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SCOTT-MACON HEALTHCARE REVIEW:

OCTOBER 2017

October 2017 Healthcare Review 2

Healthcare Overview, Mean Revenue Multiples 4

Healthcare Overview, Mean EBITDA Multiples 5

Analysis of Selected Healthcare, Medical and 6

Pharmaceutical Merger and Acquisition Transactions

October 1—October 31, 2017

Analysis of Selected 12

Publicly-Traded Healthcare, Medical and

Pharmaceutical Companies

Scott-Macon Professionals’ 23

Representative Closed Transactions

Scott-Macon Contact Information 24 CO

NT

EN

TS

2

O C T O B E R 2 0 1 7

H E A L T H C A R E R E V I E W

Dear Clients and Friends,

Scott-Macon is pleased to present our

Healthcare Review covering October 2017.

If you haven’t done so already, please

email me at [email protected]

to automatically continue receiving our

publications in the future as we are transi-

tioning to digital publishing with email dis-

tribution.

Pages four and five represent a visual

snapshot of the average multiples for all of

the healthcare, medical and pharmaceutical

transactions that either closed or were an-

nounced during October, along with the av-

erage multiples for the major publicly-

traded healthcare, medical and pharmaceu-

tical companies.

In the Insurance Services space, be-

havioral-focused Magellan Healthcare

closed on its acquisition of Medicare/

Medicaid plan provider Senior Whole

Health for $400 million in a major diversi-

fication move. In Technology Services,

PBM giant Express Scripts announced its

$3.6 billion deal for specialty care provider

eviCore, formerly known as CareCore. In

addition, Allscripts closed on HIT company

PF2 for $185 million; and Murata of Japan

closed on Vios Medical in the wireless

monitoring space for $101 million. In Out-

sourcing Services, publicly-traded Fortive

closed on Landauer for $740 million, or

17x EBITDA; and Fidelity National Finan-

cial Ventures closed on T-System for $200

million.

In the Provider arena, Ambry Genet-

ics in the lab sector was acquired by Inno-

vation and Konica of Japan for $1 billion.

In the Non-Acute space, Concentra in the

workers’ comp sector announced its take-

over of U.S. Healthworks for $753 million,

and Canadian player New Vision closed on

IRIS in the eye care business for $93 mil-

lion. In Long-Term Care, BlueMountain

closed on a cluster of facilities from Kin-

3

dred for $700 million; and Sienna Senior

Living closed on Storey Oaks of Tulsa for

$130 million.

Turning next to Products, in Clinical

Devices Teleflex picked up Neo Tract in

the urology arena for $1.1 billion; publicly-

traded Integra LifeSciences closed on

DePuy Synthes’s Codman business for $1

billion; and Exactech went private for $625

million, or 14.6X EBITDA. In Commercial

Products, Alere got sold to Abbott for $7.6

billion, or 20.7X EBITDA; Catalent picked

up Cook Pharmica for $950 million; and

Quidel acquired divisions of Alere for $680

million. In the Pharmaceuticals sector,

Nanjing Xinjlekou of Japan announced its

deal for Dendreon Pharmaceuticals for

$905 million, and publicly-traded Emer-

gent BioSolutions closed on ACAM2000

for $125 million.

Following the mergers and acquisi-

tions analysis, we present an analysis of

publicly-traded Services, Providers, and

Products companies by sector. Mean

EBITDA multiples for Services companies

ended October at 16.0X (up from 15.1X in

September 2017); Providers at 12.2X

(down from 12.6X in September 2017);

and Products at 15.6X (unchangd from

15.6X in September 2017). Technology

services companies ended October at

23.7X, while Outsourcing services compa-

nies were 16.8X. The Insurance segment

EBITDA multiple came in at 12.4X (down

from 12.9X in September 2017).

Finally, contact information for the

Scott-Macon Healthcare Investment Bank-

ing Group Professionals appears on the

back cover. We welcome your call or email

to discuss your thoughts on this article.

Sincerely yours,

Nathan D. Cortright

Managing Director

Group Head – Healthcare Investment Banking

4

2.1x 1.6x2.9x

3.4x

NA

2.2x

Services Providers Products

OVERALL: Revenue Multiple

H E A L T H C A R E O V E R V I E W M E A N R E V E N U E M U L T I P L E S

2.8x1.4x 1.6x 1.3x 1.0x

NA NA NA NA NA

Labs Home Health & Hospice Non-Acute Long-Term Care Acute

PROVIDERS: Revenue Multiple

3.2x 3.1x 2.7x 2.9x1.7x

NA NA

3.4x

Clinical Devices Non-Clinical Devices Disposables Commercial

PRODUCTS: Revenue Multiple

2.3x3.2x

0.9xNA NA NA

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

1.4x

3.2x2.2x 1.9x 1.9x

NA

2.1x

4.8x

NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: Revenue Multiple

5

16.0x12.2x

15.6x17.0x

NA

14.8x

Services Providers Products

OVERALL: EBITDA Multiple

H E A L T H C A R E O V E R V I E W M E A N E B I T D A M U L T I P L E S

17.6x 17.5x 17.3x20.4x

11.9x

NA NA

20.7x

Clinical Non-Clinical Disposables Commercial

PRODUCTS: EBITDA Multiple

12.4x

23.7x

16.8x

10.3x

24.2x

NA NA

17.0x

NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: EBITDA Multiple

14.1x 15.1x11.0x

14.3x

8.2x

NA NA NA NA NA

Labs Home Health & Hospice Non-Acute Long-Term Care Acute

PROVIDERS: EBITDA Multiple

15.0x 13.6x10.2x

NA NA NA

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

6

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

10/31/2017 Magellan Healthcare, Inc. /

Senior Whole Health, LLC

$400.0 NA NA NA NA Operates as a health maintenance organization.

10/9/2017 Paramount Care, Inc. /

Health Plan of The Upper Ohio Valley Inc., Workers'

Compensation Divisions

NA NA NA NA NA Comprises workers' health insurance plans.

