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VALUE FOCUS

Medical Device Industry

Second Quarter 2016

BUSINESS VALUATION & FINANCIAL ADVISORY SERVICES

www.mercercapital.com

Stock Market Performance 1

Venture Capital Funding & Exit Activity 3

Transactions 6

Select Operating Metrics 11

Public Medical Device Companies 12

About Mercer Capital 18

http://mercercapital.com/insights/newsletters/value-focus-industry-publications/medical-device-industry-newsletter/


http://www.mercercapital.com


© 2016 Mercer Capital // www.mercercapital.com 1

Mercer Capital’s Value Focus: Medical Device Industry Second Quarter 2016

Medical device stock returns were generally positive in 1Q16 and in the preceding twelve months, despite broad stock

market weakness over the same period (-0.4% year-over-year (YOY) and 0.8% from the 1Q16 for the S&P 500). Overall,

cardiovascular and large, diversified medtech companies saw the largest YOY returns. Multiples generally expanded

across sectors in relation to 4Q15.

» IVD companies bested the overall market in the first quarter, rising 2.7% over the quarter

compared to 0.8% for the S&P 500. Noteworthy price movers over the quarter included Bruker

(15.4%), Bio Techne (5.0%), and Hologic, (-10.8%). Thermo Fisher announced its acquisition of

Affymetrix in 1Q16 at $14.00 a share in cash, leading to a 52% increase in Affymetrix’s stock price

in anticipation of the merger.

» Cardiovascular companies returned a collective 15.2% YOY to 1Q16, and 5.9% over the quarter.

Stock movements were mixed among group constituents, with Edward Lifesciences and CR Bard

exhibiting 23.8% and 21.1% YOY gains, respectively, while St. Jude saw a YOY decline of 16%.

» The orthopedic, implants and prosthetics sector struggled (relatively), lagging other medical devices

sectors and broader markets. The sector remained flat to 1Q16 while declining 6.7% YOY, led by

pricing pressure for many of the sector’s end products. Significant price movers in the quarter

included Zimmer (3.9%), Integra LifeSciences (-0.6%), and NuVasive (-10.1%).

» Large, diversified companies modestly outperformed the broader markets over the previous twelve

months, with gains of 3.5% during 1Q16 and 5.2% YOY. Notable movers in the quarter included

Johnson & Johnson (5.3%), Stryker (15.4%) and Abbott Labs ( 6.9%).

Stock Market Performance





Total Shareholder Returns

-25% -20% -15% -10%

-5% 0% 5%

10% 15% 20%

Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 Mar 31, 2016

S&P 500 Large, Diversified IV and Life Sciences Cardiovascular Ortho, Implants and Prosthetics

Represents market capitalization weighted index for each group. Source: Bloomberg, Mercer Capital analysis

EV/EBITDA Multiples

Median EBITDA multiples from each MCM group. Data source: Bloomberg

0.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

Large, Diversified IVD Cardiovascular Ortho Other

Q1 2015 Q4 2015 Q1 2016





Venture Capital funding in the medical device industry fell nearly 22% in 1Q16 from the previous quarter. 1Q16

medical device investment totaled $508 million, representing the lowest total since 1Q15. Deal volume also declined

significantly in the quarter, falling from 83 deals in 4Q15 to 59 in 1Q16. This decline in total deals led to an expansion

in average deal size however, increasing 10.3% from 4Q15 to 1Q16.

» VC investments in medical device companies accounted for 4.2% of all VC investments during 1Q16,

down from 5.4% in 1Q16 but up from 3.5% in 1Q15.

» Total VC funding for 1Q16 was $12.1 billion, up 1.2% from the previous quarter. Life Science investment

funding (including biotechnology and medical devices) totaled $2.3 billion in 1Q16, holding relatively

flat from the previous quarter.

Venture Capital Funding & Exit Activity



https://www.pwcmoneytree.com



Venture Capital Investments in Medical Devices

Data Source: MoneyTree Report; PwC/NVCA, Thomson Reuters, Mercer Capital analysis

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

Q1 1995

Q1 96 Q1 97 Q1 98 Q1 99 Q1 2000

Q1 01 Q1 02 Q1 03 Q1 04 Q1 2005

Q1 06 Q1 07 Q1 08 Q1 09 Q1 2010

Q1 11 Q1 12 Q1 13 Q1 14 Q1 2015

Q1 16

Billions

Medical Devices & Equipment Medical Device % of Total VC Investments

Exit activity for venture-backed companies fell to its lowest level since 3Q11 according to the National Venture

Capital Association (NVCA).

