Report
Martin Hall

Hardman & Co Healthcare Index: 2020 – greater appreciation of science

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. 2020 was an exceptional year, with the index rising 19.9% to 590.6, broadly in line with the FTSE AIM All-Share Index (+20.7%), but in complete contrast to the performances of the FTSE 100 (-14.3%) and FTSE All-Share (-12.5%) indices. A number of our life sciences companies really stepped up to meet the challenges posed by the COVID-19 pandemic and, with the market’s greater appreciation of science and technology, no less than 52% (27/52) took the opportunity to increase their capital bases. Even allowing for both capital increases and share buybacks, the index still rose 13.4% in 2020. Given the current situation with COVID-19, we expect the life sciences industry to remain very much the focus of attention in 2021, offering attractive shareholder returns.
Underlyings
Advanced Oncotherapy

Advanced Oncotherapy is focused on providing radiotherapy systems for cancer treatment through the use of a proton therapy technology. Co. operates in two business segments: proton therapy and healthcare related properties. The healthcare related property U.K. segment relates to Co.'s property in Folkestone, which is being marketed for sale.

Arix Bioscience

Arix Bioscience is a healthcare and life science company focused on generating value from the development and commercialization of technologies and discoveries. Co. was formed in response to opportunities in the healthcare and life science sector brought by the growing number of new therapies and technologies, driven by scientific innovation. Such innovation is increasingly led by small businesses, and Co. aims to provide a solution to the volatility of the funding market available to such businesses, as well as providing operational and strategic support.

Diurnal Group

Diurnal Group is a pharma company developing products for the life-long treatment of chronic endocrine conditions. Co. is focused on addressing clinical and patient needs in hormone replacement, initially by developing and marketing products for the rare orphan diseases congenital adrenal hyperplasia and adrenal insufficiency. Co.'s products include Infacort®, an immediate-release hydrocortisone preparation targeting Adrenal Insufficiency (including Congenital Adrenal Hyperplasia) in children under six years of age in Europe and 16 years of age in the U.S.; and Chronocort®, a modified-release hydrocortisone preparation, initially targeting Congenital Adrenal Hyperplasia in adult patients.

Shield Therapeutics

Shield Therapeutics is a specialty pharmaceutical company focused on the development and commercialization of late stage, hospital-focused pharmaceuticals which address areas of high unmet medical need. Co.'s key products are Feraccru®, commercially available for the treatment of Iron Deficiency Anaemia, and PT20, for the treatment of systemic phosphate accumulation (otherwise known as hyperphosphatemia). Co. has an additional pipeline of three prescription pharmaceutical assets (PT20, PT30 and PT40) with commercial synergies.

Tissue Regenix Group

Tissue Regenix Group is a medical technology company. Co. is engaged in the development of regenerative products to create replacement native tissue using biological (human and animal) materials. With its platform technology dCELL®, Co. is focusing on the treatment of patients with wound care, orthopaedic and cardiac applications. The dCELL® technology allows Co. to process both human and animal tissues, removing DNA and cellular material but leaving intact an acellular matrix within which the patient's own cells can repopulate and regenerate, creating like for like tissue.

Provider
Hardman & Co
Hardman & Co

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Analysts
Martin Hall

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