Company: HQL
Filing Date: 2025-12-08
Form Type: N-CSR
Source: 0001104659-25-119341
Chunk: 11

Company: abrdn Life Sciences Investors
Filing Date: 2025-12-08
Form: N-CSR
Chunk 11
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 conditions evolve and valuations for select cohorts recover, we expect to modestly balance that SMID-cap exposure with larger–cap, commercial–stage franchises to enhance stability and cash–flow durability. Over our horizon, fundamentals—advancing pipelines, scalable platforms in RNA/cell & gene therapy/radiopharma, and productivity–enhancing diagnostics/tools—should be the primary driver of share appreciation. We also anticipate a continued cadence of mergers and acquisitions (M&A) as large–caps address loss–of–exclusivity (LOE) and pipeline gaps, a supportive backdrop for SMID-cap innovators and platform companies alike. For HQL specifically, we will continue to use our deep scientific diligence to target asymmetric opportunities in smaller caps, pace position sizes to milestones, and opportunistically add commercial–stage stability as price discovery improves—aiming to let fundamental progress, not headlines, lead returns over the cycle. abrdn Inc. Risk Considerations Past performance is not an indication of future results. Life sciences companies are likely to be more sensitive to, and possibly more adversely affected by, regulatory, economic or political factors or trends relating to the life sciences industries. Life sciences companies have, in the past, been characterized by limited product focus, rapidly changing technology and extensive government regulation. In particular, technological advances can render an existing product, which may account for a disproportionate share of a company’s revenue, obsolete. Obtaining governmental approval from U.S. governmental agencies and from non-U.S. governmental agencies for new products can be lengthy, expensive and uncertain as to the outcome. Such delays in product development may result in the need to seek additional capital, potentially diluting the interests of existing investors such as the Fund. Intense competition exists within and among certain life sciences industries, including competition to obtain and sustain proprietary technology protection upon which life sciences companies can be highly dependent for maintenance of profit margins and market exclusivity. The complex nature of the technologies involved can lead to patent disputes, including litigation, that may be costly and that could result in a company losing an exclusive right to a patent. Additionally, certain life sciences companies may be exposed to potential product liability risks that are inherent to the life sciences industry. A product liability claim may have a material adverse effect on a company in which the Fund has invested. All of these factors, as well as others may cause the value of the Fund’s shares to fluctuate significantly over relatively short periods of time.

| 6 | abrdn Life Sciences Investors |

Total Investment Return (