MEAN (INSURANCE) NA NA

MEDIAN (INSURANCE) NA NA

10/2/2017 Allscripts Healthcare, LLC /

PF2 EIS LLC and PF2 Enterprise Information Solutions Canada

ULC

$185.0 NA NA NA NA Comprises healthcare information technology

solutions.

Announced ANGLE Biosciences Inc.; ANGLE Europe Limited /

Axela Inc.

$4.9 NA NA NA NA Develops and delivers a portfolio of tools that

provide enhanced analysis of proteins, DNA, and

RNA.

10/11/2017 Azalea Health Innovations, Inc. /

Prognosis Innovation Healthcare

NA NA NA NA NA Provides clinical enterprise software for rural and

community hospitals and health systems.

10/24/2017 Bracket Global LLC /

Montentia, LLC

NA NA NA NA NA Provides mobile technologies for life science and

pharmaceutical companies.

10/16/2017 Convey Health Solutions, Inc. /

Gorman Health Group, LLC

NA NA NA NA NA Provides health care professional and software

services.

10/16/2017 Eye Care Leaders, LLC /

iMedicWare Inc.

NA NA NA NA NA Develops electronic medical record, enterprise

practice management, and ambulatory surgery

centers software for ophthalmologists.

10/24/2017 Imprivata, Inc. /

Caradigm USA LLC, Identity And Access Management Business

NA NA NA NA NA Comprises identity and access management

solutions, including governance, risk management

and compliance, and clinical and IT efficiency

solutions, such as single sign-on and multi-factor

authentication, to healthcare organizations.

10/3/2017 Medecision, Inc. /

AxisPoint Health, Platform Business

NA NA NA NA NA Comprises population health management

software platform and related clientele.

10/30/2017 Medicine-On-Time /

Clinical Support Services, Inc.

NA NA NA NA NA Provides medication management, care

management, and care coordination software and

services to Medicare, Medicaid, ACO, self-insured

employer, and pharmacy organizations.

Announced Medsphere Systems Corporation /

Stockell Healthcare Systems, Inc.

NA NA NA NA NA Provides software solutions and services to

manage revenue cycles for hospitals, behavioral

healthcare providers, and integrated health

networks.

10/13/2017 Murata Electronics North America, Inc. /

Vios Medical, Inc.

$101.7 NA NA NA NA Develops wireless monitoring platform for

intensive healthcare applications.

Announced Oz Parent, Inc. /

eviCore healthcare, LLC

$3,600.0 NA NA NA NA Develops and operates evidence-based cloud

centric healthcare solutions for managed care

organizations, self-insured entities, and risk-

bearing provider organizations.

10/12/2017 Paradigm Management Services, LLC /

ForeSight Medical, LLC

NA NA NA NA NA Designs and develops cost containment software

that provides suite of surgical management

solutions in the workers' compensation

marketplace.

10/3/2017 Trilliant Health, Inc. /

Expression Health Analytics LLC

NA NA NA NA NA Operates a big data platform that provides

insights needed to make strategic decisions for

healthcare organizations and providers.

10/11/2017 Unknown Buyer /

Practice Insight, LLC

NA NA NA NA NA Provides electronic data interchange solutions to

the healthcare industry.

10/12/2017 UPMC Work Partners /

HCMS Group LLC

NA NA NA NA NA Provides cloud based health information service.

10/5/2017 VitalHub Corp. (TSXV:VHI) /

B Sharp Technologies Inc.

$2.8 $1.4 NA 2.1x NA Designs and develops specialty documentation

and case management software.

10/3/2017 WebPT, Inc. /

Strive Labs, Inc.

NA NA NA NA NA Develops and offers patient relationship

management platform for rehab therapy

providers.

10/5/2017 Welltok, Inc. /

Tea Leaves Health, LLC

$90.0 NA NA NA NA Provides SaaS-based communication solutions for

the healthcare industry.

MEAN (TECHNOLOGY) 2.1x NA

MEDIAN (TECHNOLOGY) 2.1x NA

10/20/2017 AHS Staffing, LLC /

Advance Med, LLC

NA NA NA NA NA Offers healthcare staffing services.

10/10/2017 Avizia, Inc. /

Carena, Inc.

NA NA NA NA NA Provides medical care via phone, Webcam, or

house call to diagnose and treat patients’ injuries

or illness.

10/24/2017 Century Ambulance Service, Inc. /

St. Vincent Ambulance Services

NA NA NA NA NA Provides dedicated transport services to St.

Vincent HealthCare facilities.

SERVICES - INSURANCE

SERVICES - TECHNOLOGY

SERVICES - OUTSOURCING

ANALYSIS OF SELECTED HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS MERGER & ACQUISITION TRANSACTIONS1

(CLOSED OR ANNOUNCED BETWEEN OCTOBER 1—OCTOBER 31, 2017)

($ Millions Except Per Share Data)

7


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Community Care Health Network, Inc. /

LP Health Services, LLC

NA NA NA NA NA Provides case management services.

Announced ExlService Holdings, Inc. (NasdaqGS:EXLS) /

Health Integrated, Inc.

NA NA NA NA NA Provides care management services that enable

health plans to manage their most vulnerable

members.

10/26/2017 Factory-CRO bv /

MileStone Research Cro, Inc.

NA NA NA NA NA Engages in clinical research and reimbursement

solutions for medical devices and biological

industry.

10/17/2018 Fidelity National Financial Ventures (NYSE:FNFV) /

T-System Inc.

$200.0 NA NA NA NA Provides clinical, financial, operational, and

regulatory solutions for hospitals and urgent care

clinics.

10/18/2017 Fortive Corporation (NYSE:FTV) /

Landauer, Inc. (NYSE:LDR)

$740.7 $153.4 $43.7 4.8x 17.0x Provides technical and analytical services, and

outsourced medical physics services.