» Six IPOs of venture-backed life science companies (biotechnology and medical device / healthcare)

raised $574.5 million in 1Q16, compared to $681 million raised in 4Q15.

» 18 venture-backed life science companies entered into strategic M&A transactions during 1Q16 with

total volume totaling $881 million.

Venture Capital Funding & Exit Activity (continued)



http://nvca.org/pressreleases/biotechnology-companies-leading-way-six-venture-backed-ipos-recorded-first-quarter/



Recent Financing

Company Amount ($M) Round Founded Notes

Aprecia Pharmaceuticals Co $79 Later Stage 2003 Provides drug delivery systems and products.

Acutus Medical Inc $75 Early Stage 2011 Develops medical technologies to treat complex cardiac arrhythmias.

Spirox Inc $45 Early Stage 2012 Develops minimally invasive technologies.

Vertiflex Inc $27 Later Stage 2005 Provides minimally invasive and motion preserving spinal surgery technologies.

Bio Theranostics Inc $20 Later Stage NA Commercial-stage molecular diagnostics company.

Apnicure Inc $16 Later Stage 2007 Develops and commercializes novel home-use devices.

NiCo Corp $15 Expansion 2007 Develops medical devices for minimally invasive neurosurgery, as well as skull base and spinal surgical procedures.

Minerva Surgical Inc $15 Later Stage 2008 Develops medical devices for women’s healthcare.

Iowa Approach Inc $15 Startup/Seed 2012 Develops medical device for atrial fibrillation.

Convergent Dental Inc $13 Expansion 2011 Develops a computer-guided, laser-based drilling and cutting system for dentists.

Endostim Inc $11 Early Stage 2009 Develops therapeutics for gastrointestinal and urological neuro-muscular disorders.

Valencell Inc $11 Later Stage 2006 Develops biometric sensor technology.

Fe3 Medical Inc $11 Expansion 2008 Develops transdermal therapy for iron deficiency anemia.

Delphinus Medical Technologies Inc $11 Expansion 2010 Develops, commercializes, and services breast cancer screening technology to hospitals and imaging clinics.

Aerin Medical Inc $11 Early Stage 2011 Develops devices and procedures to improve nasal breathing.

Avadim Technologies Inc $10 Later Stage 2007 Provides therapeutic skin care products.

Powervision Inc $10 Later Stage 2002 Develops implantable intraocular lenses.

Select Venture Funding Deals

Data Source: MoneyTree Report, PwC/NVCA, Thomson Reuters; and, CrunchBase [http://www.crunchbase.com/] at TechCrunch.com. Medical Devices and Equipment funding rounds over $10 million during 1Q16.





Medical Devices Select Transactions Summary($Millions)

Implied Enterprise Value

Acquirer TargetAnnounce

DateImplied

EV EBIT EBITDA Revenue Sector

Shire plc Baxalta Incorporated 01/11/2016 35,218.9 19.1x 16.7x 5.7x Biotechnology

Abbott Laboratories Alere Inc. 01/30/2016 8,615.2 34.8x 15.2x 3.5x Healthcare Supplies

Canon Inc. Toshiba Medical Systems Corporation 03/17/2016 5,981.2 37.6x NA 2.4x Healthcare Equipment

Stryker Corporation Sage Products LLC 01/31/2016 2,775.0 NA NA 6.5x Healthcare Supplies

Nordic Capital; Novo A/S; Nordic Capital Fund VIII LP eResearchTechnology, Inc. 03/08/2016 1,800.0 NA NA 6.0xLife Sciences Tools and

Services

Stryker Corporation Physio-Control International, Inc. 02/13/2016 1,344.0 NA NA NA Healthcare Equipment

Thermo Fisher Scientific, Inc. Affymetrix Inc. 01/08/2016 1,112.2 40.9x 25.0x 3.1xLife Sciences Tools and

Services

TE Connectivity Ltd. Creganna-Tactx Medical 02/01/2016 895.0 NA NA 3.6x Healthcare Equipment

Hangzhou Cixuan Liangjia Investment Management

Partnership (Limited Partnership); Beijing Blue

Sea Strategic Capital Operations Center (Limited

Partnership)

Quantum Hi-Tech (China) Biological Co., Ltd. 03/23/2016 752.9 78.8x 59.1x 15.4x Biotechnology

