healthcare & life sciences group02/25/15 celldex therapeutics inc cldx follow-on 200.1 02/04/15...
TRANSCRIPT
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HEALTHCARE & LIFE SCIENCES GROUP
0
INDUSTRY UPDATE │ MARCH 2015
www.harriswilliams.com
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WHATWE’RE READING
1
CONTENTS
PUBLIC MARKETS OVERVIEW
EQUITY MARKETS OVERVIEW
M&A OVERVIEW
DEBT CAPITAL MARKETS OVERVIEW
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
M&A ACTIVITY
CONTACTS
UNITED STATES
Turner BredrupManaging [email protected]+1 (804) 915-0110
James ClarkManaging [email protected]+1 (804) 915-0119
Todd MorrisManaging [email protected]+1 (415) 217-3412
Cheairs PorterManaging [email protected]+1 (804) 915-0130
Geoff SmithManaging [email protected]+1 (804) 915-0195
Andy [email protected]+1 (415) 217-3419
Paul [email protected]+1 (804) 932-1326
Jacques FuVice [email protected]+1 (804) 915-0185
Andy HewlettVice [email protected]+1 (415) 217-3427
Bill KayserVice [email protected]+1 (804) 915-0180
Whit KnierVice [email protected]+1 (804) 932-1321
HEALTHCARE & LIFE SCIENCES
A new Gallup report released this month announced that the share ofAmericans without health insurance dropped to its lowest level in seven years.The report was released as the Affordable Care Act takes full effect and statesthat accepted the healthcare law’s Medicaid expansion significantlyoutperformed. In aggregate, Gallup data suggests a 3.5 percentage pointdrop in the share of Americans without health insurance from 2013 to 2014. It isimportant to further note that the five most populous states all experienceddeclines in the number of uninsured. The release of the Gallup report comes inadvance of the oral arguments of King v. Burwell, the United States SupremeCourt case in which the plaintiffs are challenging the IRS’ interpretation ofcertain statutory language in the Affordable Care Act regarding the availabilityof tax subsidies to purchase insurance coverage on federally-facilitatedinsurance marketplaces/exchanges. A link to the article can be found here. (Afree subscription to Modern Healthcare is required)
Data surrounding hospital discharges suggesting a troubling correlationbetween Medicare payments and the timing of the discharges. Under thecurrent Medicare rules, long-term acute-care hospitals generally receivesmaller payments for shorter stays. Once a patient hits a threshold length-of-stay, the corresponding payments jumps to a lump sum intended to cover thefull course of long-term treatment. The analysis by the WSJ charges that manylong-term hospitals discharge a disproportionate share of patients during thatwindow when hospitals stand to make the most. This data suggests dischargesare motivated by financial incentives rather than improvements in the patient’scondition. A link to the article can be found here. (A subscription to The WallStreet Journal Online may be required)
On Friday, February 20th, the Obama administration announced the extensionof the open enrollment period for people to sign up for health insurance planson HealthCare.gov through April. The purpose of the extension is to allowconsumers the chance to minimize tax penalties for going without coverage in2015. The temporary move aligns with many voices calling for a morepermanent change to a spring enrollment (the administration has alreadyformalized the next official enrollment period to start Nov. 1, 2015 and end Jan.31, 2016). In conjunction with the enrollment extension, federal officialsannounced that some 800,000 people had been sent incorrect tax statementabout their coverage in 2014. The announcement regarding inaccurate formsadds to the list of technical difficulties experienced during the first openenrollment. A link to the article can be found here. (A subscription to The WallStreet Journal Online may be required)
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ MARCH 2015
PAGE |
PUBLICMARKETS OVERVIEW
2
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Key Trading Statistics (detail begins on page 6)
Public Company Sector Performance(12-month % change in stock price)
Contract Pharma Manufacturing
HMO - Medical
Home Care, Hospice, and Home Infusion
Disease Management
Clinical Laboratories
Surgicenters / Rehabilitation
Health Care Staffing
Durable Medical Equipment
Dental Products
Acute-Care Hospitals
Medical / Surgical / Dental Supplies & Distribution
HW&Co. HCLS Composite Index
Contract Research Organizations
Medical Devices and Products
Dialysis Services
Physician Practice Management
S&P 500
Diagnostic Imaging
Long-Term Care
Specialty Pharmacy Management
Life Sciences Tools
Information Services
Emergency Services
Assisted Living
Specialty Pharmacy
Specialty Managed Care
(30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Change in Stock Price
3 mos. 12 mos. Revenue EBITDA Revenue EBITDA
Clinical Laboratories 3 $29,564 20.4% 32.9% 1.8x 9.8x 1.7x 8.9x
Contract Pharma Manufacturing 3 11,926 37.3% 62.8% 2.9x 14.7x 2.8x 13.4x
Contract Research Organizations 8 29,428 14.1% 20.0% 2.5x 15.0x 2.3x 12.7x
Disease Management 2 8,190 28.2% 34.0% 2.1x 13.8x 2.0x 12.3x
Emergency Serv ices 1 2,719 18.9% 2.2% 2.7x 10.3x 2.5x 9.3x
Healthcare Staffing 4 9,083 24.4% 27.8% 1.2x 15.9x 1.1x 12.8x
HMO - Medical 9 295,625 16.8% 53.0% 0.8x 10.1x 0.7x 9.2x
Information Serv ices 12 39,029 9.9% 3.9% 6.9x 22.4x 4.4x 16.6x
Specialty Managed Care 3 5,861 (9.4%) (13.7%) 1.4x 7.4x 1.4x 4.3x
Specialty Pharmacy 1 1,731 14.6% NM 0.8x NA 0.6x NM
Specialty Pharmacy Management 4 94,706 6.3% 11.1% 0.7x 11.8x 0.7x 11.0x
Dental Products 3 124,917 5.3% 25.5% 3.5x 14.5x 3.5x 13.7x
Durable Medical Equipment 3 12,382 20.0% 26.3% 1.8x 14.4x 1.7x 16.8x
Life Sciences Tools 4 114,008 (0.1%) 4.1% 2.7x 13.2x 3.4x 14.0x
Medical Devices and Products 14 690,287 6.3% 19.1% 3.6x 13.6x 3.6x 12.8x
Medical / Surgical / Dental Supplies & Distribution 6 134,154 6.4% 22.5% 0.3x 14.1x 0.3x 12.1x
Acute-Care Hospitals 4 105,479 2.8% 24.0% 1.2x 8.4x 1.1x 7.7x
Assisted Liv ing 3 14,621 (0.4%) 1.1% 3.6x 21.4x 2.5x 14.5x
Diagnostic Imaging 3 10,611 4.5% 11.5% 1.7x 8.5x 2.1x 10.6x
Dialysis Serv ices 2 58,621 4.0% 16.4% 2.0x 10.9x 1.9x 10.3x
Home Care, Hospice, and Home Infusion 6 5,356 13.2% 36.9% 1.1x 12.5x 1.1x 10.5x
Long-Term Care 3 6,358 6.6% 11.3% 1.0x 11.2x 0.9x 8.0x
Physician Practice Management 2 8,196 9.3% 15.4% 2.8x 13.0x 2.6x 12.0x
Behavioral Health / Management 6 24,475 10.7% 31.2% 1.4x 10.0x 1.3x 9.3x
Surgicenters / Rehabilitation 5 17,111 6.7% 28.9% 2.4x 11.9x 1.9x 9.5x
Payer, Provider, & Pharmacy Support Serv ices 50 $527,863 13.4% 38.2% 1.8x 12.0x 1.4x 10.4x
Products & Devices 30 $1,075,749 3.9% 20.5% 3.5x 13.8x 3.2x 12.5x
Provider-Based Serv ices 34 $250,828 5.3% 24.9% 2.1x 11.4x 1.8x 10.0x
HW&Co. HCLS Composite Index 114 $1,854,440 11.1% 21.2% 2.9x 13.1x 2.6x 11.7x
S&P 500 1.5% 13.5%
Pro
du
cts
&
De
vic
es
Pro
vid
er-
Ba
sed
Se
rvic
es
Median TEV/
Forward MulitplesSectorNumber of
Companies
Aggregate
Enterprise Value
($ mm)
Median TEV/
LTM Multiples
Pa
ye
r, P
rov
ide
r, &
Ph
arm
ac
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Su
