IP Group Plc

IP Group reported first-half 2026 NAV per share of about GBP 1.14, up about 3% (3.2% in David Baynes’ wording), with NAV above GBP 1 billion; since period end, NAV per share was about GBP 1.17. The group generated GBP 69 million of cash proceeds in the six months, compared with about GBP 30 million in the first half of last year, and gross cash and deposits ended the period at GBP 239 million, later described as about GBP 240 million. The largest fair value driver was Pfizer’s obesity royalty, which increased by GBP 27 million to just over GBP 150 million. Oxford Nanopore reported GBP 117 million of revenue, about 12% constant-currency growth, gross margin up 400 basis points to 62%, and adjusted EBITDA loss of just over GBP 22 million. Management reiterated the GBP 250 million realization target by the end of 2027 and said year-to-date proceeds were about GBP 86 million, taking total proceeds since the start of 2025 to GBP 154 million.

Greg Smith framed the half as continued execution with “further NAV per share growth, strong cash realizations, and broad-based portfolio progress.” He emphasized that the business is moving from promise to visible outcomes, citing external validation through third-party fundraising, strategic partnerships, and clinical milestones. He also stressed that the board and management are focused on accelerating realizations, sharpening capital allocation, and narrowing the share-price discount while preserving valuation discipline. Tone-wise, he was upbeat but measured, repeatedly noting that execution risk remains and that not every asset will work out.

David Baynes said the balance sheet was “pretty much exactly flat” at about GBP 907 million to GBP 908 million in portfolio value, with investments of about GBP 30 million offset by strong exits and fair value gains. He noted overheads were slightly higher and expected full-year overheads to be about GBP 17 million, versus just under GBP 16 million last year, mainly due to inflation. On Pfizer, he explained the increase from about GBP 127 million to GBP 153 million, with most of the uplift coming from the combination therapy moving from 25% to 39% probability. He also said the company did not do buybacks in the period, which is why cash increased, and reiterated that some phase I assets are still too early to value.

Analysts pressed management on whether the Pfizer royalty might be partially monetized, and Greg Smith said the default is to hold it, but “everything is for sale in the portfolio at the right price” if an attractive offer emerges. They also asked why the stock still trades at a roughly 40% discount; management pointed to delivery, conversion of NAV into cash and shareholder returns, and structure/capital allocation as the main ways to close it over time. Another line of questioning focused on funding rounds and whether capital is becoming more selective; Smith said it is “both and,” with large mega-rounds in some sectors and strong validation for IP Group’s portfolio. Questions on realization visibility drew a response that forecasting is probabilistic but visibility is “good without being precise,” and management said the GBP 250 million target is achievable.