Cathay Holdings Ltd. Tanvex BioPharma, Inc. 01/28/2016 611.6 NM NM NA Biotechnology

Bristol-Myers Squibb Company Padlock Therapeutics, Inc. 03/23/2016 600.0 NA NA NA Biotechnology

Only deals with available deal size information shown. | Data Source: Bloomberg and Capital IQ







DateImplied


Shandong Sinobioway Biomedicine Co., Ltd.;

Beijing Sinobioway Group Co., Ltd.; CICC Qian

Hai Development (Shenzhen) Fund Management

Co., Ltd.; Peking University V-Ming (Shanghai)

Investment Holdings Co., Limited; Heng Feng

Investments (International) Limited; Fuerde Global

Investment Limited

Sinovac Biotech Ltd. 02/03/2016 375.0 100.0x 37.5x 5.6x Biotechnology

DiaSorin S.p.A. Focus Diagnostics, Inc. 03/29/2016 300.0 NA NA 3.8x Healthcare Equipment

Xinjiang Bai Hua Cun Co., LtdNanjing Huawe Medicine Technology

Development co., LTD.01/12/2016 295.9 NA NA NA

Life Sciences Tools and

Services

Ginwa Enterprise (Group) Inc. Waston Medical Co., Ltd. 03/11/2016 259.8 31.7x NA 10.6x Healthcare Equipment

Acorda Therapeutics, Inc. Biotie Therapies Corp. 01/19/2016 255.5 NM NM 62.7x Biotechnology

Jih Sun Securities Co., Ltd.; Securities and Futures

Investors Protection CenterUBI Pharma Inc. 01/13/2016 167.0 NM NM 13.5x Biotechnology

Agilent Technologies, Inc. LaserGen, Inc. 03/02/2016 166.7 NA NA NA Biotechnology

Duke Street LLP; Brederode SA; Harwood Capital

LLP; Deutsche Alternative Asset Management

(Global) Limited; DB Private Equity GmbH; DB

Secondary Opportunities Fund III LP; Atnahs Capital

Medi-Globe GmbH 03/01/2016 151.9 NA 8.4x 1.2x Healthcare Equipment

Halma plc CenTrak, Inc. 02/03/2016 140.0 NA NA 3.2x Healthcare Equipment


Medical Devices Select Transactions Summary (continued)($Millions)







DateImplied


Juno Therapeutics Inc. AbVitro LLC 01/08/2016 124.9 NA NA NA Biotechnology

Launchpad12 LLC Gene Techno Science Co., Ltd. 03/28/2016 116.1 NM NA 11.4x Biotechnology

Shanghai Kinetic Medical Co., Ltd.Jiangsu IDEAL Medical Science &

Technology Co.,Ltd.1/8/2016 119.5 NA NA NA Healthcare Equipment

Shanghai Yi'an Investment Center (Limited

Partnership); Shanghai Chunhe Investment

Management (Limited Partnership)

Essen Technology (Beijing) Co., Ltd. 12/31/2015 114.2 NA NA NA Healthcare Equipment

Shanghai Kinetic Medical Co., Ltd. Essen Technology (Beijing) Co., Ltd. 01/22/2016 114.2 NA NA NA Healthcare Equipment

ResMed Inc. Inova Labs, Inc. 12/24/2015 110.0 NA NA NA Healthcare Equipment

Qiagen NV Exiqon A/S 03/29/2016 99.8 183.5x 66.9x 4.1xLife Sciences Tools and

Services

Hitachi Chemical Co. America, Ltd. PCT, LLC, a Caladrius Company 03/11/2016 97.5 NA NA NA Biotechnology

Hangzhou Tigermed Consulting Co., Ltd.Taizhou Jyton & Techray Pharmaceutical Technology

Co., Ltd03/24/2016 92.1 22.4x NA 8.9x


Services

Guanhao Biotech Co., Ltd. Zhuhai Sunny Pharmaceutical Co., Ltd. 03/15/2016 92.0 NA NA NA Biotechnology

Grifols, S.A. Progenika Biopharma, S.A. 03/03/2016 83.1 NA NA NA Biotechnology

Beijing Chieftain Control Engineering

Technology Co., Ltd.Guangzhou Longest Science & Technology Co., Ltd. 03/25/2016 78.6 NA NA NA Healthcare Equipment









DateImplied


LAV Riches (Hong Kong) Co,. Ltd.Nanjing Huawe Medicine Technology



Services

Shanghai Li'an Venture Capital Center (Limited

Partnership)