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PAGE |
EQUITYMARKETS OVERVIEW
3
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Healthcare & Life Sciences Industry Stock Performance
Top 25 Equity Offerings(by proceeds)
203.3%
154.1%
170.5%
40
60
80
100
120
140
160
180
200
220
Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15
S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index
Closing Date Issuer Ticker Transaction Type
Gross Proceeds
($ mm)
02/25/15 Actavis PLC ACT Convertible 5,060.0
02/10/15 Wright Medical Group Inc WMGI Convertible 632.5
02/12/15 Inovalon Holdings INOV IPO 600.0
02/18/15 Neurocrine Biosciences Inc NBIX Follow-On 287.5
02/04/15 Intercept Pharmaceuticals Inc ICPT Follow-On 202.4
02/25/15 AMAG Pharmaceuticals Inc AMAG Follow-On 201.3
02/25/15 Celldex Therapeutics Inc CLDX Follow-On 200.1
02/04/15 Ultragenyx Pharmaceutical Inc RARE Follow-On 186.3
02/25/15 Relypsa Inc RLYP Follow-On 172.7
02/11/15 Achillion Pharmaceuticals Inc ACHN Follow-On 141.5
02/02/15 K2M Group Holdings Inc KTWO Follow-On 130.3
02/24/15 Xencor Inc XNCR Follow-On 122.9
02/12/15 Inv itae Corp NVTA IPO 116.8
02/11/15 The Ensign Group Inc ENSG Follow-On 102.5
02/03/15 ZIOPHARM Oncology Inc ZIOP Follow-On 100.6
02/05/15 Immunomedics Inc IMMU Convertible 100.0
02/12/15 Idera Pharmaceuticals Inc IDRA Follow-On 86.3
02/11/15 Atara Biotherapeutics Inc ATRA Follow-On 74.7
02/26/15 Lion Biotechnologies Inc LBIO Follow-On 73.6
02/26/15 Tandem Diabetes Care Inc TNDM Follow-On 69.4
02/25/15 Curis Inc CRIS Follow-On 69.0
02/13/15 Bellerophon Therapeutics LLC BLPH IPO 60.0
02/11/15 TherapeuticsMD Inc TXMD Follow-On 55.0
02/17/15 Inotek Pharmaceuticals Corp ITEK IPO 40.0
02/27/15 Momenta Pharmaceuticals Inc MNTA Follow-On 38.7
PAGE |
M&A OVERVIEW
4
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Announced Healthcare & Life Sciences M&A
Healthcare & Life Sciences M&A Trends
Announced Private Equity M&A Activity
QUARTERLY M&A ACTIVITY
MIDDLE MARKET HEALTHCARE TRANSACTION HIGHLIGHTS
ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS
MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES
PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) PEG INVESTMENTS AND EXITS
Note: Transactions based on publicly available information
LTM DEAL STATISTICS
Aggregate Number Median Transaction Multiples
Value ($bn) of Deals TEV/Rev TEV/EBITDA
$258.2 1,204 2.27x 13.3x
HC&LS Industry Number of
Segment Companies
Biotechnology 3
Healthcare Technology 17
Healthcare Distributors 7
Healthcare Equipment 20
Healthcare Facilities 45
Healthcare Serv ices 46
Healthcare Supplies 10
Life Sciences Tools & Serv ices 16
Managed Healthcare 3
Pharmaceuticals 20
$110.6
$141.4
$101.6 $108.2
$236.6
$44.0
0
200
400
600
800
1,000
1,200
1,400
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2010 2011 2012 2013 2014 2015YTD
Nu
mb
er o
f Tran
sac
tion
sAg
gre
ga
te T
ran
sac
tio
n V
alu
e
($ in
billio
ns)
Aggregate Deal Value Number of Transactions
12.8x
11.1x 10.9x 10.0x
13.6x
16.9x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
0.0x
3.0x
6.0x
9.0x
12.0x
15.0x
18.0x
21.0x
2010 2011 2012 2013 2014 2015YTD
EV
/ LTM R
ev
en
ue
Mu
ltipleE
V /
LTM
EB
ITD
A M
ultip
le
TEV / LTM EBITDA TEV / LTM Sales
219 229 221
291
200 209
304
248
304290 279
292
195
1120
12
22
1612
18
15
22
1411
15
5
0
50
100
150
200
250
300
350
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
Nu
mb
er
of Tr
an
sac
tio
ns
PEG Acquirer Strategic Acquirer
69
94
113
79
42
7165 65
61 62
5
60 62
95
49 50
80
120
139144 143
16
0
20
40
60
80
100
120
140
160
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015YTD
Nu
mb
er
of Tr
an
sac
tio
ns
Number of Investments Number of Exits
Announced Target Buyer
2/26/2015 Healthcare Solutions, Inc. Catamaran Corporation (TSX:CCT)
2/26/2015 BioRx, LLC Diplomat Pharmacy, Inc. (NYSE:DPLO)
2/24/2015 Branch Medical Group, Inc. Globus Medical, Inc. (NYSE:GMED)
2/23/2015 Summit Medical, Inc. Shore Capital Partners, LLC
2/18/2015 Adv ancedCath Inc. TE Connectiv ity Ltd. (NYSE:TEL)
2/13/2015 Aptalis Pharmatech, Inc. TPG Capital, L.P.
2/10/2015 National Hospice Holdings, LLC Hospice Compassus, Inc.
2/10/2015 Community Allied Behav ioral Health, Inc. Lewis County Mental Health Association
2/5/2015 Hospira Inc. (NYSE:HSP) Pfizer Inc. (NYSE:PFE)
2/5/2015 SoftWriters, Inc. Roper Industries, Inc.
2/3/2015 Cardinal Hill Rehabilitation Hospital HEALTHSOUTH Corp. (NYSE:HLS)
PAGE |
DEBT CAPITALMARKETS OVERVIEW
5
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Key Credit Statistics
QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS
Select Healthcare & Life Sciences Debt Offerings(by deal amount)
CREDIT STATISTICS AVERAGE SECONDARY SPREAD
L + 0
L + 100
L + 200
L + 300
L + 400
L + 500
2008 2009 2010 2011 2012 2013 2014A
ve
rag
e S
pre
ad
Ov
er
LIB
OR
Revolving Credit / Term Loan A Weighted-Average Institutional
$0
$3
$6
$9
$12
$15
$18
$21
$24
4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14
Loa
n V
olu
me
by
Qu
art
er
($ in
billio
ns)
Pro Rata Institutional
0.0x
2.0x
4.0x
6.0x
Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash
Interest
EBITDA -
Capex/Cash
Interest
EB
ITD
A M
ultip
le
2008 2009 2010 2011 2012 2013 2014
Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread
02/02/15 Genesis Healthcare Corp Skilled nursing care facilit ies $550.0 Revolver/Line >= 1 Yr. NR / NR L+ 325
02/11/15 Acadia Healthcare Psychiatric hospitals 500.0 Term Loan B B- / B3 L+ 350
02/02/15 Curo Health Serv ices Inc General medical & surgical hospitals 380.0 Term Loan B B / B2 L+ 550
02/17/15 Epic Health Serv ices Inc Home health care serv ices 185.0 Term Loan B B / NR L+ 475
02/10/15 Hospice Compassus Intermediate care facilit ies 180.0 Term Loan B NR / NR L+ 475
02/12/15 Almost Family Inc Home health care serv ices 175.0 Revolver/Line >= 1 Yr. NR / NR L+ 225
02/24/15 National MENTOR Inc Intermediate care facilit ies 55.0 Term Loan B NR / B1 L+ 325
02/26/15 Presbyterian Intercommunity Health General medical & surgical hospitals 55.0 Revolver/Line >= 1 Yr. NR / NR L+ 75
02/27/15 Civ itas Solutions Inc Home health care serv ices 55.0 Term Loan B NR / NR L+ 325
02/04/15 Sterling Healthcare Holdings LLC Medical laboratories 49.5 Term Loan NR / NR L+ 475
02/02/15 Curo Health Serv ices Inc General medical & surgical hospitals 45.0 Revolver/Line >= 1 Yr. B / B2 N/A
02/17/15 Epic Health Serv ices Inc Home health care serv ices 45.0 Term Loan B / NR L+ 875
02/10/15 Hospice Compassus Intermediate care facilit ies 30.0 Revolver/Line >= 1 Yr. NR / NR L+ 475
02/17/15 Epic Health Serv ices Inc Home health care serv ices 25.0 Revolver/Line >= 1 Yr. B / NR L+ 475
02/02/15 MCNA Health Care Holdings LLC Offices & clinics of medical doctors 10.0 Term Loan A NR / NR L+ 175
02/04/15 Sterling Healthcare Holdings LLC Medical laboratories 8.5 Revolver/Line >= 1 Yr. NR / NR L+ 475
L + 0
L + 200
L + 400
L + 600
L + 800
L + 1000
4Q08 3Q09 2Q10 1Q11 4Q11 3Q12 2Q13 1Q14 4Q14
Av
era
ge
Sp
rea
d O
ve
r LI
BO
R
PAGE |
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
6
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Payor, Provider, & Pharmacy Support Services
As of February 27, 2015.
