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.

• Since inauguration in 2009, the CAGR for the HHI has been 10.3%, compared with 4.4% for the FTSE All-Share Index and 0.5% for the FTSE AIM All-Share Index, highlighting the attractiveness of the healthcare sector as a long-term investment, despite it being capital-intensive.
• Of the 49 companies included in the HHI, 19 recorded an increase in their share prices in 2025. Three marked time (change <0.1%) and the remaining 27 recorded falls. Shares of most UK healthcare majors – AstraZeneca (AZN), GSK (GSK) and Smith & Nephew (SN.) all had exceptional performances.
• At 509%, the variance between the best- and worst-performing stocks was much larger than the level seen historically, – ImmuPharma (IMM) rising 412% and Futura Medical (FUM) down 96%; the median share price change was -8%. Sadly, two companies – ONC and BELL – entered administration, unable to raise capital.
• In relative terms, only 13 stocks (27%) outperformed the index during 2025, with the other 36 underperforming. Despite uncertainty caused by the Trump administration in the early part of 2025, major pharmaceuticals and the NASDAQ Biotech Index (+32.4%) rebounded strongly by year-end.
• Having peaked in 2021, biotech and healthcare stocks were rerated downwards for three years, before rebounding in 2025. Despite defensive qualities, the sector is sensitive to global tensions, geopolitical events and political intervention. Risk aversion made it more difficult for small companies to raise capital in 2025.

Specific comments have been made in this report on the following companies:

• Allergy Therapeutics (AGY) page 9
• CelLBxHealth (CLBX) page 10
• Fusion Antibodies (FAB) page 9
• Futura Medical (FUM) page 10
• genedrive plc (GDR) page 11
• GSK (GSK) page 15
• hVIVO (HVO) page 11
• ImmuPharma (IMM) page 8
• Indivior (INDV) page 9
• Shield Therapeutics (STX) page  8
• Tissue Regenix (TRX) page 17
• ValiRx (VAL) page 11