Nanjing Huawe Medicine Technology



Services

Shandong Oriental Ocean Sci-Tech Co., Ltd. Avioq, Inc. 1/8/2016 68.3 NA NA NA Healthcare Equipment

Keyhaven Capital Partners Ltd. ORLIMAN, S.L. 03/04/2016 66.3 NA NA NA Healthcare Equipment

Meridian Bioscience, Inc. Magellan Diagnostics, Inc. 3/24/2016 66.0 NA NA 4.1x Healthcare Equipment

Gentherm Incorporated Cincinnati Sub-Zero Products, Inc. 3/31/2016 65.0 NA NA 1.0x Healthcare Equipment

Avalanche Biotechnologies, Inc. (nka:Adverum

Biotechnologies, Inc.)Annapurna Therapeutics SAS 01/29/2016 58.3 NA NA NA Biotechnology

Ningbo Xinhai Electric Co.,Ltd. Unimed Medical Supplies Inc. 01/23/2016 55.8 7.9x NA 3.0x Healthcare Supplies

Rallis India Limited Metahelix Life Sciences Limited 02/15/2016 56.2 NA NA 1.2x Biotechnology

Kolon Investment, Inc.; Kolon 2015

Secondary MarketBNC Korea Co.,Ltd. 2/24/2016 55.2 NA NA NA Healthcare Supplies

TRS Group Co., Ltd. Shenzhen Premierinve Biotechnology Co., Ltd. 02/05/2016 49.0 NA NA NA Biotechnology

Anhui Lucky Health Technology Co., Ltd. Shenzhen Forrest Electronic Technology CO., Ltd 3/4/2016 38.4 19.1x NA 2.2x Healthcare Equipment









DateImplied


Adelis Equity Partners AB; Adelis Equity Partners

Fund I ABSSI Diagnostica A/S 03/30/2016 38.0 NA NA 1.7x Biotechnology

Anhui Weiming Biological Pharmaceutical Co., Ltd. Shenzhen Xinpeng Bio-tech Co., Ltd 01/08/2016 35.6 NA NA NA Biotechnology

OSE Pharma SA (nka:OSE

Immunotherapeutics SA)Effimune SA 02/24/2016 34.4 NA NA NA Biotechnology

NK Relations Co., Ltd. GeneTech Inc. 3/25/2016 34.0 10.6x NA 2.6x Biotechnology







Median measures for each group. | Data Source: Bloomberg

Gross Margin EBITDA Margin Operating Margin R&D / Revenue

Segment Q1 2016 Q4 2015 Q1 2016 Q4 2015 Q1 2016 Q4 2015 Q1 2016 Q4 2015

Large, Diversified 67.0% 66.0% 27.0% 26.8% 13.6% 14.1% 7.3% 7.4%

IVD & Life Sciences 58.2% 58.3% 14.2% 14.9% 9.5% 8.6% 9.4% 9.6%

Cardiovascular 66.3% 66.8% 17.6% 17.2% 7.4% 6.9% 12.3% 12.2%

Ortho, Implants & Prosthetics 69.3% 69.9% 17.2% 17.7% 7.4% 7.7% 7.0% 6.7%

Other 53.6% 53.1% 4.6% 4.8% -0.8% 0.7% 8.0% 8.0%

All Companies 60.6% 60.1% 15.7% 15.7% 8.0% 7.8% 7.9% 7.9%

Historical Rev Growth LT Fwd Op Earn Grwth Debt / EV Debt / EBITDA

Segment Quarterly Annual Q4 2015 Q3 2015 Q4 2015 Q3 2015 Q4 2015 Q3 2015

Large, Diversified 0.9% 1.4% 11.4% 10.5% 18.4% 18.8% 2.7 2.9

IVD & Life Sciences 1.4% 2.6% 14.0% 13.1% 5.8% 5.9% 1.5 1.4

Cardiovascular 2.2% 4.3% 16.5% 17.4% 10.6% 7.3% 0.8 0.8

Ortho, Implants & Prosthetics 2.2% 4.5% 14.3% 13.8% 23.2% 19.8% 2.7 1.9

Other 2.2% 4.8% 13.1% 14.5% 6.2% 2.1% 0.3 0.2

All Companies 1.9% 4.3% 13.4% 14.0% 10.6% 7.4% 1.4 1.1

Select Operating Metrics





Price ∆ Stock Price EV TTM RevTTM

EBITDA FWD EBITDAEV /

SalesEV /

EBITDAEV /

FWD EBITDA

Q1 2016 Q4 2015 Q1 2015 Qtrly Annual Q1 2016 Q1 2016 Q1 2016 FY 2016 FY 2017 Q1 2016 Q1 2016 2016 2017