10/16/2017 Mobile Science Technologies Inc. /

DxT Medical, LLC

$0.4 NA NA NA NA Provides pharmacogenetic testing, genetic

screening, and blood toxicology testing services.

Announced Sunset Dental Technologies, LLC /

Dental Technology Designs, Inc.

NA NA NA NA NA Provides information technology consulting

services and digital solutions to the dental

community.

10/16/2017 Terra Health Network Inc. /

Canna Relief Consulting Canada Inc.

$0.2 NA NA NA NA Provide medical marijuana advice and arrange

free consultations with doctors.

10/30/2017 U.S. Healthworks, Inc. /

Workforce Health

NA NA NA NA NA Provides occupational health services, employee

evaluation and screening, corporate wellness

programs, and injury prevention services.

Announced Unknown Buyer /

Inspira Financial Inc., Billing Division

$10.0 NA NA NA NA Comprises billing and collection services,

including consulting and reporting division for

behavioral health and substance abuse treatment

facilities.

10/19/2017 Webster Capital /

Cirrus Medical Staffing, Inc.

$39.4 NA NA NA NA Operates as a nurse staffing company.

10/17/2017 WuXi AppTec Co., Ltd. /

Cycle Solutions, Inc.

NA NA NA NA NA Provides contract research services for

pharmaceutical, biotechnology, and medical

device industries.

MEAN (OUTSOURCING) 4.8x 17.0x

MEDIAN (OUTSOURCING) 4.8x 17.0x

10/10/2017 Staywell Company, LLC /

MedHelp International, Inc.

NA NA NA NA NA Owns and operates an online health community

to share medical information with others in need.

MEAN (INFORMATION) NA NA

MEDIAN (INFORMATION) NA NA

MEAN (SERVICES) 3.4x 17.0x

MEDIAN (SERVICES) 3.4x 17.0x

10/31/2017 CiToxLAB Group /

Xenometrics LLC

NA NA NA NA NA A non-clinical contract laboratory that provides

non-clinical research services to the

pharmaceutical, biotechnology, veterinary, and

agro-chemical industries.

10/19/2017 Innovation Network Corporation of Japan; Konica Minolta

Healthcare Americas, Inc. /

Ambry Genetics Corp.

$1,000.0 NA NA NA NA Provides clinical diagnostics testing services for

genetic diseases.

10/26/2017 inviCRO, LLC /

Core Clinical, Inc.

NA NA NA NA NA Operates as a medical imaging core laboratory.

10/5/2017 National Dentex Labs /

NDX Albensi

NA NA NA NA NA Operates a dental laboratory.

10/26/2017 Ovation Fertility /

Fertility Answers, Vitro Fertilization Laboratory Services in Baton

Rouge and Lafayette, Louisiana

NA NA NA NA NA Comprises fertilization laboratory services.

10/2/2017 Prescient Medicine Holdings LLC /

Pharmacogenetics Diagnostic Laboratory, LLC, Substantially all of

the assets

$0.7 NA NA NA NA Comprises commercial and research laboratory.

10/30/2017 Quest Diagnostics Incorporated (NYSE:DGX) /

California Laboratory Associates, Certain Assets

NA NA NA NA NA Comprises certain asset of a medical laboratory.

Announced Quest Diagnostics Incorporated (NYSE:DGX) /

Cleveland HeartLab, Inc.

NA NA NA NA NA Operates as a clinical laboratory and

cardiovascular disease management company.

MEAN (LABS) NA NA

MEDIAN (LABS) NA NA

10/2/2017 Associated Home Care LLC /

Intercity Home Care Inc.

NA NA NA NA NA Provides home health care services for the elderly

and disabled.

10/16/2017 Invo HealthCare Associates, Inc. /

Autism Home Support Services Inc.

NA NA NA NA NA Provides at-home and center-based evidence-

based therapy and counseling services for

children with autism spectrum disorders and their

families.

SERVICES - INFORMATION

PROVIDERS - LABS

PROVIDERS - HOME HEALTH & HOSPICE

8


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

10/6/2017 Northern Family Home Care LLC /

AME, LLC

$1.0 NA NA NA NA Provides in-home care and services to seniors.

MEAN (HOME HEALTH & HOSPICE) NA NA

MEDIAN (HOME HEALTH & HOSPICE) NA NA

10/11/2017 CCMP Capital Advisors, LP /

Eating Recovery Center LLC

NA NA NA NA NA Provides eating disorder treatment services for

men, women, children, and adolescents.

10/25/2017 Civitas Solutions, Inc. (NYSE:CIVI) /

Mentis Neuro Rehabilitation LP

NA NA NA NA NA Provides post-acute neuro-rehabilitation services

to persons who have sustained an acquired brain

injury or conditions that restrict mobility, social

interaction, communication, employability, and re-

entry into their homes and communities.

Announced Concentra, Inc. /

U.S. Healthworks, Inc.

$753.0 NA NA NA NA Owns and operates occupational healthcare and

urgent care centers.

10/2/2017 EnteroMedics Inc. (NasdaqCM:ETRM) /

ReShape Medical Inc.

NA NA NA NA NA Provides a non-surgical weight loss procedure

that helps people to lose weight.

Announced FFL Partners, LLC; Lee Equity Partners, LLC /

Summit Behavioral Healthcare, LLC

NA NA NA NA NA Develops and operates a network of behavioral

health centers.

Announced G Medical Innovations USA Inc. /

CardioStaff Diagnostic Services Inc.

$4.2 NA NA NA NA Operates an independent diagnostic testing

facility that provides physicians practices and

hospitals with patient medical monitoring services.

10/10/2017 Halifax Group /

Delphi Behavioral Health Group, LLC

NA NA NA NA NA Provides addiction and mental health treatment

programs.

10/4/2017 KKR & Co. L.P. (NYSE:KKR) /

Covenant Surgical Partners, Inc.

NA NA NA NA NA Owns and operates ambulatory surgery centers.

