Report
Martin Hall

Hardman & Co Healthcare Index: 2025 – Index rose, but another tough year

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. After three years of annual declines, the HHI rebounded 17.6% to 469.1 in 2025. While this sounds positive, it was below the strong performance of most major UK healthcare stocks and, in general, it underperformed its UK and peer benchmarks: FTSE 100 (+21.5%); FTSE All-Share (+19.8%); and the NASDAQ Biotech Index (NBI; +32.4%). The HHI outperformed only the FTSE AIM All-Share Index (+6.5%). 19 (39%) companies in our index saw share prices rise in 2025. Raising new capital appeared more challenging, 38 (37) UK-listed companies raised £266m (£557m) in 2025, while nine companies delisted primarily due to low valuations.
Underlyings
Allergy Therapeutics PLC

Allergy Therapeutics is a pharmaceutical group focused on allergy vaccination. Co. mainly sell its products in European countries and its pipeline of products in clinical development includes vaccines for grass, tree and house dust mite, as well as a peanut allergy vaccine in preclinical development. Co. sells a range of aluminium-free allergy vaccines and diagnostics. Co. sells both injectable and sublingual (oral) formats. The commonly prescribed are those for the treatment of pollen related allergies, particularly for allergies to grasses, weeds and trees. Co.'s vaccines trade under various brand names depending on the market, e.g. Pollinex Quattro, Polligoid and TA Graser Top.

Fusion Antibodies

Fusion Antibodies is principally engaged in the research, development and manufacture of recombinant proteins and antibodies, particularly in the areas of cancer and infectious diseases. Co. offers a range of services in antibody generation, development, production, characterisation and optimisation. These services include antigen expression, antibody production, purification and sequencing, antibody humanisation using Co.'s proprietary CDRxTM platform and the production of antibody generating stable cell lines to provide material for use in clinical trials.

Futura Medical PLC

Futura Medical is engaged in the research and development of pharmaceutical drugs and medical devices and their commercial exploitation. Co. focuses on developing products primarily for the consumer healthcare market. Co.'s focus is on sexual healthcare and pain relief. DermaSys® is Co.'s transdermal technology platform, for the absorption of active molecules through the skin. DermaSys® includes MED2002, a topical gel for the treatment of erectile dysfunction; TPR100, a topical diclofenac pain relief gel; TIB200, a topical ibuprofen pain relief gel; and SPR300, a topical methyl salicylate pain relief gel.

Genedrive

Genedrive is a holding company. Through its subsidiaries, Co. is a molecular diagnostics business developing and commercializing a point of care diagnostics platform for the diagnosis of infectious diseases and for use in patient stratification (genotyping), pathogen detection and other indications. Co.'s Genedrive® is a patented small polymerase chain reaction platform which enables rapid nucleic acid amplification and detection from various sample types, including plasma, sputum and buccal swabs. Co. also provides contract research services to drug development companies under the Epistem brand name.

GlaxoSmithKline plc

GlaxoSmithKline is a global healthcare company. Co.'s segments include: Pharmaceuticals; Vaccines; and Consumer Healthcare. The Pharmaceuticals segment is focused on developing new medicines in respiratory, HIV, oncology and immuno-inflammation, with discovery research exploring these and other areas. The Vaccines segment has a portfolio and pipeline of vaccines to help protect people throughout life. Co. delivers vaccines to people living in over 160 countries. The Consumer Healthcare segment develops and markets consumer-preferred brands in oral health, pain relief, respiratory, nutrition/gastro-intestinal and skin health.

Hvivo

hVIVO is a holding company. Co. is a specialty biopharma company focusing on a human-based analytical platform to accelerate drug discovery and development in respiratory and infectious diseases. Utilizing human disease models in flu, respiratory syncytial virus and asthma exacerbation, Co.'s platform captures disease in motion, illuminating the entire disease life cycle from healthy to sick and back to health. Co.'s operational activities are carried out through its subsidiary, hVIVO Services Limited. Co. carries out its main activities from the U.K. Co. also conducts sales activity in the U.S. and in Europe through its subsidiaries, hVIVO Inc and hVIVO Services Limited respectively.

Immupharma

Immupharma is a drug discovery and development company. Co. is engaged in the development of novel drugs, largely based on peptide therapeutics, to treat serious medical conditions such as autoimmune diseases. Co. is developing drug candidates within three technology platforms. Lupuzor™, a treatment for the autoimmune chronic inflammatory disease lupus, is Co.'s key product candidate. The other two platforms include Nucant platform (IPP-204106) for the treatment of cancer and ophthalmology, and a peptide technology platform for the treatment of diabetes.

Indivior PLC

Indivior is engaged in the development, manufacture and sale of prescription drugs that are based on buprenorphine for treatment of opioid dependence. Co.'s primary products are: SUBLOCADE™ (buprenorphine extended-release) injection for subcutaneous use (CIII), SUBOXONE® (buprenorphine and naloxone) Sublingual Film, SUBOXONE® (buprenorphine and naloxone) Sublingual Tablet, and SUBUTEX® (buprenorphine) Sublingual Tablet. Co. also has two key pipeline products, RBP-6000 buprenorphine monthly depot developed for the treatment of opioid use disorder; and RBP-7000 risperidone monthly depot developed for the treatment of schizophrenia.

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.

ValiRx

Valirx is a biopharmaceutical company engaged in developing technologies and products in oncology therapeutics and diagnostics. Co. operates in two divisions which consist of ValiPharma, the therapeutics division with two embedded technologies primarily directed at the treatment of cancers; and ValiSeek, a joint venture between Co. and Tangent Reprofiling Ltd to develop VAL401 in lung cancer and potentially other indications.

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Hardman & Co
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Analysts
Martin Hall

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