Large, Diversified

Abbott Laboratories $41.83 $45.27 $47.08 -7.6% -11.2% $66,378.7 $20,393.0 $5,277.0 $5,229.2 $5,627.1 3.25 12.6 12.7 11.8

Baxter $41.08 $38.05 nm 8.0% nm $22,516.1 $11,358.0 $2,073.0 $1,865.5 $2,080.2 1.98 10.9 12.1 10.8

Becton, Dickinson and Company $151.82 $155.43 $145.64 -2.3% 4.2% $42,960.0 $12,232.0 $3,545.0 $3,464.5 $3,751.8 3.51 12.1 12.4 11.5

Boston Scientific Corporation $18.81 $18.61 $18.07 1.1% 4.1% $30,811.8 $7,673.0 $2,017.0 $2,284.8 $2,512.6 4.02 15.3 13.5 12.3

Medtronic, Inc. $75.00 $77.53 $78.42 -3.3% -4.4% $123,684.2 $28,833.0 $8,737.0 $9,963.4 $10,640.4 4.29 14.2 12.4 11.6

Johnson & Johnson $108.20 $103.78 $101.55 4.3% 6.5% $281,946.9 $70,182.0 $23,488.0 $25,126.3 $26,758.6 4.02 12.0 11.2 10.5

Stryker Corporation $107.29 $94.25 $93.55 13.8% 14.7% $40,032.7 $10,062.0 $2,721.0 $3,089.6 $3,435.2 3.98 14.7 13.0 11.7

IVD & Life Sciences

Affymetrix, Inc. $14.01 $10.00 $12.86 40.1% 8.9% $1,116.9 $359.8 $49.4 $68.0 $74.5 3.10 22.6 16.4 15.0

Bio-Rad Laboratories, Inc. $136.72 $139.57 $135.13 -2.0% 1.2% $3,691.4 $2,017.8 $294.1 $280.5 $299.0 1.83 12.5 13.2 12.3

Bruker Corporation $28.00 $24.96 $18.75 12.2% 49.3% $4,464.6 $1,645.7 $258.7 $285.0 $312.5 2.71 17.3 15.7 14.3

Enzo Biochem, Inc. $4.55 $4.60 $3.03 -1.1% 50.2% $179.4 $101.9 ($5.8) ($6.3) ($4.6) 1.76 nm nm nm

GenMark Diagnostics, Inc. $5.27 $7.77 $13.30 -32.2% -60.4% $196.9 $40.4 ($40.7) ($50.0) ($45.0) 4.88 nm nm nm

Haemonetics Corporation $34.98 $32.91 $44.97 6.3% -22.2% $2,071.5 $909.7 $184.7 $192.8 $207.2 2.28 11.2 10.7 10.0

Hologic, Inc. $34.50 $39.34 $33.17 -12.3% 4.0% $12,881.1 $2,785.2 $1,010.4 $1,050.2 $1,116.3 4.62 12.7 12.3 11.5

Illumina, Inc. $162.11 $191.07 $187.62 -15.2% -13.6% $23,629.6 $2,253.0 $711.2 $762.5 $894.3 10.49 33.2 31.0 26.4

Luminex Corporation $19.40 $21.64 $16.04 -10.4% 20.9% $688.7 $242.9 $55.4 $58.0 $59.0 2.83 12.4 11.9 11.7

OraSure Technology $7.23 $6.55 $6.42 10.4% 12.6% $298.9 $121.7 $16.8 $16.6 $19.5 2.46 17.8 18.0 15.3

Quidel Coporation $17.26 $21.28 $27.50 -18.9% -37.2% $548.3 $184.4 $14.1 $32.4 $45.3 2.97 38.9 16.9 12.1

TECHNE Corporation $94.52 $91.21 $100.64 3.6% -6.1% $3,592.4 $481.9 $192.9 $203.0 $212.7 7.45 18.6 17.7 16.9

Trinity Biotech $11.66 $12.00 $19.19 -2.8% -39.2% $272.1 $98.5 $0.0 $20.0 $23.8 2.76 nm 13.6 11.4

Vermillion, Inc. $1.47 $1.81 $1.84 -18.8% -20.1% $63.6 $1.7 ($19.4) nm nm 36.74 nm nm nm