Stock Price
% Change 52 Week
2/27/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Clinical Laboratories
Bio-Reference Laboratories Inc. $34.94 22.9% 36.8% $35.57 $24.19 $970 $55 $22 $1,008 $860 $115 $89 Jan-15 Oct-14 $939 $126 $101 1.2x 8.7x 1.1x 8.0x
Laboratory Corp. of America Holdings 123.03 20.4% 32.2% 124.57 92.50 12,340 3,030 580 14,807 6,012 1,168 961 Dec-14 Dec-14 8,529 1,664 1,236 2.5x 12.7x 1.7x 8.9x
Quest Diagnostics Inc. 70.14 8.9% 32.9% 72.86 51.86 10,122 3,790 192 13,749 7,435 1,409 1,095 Dec-14 Dec-14 7,625 1,518 1,200 1.8x 9.8x 1.8x 9.1x
Number of Companies 3 Median: 20.4% 32.9% Total $23,431 $29,564 $14,306 $17,092 1.8x 9.8x 1.7x 8.9x
Market Cap. Weighted Average: 15.5% 32.7% 2.1x 11.3x 1.7x 8.9x
Contract Pharma Manufacturing
Akorn, Inc. $53.81 37.3% 100.8% $55.86 $20.52 $5,802 $1,125 $71 $6,849 $602 $215 $156 Dec-14 Dec-14 $972 $455 $427 11.4x 31.9x 7.0x 15.1x
Cambrex Corporation. 34.25 47.8% 62.8% 34.93 15.76 1,065 60 46 1,080 374 82 59 Dec-14 Dec-14 427 105 80 2.9x 13.1x 2.5x 10.3x
West Pharmaceutical Serv ices, Inc. 54.72 5.0% 19.5% 55.29 39.11 3,912 340 255 3,997 1,421 272 182 Dec-14 Dec-14 1,448 299 194 2.8x 14.7x 2.8x 13.4x
Number of Companies 3 Median: 37.3% 62.8% Total $10,780 $11,926 $2,398 $2,846 2.9x 14.7x 2.8x 13.4x
Market Cap. Weighted Average: 26.6% 67.5% 7.4x 23.8x 5.0x 14.0x
Contract Research Organizations
Albany Molecular Research Inc. $16.22 2.3% 0.9% $23.95 $13.73 $529 $160 $47 $642 $277 $33 $16 Dec-14 Dec-14 $362 $66 $43 2.3x 19.3x 1.8x 9.8x
Charles River Laboratories International, Inc. 76.67 18.4% 26.7% 77.17 49.60 3,628 778 160 4,262 1,298 289 196 Dec-14 Dec-14 1,332 330 236 3.3x 14.8x 3.2x 12.9x
ICON Public Limited Company 69.01 25.4% 45.5% 70.03 35.33 4,249 0 0 4,000 1,503 262 211 Dec-14 Dec-14 1,652 317 262 2.7x 15.3x 2.4x 12.6x
INC Research Holdings, Inc. 29.93 NM NM 31.84 19.61 1,833 420 126 2,127 810 149 95 Dec-14 Dec-14 888 166 144 2.6x 14.2x 2.4x 12.8x
PAREXEL International Corporation 64.46 11.1% 18.6% 65.38 41.79 3,532 347 302 3,577 1,994 297 215 Dec-14 Jun-14 2,059 309 224 1.8x 12.0x 1.7x 11.6x
PRA Health Sciences, Inc. 31.52 NM NM 31.99 18.47 1,885 968 85 2,749 1,267 154 58 Dec-14 Dec-14 1,362 203 180 2.2x 17.8x 2.0x 13.5x
Quintiles Transnational Holdings Inc. 64.98 12.1% 21.5% 66.28 46.27 8,078 2,308 867 9,518 4,166 687 599 Dec-14 Dec-14 4,376 780 657 2.3x 13.8x 2.2x 12.2x
WuXi PharmaTech (Cayman) Inc. 39.95 16.2% 2.2% 42.31 29.84 2,797 214 211 2,553 674 148 104 Dec-14 Dec-14 780 200 150 3.8x 17.2x 3.3x 12.8x
Number of Companies 8 Median: 14.1% 20.0% Total $26,532 $29,428 $11,988 $12,811 2.5x 15.0x 2.3x 12.7x
Market Cap. Weighted Average: 13.5% 20.2% 2.6x 14.7x 2.4x 12.4x
Disease Management
Alere Inc. $45.47 14.2% 23.9% $45.65 $31.94 $3,799 $3,725 $378 $7,146 $2,577 $500 $164 Dec-14 Dec-14 $2,615 $557 $500 2.8x 14.3x 2.7x 12.8x
Healthways Inc. 22.38 42.1% 44.1% 23.30 13.99 795 252 2 1,045 742 79 25 Dec-14 Dec-14 810 88 35 1.4x 13.3x 1.3x 11.8x
Number of Companies 2 Median: 28.2% 34.0% Total $4,594 $8,190 $3,319 $3,425 2.1x 13.8x 2.0x 12.3x
Market Cap. Weighted Average: 19.1% 27.4% 2.5x 14.1x 2.5x 12.7x
Emergency Services
Air Methods Corp. $52.99 18.9% 2.2% $60.74 $40.31 $2,081 $645 $13 $2,719 $1,005 $265 $184 Dec-14 Dec-14 $1,074 $293 $211 2.7x 10.3x 2.5x 9.3x
Number of Companies 1 Median: 18.9% 2.2% Total $2,081 $2,719 $1,005 $1,074 2.7x 10.3x 2.5x 9.3x
Market Cap. Weighted Average: 18.9% 2.2% 2.7x 10.3x 2.5x 9.3x
Healthcare Staffing
AMN Healthcare Serv ices Inc. $22.56 30.6% 63.4% $23.23 $10.35 $1,063 $169 $13 $1,218 $1,036 $84 $68 Dec-14 Dec-14 $1,297 $112 $85 1.2x 14.5x 0.9x 10.9x
Cross Country Healthcare, Inc. 12.96 26.2% 25.1% 13.51 5.26 405 74 5 463 618 16 8 Dec-14 Dec-14 789 33 23 0.7x 29.4x 0.6x 14.0x
On Assignment Inc. 38.21 22.7% 12.3% 39.86 25.97 2,000 415 32 2,384 1,860 190 152 Dec-14 Dec-14 1,869 203 151 1.3x 12.5x 1.3x 11.7x
Team Health Holdings, Inc. 59.27 3.6% 30.5% 63.13 43.18 4,230 805 20 5,018 2,820 292 215 Dec-14 Dec-14 3,345 363 244 1.8x 17.2x 1.5x 13.8x
Number of Companies 4 Median: 24.4% 27.8% Total $7,699 $9,083 $6,333 $7,300 1.2x 15.9x 1.1x 12.8x
Market Cap. Weighted Average: 13.5% 30.0% 1.8x 17.2x 1.5x 13.8x
TEV/ Fwd MultiplesForward Twelve Month
EstimateCompany NameLTM
Period
Latest
FYE Date
TEV/ LTM MultiplesEquity
Mkt.
Value
Total DebtCash and
Equiv.
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)
PAGE |
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
7
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Payor, Provider, & Pharmacy Support Services
As of February 27, 2015.
