IP Group PLC (LSE:IPO) CEO Greg Smith talked with Proactive's Stephen Gunnion about the group’s potential future royalties following Pfizer’s announcement that it is acquiring obesity drug developer Metsera.
The transaction valued the business at up to $7.3bn, including $4.9bn in upfront cash. Metsera has a portfolio of promising therapeutic candidates and combinations with four programmes in clinical development and several next-generation programmes with IND-enabling studies ongoing, aimed at addressing key unmet needs via fewer injections while achieving improved efficacy and tolerability.
Smith explained that IP Group is the licensor of the fundamental technology behind Metsera’s lead compounds. If those drugs are approved and reach the market, Smith said the company could benefit from “some quite substantial royalties.”
He added that Metsera aims to begin Phase 3 trials by the end of 2025, with analysts forecasting first sales by 2029 or 2030. Smith said the underlying technology originated from the work of Professor Stephen Bloom at Imperial College in London.
Smith also addressed how this royalty stream could shape IP Group’s long-term strategy, suggesting that ongoing revenue might support its permanent capital model.
Turning to recent developments, Smith said IP Group realised around £160 million in cash from exits in 2024, including sales to Visa and Everfox. He noted confidence in hitting over £250 million in realisations from the private portfolio by 2027.
Smith also discussed the company’s £4 million investment into OXCCU as part of a $28 million funding round, citing strong third-party interest in sustainable aviation fuel technologies.
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