Shares in IP Group plc have risen 14.31% in early trading on Monday (as of 1pm) after the investment firm said it could receive future revenue linked to a series of obesity drug candidates being developed by US MedTech Metsera Inc.
Metsera was recently acquired by Pfizer in a deal worth up to $7.3 billion.
The FTSE 250 constituent, which primarily backs science and technology businesses, said it has financial exposure to a number of Metsera’s obesity programmes following its 2023 acquisition of Zihipp – a former IP Group portfolio company spun out of Imperial College London.
The London-headquartered investor owns and exclusively licenses to Zihipp intellectual property relating to several of Metsera’s compounds, including its lead candidate MET-097i, as well as MET-233, MET-034 and MET-067.
Under the licensing agreement, the company is entitled to milestone payments and tiered royalties in the low-single-digit range on eventual sales of the drugs, should they reach approval and commercial launch.
Half of any proceeds received will be shared with Imperial College under an existing revenue-sharing arrangement.
The announcement follows Pfizer’s agreement in September to acquire Metsera and its next-generation obesity portfolio for $4.9bn in upfront cash and potential milestones of up to $2.4bn.
The US firm’s pipeline includes several clinical-stage treatments aiming to improve tolerability and reduce the frequency of injections compared with current GLP-1 drugs.
Metsera reported positive Phase 2b results last month for its GLP-1 candidate MET-097i, which could offer once-monthly injections versus the weekly regime used by normal treatments. A global Phase 3 programme is expected to begin in late 2025.
“Obesity is a global health challenge and Metsera’s next generation programmes could ease pressure on healthcare systems with fewer injections and better tolerability,” said Greg Smith, chief executive of IP Group.
“As Metsera advances its portfolio, IP Group’s shareholders are positioned to benefit, primarily through sustainable royalty income, should these therapies achieve approval and commercial momentum.”
Since the announcement at 7am, shares in the company have risen from 55.5p to 60.7p, though this is still some way off its 2015 peak of 240.68p.
The firm’s market cap sits at just over £540m.
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