IP Group 'encouraged' by Metsara obesity drug trial

(Sharecast News) - IP Group said it is "encouraged" by the results of a recent clinical trial of a Metsara obesity drug, which could result in future sustainable royalties if approved by regulators. The company, which invests in early stage businesses in the deeptech, life sciences and cleantech sectors, owns and exclusively licenses certain underlying IP relating to Metsera's programmes including its lead product MET-097i, a monthly injectable GLP-1 drug.

On 29 September, Metsara, which just last month agreed to a $7.3bn takeover by American pharma giant Pfizer, announced positive phase 2b results from a MET-097i trial, with a phase 3 programme expected to be initiated before the end of the year.

Through its links to Zihipp, a former IP Group company spun out of Imperial College London and purchased by Metsera in 2023, IP Group is entitled to receive future returns from certain Metsara compounds through technical and commercial milestone payments, as well as tiered, low-single digit percentage royalties on net sales of the licensed products.

"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 IP Group chief executive Greg Smith.

"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."

However, the company stressed that any income is based on the eventual approval and launch of new drugs based on the licensed compounds, "which is not certain".