Theme 1: Animal dynamics. (i) Rising production animal demand: We expect demand for sustainably produced animal protein to continue to rise, driving the production animal industry’s need for sustainable, productivity-enhancing solutions, including advanced nutrition, veterinary medicines and genetics. The associated animal stocks in our coverage also present solid ESG credentials relating to rural employment, climate impact and improved use of land and water resources. (ii) Ongoing companion animal market resilience: Despite uncertainty on UK companion animal numbers, to us, industry datasets still suggest the potential for continued subsector performance. Positive trends on pet insurance, combined with the greater time that owners now spend with their pets, in our view, underpins the potential mid-term upside for subsector participants. Theme 2: Valuation-sensitive catalysts. The healthcare sector benefits from numerous catalysts, with technical and regulatory challenges translating into price-sensitive outcomes. We detail Abcam, Advanced Medical Solutions, Alliance Pharma, Clinigen, Dechra Pharmaceuticals, ECO Animal Health, Genus, Oxford Biomedica, Renalytix and Silence Therapeutics as potentially benefiting from defined near-term events. Theme 3: Post-Covid recovery plays. Hospital waiting lists recently reached all-time highs, with some commentators suggesting that foregone referrals will drive them materially higher. Addressing the backlog remains critical. We envisage, as this happens, that the stocks affected by reduced routine hospital activity will see the increment. UK listed hospital volume plays include Advanced Medical Solutions, Clinigen, Medica and Tristel. Top Picks. We highlight Alliance Pharma as our current top pick in the Value category and Dechra Pharmaceuticals, EKF Diagnostics Holdings and Tristel as our current top picks in the Growth / Catalyst category. Recommendation / Forecast changes. Abcam: Changing year end, with c. 12%/7% CY21/22E EBITDA downgrades (partly on FX); Advanced Medical Solutions: PT up 10% on LT growth assumptions; Benchmark: minor TP upgrade post positive update; CVS: c.4% EPS upgrades drive PT up 7%; ECO Animal Health: minor downgrades to China generics sales estimates; Oxford Biomedica: FY’21-22e upgrade post interims and £50m SSL investment; Silence Therapeutics: minor upgrade post Hansoh collaboration; Tristel: FY’22e materially unchanged, lower early US Jet sales FY’23e.