10/6/2017 Lindsay Goldberg /

Women's Care Florida, LLC

NA NA NA NA NA Provides women healthcare services.

10/24/2017 MB2Dental Solutions /

Taos Dental Group, LLC

NA NA NA NA NA Offers dental care services.

10/25/2017 Meridian Behavioral Health LLC /

New Beginnings Minnesota, LLC

NA NA NA NA NA Provides inpatient and outpatient substance

abuse care.

10/2/2017 MSI Bel Air, LLC /

Chiroplus of Fullerton, LLC

NA NA NA NA NA Provides chiropractic services.

10/1/2017 Navicent Health Inc. /

Navicent Health Baldwin, Inc.

$12.2 NA NA NA NA Operates as a healthcare facility.

10/24/2017 New Look Vision Group Inc. (TSX:BCI) /

IRIS The Visual Group Inc.

$92.9 NA NA NA NA Provides eye care services for patients.

Announced On4 Communications, Inc. (OTCPK:ONCI) /

New York Dental Group LLP

NA NA NA NA NA Provides dental services.

10/4/2017 Pain Specialists of America LLC /

Nonclinical Assets of Pain Specialists of Austin and Central Texas

Pain Center

NA NA NA NA NA Comprise pain management services.

10/4/2017 Physical Rehabilitation Network, LLC /

Armada Physical Therapy Of Albuquerque LLC

NA NA NA NA NA Operates physical therapy centers.

10/17/2017 Predictive Service, LLC /

Mid Atlantic Infrared Services, Inc.

NA NA NA NA NA Provides diagnostic predictive testing, including

infrared, vibration and ultrasonic diagnostic

services.

Announced Prelude Fertility Inc. /

Houston Fertility Institute, PLLC

NA NA NA NA NA Owns and operates a chain of In Vitro Fertilization

centers.

Announced Prelude Fertility Inc. /

Vivere Health, LLC

NA NA NA NA NA Owns and operates ambulatory surgery centers

and in vitro fertilization facilities.

10/24/2017 Sanders Trust LLC /

Multi-Specialty Ambulatory Surgery Center in Pascagoula,

Mississippi

$7.8 NA NA NA NA Comprises a multi-specialty ambulatory surgery

center.

10/24/2017 Southwest Vision Center Inc. /

Alan K Montgomery, OD,PLC.

NA NA NA NA NA Operates as a vision care center.

10/13/2017 SSM Physical Therapy /

St. Louis Physical Therapy

NA NA NA NA NA Provide health care services.

10/16/2017 U.S. Dermatology Partners /

Lakeway Dermatology; Medical Center Dermatology

NA NA NA NA NA Provide general dermatology, as well as surgical

and cosmetic dermatology services.

10/1/2017 WellStone Inc. /

Mental Healthcare of Cullman

NA NA NA NA NA Offers treatment for mental illness of children and

older adults.

MEAN (NON-ACUTE) NA NA

MEDIAN (NON-ACUTE) NA NA

10/2/2017 BlueMountain Capital Management LLC /

Kindred Healthcare Operating, Inc., Skilled Nursing Facility

Business

$700.0 NA NA NA NA Comprises nursing facility business operations.

10/1/2017 CareTrust REIT, Inc. (NasdaqGS:CTRE) /

Seven Skilled Nursing Facilities in Idaho

$65.5 NA NA NA NA Comprises seven skilled nursing facilities.


Three Skilled Nursing Facilities in California

$69.0 NA NA NA NA Comprises a business operation that operates

nursing facilities.


Three Skilled Nursing Facilities in Washington and Three Assisted

Living Communities in Virginia

$30.4 NA NA NA NA Comprises healthcare facilities.

Announced InnovAge Home Care /

NewCourtland Elder Services, Living Independently for Elders

(LIFE) Program

NA NA NA NA NA Comprises medical and support services for

seniors.

PROVIDERS - NON-ACUTE

PROVIDERS - LONG-TERM CARE

9


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

10/4/2017 Sagora Senior Living, Inc. /

Storey Oaks of Tulsa

NA NA NA NA NA Comprises a memory care community.

Announced Sienna Senior Living Inc. (TSX:SIA) /

Waterford Retirement Residence Barrie; Waterford Retirement

Residence Kingston

$130.9 NA NA NA NA Comprises two assisted living and memory care

communities.


Pacific Pointe Active Senior Living

$9.2 NA NA NA NA Comprises a 110-unit community for senior living.

MEAN (LONG-TERM CARE) NA NA

MEDIAN (LONG-TERM CARE) NA NA

10/2/2017 Bethesda Health, Inc. /

Baptist Health South Florida, Inc.

NA NA NA NA NA Operates medical plazas, surgical facilities, and

hospitals.

10/31/2017 HCA Healthcare, Inc. (NYSE:HCA) /

Sebring Hospital Management Associates, LLC

NA NA NA NA NA Operates as a hospital.

Announced Loyola University Health System /

MacNeal Health Network, Inc.

NA NA NA NA NA Operates a hospital.

10/2/2017 Medical City Healthcare /

Weatherford Texas Hospital Company, LLC

NA NA NA NA NA Operates a hospital.

10/2/2017 Piedmont Healthcare, Inc. /

Rockdale Medical Center, Inc.

NA NA NA NA NA Operates an acute-care hospital that offers a

range of in-patient and out-patient services.


L.V. Stabler Memorial Hospital

NA NA NA NA NA Operates a hospital that provides healthcare

services.

10/2/2017 UPMC Susquehanna /

Clinton Hospital Corporation; Sunbury Hospital Company, LLC

NA NA NA NA NA Operate healthcare facilities.

Announced Wake Forest Baptist Medical Center /

High Point Regional Health System Inc.

NA NA NA NA NA Provides health care services to medical and

surgical patients.

MEAN (ACUTE) NA NA

MEDIAN (ACUTE) NA NA

MEAN (PROVIDERS) NA NA

MEDIAN (PROVIDERS) NA NA

10/10/2017 Boston Scientific Corporation (NYSE:BSX) /

Apama Medical, Inc.

