IP Group Plc, which develops new businesses based on discoveries at U.K. universities, said it isn’t threatened by innovation at research institutions in emerging markets.
“It will be a long time before emerging nations can replicate a Harvard or an Oxford,” Chief Investment Officer Mike Townend said in a phone interview. “Our intellectual property in the U.K., and clearly in the U.S. as well, has extremely strong barriers to entry.”
IP Group’s adjusted pretax profit was 31.2 million pounds ($49.2 million) in the six months through June, compared with a 1.1 million-pound loss a year earlier, the London-based company said in a statement today. The value of its 10 largest holdings rose to 132.2 million pounds at the end of June from 84.4 million pounds a year earlier.
IP Group investments include medical, chemical and renewable energy technologies, ranging from polymers for removable, degradable chewing gum produced by Revolymer Plc to systems for water-saving washing machines from Xeros Ltd.
IP Group shares rose as much as 4.7 percent in London and were up 2.9 percent at 127.8 pence as of 1:06 p.m. The stock has advanced 63 percent this year, giving the company a market value of 467.4 million pounds. The shares have retreated from a five-year high of 155 pence at the close of trading on July 6.
IP Group works with institutions including University of Oxford, King’s College London and University of Southampton, according to the company’s website.