Stock Price
% Change 52 Week
2/27/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
HMO - Medical
Commercial:
Aetna Inc. $99.55 14.5% 39.3% $101.98 $66.85 $35,012 $9,610 $1,420 $43,270 $58,003 $4,737 $4,108 Dec-14 Dec-14 $62,801 $5,092 $4,622 0.7x 9.1x 0.7x 8.5x
Anthem, Inc. 146.45 15.4% 64.0% 148.76 89.03 39,071 16,668 2,152 53,587 73,874 5,572 5,050 Dec-14 Dec-14 78,999 5,036 4,593 0.7x 9.6x 0.7x 10.6x
Cigna Corp. 121.63 19.2% 56.3% 122.42 73.47 31,434 5,152 1,420 35,271 34,914 3,885 3,569 Dec-14 Dec-14 38,078 3,904 3,480 1.0x 9.1x 0.9x 9.0x
Health Net, Inc. 57.35 11.6% 71.3% 58.91 30.39 4,410 500 869 4,041 14,009 349 320 Dec-14 Dec-14 17,220 578 575 0.3x 11.6x 0.2x 7.0x
Humana Inc. 164.38 19.6% 48.6% 166.20 103.89 24,593 4,159 1,935 26,817 48,500 2,620 2,362 Dec-14 Dec-14 54,650 3,190 2,831 0.6x 10.2x 0.5x 8.4x
UnitedHealth Group Incorporated 113.63 15.8% 49.5% 116.58 73.61 108,368 17,461 7,495 119,722 130,474 11,330 10,274 Dec-14 Dec-14 141,595 12,564 10,969 0.9x 10.6x 0.8x 9.5x
Number of Companies 6 Median: 15.6% 52.9% Total $242,888 $282,708 $359,774 $393,343 0.7x 9.9x 0.7x 8.8x
Market Cap. Weighted Average: 16.3% 51.5% 0.8x 10.0x 0.8x 9.3x
Government:
Centene Corp. $61.46 24.6% 95.6% $62.27 $27.56 $7,303 $893 $1,546 $6,797 $15,689 $575 $486 Dec-14 Dec-14 $21,727 $754 $646 0.4x 11.8x 0.3x 9.0x
Molina Healthcare, Inc. 63.69 25.2% 70.3% 64.33 32.86 3,176 905 1,539 2,543 9,372 269 193 Dec-14 Dec-14 14,283 464 355 0.3x 9.5x 0.2x 5.5x
WellCare Health Plans, Inc. 90.81 22.6% 48.0% 91.88 55.43 3,991 900 1,314 3,578 12,960 243 213 Dec-14 Dec-14 14,002 528 453 0.3x 14.7x 0.3x 6.8x
Number of Companies 3 Median: 24.6% 70.3% Total $14,470 $12,917 $38,021 $50,012 0.3x 11.8x 0.3x 6.8x
Market Cap. Weighted Average: 24.2% 76.9% 0.4x 12.1x 0.3x 7.6x
Information Services
Data/Analytics:
Castlight Health, Inc. $7.29 (42.0%) NM $41.95 $6.52 $658 $0 $17 $466 $46 ($85) ($86) Dec-14 Dec-14 $77 ($68) ($68) 10.2x NM 6.1x NM
Inovalon Holdings, Inc. 31.06 NM NM 33.75 25.89 4,488 300 132 4,656 336 114 94 Sep-14 Dec-13 NA NA NA 13.9x NM NA NA
National Research Corp. 32.75 (3.1%) (17.9%) 44.95 30.20 405 8 40 367 99 32 28 Dec-14 Dec-14 104 31 27 3.7x 11.4x 3.5x 11.7x
Number of Companies 3 Median: (22.6%) (17.9%) Total $5,551 $466 $481 $180 10.2x 11.4x 4.8x 11.7x
Market Cap. Weighted Average: (5.2%) (1.3%) 12.7x 11.4x 5.1x 11.7x
eHealth:
WebMD Health Corp. $44.05 19.2% (2.9%) $53.30 $34.48 $1,601 $952 $707 $1,847 $580 $113 $96 Dec-14 Dec-14 $627 $185 $112 3.2x 16.3x 2.9x 10.0x
Number of Companies 1 Median: 19.2% (2.9%) Total $1,601 $1,847 $580 $627 3.2x 16.3x 2.9x 10.0x
Market Cap. Weighted Average: 19.2% (2.9%) 3.2x 16.3x 2.9x 10.0x
Hospital/Physician:
Allscripts Healthcare Solutions, Inc. $12.01 (0.4%) (35.3%) $19.68 $11.00 $2,164 $576 $53 $2,687 $1,378 $57 ($35) Dec-14 Dec-14 $1,438 $239 $140 2.0x NM 1.9x 11.3x
Athenahealth, Inc. 127.07 8.4% (36.8%) 206.19 97.30 4,854 209 74 4,947 753 62 1 Dec-14 Dec-14 920 160 81 6.6x NM 5.4x 31.0x
Cerner Corporation 72.06 13.1% 17.7% 73.24 48.39 24,687 130 635 23,396 3,313 962 763 Jan-15 Jan-15 4,879 1,497 1,108 7.1x 24.3x 4.8x 15.6x
Computer Programs & Systems Inc. 52.60 (10.2%) (24.3%) 71.89 47.40 590 0 24 555 205 53 50 Dec-14 Dec-14 201 50 45 2.7x 10.4x 2.8x 11.1x
HMS Holdings Corp. 17.54 (16.1%) (14.3%) 23.69 15.10 1,540 198 133 1,604 443 88 34 Dec-14 Dec-14 475 119 60 3.6x 18.2x 3.4x 13.5x
MedAssets, Inc. 19.21 (1.8%) (23.3%) 26.09 17.00 1,156 890 12 2,034 720 215 107 Dec-14 Dec-14 759 229 83 2.8x 9.4x 2.7x 8.9x
Merge Healthcare Incorporated 4.00 25.8% 59.4% 4.73 1.97 386 225 42 570 212 36 25 Dec-14 Dec-14 249 55 41 2.7x 15.9x 2.3x 10.4x
Quality Systems Inc. 17.38 20.0% (0.8%) 18.89 13.01 1,048 0 114 923 477 43 30 Dec-14 Mar-14 487 69 38 1.9x 21.5x 1.9x 13.3x
Number of Companies 8 Median: 4.0% (18.8%) Total $36,424 $36,717 $7,501 $9,409 2.8x 17.1x 2.7x 12.3x
Market Cap. Weighted Average: 9.9% 3.9% 6.1x 22.9x 4.4x 16.9x
Forward Twelve Month
EstimateTEV/ LTM Multiples TEV/ Fwd Multiples
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE DateCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
PAGE |
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
8
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Payor, Provider, & Pharmacy Support Services
As of February 27, 2015.
Stock Price
% Change 52 Week
2/27/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Specialty Managed Care
Assurant Inc. $61.27 (9.4%) (5.6%) $69.94 $59.82 $4,219 $1,267 $1,319 $4,168 $10,382 $935 $803 Dec-14 Dec-14 $10,313 $980 $636 0.4x 4.5x 0.4x 4.3x
CorVel Corporation 35.43 1.1% (21.7%) 53.35 28.08 722 0 31 691 491 67 49 Dec-14 Mar-14 494 NA NA 1.4x 10.3x 1.4x NA
HealthEquity, Inc. 20.27 (13.9%) NM 27.74 16.11 1,110 0 108 1,002 80 22 16 Oct-14 Jan-14 87 24 17 12.5x NM 11.6x NM
Number of Companies 3 Median: (9.4%) (13.7%) Total $6,052 $5,861 $10,952 $10,894 1.4x 7.4x 1.4x 4.3x
Market Cap. Weighted Average: (8.9%) (6.5%) 2.7x 5.3x 2.6x 4.3x
Specialty Pharmacy
Diplomat Pharmacy, Inc. $30.00 14.6% NM $32.60 $15.45 $1,543 $0 $18 $1,731 $2,215 $25 $20 Dec-14 Dec-14 $2,796 $46 $37 0.8x NM 0.6x NM
Number of Companies 1 Median: 14.6% NM Total $1,543 $1,731 $2,215 $2,796 0.8x NA 0.6x NM
Market Cap. Weighted Average: 14.6% NM 0.8x NM 0.6x NM
Specialty Pharmacy Management
Catamaran Corporation $49.88 (2.4%) 8.4% $54.19 $32.38 $10,349 $1,427 $1,012 $10,741 $21,582 $846 $569 Dec-14 Dec-14 $24,175 $931 $741 0.5x 12.7x 0.4x 11.5x
Express Scripts Holding Company 84.79 3.0% 13.7% 88.83 64.64 61,634 13,568 1,833 73,379 100,887 6,689 4,679 Dec-14 Dec-14 103,317 7,046 6,480 0.7x 11.0x 0.7x 10.4x
Omnicare Inc. 76.74 9.6% 29.8% 79.70 56.41 7,453 2,116 154 9,415 6,418 742 609 Dec-14 Dec-14 6,679 780 669 1.5x 12.7x 1.4x 12.1x
PharMerica Corporation 25.00 12.9% (1.2%) 30.48 19.42 818 351 33 1,172 1,895 123 83 Dec-14 Dec-14 1,983 144 98 0.6x 9.5x 0.6x 8.1x
Number of Companies 4 Median: 6.3% 11.1% Total $80,254 $94,706 $130,781 $136,153 0.7x 11.8x 0.7x 11.0x
Market Cap. Weighted Average: 3.0% 14.4% 0.8x 11.3x 0.7x 10.7x
TEV/ LTM Multiples TEV/ Fwd MultiplesCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
Estimate
PAGE |
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
9
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Products & Devices
As of February 27, 2015.(1) To be acquired by Pfizer in a $16.3 billion transaction announced February 5, 2015.
