IP Group’s 2025 scorecard: NAV rebounds, profit returns, and a chunky Pfizer kicker
IP Group’s 2025 results mark a clear swing back to growth. Net asset value (NAV) per share rose 13% to 110.4p, taking closing NAV to £975.1 million. The Group booked a profit of £66.9 million (2024: £207.0 million loss) and ended the year with a robust portfolio value of £908.1 million.
The standout driver was the recognition of future royalty and milestone cash flows tied to Pfizer’s obesity franchise, valued at £128.2 million at year end. That helped offset several write-downs elsewhere and nudged the quoted book back into positive territory.
| Key numbers | FY 2025 | FY 2024 |
|---|---|---|
| NAV | £975.1m | £952.5m |
| NAV per share | 110.4p | 97.7p |
| Profit/(loss) for the year | £66.9m | £(207.0)m |
| Total portfolio | £908.1m | £852.1m |
| Gross cash and deposits | £211.0m | £285.6m |
| Cash proceeds from exits | £68.1m | £183.4m |
| Portfolio investment | £70.5m | £63.0m |
Pfizer obesity royalty interest: what IP Group owns and why it matters
Through legacy licences originating at Imperial College London, IP Group owns and exclusively licenses certain IP behind Pfizer’s obesity programmes, including PF’3944 (ex-Metsera MET-097i), PF’3945, PF’4696 and PF’6795. Following Pfizer’s acquisition of Metsera in November 2025 (up to $10 billion), the Group recognised the discounted value of future milestone and royalty income at £128.2 million.
Why this is big: PF’3944 delivered positive Phase 2b data and a global Phase 3 programme began in late 2025, with Pfizer guiding to up to ten Phase 3 studies for PF’3944 before the end of 2026. The pitch is compelling – monthly injectable GLP‑1 therapy rather than weekly, with a goal of competitive efficacy, tolerability and scalability. IP Group’s economics are milestone payments plus tiered, low single-digit royalties on net sales. Note: 50% of receipts are shared with Imperial College London under revenue‑share arrangements.
My take: this is high‑quality upside in a fast‑growing category, now in the hands of a pharma heavyweight that can fund global late-stage development and launch. Execution risk remains – drug development always carries it – but the value recognised on balance sheet brings welcome visibility to a long‑gestating asset.
Exits, cash and buybacks: disciplined capital returns while staying liquid
Cash proceeds from exits were £68.1 million, led by sales in five life sciences holdings and the NYSE float of Hinge Health. IP Group realised £18.4 million from Hinge in 2025 and sold the remaining £16.8 million in early 2026. The Monolith sale to CoreWeave brought in £3.4 million cash plus £18.5 million of convertible notes, with c.£20 million additional proceeds expected in 2026.
Gross cash and deposits stood at £211.0 million at year end, after investing £70.5 million across 31 companies and finishing a £75 million buyback programme. In total, 91,858,626 shares were purchased in 2025, retiring 9.4% of the share capital; since 2021, 17.7% has been retired via buybacks and dividends. A further £30 million has been accumulated post period-end for potential 2026 shareholder returns.
Opinion: returning cash while the shares trade at a steep discount to NAV is sensible. The Board says buybacks are the default while the discount exceeds 20%. With the year-end share price at 58.6p (a 47% discount to the 110.4p NAV), that policy remains squarely in play.
Portfolio pulse: HealthTech leads; some bruises in DeepTech and CleanTech
HealthTech did the heavy lifting. Segment figures show:
- HealthTech: fair value £542.8 million, net gain £116.0 million, simple return on capital 25%.
- DeepTech: fair value £144.3 million, net loss £16.0 million.
- CleanTech: fair value £158.8 million, net loss £24.4 million.
- Platform investments: fair value £62.2 million, net loss £11.6 million.