$300.0 NA NA NA NA Manufactures catheter ablation technology

devices for the treatment of atrial fibrillation.

10/5/2017 BTG plc (LSE:BTG) /

Roxwood Medical, Inc.

$80.0 NA NA NA NA Focuses on developing tools for cardiac cath labs

to tackle complex cases in interventional

cardiology.

10/2/2017 Dynatronics Corporation (NasdaqCM:DYNT) /

Bird and Cronin, Inc.

$15.5 $24.0 NA 0.6x NA Manufactures orthopedic soft goods, sports

medicine related items, and specialty patient care

products for healthcare professionals and their

patients.

10/18/2017 EQT Partners AB /

Clinical Innovations, LLC

NA NA NA NA NA Engages in the research, development, and

manufacturing of medical devices that improve the

lives of mothers and their babies.

Announced Ferring Holding SA /

Antares Pharma, Inc., Worldwide Rights Including Certain Fixed

Assets, for ZOMAJET

$14.5 NA NA NA NA Comprises of needle-free auto injector device

manufacturing business.

10/2/2017 Integra LifeSciences Holdings Corporation (NasdaqGS:IART) /

DePuy Synthes, Inc., Codman Neurosurgery Business

$1,045.0 $370.0 $114.7 2.8x 9.1x Offers research, development, manufacture,

marketing, distribution, and sale of healthcare

equipment for neurosurgery procedures.

Announced Jordan Company, L.P.; Linden LLC /

Young Innovations Inc.

NA NA NA NA NA Engages in the development, manufacture, and

marketing of supplies and equipment used by

dentists, dental hygienists, dental assistants, and

consumers.

10/23/2017 K2M Group Holdings, Inc. (NasdaqGS:KTWO) /

Cardinal Spine, LLC, Palo Alto Cervical Static Corpectomy Cage

System

NA NA NA NA NA Comprises a medical device.

10/24/2017 Katena Products, Inc. /

Rhein Medical, Inc.

NA NA NA NA NA Manufactures and distributes ophthalmic surgical

instruments.

10/6/2017 Natus Medical Incorporated (NasdaqGS:BABY) /

Integra LifeSciences Holdings Corporation, Neurosurgery Business

Assets

$47.5 $50.0 NA 1.0x NA Comprises neurosurgery medical instruments

manufacturing business.

10/2/2017 NN, Inc. (NasdaqGS:NNBR) /

DRT Medical LLC

NA NA NA NA NA Distributes precision manufactured medical

instruments and orthopedic implants.

10/2/2017 OCULUS Surgical, Inc. /

Insight Instruments, Inc.

NA NA NA NA NA Develops, produces, and sells instruments to

ophthalmic surgeons.

10/27/2017 Salter Labs Inc. /

RespCare, Inc.

NA NA NA NA NA Provides respiratory products.

10/31/2017 Siemens Healthineers, Inc. /

Epocal Inc.

NA NA NA NA NA Offers a wireless bedside blood testing solution

that provides lab results directly to a hand-held

mobile computer.

Announced Smith & Nephew plc (LSE:SN.) /

Rotation Medical Inc.

$210.0 NA NA NA NA Developed a minimally invasive rotator cuff

implant system for the treatment of rotator cuff

disease.

10/2/2017 Teleflex Urology Limited /

NeoTract, Inc.

$1,100.0 NM NA NM NA Develops and manufactures minimally invasive

medical devices that address unmet needs in the

field of urology.

PROVIDERS - ACUTE

PRODUCTS - CLINICAL DEVICES

10


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced TPG Capital, L.P. /

Exactech, Inc. (NasdaqGS:EXAC)

$625.7 $264.4 $42.8 2.4x 14.6x Develops, manufactures, markets, distributes, and

sells orthopedic implant devices, related surgical

instrumentation, and biologic services.

10/4/2017 Vance Street Capital LLC /

Fermatex Vascular Technologies, LLC

NA NA NA NA NA Manufactures medical catheter components.

10/20/2017 Vyaire Medical, Inc. /

Revolutionary Medical Devices, Inc.

NA NA NA NA NA Designs and develops airway management

products to improve patient outcomes from

anesthesia.

MEAN (CLINICAL DEVICES) 1.7x 11.9x

MEDIAN (CLINICAL DEVICES) 1.7x 11.9x

10/6/2017 CMR Naviscan Corporation /

Gamma Medica, Inc.

NA NA NA NA NA Develops, manufactures, and markets digital

molecular imaging systems.

MEAN (NON-CLINICAL DEVICES) NA NA

MEDIAN (NON-CLINICAL DEVICES) NA NA

MEAN (DISPOSABLES) NA NA

MEDIAN (DISPOSABLES) NA NA

10/3/2017 Abbott Laboratories (NYSE:ABT) /

Alere Inc. (NYSE:ALR)

$7,634.3 $2,377.6 $369.3 3.2x 20.7x Provides point-of-care diagnostics and services for

infectious disease, cardiometabolic disease, and

toxicology.

10/23/2017 Catalent Pharma Solutions, Inc. /

Cook Pharmica LLC

$950.0 NM NA NM NA Provides contract development and

manufacturing services to pharmaceutical and

biopharmaceutical companies.

10/6/2017 Quidel Corporation (NasdaqGS:QDEL) /

Alere Inc., Triage MeterPro Assets and B-type Naturietic Peptide

Assay Business

$680.0 $197.0 NA 3.5x NA Comprises diagnostic tests for infectious

diseases.

MEAN (COMMERCIAL) 3.4x 20.7x

MEDIAN (COMMERCIAL) 3.4x 20.7x

Announced Hildred Capital Partners, LLC /

Crown Laboratories, Inc.

NA NA NA NA NA Manufactures and markets products like

shampoos, lotions and moisturizers referred by

dermatologists and oncologists.