Stock Price
% Change 52 Week
2/27/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Dental Products
3M Company $168.65 6.5% 25.5% $169.98 $129.70 $107,051 $6,896 $1,897 $111,457 $31,821 $8,543 $7,135 Dec-14 Dec-14 $32,265 $8,861 $7,430 3.5x 13.0x 3.5x 12.6x
DENTSPLY International Inc. 53.01 (2.8%) 16.8% 56.25 43.83 7,440 1,267 152 8,482 2,923 586 457 Dec-14 Dec-14 2,825 618 513 2.9x 14.5x 3.0x 13.7x
Sirona Dental Systems Inc. 90.82 5.3% 29.3% 93.51 69.82 5,266 80 368 4,979 1,165 269 230 Dec-14 Sep-14 1,165 346 292 4.3x 18.5x 4.3x 14.4x
Number of Companies 3 Median: 5.3% 25.5% Total $119,756 $124,917 $35,909 $36,255 3.5x 14.5x 3.5x 13.7x
Market Cap. Weighted Average: 5.9% 25.2% 3.5x 13.4x 3.5x 12.7x
Durable Medical Equipment
Hill-Rom Holdings, Inc. $47.92 4.0% 26.3% $49.33 $35.45 $2,708 $582 $114 $3,176 $1,758 $284 $188 Dec-14 Sep-14 $1,891 $297 $208 1.8x 11.2x 1.7x 10.7x
Invacare Corporation 18.97 23.8% (4.1%) 20.81 11.65 609 20 39 591 1,270 (4) (37) Dec-14 Dec-14 1,214 25 (0) 0.5x NM 0.5x 23.2x
ResMed Inc. 64.36 20.0% 45.6% 67.50 42.19 9,046 450 881 8,615 1,616 491 417 Dec-14 Jun-14 1,679 514 433 5.3x 17.5x 5.1x 16.8x
Number of Companies 3 Median: 20.0% 26.3% Total $12,363 $12,382 $4,644 $4,784 1.8x 14.4x 1.7x 16.8x
Market Cap. Weighted Average: 16.7% 38.9% 4.3x 16.1x 4.1x 15.7x
Life Sciences Tools
Agilent Technologies Inc. $42.21 (1.2%) (25.1%) $59.58 $37.68 $14,183 $1,658 $2,118 $13,726 $6,999 $1,242 $886 Jan-15 Oct-14 $4,087 $878 $751 2.0x 11.1x 3.4x 15.6x
Becton, Dickinson and Company 146.72 3.9% 27.5% 149.14 111.07 28,308 10,142 8,540 29,656 8,468 2,167 1,649 Dec-14 Sep-14 8,392 2,353 1,704 3.5x 13.7x 3.5x 12.6x
Thermo Fisher Scientific, Inc. 130.00 1.0% 4.1% 132.00 107.33 51,582 14,568 1,344 64,797 16,890 3,968 2,285 Dec-14 Dec-14 16,943 4,249 3,815 3.8x 16.3x 3.8x 15.2x
VWR Corporation 24.55 (5.8%) NM 27.14 20.60 3,225 2,112 121 5,829 4,375 459 329 Dec-14 Dec-14 4,428 459 374 1.3x 12.7x 1.3x 12.7x
Number of Companies 4 Median: (0.1%) 4.1% Total $97,297 $114,008 $36,732 $33,850 2.7x 13.2x 3.4x 14.0x
Market Cap. Weighted Average: 1.3% 6.5% 3.4x 14.7x 3.6x 14.5x
Medical Devices and Products
Abbott Laboratories $47.37 7.1% 19.1% $47.88 $36.65 $71,480 $7,845 $4,063 $74,978 $20,247 $4,397 $2,888 Dec-14 Dec-14 $20,919 $5,132 $4,095 3.7x 17.1x 3.6x 14.6x
Baxter International Inc. 69.15 (4.5%) 0.4% 77.31 65.95 37,519 9,305 2,925 43,934 16,671 4,276 3,271 Dec-14 Dec-14 16,083 3,823 3,053 2.6x 10.3x 2.7x 11.5x
Boston Scientific Corporation 16.90 31.9% 27.1% 17.01 11.10 22,486 4,262 587 26,158 7,308 1,675 950 Dec-14 Dec-14 7,429 1,878 1,200 3.6x 15.6x 3.5x 13.9x
CR Bard Inc. 169.14 1.2% 16.9% 180.35 132.81 12,561 1,480 960 13,080 3,324 979 813 Dec-14 Dec-14 3,379 1,011 841 3.9x 13.4x 3.9x 12.9x
Danaher Corp. 87.28 4.6% 13.3% 88.10 70.12 61,600 3,473 3,006 62,140 19,914 4,541 3,602 Dec-14 Dec-14 20,790 4,834 3,846 3.1x 13.7x 3.0x 12.9x
Hanger, Inc. 25.89 20.0% (27.1%) 37.60 18.25 890 540 5 1,425 1,061 156 117 Jun-14 Dec-13 1,071 162 116 1.3x 9.1x 1.3x 8.8x
Hologic Inc. 32.38 22.3% 48.9% 32.49 20.24 9,065 3,955 544 12,476 2,549 914 397 Dec-14 Sep-14 2,604 978 852 4.9x 13.6x 4.8x 12.8x
Hospira Inc.(1) 87.54 45.2% 103.2% 87.77 40.41 14,977 1,756 802 15,931 4,464 730 497 Dec-14 Dec-14 4,592 850 643 3.6x 21.8x 3.5x 18.7x
Johnson & Johnson 102.51 (4.4%) 12.2% 109.49 90.83 285,028 18,760 14,523 270,699 74,331 25,032 21,137 Dec-14 Dec-14 71,699 24,636 20,581 3.6x 10.8x 3.8x 11.0x
K2M Group Holdings, Inc. 20.49 7.7% NM 23.63 12.31 809 0 23 785 178 (15) (52) Sep-14 Dec-13 186 (10) (52) 4.4x NM 4.2x NM
Medtronic plc 77.59 5.6% 33.1% 79.45 55.85 110,087 28,826 17,231 107,765 17,410 5,703 4,859 Jan-15 Apr-14 28,167 9,061 8,033 6.2x 18.9x 3.8x 11.9x
Stryker Corporation 94.75 2.6% 16.7% 98.24 75.78 35,887 3,973 1,795 34,860 9,675 2,604 2,226 Dec-14 Dec-14 9,982 2,633 2,316 3.6x 13.4x 3.5x 13.2x
Teleflex Incorporated 121.69 2.3% 19.4% 123.09 99.56 5,043 1,068 303 5,811 1,827 411 300 Dec-14 Dec-14 1,836 487 391 3.2x 14.1x 3.2x 11.9x
Zimmer Holdings, Inc. 120.39 7.8% 26.4% 121.84 90.48 20,455 1,485 1,083 20,245 4,673 1,788 1,418 Dec-14 Dec-14 4,640 1,856 1,501 4.3x 11.3x 4.4x 10.9x
Number of Companies 14 Median: 6.3% 19.1% Total $687,886 $690,287 $183,631 $193,377 3.6x 13.6x 3.6x 12.8x
Market Cap. Weighted Average: 2.7% 19.4% 4.0x 13.6x 3.6x 12.1x
Medical / Surgical / Dental Supplies & Distribution
AmerisourceBergen Corporation $102.76 14.1% 51.1% $103.71 $62.55 $22,567 $1,996 $2,299 $22,264 $123,981 $1,407 $1,213 Dec-14 Sep-14 $133,995 $1,958 $1,776 0.2x 15.8x 0.2x 11.4x
Cardinal Health, Inc. 87.99 8.0% 22.5% 89.43 63.06 29,048 3,976 2,881 30,143 93,928 2,441 1,996 Dec-14 Jun-14 99,366 2,693 2,431 0.3x 12.3x 0.3x 11.2x
Henry Schein, Inc. 140.05 3.2% 17.9% 143.89 109.34 11,736 731 89 12,946 10,371 867 715 Dec-14 Dec-14 10,896 928 765 1.2x 14.9x 1.2x 13.9x
McKesson Corporation 228.70 9.8% 31.1% 231.55 162.90 53,252 10,394 4,587 60,592 173,870 3,921 2,969 Dec-14 Mar-14 180,459 4,738 4,066 0.3x 15.5x 0.3x 12.8x
Owens & Minor Inc. 35.66 4.3% 2.6% 36.35 31.55 2,249 609 57 2,800 9,440 238 197 Dec-14 Dec-14 9,884 282 221 0.3x 11.8x 0.3x 9.9x
Patterson Companies, Inc. 50.08 4.8% 22.6% 51.49 37.03 5,027 727 290 5,409 4,328 410 360 Jan-15 Apr-14 4,362 423 373 1.2x 13.2x 1.2x 12.8x
Number of Companies 6 Median: 6.4% 22.5% Total $123,878 $134,154 $415,919 $438,962 0.3x 14.1x 0.3x 12.1x
Market Cap. Weighted Average: 9.2% 30.6% 0.4x 14.6x 0.4x 12.2x
TEV/ LTM Multiples TEV/ Fwd MultiplesCash and
Equiv.Company Name
Equity
Mkt.