($Millions, except per share figures)

Data Source: Bloomberg

Public Medical Device Companies





Public Medical Device Companies (continued)



SalesEV /

EBITDAEV /

FWD EBITDA


Cardiovascular

ABIOMED, Inc. $94.81 $92.12 $73.47 2.9% 29.0% $3,810.4 $329.5 $68.4 $90.3 $147.3 11.56 55.7 42.2 25.9

CR Bard Inc. $202.67 $190.69 $169.37 6.3% 19.7% $15,745.0 $3,469.8 $1,077.3 $1,192.9 $1,263.6 4.54 14.6 13.2 12.5

CardioNet Inc. $11.68 $11.76 $8.79 -0.7% 32.9% $323.2 $183.7 $32.4 $41.8 $45.9 1.76 10.0 7.7 7.0

Cardiovascular Systems, Inc. $10.37 $15.22 $38.82 -31.9% -73.3% $275.0 $178.2 ($43.7) ($35.2) ($8.1) 1.54 nm nm nm

CryoLife, Inc. $10.75 $11.25 $10.29 -4.4% 4.5% $391.9 $155.1 $23.3 $23.9 $25.5 2.53 16.8 16.4 15.4

Edwards Lifesciences Corporation $88.21 $79.21 $72.07 11.4% 22.4% $18,327.5 $2,600.7 $744.9 $860.0 $1,008.2 7.05 24.6 21.3 18.2

Greatbatch, Inc. $35.64 $53.90 $57.11 -33.9% -37.6% $2,709.7 $971.3 $168.0 $317.0 $326.3 2.79 16.1 8.5 8.3

HeartWare International, Inc. $31.42 $50.32 $88.76 -37.6% -64.6% $552.3 $261.9 ($36.4) ($39.8) ($28.1) 2.11 nm nm nm

LeMaitre Vascular, Inc. $15.52 $17.50 $8.24 -11.3% 88.3% $258.7 $79.7 $15.6 $19.3 $22.7 3.25 16.6 13.4 11.4

Merit Medical Systems, Inc. $18.49 $18.96 $19.25 -2.5% -3.9% $1,041.7 $550.6 $83.5 $94.4 $105.0 1.89 12.5 11.0 9.9

St. Jude Medical, Inc. $55.00 $62.22 $66.67 -11.6% -17.5% $21,334.8 $5,644.0 $1,679.0 $1,756.6 $1,872.3 3.78 12.7 12.1 11.4

The Spectranetics Corporation $14.52 $15.23 $35.65 -4.7% -59.3% $855.7 $251.4 ($13.4) ($15.7) ($5.0) 3.40 nm nm nm

Vascular Solutions, Inc. $32.53 $35.28 $31.08 -7.8% 4.7% $535.1 $152.0 $33.7 $32.6 $43.8 3.52 15.9 16.4 12.2









SalesEV /

EBITDAEV /

FWD EBITDA


Ortho, Implants and Prosthetics

Alphatech Holdings $0.24 $0.30 $1.41 -20.0% -83.0% $119.3 $181.4 $8.8 nm nm 0.66 13.5 nm nm

Exactech, Inc. $20.26 $18.12 $25.42 11.8% -20.3% $291.2 $245.8 $42.2 $44.7 $48.3 1.18 6.9 6.5 6.0

Globus Medical, Inc. $23.75 $28.24 $24.86 -15.9% -4.5% $1,886.8 $552.4 $193.8 $208.4 $225.5 3.42 9.7 9.1 8.4

Intergra LifeSciences Holdings $67.36 $68.37 $62.14 -1.5% 8.4% $3,145.3 $948.4 $199.0 $235.5 $264.0 3.32 15.8 13.4 11.9

NuVasive, Inc. $48.65 $54.81 $46.40 -11.2% 4.8% $2,762.7 $833.8 $184.3 $231.8 $267.3 3.31 15.0 11.9 10.3

Orthofix International N.V. $41.52 $39.58 $31.31 4.9% 32.6% $723.0 $405.4 $52.8 $70.5 $85.9 1.78 13.7 10.3 8.4

RTI Surgical Inc. $4.00 $4.00 $4.92 0.0% -18.7% $355.5 $281.6 $42.3 $40.0 $43.7 1.26 8.4 8.9 8.1

Wright Medical Group, Inc. $16.60 $23.90 $26.32 -30.5% -36.9% $2,156.1 $516.2 ($9.3) $31.9 $70.0 4.18 nm 67.5 30.8