MEAN (CONSUMER PRODUCTS) NA NA

MEDIAN (CONSUMER PRODUCTS) NA NA

10/31/2017 Ally Bridge Group; Ally Bridge Lb Healthcare Master Fund Ltd;

Ascendent Capital Partners; Ascendent Capital Partners II, L.P.;

Avengers Limited; Bank Of China Group Investment Limited;

Boying Investments Limited; GL Trade Investment Limited /

SciClone Pharmaceuticals, Inc. (NasdaqGS:SCLN)

NA NA NA NA NA Provides therapies for oncology, infectious

diseases, and cardiovascular disorders.

Announced American Patriot Brands, Inc. (OTCPK:GRLD) /

SF Farms; SF Finest

$1.4 NA NA NA NA Own and operate medical cannabis grow facilities.

Announced Amneal Pharmaceuticals LLC /

Impax Laboratories, Inc. (NasdaqGS:IPXL)

NA NA NA NA NA Develops, manufactures, and markets

bioequivalent pharmaceutical products.

10/31/2017 Cannabis Wheaton Income Corp. (TSXV:CBW) /

RockGarden Medicinals Inc.

$21.3 NA NA NA NA Produces medical cannabis products.

Announced CGX Life Sciences Inc. /

GreenMart of Nevada NLV, LLC

$18.0 NA NA NA NA Engages in cultivation, production, and wholesale

of recreational and medical cannabis.

Announced Corden Pharma Colorado, Inc. /

Hospira Boulder, Inc.

NA NA NA NA NA Manufactures active pharmaceutical ingredients

and intermediate products with specialized

capabilities in small- to medium-scale highly

potent and cytotoxic APIs.

10/6/2017 Emergent BioSolutions Inc. (NYSE:EBS) /

ACAM2000

$125.0 NA NA NA NA Comprises the business of manufacturing and

distributing vaccine to cure smallpox.

10/23/2017 Finch Therapeutics Group /

Crestovo LLC

NA NA NA NA NA Engages in developing of Full-Spectrum

Microbiota that harnesses the human gut

microbiome.

Announced Future Farm Technologies Inc. (CNSX:FFT) /

Cannatech LLC, 120 Acre Licensed Industrial Hemp Farm in

Amity, Maine

$0.2 NA NA NA NA Comprises business unit that cultivates and

produces hemp and cannabis.

Announced Nanjing Xinjiekou Department Store Co., Ltd. (SHSE:600682) /

Dendreon Pharmaceuticals, Inc.

$905.7 NA NA NA NA Discovers, develops, manufactures, and sells

novel therapeutics products.

Announced NuLife Sciences, Inc. (OTCPK:NULF) /

Ensysce Biosciences, Inc.

NA NA NA NA NA Engages in the research on the use of fullerene

carbon nanotubes for novel therapeutic

applications in the area of cancer treatment.

Announced PDL BioPharma, Inc. (NasdaqGS:PDLI) /

Neos Therapeutics, Inc. (NasdaqGM:NEOS)

NA NA NA NA NA Engages in the development, manufacture, and

commercialization of products for the treatment of

attention deficit hyperactivity disorder.

PRODUCTS - NON-CLINICAL DEVICES

PRODUCTS - DISPOSABLES

PRODUCTS - COMMERCIAL

PRODUCTS - CONSUMER

PRODUCTS - PHARMACEUTICALS

11


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

10/2/2017 Stallergenes Greer Plc (ENXTPA:STAGR) /

Medic Savoure Ltd.

NA NA NA NA NA Manufactures allergy immunotherapy therapies.


Apicore, LLC

NA NA NA NA NA Provides process R&D and API manufacturing

services for the pharmaceutical industry.

MEAN (PHARMACEUTICALS) NA NA

MEDIAN (PHARMACEUTICALS) NA NA

MEAN (DISTRIBUTION) NA NA

MEDIAN (DISTRIBUTION) NA NA

MEAN (PRODUCTS) 2.2x 14.8x

MEDIAN (PRODUCTS) 2.6x 14.6x

1) Source: Financial Information from SEC filings and other publicly-available sources

2) EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

3) NA: Not Available

4) NM: Not Meaningful

PRODUCTS - DISTRIBUTION

12

ANALYSIS OF SELECTED PUBLICLY-TRADED

HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS COMPANIES1

(OCTOBER 31, 2017)

($ Millions Except Per Share Data)

Company Name (Ticker Symbol)

Stock

Price Market Cap2 TEV3

LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Aetna Inc. (NYSE:AET) 170.03 55,446.78 59,912.78 61,410.00 5,985.00 5.27 1.0x 10.0x NM

Amerisafe, Inc. (NasdaqGS:AMSF) 64.70 1,244.83 1,164.45 378.83 93.28 3.36 3.1x 12.5x 19.3x

Anthem, Inc. (NYSE:ANTM) 209.21 53,716.87 64,756.77 89,055.50 5,716.40 11.08 0.7x 11.3x 18.9x

Centene Corporation (NYSE:CNC) 93.67 16,164.31 16,690.31 44,870.00 2,221.00 4.84 0.4x 7.5x 19.4x

Cigna Corporation (NYSE:CI) 197.22 49,655.68 50,866.68 41,029.00 4,602.00 9.13 1.2x 11.1x 21.6x

CNO Financial Group, Inc. (NYSE:CNO) 23.97 4,021.26 7,014.86 4,212.00 1,016.10 2.78 1.7x 6.9x 8.6x

Humana Inc. (NYSE:HUM) 255.35 36,902.47 33,860.47 53,868.00 2,661.00 12.16 0.6x 12.7x 21.0x

Independence Holding Company (NYSE:IHC) 27.15 405.46 388.12 310.93 28.93 1.82 1.2x 13.4x 14.9x

Molina Healthcare, Inc. (NYSE:MOH) 67.83 3,874.31 2,883.31 19,014.00 151.00 (5.41) 0.2x 19.1x NM