Value
Total Debt
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
Estimate
PAGE |
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
10
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Provider-Based Services
As of February 27, 2015.
Stock Price
% Change 52 Week
2/27/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Acute-Care Hospitals
Community Health Systems, Inc. $48.52 2.6% 14.8% $57.72 $34.55 $5,664 $16,984 $509 $22,750 $18,639 $2,737 $1,632 Dec-14 Dec-14 $20,249 $3,085 $1,856 1.2x 8.3x 1.1x 7.4x
HCA Holdings, Inc. 71.54 3.0% 38.9% 76.18 47.17 30,088 29,844 566 60,698 36,918 7,385 5,565 Dec-14 Dec-14 39,074 7,642 5,747 1.6x 8.2x 1.6x 7.9x
Lifepoint Hospitals Inc. 71.96 4.9% 33.2% 76.50 50.51 3,181 2,219 192 5,322 4,483 577 312 Dec-14 Dec-14 5,186 705 424 1.2x 9.2x 1.0x 7.6x
Tenet Healthcare Corp. 46.30 (4.0%) 5.1% 63.61 37.95 4,560 11,807 193 16,709 16,615 1,952 1,103 Dec-14 Dec-14 17,648 2,134 1,248 1.0x 8.6x 0.9x 7.8x
Number of Companies 4 Median: 2.8% 24.0% Total $43,492 $105,479 $76,655 $82,157 1.2x 8.4x 1.1x 7.7x
Market Cap. Weighted Average: 2.3% 31.8% 1.5x 8.3x 1.4x 7.8x
Assisted Living
Brookdale Senior Liv ing Inc. $37.51 6.1% 14.3% $37.54 $29.50 $6,883 $6,266 $104 $13,046 $3,344 $605 $71 Dec-14 Dec-14 $5,161 $898 $220 3.9x 21.6x 2.5x 14.5x
Capital Senior Liv ing Corp. 25.00 (0.4%) 1.1% 26.89 20.33 727 673 39 1,361 380 64 14 Dec-14 Dec-14 417 88 25 3.6x 21.4x 3.3x 15.4x
Five Star Quality Care Inc. 3.64 (17.3%) (37.6%) 6.09 3.23 177 77 25 214 1,103 20 (12) Sep-14 Dec-13 1,362 42 15 0.2x 10.6x 0.2x 5.1x
Number of Companies 3 Median: (0.4%) 1.1% Total $7,788 $14,621 $4,827 $6,940 3.6x 21.4x 2.5x 14.5x
Market Cap. Weighted Average: 5.0% 11.9% 3.8x 21.3x 2.5x 14.4x
Long-Term Care
Kindred Healthcare Inc. $21.22 6.6% (2.6%) $26.81 $16.94 $1,681 $2,877 $164 $4,338 $5,028 $343 $187 Dec-14 Dec-14 $7,261 $649 $471 0.9x 12.7x 0.6x 6.7x
National Healthcare Corp. 63.01 3.3% 24.8% 65.14 50.06 889 47 70 904 872 105 70 Dec-14 Dec-14 968 NA NA 1.0x 8.6x 0.9x NA
The Ensign Group, Inc. 44.07 10.2% 11.3% 47.78 26.02 1,106 68 50 1,117 1,027 99 73 Dec-14 Dec-14 1,198 120 99 1.1x 11.2x 0.9x 9.3x
Number of Companies 3 Median: 6.6% 11.3% Total $3,676 $6,358 $6,927 $9,428 1.0x 11.2x 0.9x 8.0x
Market Cap. Weighted Average: 6.9% 8.2% 1.0x 11.3x 0.8x 7.7x
Diagnostic Imaging
Alliance Healthcare Serv ices, Inc. $23.91 5.8% (22.4%) $35.40 $18.92 $253 $505 $39 $764 $437 $127 $60 Sep-14 Dec-13 NA NA NA 1.7x 6.0x NA NA
RadNet, Inc. 8.76 2.2% 358.6% 10.35 1.90 374 614 0 990 710 116 56 Sep-14 Dec-13 716 125 54 1.4x 8.5x 1.4x 8.0x
Varian Medical Systems, Inc. 92.97 4.5% 11.5% 95.70 76.73 9,304 525 904 8,858 3,076 658 594 Jan-15 Sep-14 3,196 672 606 2.9x 13.5x 2.8x 13.2x
Number of Companies 3 Median: 4.5% 11.5% Total $9,930 $10,611 $4,224 $3,912 1.7x 8.5x 2.1x 10.6x
Market Cap. Weighted Average: 4.4% 23.7% 2.8x 13.1x 2.7x 13.0x
Dialysis Services
DaVita HealthCare Partners Inc. $74.60 (2.0%) 9.7% $78.52 $66.60 $16,099 $8,505 $965 $24,321 $12,781 $2,400 $1,809 Dec-14 Dec-14 $13,600 $2,512 $1,899 1.9x 10.1x 1.8x 9.7x
Fresenius Medical Care AG & Co. KGAA 82.08 10.0% 23.1% 82.10 52.46 24,921 9,537 634 34,301 16,134 2,928 2,229 Dec-14 Dec-14 16,810 3,171 2,445 2.1x 11.7x 2.0x 10.8x
Number of Companies 2 Median: 4.0% 16.4% Total $41,020 $58,621 $28,915 $30,410 2.0x 10.9x 1.9x 10.3x
Market Cap. Weighted Average: 5.3% 17.8% 2.0x 11.1x 1.9x 10.4x
Home Care, Hospice, and Home Infusion
Home Care / Hospice:
Addus HomeCare Corporation $21.90 (4.5%) (21.9%) $29.45 $17.02 $238 $4 $13 $228 $313 $22 $18 Dec-14 Dec-14 $345 $27 $23 0.7x 10.4x 0.7x 8.3x
Almost Family Inc. 35.62 28.1% 28.4% 36.18 19.74 338 46 7 381 496 28 24 Dec-14 Dec-14 522 38 33 0.8x 13.7x 0.7x 9.9x
Amedisys Inc. 30.17 17.0% 73.2% 31.27 12.86 1,007 116 8 1,115 1,188 66 38 Dec-14 Dec-14 1,227 94 64 0.9x 16.8x 0.9x 11.9x
Chemed Corp. 116.48 6.3% 37.0% 117.36 80.94 1,980 148 14 2,113 1,456 197 171 Dec-14 Dec-14 1,513 222 186 1.5x 10.7x 1.4x 9.5x
LHC Group, Inc. 33.80 41.1% 41.9% 35.01 19.69 602 61 1 677 718 59 49 Dec-14 Dec-14 777 66 56 0.9x 11.5x 0.9x 10.2x
Number of Companies 5 Median: 17.0% 37.0% Total $4,165 $4,514 $4,171 $4,384 0.9x 11.5x 0.9x 9.9x
Market Cap. Weighted Average: 15.1% 42.4% 1.2x 12.5x 1.1x 10.1x
Home Infusion:
BioScrip, Inc. $6.11 (5.4%) (17.4%) $8.75 $5.26 $419 $424 $1 $843 $984 ($44) ($65) Dec-14 Dec-14 $1,088 $61 $27 0.9x NM 0.8x 13.9x
Number of Companies 1 Median: (5.4%) (17.4%) Total $419 $843 $984 $1,088 0.9x NM 0.8x 13.9x
Market Cap. Weighted Average: (5.4%) (17.4%) 0.9x NM 0.8x 13.9x
TEV/ Fwd MultiplesTEV/ LTM MultiplesCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
Estimate
PAGE |
HEALTHCARE & LIFE SCIENCES TRADING STATISTICS
11
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Provider-Based Services
As of February 27, 2015.(1) Figures are adjusted for minority interest.