Big positive moves included the Pfizer Obesity Royalty Interest (+£126.4m) and Monolith/CoreWeave. On the flip side, Oxa (‑£30.5m) after a down‑round, Pulmocide (‑£24.1m) following termination of its Phase 3 study, First Light Fusion (‑£14.6m), North America University Innovation L.P. (‑£15.0m) and Bramble Energy (‑£12.4m) weighed on value.
Oxford Nanopore delivered revenue of £223.9 million (up 24.2% constant currency), gross margin of 58.6% and guided for 2026 revenue growth of 21‑25% with a path to adjusted EBITDA breakeven in 2027 and cash flow positive in 2028. Elsewhere, Artios raised $115 million (a write‑down for IP Group despite strong clinical progress), AccelerComm brought in $15 million for LEO satellite 5G, and Lumai secured >$10 million to advance optical AI acceleration.
Funds under management and the UK spin‑out engine
Third‑party funds under management were £557 million (2024: £678 million), with the reduction mainly driven by distributions after successful exits. Parkwalk raised £29.0 million of new third‑party capital in 2025 and launched the Northern Universities Venture Fund with Northern Gritstone. IP Group also highlighted work with Aberdeen post period‑end to manage a UK portfolio of early‑stage and growth investments.
Portfolio companies raised £914 million in 2025, with IP Group contributing £70 million. Importantly, over 78% (by value) of larger holdings (>£4m carrying value) are funded into 2027 or beyond, supporting the runway for the next leg of scaling and clinical data.
Accounting shift and a covenant footnote
IP Group adopted “investment entity” accounting under IFRS 10 in December, meaning several subsidiaries are now held at fair value rather than line‑by‑line consolidated. That’s consistent with peers and better reflects how performance is measured – by fair value.
A technical breach of note covenants and “cash trap” provisions occurred due to a narrower definition of “cash” at parent level following the accounting change. The Group transferred liquidity to the parent after year‑end and obtained a waiver for any historical breaches. Borrowings are centred on a £120 million private placement at a fixed 5.25% with maturities in 2027, 2028 and 2029; the remaining EIB loan was repaid in January 2026.
What to watch next: catalysts through 2027
- Obesity franchise: PF’3944 is in global Phase 3; two additional studies from the Metsera pipeline (monthly PF’3944 Phase 2b and a PF’3944/PF’3945 combo Phase 1/2) are expected to read out in 2026.
- HealthTech milestones: Enterprise Therapeutics Phase 2a (H1 2026) and Iksuda several Phase 1 completions by H2 2026. Centessa expects to start a registrational study for ORX750 in 2026.
- DeepTech/CleanTech: further commercial steps for AccelerComm’s D2D satellite tech, progress at Intrinsic (ReRAM/HBM), and momentum across AI‑enabling technologies.
The Board is targeting more than £250 million of exits between 2025 and end‑2027. With £68.1 million already banked in 2025 and multiple pharma‑sensitive readouts ahead, that goal looks attainable if markets remain cooperative.
The investment case, warts and all
Reasons to be positive
- High‑quality exposure to a potential best‑in‑class GLP‑1 programme at Pfizer, now valued on the balance sheet at £128.2 million.
- Clear capital returns framework: over £150 million delivered since 2021; further £30 million earmarked for 2026.
- Improving public market sentiment signs (Hinge IPO) and a well‑funded core of holdings into 2027+.
Risks to keep in mind
- Clinical and funding risk persists – Pulmocide’s Phase 3 termination, Oxa’s down‑round and the Bramble administration show the variance around early‑stage tech.
- Gross cash fell to £211.0 million after buybacks and investment; discipline remains vital while exits are staged.
- Shares still trade at a wide discount to NAV, which can persist if exit timing slips.
Josh’s bottom line
This was the year the long‑game paid off: a material obesity royalty stake recognised, NAV per share back to growth, and cash returns kept flowing. There were notable setbacks, but HealthTech momentum and a packed catalyst deck into 2027 give IP Group multiple shots on goal. If management continues to recycle exits into buybacks while the discount is yawning, patient holders could see that gap narrow.