Zimmer Holdings, Inc. $106.63 $102.47 $118.57 4.1% -10.1% $31,311.6 $6,767.4 $2,196.8 $3,087.1 $3,282.6 4.63 14.3 10.1 9.5










SalesEV /

EBITDAEV /

FWD EBITDA


Cosmetics

Cutera, Inc. $11.25 $12.61 $12.97 -10.8% -13.3% $101.7 $98.1 ($2.0) $4.3 $6.8 1.04 nm 23.5 14.9

Cynosure, Inc. $44.12 $44.44 $30.74 -0.7% 43.5% $844.1 $359.2 $53.0 $59.3 $78.7 2.35 15.9 14.2 10.7

PhotoMedex, Inc. $0.54 $0.44 $1.91 22.7% -71.7% $11.5 $69.8 ($13.9) nm nm 0.16 nm nm nm

Dental

Align Technology, Inc. $72.69 $66.10 $54.60 10.0% 33.1% $5,146.6 $886.1 $211.5 $251.0 $325.6 5.81 24.3 20.5 15.8

DENTSPLY International $61.63 $61.41 $51.28 0.4% 20.2% $15,760.5 $2,790.6 $648.8 $975.1 $1,122.6 5.65 24.3 16.2 14.0

Obesity Treatment

EnteroMedics Inc. $0.97 $0.14 $0.94 590.7% 3.0% $7.4 $0.4 ($28.3) nm nm 20.46 nm nm nm

ZELTIQ Aesthetics, Inc. $27.16 $28.62 $31.44 -5.1% -13.6% $1,029.7 $268.3 ($3.1) $24.7 $55.9 3.84 nm 41.6 18.4

Pediatric Medical Devices

Natus Medical Incorporated $38.43 $48.98 $39.68 -21.5% -3.2% $1,192.9 $373.8 $76.3 $78.9 $88.2 3.19 15.6 15.1 13.5

Surgery and Life Support Devices

AtriCure $16.83 $22.58 $21.00 -25.5% -19.9% $547.5 $135.8 ($20.7) ($14.9) ($13.1) 4.03 nm nm nm

Intuitive Surgical, Inc. $601.05 $552.51 $506.16 8.8% 18.7% $20,837.8 $2,446.8 $871.2 $928.3 $1,044.3 8.52 23.9 22.4 20.0

Misonix, Inc. $6.08 $9.10 $12.66 -33.2% -52.0% $39.0 $23.5 ($2.5) nm nm 1.66 nm nm nm

NxStage Medical, Inc. $14.99 $22.37 $17.37 -33.0% -13.7% $924.8 $345.8 $20.7 $34.4 $44.6 2.67 44.6 26.9 20.7

Stereotaxis, Inc. $1.10 $0.76 $2.04 44.7% -46.1% $40.3 $36.8 ($4.9) nm nm 1.09 nm nm nm

SurModics Inc. $18.41 $20.61 $26.00 -10.7% -29.2% $200.3 $66.5 $25.1 $20.4 $29.3 3.01 8.0 9.8 6.8

Teleflex, Inc. $157.01 $133.15 $121.03 17.9% 29.7% $7,233.1 $1,805.2 $444.1 $543.3 $605.3 4.01 16.3 13.3 12.0










SalesEV /

EBITDAEV /

FWD EBITDA


General Hospital Devices and Supplies

CONMED Corporation $41.94 $44.36 $50.97 -5.5% -17.7% $1,664.1 $722.4 $119.1 $138.3 $148.7 2.30 14.0 12.0 11.2

Digirad Corporation $4.96 $5.52 $4.43 -10.1% 12.0% $117.9 $78.1 $9.2 $17.7 $19.5 1.51 12.8 6.7 6.0

Dynatronics Corporation $2.93 $2.86 $2.96 2.4% -1.0% $14.3 $30.2 ($0.5) nm nm 0.47 nm nm nm

FONAR Corporation $15.38 $17.21 $13.24 -10.6% 16.2% $102.5 $71.5 $18.5 nm nm 1.43 5.5 nm nm

Intuitive Surgical, Inc. $601.05 $552.51 $506.16 8.8% 18.7% $20,837.8 $2,446.8 $871.2 $928.3 $1,044.3 8.52 23.9 22.4 20.0

Masimo Corporation $41.84 $42.32 $32.76 -1.1% 27.7% $2,179.5 $646.7 $127.0 $154.0 $168.0 3.37 17.2 14.2 13.0