Stock Price
% Change 52 Week
2/27/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Physician Practice Management
Multispecialty / Primary Care:
IPC Healthcare, Inc. $43.24 (1.5%) (15.8%) $52.60 $36.12 $747 $80 $15 $812 $694 $73 $67 Dec-14 Dec-14 $755 $72 $65 1.2x 11.2x 1.1x 11.3x
Number of Companies 1 Median: (1.5%) (15.8%) Total $747 $812 $694 $755 1.2x 11.2x 1.1x 11.3x
Market Cap. Weighted Average: (1.5%) (15.8%) 1.2x 11.2x 1.1x 11.3x
Specialty:
MEDNAX, Inc. $71.47 10.5% 18.8% $72.39 $49.82 $6,867 $569 $48 $7,383 $2,439 $559 $513 Dec-14 Dec-14 $2,706 $611 $549 3.0x 13.2x 2.7x 12.1x
Number of Companies 1 Median: 10.5% 18.8% Total $6,867 $7,383 $2,439 $2,706 3.0x 13.2x 2.7x 12.1x
Market Cap. Weighted Average: 10.5% 18.8% 3.0x 13.2x 2.7x 12.1x
Behavioral Health / Management
AAC Holdings, Inc. $35.99 25.1% NM $38.43 $17.91 $759 $29 $49 $745 $122 $17 $12 Dec-14 Dec-14 $172 $35 $25 6.1x NM 4.3x 21.2x
Acadia Healthcare Company, Inc. 63.23 1.8% 24.5% 66.88 38.76 4,202 1,096 94 5,204 1,005 205 173 Dec-14 Dec-14 1,607 365 301 5.2x 25.3x 3.2x 14.3x
Civ itas Solutions, Inc. 18.99 12.4% NM 20.00 11.88 702 650 5 1,346 1,286 134 67 Dec-14 Sep-14 1,371 151 71 1.0x 10.0x 1.0x 8.9x
Magellan Health, Inc. 64.07 4.1% 5.6% 64.43 52.37 1,708 272 255 1,639 3,760 220 170 Dec-14 Dec-14 4,441 279 136 0.4x 7.4x 0.4x 5.9x
Providence Serv ice Corp. 46.00 24.1% 73.6% 49.41 23.91 729 192 137 784 1,304 62 42 Sep-14 Dec-13 1,444 84 45 0.6x 12.6x 0.5x 9.4x
Universal Health Serv ices Inc. 113.35 9.0% 37.9% 115.64 73.06 11,215 3,279 32 14,756 8,065 1,475 1,099 Dec-14 Dec-14 9,323 1,605 1,220 1.8x 10.0x 1.6x 9.2x
Number of Companies 6 Median: 10.7% 31.2% Total $19,315 $24,475 $15,542 $18,358 1.4x 10.0x 1.3x 9.3x
Market Cap. Weighted Average: 8.3% 30.6% 2.5x 13.3x 1.9x 10.5x
Surgicenters / Rehabilitation
Surgery Centers1:
AmSurg Corp. $60.10 15.9% 37.7% $60.97 $40.00 $2,851 $2,251 $208 $5,061 $1,622 $340 $294 Dec-14 Dec-14 $2,446 $537 NA 3.1x 14.9x 2.1x 9.4x
Surgical Care Affiliates, Inc. 32.48 (0.4%) 5.3% 34.36 26.55 1,252 692 9 1,868 851 146 96 Dec-14 Dec-14 929 171 NA 2.2x 12.8x 2.0x 10.9x
Number of Companies 2 Median: 7.8% 21.5% Total $4,104 $6,929 $2,473 $3,375 2.7x 13.8x 2.0x 10.2x
Market Cap. Weighted Average: 10.9% 27.8% 2.8x 14.2x 2.1x 9.9x
Rehabilitation:
HEALTHSOUTH Corp. $43.46 7.1% 33.3% $46.45 $31.56 $3,814 $2,132 $67 $6,203 $2,374 $583 $475 Dec-14 Dec-14 $2,922 $683 $547 2.6x 10.6x 2.1x 9.1x
Select Medical Holdings Corporation 13.56 (4.4%) 22.2% 16.17 10.95 1,779 1,575 3 3,398 3,020 353 284 Dec-14 Dec-14 3,147 374 289 1.1x 9.6x 1.1x 9.1x
US Physical Therapy Inc. 42.39 9.3% 28.6% 44.00 29.56 520 36 14 581 301 53 46 Dec-14 Dec-14 324 49 NA 1.9x 11.0x 1.8x 11.8x
Number of Companies 3 Median: 7.1% 28.6% Total $6,113 $10,181 $5,696 $6,393 1.9x 10.6x 1.8x 9.1x
Market Cap. Weighted Average: 3.9% 29.6% 2.1x 10.4x 1.8x 9.3x
TEV/ LTM Multiples TEV/ Fwd MultiplesTotal Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
EstimateCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
PAGE |
M&A ACTIVITY
12
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Announced U.S. Healthcare & Life Sciences M&A
Enterprise Enterprise Value / LTM Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
hoh18.75
2/28/2015 Lancaster General Health - University of Pennsylvania - School of
Medicine, Endowment Arm
- - - - No
2/27/2015 Samaritan Regional Health System - University Hospitals Cleveland Medical
Center Inc.
- - - - No
2/27/2015 PHT Corporation Rho Capital Partners, Inc. eResearchTechnology, Inc. - - - - Yes
2/27/2015 MGT Capital Investments, Inc. (AMEX:MGT) Hudson Bay Capital Management LP Tera Group, Inc. - - - - Yes
2/27/2015 IO Practiceware, Inc. - Eli Global, LLC - - - - No
2/26/2015 Bionik Laboratories Corp. - Bionik Laboratories Inc. - - - - No
2/26/2015 Healthcare Solutions, Inc., Delaware Lovett Miller & Co.; Audax Group, Inc.;
Brazos Private Equity Partners, LLC;
C&B Capital, L.P.
Catamaran Corporation (TSX:CCT) $405.0 - - - No
2/26/2015 BioRx, LLC PCR Holdings, Inc.; Symmetric Capital,
LLC
Diplomat Pharmacy, Inc. (NYSE:DPLO) $350.0 1.5x 15.2x - No
2/26/2015 Hospital Associates Inc. Almon Company Inc. Claflin Serv ice Company - - - - No
2/26/2015 American Peptide Company, Inc. ILS Inc. Bachem Americas, Inc. - - - - No
2/25/2015 Reflectance Medical Inc. - Sotera Wireless, Inc. - - - - No
2/25/2015 Ty Cobb Regional Medical Center, LLC Ty Cobb Healthcare System, Inc. St. Mary's Health Care System Inc. - - - - No
2/25/2015 Mineral Area Osteopathic Hospital, Inc. Capella Healthcare, Inc. Parkland Health Center, Farmington
Community
- - - - No
2/25/2015 DR Systems, Inc. Blue Sea L.L.C. Merge Healthcare Incorporated
(NasdaqGS:MRGE)
$76.2 - - - No
2/24/2015 Abeking Associates, L.P. and Westrum Hanover,
L.P. and One Boyertown Properties LP
Heritage Senior Liv ing, LLC Griffin-American Healthcare REIT I I I , Inc. $87.5 - - - No
2/24/2015 Bracor, Inc. Summer Street Capital Partners, L.L.C. National Health Industries, Inc. $50.9 0.7x - - Yes
2/24/2015 Branch Medical Group, Inc. - Globus Medical, Inc. (NYSE:GMED) $52.9 2.3x 5.8x - No
2/24/2015 ECI-LATAM Inc. - NGFC Equities Inc. $0.8 5.5x - - No
2/24/2015 ProNerve LLC Waud Capital Partners, L.L.C.; Boulder
Intraoperative Monitoring, LLC;
Colorado Intraoperative Monitoring,
LLC; Denver South Intraoperative
Monitoring, LLC; Eugene
Intraoperative Monitoring, LLC;
ProNerve Technologies, LLC; Riverside
Intraoperative Monitoring, LLC
Specialty Care Serv ices Group, LLC $35.0 - - - Yes
2/24/2015 Community Hospitals in McCall and Mountain
Home
- St. Luke's Health System Ltd. - - - - No
2/23/2015 El Paso Children's Hospital Corporation - El Paso County Hospital District - - - - No
2/23/2015 Midwest Medical Transport Company, LLC - Panorama Point Partners Limited - - - - No
2/23/2015 Polypore International Inc., Separations Media
Segment
Polypore International Inc. (NYSE:PPO) 3M Company (NYSE:MMM) $1,037.0 4.9x - - No
2/23/2015 Summit Medical, Inc. - Shore Capital Partners, LLC - - - - No
2/23/2015 MRLB International, Inc. - Crosstex International, Inc. $10.0 - - - No
2/23/2015 Flexus Biosciences, Inc. Kleiner Perkins Caufield & Byers;
Celgene Corporation
(NasdaqGS:CELG); The Column Group
LLC
Bristol-Myers Squibb Company
(NYSE:BMY)
$1,250.0 - - - No
2/23/2015 RevenueMed, Inc. - Navigant Healthcare Cymetrix
Corporation
$26.0 - - - No
2/23/2015 Optimal Health Strategies, PC - ATI Physical Therapy Holdings, LLC - - - - No
2/20/2015 Salix Pharmaceuticals Ltd. (NasdaqGS:SLXP) Franklin Resources, Inc. (NYSE:BEN);
Paulson & Co. Inc.; Fidelity
Management & Research Company;
HealthCor Management L.P.; Visium
Asset Management, LLC
Valeant Pharmaceuticals International $12,792.2 11.3x 82.7x - No
2/19/2015 Capital Internal Medicine, LLC - IPC Healthcare, Inc. (NasdaqGS:IPCM) - - - - No
2/19/2015 TransEngen, Inc. - VirMedica, Inc. - - - - No
2/19/2015 Ivera Medical Corporation - 3M Company (NYSE:MMM) - - - - No
2/18/2015 Meritage Pharma, Inc. Domain Associates, L.L.C.; The Vertical
Group; Latterell Venture Partners
Shire plc (LSE:SHP) $244.9 - - - Yes
2/18/2015 Warm Springs Specialty Hospital Post Acute Medical, LLC Citizens Medical Center - - - - No
2/18/2015 AdvancedCath Inc. - TE Connectiv ity Ltd. (NYSE:TEL) $190.0 - - - No
2/18/2015 The Pain Center of Arizona, PC - Alliance Healthcare Serv ices, Inc.
