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. Following an exceptional performance in 2020, when investors showed greater appreciation of science as a result of the COVID-19 pandemic, 2021 was a year of reflection. The HHI still increased 12.0%, to 661.5, which was substantially better than the performance of the FTSE AIM All-Share Index (+5.2%), but was modestly below outcomes for the FTSE 100 (+14.3%) and FTSE All-Share (+14.5%) indices. After several spectacular share price performances by companies involved in the challenges posed by the pandemic in 2020, uncertainty over the longevity of COVID-19 resulted in some underperformance of those same stocks in 2021. Also, after a busy year in 2020, when 27 companies took the opportunity to raise more capital, only 10 companies in our universe raised new capital in 2021. At the time of writing, COVID-19 is rearing its ugly head again, suggesting that the life sciences industry will remain a focus of attention in 2022.