE:IPO), the London-listed investor in university spinout companies, has reported a return to growth in 2025, with net asset value (NAV) per share rising 13% to 110.4 pence and total NAV reaching £975.1 million.
The improvement follows a difficult 2024, when NAV per share fell 15% and the group posted a loss of £207 million.
The standout event of the year was Pfizer's acquisition of Metsera, a biotechnology company developing treatments for obesity, which triggered the recognition of £128.2 million in discounted future royalty and milestone income on IP Group's balance sheet.
The deal gives IP Group financial exposure to Pfizer's obesity drug franchise, including a phase III clinical trial of a treatment candidate known as PF'3944, a glucagon-like peptide-1 (GLP-1) therapy, a class of drug that mimics gut hormones to regulate blood sugar and appetite.
IP Group collected £68.1 million in cash proceeds from exits during the year, down from £183.4 million in 2024, and invested £70.5 million across 31 portfolio companies.
Notable realisations included the flotation of Hinge Health, a digital musculoskeletal health company, on the New York Stock Exchange, generating £18.4 million in 2025 proceeds, with the remaining £16.8 million stake sold in early 2026.
The group also sold Monolith, an artificial intelligence infrastructure company, to CoreWeave, a Nasdaq-listed cloud computing firm.
Portfolio companies raised a combined £914 million during the year, up 17% from £784 million in 2024, with significant rounds including $115 million for Artios, a DNA damage repair drug developer, and $103 million for Oxa, an autonomous vehicle software company.
IP Group completed a £75 million share buyback programme, retiring approximately 9% of its share capital, and said it had accumulated a further £30 million for future shareholder returns.
Gross cash stood at £211 million at the year-end, down from £285.6 million in 2024, reflecting the buyback activity and ongoing investment.
The group also announced a new partnership with Aberdeen, the asset manager, to manage a portfolio of early-stage and growth investments in the UK, and said it remained well placed to benefit from reforms encouraging major pension providers to invest in domestic growth companies under the Mansion House Accord.
IP Group confirmed its target to deliver more than £250 million of portfolio exits between 2025 and the end of 2027.