(NasdaqGM:AIQ)
$48.7 1.6x - - No
2/18/2015 Planned Parenthood of Hawaii, Inc. - Planned Parenthood Of The Great
Northwest
- - - - No
2/18/2015 BioSET, Inc. The Vertical Group; PTV Healthcare
Capital
Ferring Pharmaceuticals Inc. - - - - Yes
2/18/2015 Dermatology Clinic in Livonia, Michigan - Steven K. Grekin , D.O., P.C. - - - - No
2/17/2015 Heartland Rehabilitation Hospital property Medistar Corporation; Cobalt Medical
Development
Carter Validus Mission Critical REIT I I ,
Inc.
$24.6 - - - No
PAGE |
M&A ACTIVITY
13
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
Announced U.S. Healthcare & Life Sciences M&A cont.
Enterprise Enterprise Value / LTM Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
2/17/2015 Overland Park Rehab, Heartland Rehabilitation
Hospital
Overland Park Rehab, LP Carter Validus Operating Partnership I I ,
LP
$24.6 - - - No
2/17/2015 Executive Care - Greystone Healthcare Management
Corp.
- - - - No
2/17/2015 Four AMI Free-Standing Imaging Centers Located
in Denver, Golden, Louisv ille and Thornton
- Centura Health, Inc.; Env ision
Radiology, LLC
- - - - No
2/16/2015 LightTouch Vein & Laser, Inc. (OTCPK:LTVL) - Grow Solutions, Inc. - - - - No
2/13/2015 Aptalis Pharmatech, Inc. Actavis plc (NYSE:ACT) TPG Capital, L.P. - - - - Yes
2/13/2015 Therapy Staff, LLC Orion International Consulting Group,
LLC
Aequor Healthcare Serv ices, LLC. - - - - No
2/12/2015 Greenwich Woods Limited Partnership - - $15.0 - - - No
2/12/2015 HealthLine Systems, Inc. - Sy.Med Development, Inc. $88.0 - - - No
2/12/2015 Molecular Response, LLC, PDX Business Unit Molecular Response, LLC Crown Bioscience, Inc. - - - - No
2/12/2015 Ruby Crest Emergency Medicine Inc. - Team Health Holdings, Inc. (NYSE:TMH) - - - - No
2/12/2015 Litho of America, LLC - United Medical Systems (DE), Inc. - - - - No
2/11/2015 BrightWhistle, Inc. Advanced Technology Development
Center; Atlanta Technology Angels;
Eastside Partners; Hamilton Ventures
LLC
Influence Health, Inc. - - - - No
2/10/2015 Extended Hand Home Care, LLC - Home Instead, Inc. - - - - No
2/10/2015 Actavis plc, Doryx Brand and Related Assets Actavis plc (NYSE:ACT) Mayne Pharma Group Limited
(ASX:MYX)
$50.0 0.8x - - No
2/10/2015 Deland Dermatology & Surgery - Advanced Dermatology & Cosmetic
Surgery Inc.
- - - - No
2/10/2015 Jaysec Technologies, LLC - ResMed Inc. (NYSE:RMD) - - - - No
2/10/2015 National Hospice Holdings, LLC TridentUSA Health Serv ices, LLC Hospice Compassus, Inc. - - - - No
2/10/2015 CORVA Kidney Center-Webster - ISD Renal, Inc. - - - - No
2/10/2015 Surgical Site Solutions, Inc. - CareFusion Corporation (NYSE:CFN) - - - - No
2/10/2015 Olive Medical Corporation Tech Coast Angels Inc. DePuy Synthes, Inc. - - - - No
2/10/2015 Community Allied Behavioral Health, Inc. - Lewis County Mental Health Association - - - - No
2/10/2015 Shin Wellness, L.L.C. - Flores Chiropractic Group, Inc. - - - - No
2/9/2015 On Call Consulting, Inc. - MiraMed Global Serv ices, Inc. - - - - No
2/9/2015 Capitol Emergency Associates and Central Texas
Hospitalists
- Team Health Holdings, Inc. (NYSE:TMH) - - - - No
2/9/2015 Formed Polymer Solutions LLC - Venta Medical, LLC - - - - No
2/9/2015 Omni Diagnostics, LLC - The Tomayko Group, LLC - - - - No
2/6/2015 Forest Haven Nursing Home, Inc. - Mid-Atlantic Health Care, LLC $8.6 - - - No
2/5/2015 Muir Wood Adolescent & Family Serv ices, LLC Constellation Behavioral Health, LLC - - - - - No
2/5/2015 Hospira Inc. (NYSE:HSP) NovaQuest Capital Management,
L.L.C.; T. Rowe Price Associates, Inc.
Pfizer Inc. (NYSE:PFE) $16,323.0 3.7x 21.9x 31.7x Yes
2/5/2015 Reynolds Rehabilitation Enterprises, Inc. - Orthology, Inc. - - - - No
2/5/2015 Data Innovations, LLC Battery Ventures Sunquest Information Systems, Inc. - - - - No
2/5/2015 SoftWriters, Inc. TA Associates Management, L.P. Roper Industries Inc. (NYSE:ROP) - - - - Yes
2/5/2015 CareSTAT Urgent Care Centers - MNR Industries LLC - - - - No
2/5/2015 Four Suburban Healthcare Clinics in Indiana,
Georgia and Pennsylvania
- The Sanders Trust $11.9 - - - No
2/5/2015 Pinehurst Senior Liv ing Conifer Realty, LLC Episcopal Seniorlife Communities, Inc. - - - - No
2/4/2015 Nutricap Labs, LLC - Twinlab Consolidated Holdings, Inc. $12.0 - - - No
2/4/2015 Annovation BioPharma, Inc. Atlas Venture L.P. The Medicines Company
(NasdaqGS:MDCO)
- - - - No
2/4/2015 APS Healthcare Puerto Rico, Inc. APS Healthcare, Inc. - $26.5 - - - No
2/4/2015 A Property Near Glen Lake - Ecumen Home Care, Inc.; Lifestyle
Communities, LLC
- - - - No
2/3/2015 Cardinal Hill Rehabilitation Hospital Kentucky Easter Seal Society, Inc. HEALTHSOUTH Corp. (NYSE:HLS) - - - - No
2/3/2015 Delaware Outpatient Center for Surgery, LLC - Surgery Partners LLC - - - - No
2/3/2015 University HealthSystem Consortium, Inc. - VHA Inc. - - - - No
2/2/2015 Southland Industrial Supply, Inc. - Northern Safety Co., Inc. - - - - No
2/2/2015 MediMedia Pharma Solutions MediMedia USA, Inc. ICON Public Limited Company
(NasdaqGS:ICLR)
$120.0 - - - No
2/2/2015 Nine-Clinic Physical Therapy Practice - US Physical Therapy Inc. (NYSE:USPH) $12.0 1.6x - - No
2/2/2015 Barren County Health Care Center, Inc. - Diversicare Healthcare Serv ices Inc.
(NasdaqCM:DVCR)
$7.0 - - - No
2/2/2015 Celleration, Inc. Affinity Capital Management; CID
Equity; Venture Investors, LLC; Prism
Capital Corporation; Aavin; Seneca
Partners Inc., Investment Arm; Triathlon
Medical Ventures; New Science
Ventures, LLC; CHV Capital, Inc.; HMA
Capital Partners; Heron Capital Equity
Partners; Tyco Sigma Limited; Cascade
Partners LLC
Alliqua BioMedical, Inc.
(NasdaqCM:ALQA)
$49.5 5.7x - - No
2/2/2015 Live Injury Free - TRIARQ Network, LLC - - - - No
2/1/2015 Alexian Brothers Medical Care Group, NFP - Alexian Brothers Health System - - - - No
2/1/2015 Emergency Physicians of St. Louis, P.C. - CEP America LLC - - - - No
Energy & Power
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
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OUR FIRM
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
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15
SOURCES
INDUSTRY UPDATE
HEALTHCARE & LIFE SCIENCES GROUP │ MARCH 2015
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