ProAssurance Corporation (NYSE:PRA) 56.05 2,993.82 3,302.73 894.70 202.75 2.71 3.7x 16.3x 20.7x

Triple-S Management Corporation (NYSE:GTS) 24.01 582.77 443.23 2,943.74 21.98 0.75 0.2x 20.2x NM

Trupanion, Inc. (NasdaqGM:TRUP) 28.16 844.67 826.38 228.50 2.34 (0.08) 3.6x NM NM

UnitedHealth Group Incorporated (NYSE:UNH) 210.22 203,253.29 218,416.29 196,633.00 16,138.00 8.81 1.1x 13.5x 23.9x

WellCare Health Plans, Inc. (NYSE:WCG) 197.74 8,803.69 5,106.39 16,180.30 700.30 7.97 0.3x 7.3x 24.8x

MEAN (INSURANCE) 1.4x 12.4x 19.3x

MEDIAN (INSURANCE) 1.0x 12.5x 20.0x

Allscripts Healthcare Solutions, Inc. (NasdaqNM:MDRX) 13.48 2,434.65 4,149.00 1,714.40 183.48 (1.16) 2.4x 22.6x NM

Castlight Health, Inc. (NYSE:CSLT) 3.85 514.89 433.25 124.31 (51.97) (0.48) 3.5x NM NM

Cerner Corporation (NasdaqNM:CERN) 67.52 22,444.65 22,127.61 4,987.91 1,387.39 2.01 4.4x 15.9x NM

CompuGroup Medical Societas Europaea (DB:COP) 57.28 2,848.39 3,238.43 665.40 125.89 1.05 4.9x 25.7x NM

Computer Programs and Systems, Inc. (NasdaqNM:CPSI) 30.15 404.89 546.55 263.42 35.64 0.44 2.1x 15.3x NM

Craneware plc (AIM:CRW) 20.87 557.59 503.26 57.80 17.31 0.49 NM 29.1x NM

Evolent Health, Inc. (NYSE:EVH) 16.25 1,212.87 1,244.48 409.23 (45.99) (1.11) 3.0x NM NM

HealthEquity, Inc. (NasdaqGS:HQY) 50.22 3,037.74 2,827.44 202.47 61.84 0.67 NM NM NM

Inovalon Holdings, Inc. (NasdaqGS:INOV) 16.75 2,442.35 2,162.32 430.83 73.24 0.12 NM 29.5x NM

Medidata Solutions, Inc. (NasdaqGS:MDSO) 75.23 4,401.18 4,277.74 528.79 82.13 0.70 NM NM NM

Model N, Inc. (NYSE:MODN) 14.55 423.30 428.50 124.07 (29.98) (1.35) 3.5x NM NM

Quality Systems, Inc. (NasdaqGS:QSII) 14.07 895.86 924.31 523.78 59.18 0.43 1.8x 15.6x NM

RaySearch Laboratories AB (publ) (OM:RAY B) 22.13 758.74 751.62 69.36 25.26 0.52 NM 29.8x NM

Simulations Plus, Inc. (NasdaqCM:SLP) 16.30 281.10 272.85 21.83 9.15 0.32 NM 29.8x NM

Veeva Systems Inc. (NYSE:VEEV) 60.94 8,569.17 7,844.52 617.44 154.55 0.78 NM NM NM

MEAN (TECHNOLOGY) 3.2x 23.7x NM

MEDIAN (TECHNOLOGY) 3.2x 25.7x NM

SERVICES - TECHNOLOGY

SERVICES - INSURANCE

13


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Advisory Board Company (NasdaqGS:ABCO) 53.93 2,197.93 2,656.07 799.15 120.83 2.63 3.3x 22.0x 20.5x

AMN Healthcare Services, Inc. (NYSE:AMN) 43.90 2,104.86 2,419.52 1,967.24 240.50 2.39 1.2x 10.1x 18.4x

athenahealth, Inc. (NasdaqGS:ATHN) 127.88 5,117.46 5,271.16 1,179.30 130.10 0.77 4.5x NM NM

BioScrip, Inc. (NasdaqNM:BIOS) 2.53 322.51 836.25 874.73 35.35 (0.62) 1.0x 23.7x NM

Cegedim SA (ENXTPA:CGM) 38.88 542.18 820.41 520.20 38.26 (0.85) 1.6x 21.4x NM

CorVel Corporation (NasdaqNM:CRVL) 60.00 1,125.34 1,087.21 536.05 71.54 1.68 2.0x 15.2x NM

Cross Country Healthcare, Inc. (NasdaqNM:CCRN) 13.65 498.15 500.25 867.90 39.27 0.05 0.6x 12.7x NM

eHealth, Inc. (NasdaqGS:EHTH) 25.38 470.43 419.05 177.28 (18.07) (1.15) 2.4x NM NM

Envision Healthcare Corporation (NYSE:EVHC) 42.60 5,080.66 11,976.96 7,206.90 1,050.90 (0.15) 1.7x 11.4x NM

EPS Holdings, Inc. (TSE:4282) 19.59 902.98 776.50 526.58 82.39 0.84 1.5x 9.4x 23.2x

Express Scripts Holding Company (NasdaqNM:ESRX) 61.29 34,713.00 46,230.70 99,549.10 7,133.20 6.09 0.5x 6.5x 10.1x

Healthcare Services Group, Inc. (NasdaqNM:HCSG) 52.89 3,875.41 3,819.02 1,765.29 132.41 1.19 2.2x 28.8x NM

HMS Holdings Corp. (NasdaqNM:HMSY) 19.24 1,617.07 1,805.70 498.31 90.68 0.27 3.6x 19.9x NM

ICON Public Limited Company (NasdaqGS:ICLR) 118.86 6,436.53 6,492.85 1,738.43 399.07 5.16 3.7x 16.3x 23.0x

INC Research Holdings, Inc. (NasdaqGS:INCR) 57.15 5,916.52 6,219.05 1,032.70 226.74 1.63 NM 27.4x NM