Opko Health, Inc. $10.39 $10.14 $14.71 2.5% -29.4% $5,557.4 $752.7 ($5.9) $13.1 $91.3 7.38 nm 423.2 60.9

STERIS Corporation $71.05 $76.95 $70.38 -7.7% 1.0% $7,439.4 $2,238.8 $476.4 $590.0 $618.0 3.32 15.6 12.6 12.0

Varian Medical Systems, Inc. $80.02 $81.35 $94.79 -1.6% -15.6% $7,489.2 $3,117.7 $618.2 $666.9 $702.6 2.40 12.1 11.2 10.7

Home Health and Consumer Devices

Invacare Corporation $13.17 $17.76 $18.94 -25.8% -30.5% $441.3 $1,110.9 $9.9 $18.5 $54.6 0.40 44.6 23.9 8.1

Mine Safety Appliances Company $48.35 $44.20 $50.36 9.4% -4.0% $2,177.5 $1,152.3 $181.2 $206.5 $220.5 1.89 12.0 10.5 9.9

ResMed Inc. $57.82 $54.37 $71.65 6.3% -19.3% $7,814.3 $1,773.1 $506.5 $534.4 $621.7 4.41 15.4 14.6 12.6

Span-America Medical Systems, Inc. $19.01 $19.80 $19.01 -4.0% 0.0% $50.1 $69.9 $6.9 nm nm 0.72 7.2 nm nm

Syneron Medical Ltd. $7.31 $7.68 $11.67 -4.8% -37.4% $181.6 $283.2 $8.2 $13.8 $24.2 0.64 22.1 13.2 7.5










SalesEV /

EBITDAEV /

FWD EBITDA


Other Medical Device

Accuray Incorporated $5.78 $6.88 $9.31 -16.0% -37.9% $527.1 $405.6 $14.9 $29.5 $40.0 1.30 35.4 17.8 13.2

Allied Healthcare Products, Inc. $0.70 $1.09 $1.60 -35.9% -56.3% $3.9 $35.3 ($1.3) nm nm 0.11 nm nm nm

Arrhythmia Research Technology, Inc. $4.25 $5.48 $6.92 -22.4% -38.6% $16.1 $20.6 $0.9 nm nm 0.78 17.1 nm nm

Escalon Medical Corp. $0.80 $1.04 $1.41 -23.2% -43.4% $5.4 $12.2 ($1.2) nm nm 0.44 nm nm nm

Hansen Medical, Inc. $2.61 $2.40 $0.84 8.7% 210.7% $70.6 $13.3 ($34.2) nm nm 5.30 nm nm nm

IRIDEX Corporation $10.22 $9.29 $10.64 10.0% -3.9% $92.2 $42.9 $0.6 nm nm 2.15 158.7 nm nm

Navidea Biopharmaceuticals, Inc. $0.94 $1.34 $1.66 -29.5% -43.1% $202.8 $15.9 ($10.0) nm nm 12.78 nm nm nm

ThermoGenesis Corp. $3.88 $0.20 $0.85 1805.7% 358.0% $5.9 $12.7 ($10.0) nm nm 0.47 nm nm nm

Congentix Medical, Inc. $1.10 $1.27 $0.37 -13.4% 197.3% $50.1 $48.8 ($1.4) nm nm 1.03 nm nm nm

Other Diversified Cos with MedTech Components

Agilent Technologies, Inc. $39.85 $42.17 $41.72 -5.5% -4.5% $12,814.6 $4,096.0 $911.0 $936.0 $1,048.3 3.13 14.1 13.7 12.2

Danaher Corporation $94.86 $93.35 $85.60 1.6% 10.8% $76,983.3 $21,422.5 $4,989.6 $5,347.4 $5,845.7 3.59 15.4 14.4 13.2

General Electric $31.79 $31.05 $25.12 2.4% 26.6% $383,506.3 $124,078.0 $16,211.5 $21,110.8 $24,489.0 3.09 23.7 18.2 15.7

PerkinElmer, Inc. $49.46 $53.93 $51.47 -8.3% -3.9% $6,358.8 $2,274.1 $430.7 $472.9 $508.9 2.80 14.8 13.4 12.5

Thermo Fisher Scientific Inc. $141.59 $142.86 $135.57 -0.9% 4.4% $70,315.9 $17,341.4 $4,264.5 $4,545.0 $4,877.1 4.05 16.5 15.5 14.4






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