Magellan Health, Inc. (NasdaqNM:MGLN) 85.30 2,018.93 2,379.53 5,407.55 247.21 3.78 0.4x 9.6x 22.6x

On Assignment, Inc. (NYSE:ASGN) 61.22 3,232.72 3,814.74 2,567.77 269.59 2.15 1.5x 14.2x 28.5x

PRA Health Sciences, Inc. (NasdaqGS:PRAH) 81.43 5,160.20 6,322.33 1,793.19 263.17 1.79 3.5x 24.0x NM

IQVIA (NYSE:Q) 108.10 22,842.99 31,704.99 7,851.00 1,736.00 0.24 4.0x 18.3x NM

Stericycle, Inc. (NasdaqGS:SRCL) 70.85 6,046.25 8,874.16 3,606.67 777.58 (0.25) 2.5x 11.4x NM

Teladoc, Inc. (NYSE:TDOC) 33.05 1,872.42 1,675.96 193.54 (35.33) (1.46) NM NM NM

MEAN (OUTSOURCING) 2.2x 16.8x 20.9x

MEDIAN (OUTSOURCING) 2.0x 15.7x 22.6x

Firstsource Solutions Limited (BSE:532809) 0.68 460.69 538.59 540.22 60.45 0.06 1.0x 8.9x 11.2x

HCL Technologies Limited (NSEI:HCLTECH) 13.22 17,682.98 16,364.14 7,374.34 1,659.80 0.93 2.2x 9.9x 14.2x

Hexaware Technologies Limited (BSE:532129) 4.41 1,172.00 1,115.00 594.10 98.70 0.25 1.9x 11.3x 17.4x

Infosys Limited (NSEI:INFY) 14.24 32,559.81 27,078.30 10,499.00 2,835.00 0.97 2.6x 9.6x 14.7x

KPIT Technologies Limited (BSE:532400) 2.29 430.90 397.10 531.60 43.95 0.19 0.7x 9.0x 12.3x

MphasiS Limited (BSE:526299) 10.66 2,058.34 1,726.33 946.60 146.50 0.58 1.8x 11.8x 18.3x

NIIT Technologies Limited (BSE:532541) 10.47 643.37 538.15 441.64 70.46 0.70 1.2x 7.6x 15.0x

Tata Consultancy Services Limited (NSEI:TCS) 40.54 77,606.65 72,571.51 18,296.26 4,892.44 2.02 4.0x 14.8x 20.1x

Tech Mahindra Limited (NSEI:TECHM) 7.45 7,272.17 6,178.79 4,592.35 633.55 0.53 1.3x 9.8x 14.2x

Wipro Limited (BSE:507685) 4.54 21,992.53 18,338.00 8,378.60 1,692.12 0.27 2.2x 10.8x 16.7x

MEAN (INDIA-BASED OUTSOURCING) 1.9x 10.3x 15.4x

MEDIAN (INDIA-BASED OUTSOURCING) 1.9x 9.8x 14.9x

Connecture, Inc. (OTCPK:CNXR) 0.18 4.12 98.60 82.18 (8.20) (1.02) 1.2x NM NM

SERVICES - OUTSOURCING

SERVICES - INDIA-BASED OUTSOURCING

SERVICES - INFORMATION

14


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

HealthStream, Inc. (NasdaqNM:HSTM) 24.46 780.18 656.78 243.64 27.12 0.18 2.7x 24.2x NM

National Research Corporation (NasdaqGS:NRCI.B) 53.93 975.86 946.44 114.11 39.02 0.91 NM 24.3x NM

MEAN (INFORMATION) 1.9x 24.2x NM

MEDIAN (INFORMATION) 1.9x 24.2x NM

MEAN (SERVICES) 2.1x 16.0x 18.3x

MEDIAN (SERVICES) 1.8x 13.8x 18.9x

Charles River Laboratories International, Inc. (NYSE:CRL) 116.29 5,534.68 6,556.46 1,807.40 435.90 3.79 3.6x 15.0x NM

China Cord Blood Corporation (NYSE:CO) 12.13 1,462.94 914.36 119.66 51.07 0.30 NM 17.9x NM

Foundation Medicine, Inc. (NasdaqGS:FMI) 45.00 1,620.98 1,549.46 132.81 (141.42) (4.47) NM NM NM

Genomic Health, Inc. (NasdaqGS:GHDX) 32.79 1,136.03 1,026.23 334.47 2.61 (0.15) 3.1x NM NM

Invitae Corporation (NYSE:NVTA) 8.44 411.97 379.57 52.06 (104.47) (2.53) NM NM NM

Laboratory Corporation of America Holdings (NYSE:LH) 153.71 15,647.68 22,483.68 9,891.70 1,898.90 7.17 2.3x 11.8x 21.4x

NeoGenomics, Inc. (NasdaqCM:NEO) 8.67 688.29 811.27 251.31 22.57 (0.35) 3.2x NM NM

Quest Diagnostics Incorporated (NYSE:DGX) 93.78 12,782.16 16,384.16 7,634.00 1,432.00 4.77 2.1x 11.4x 19.7x

Sonic Healthcare Limited (ASX:SHL) 16.67 7,043.69 8,982.65 3,930.74 637.02 0.78 2.3x 14.1x 21.3x

MEAN (LABS) 2.8x 14.1x 20.8x

MEDIAN (LABS) 2.7x 14.1x 21.3x

Addus HomeCare Corporation (NasdaqGS:ADUS) 36.00 414.02 442.18 416.30 40.15 1.53 1.1x 11.0x 23.6x

Almost Family, Inc. (NasdaqNM:AFAM) 44.25 617.91 766.69 715.89 40.38 1.47 1.1x 19.0x NM

Amedisys, Inc. (NasdaqNM:AMED) 48.11 1,629.11 1,662.22 1,454.85 105.65 1.17 1.1x 15.7x NM

Chemed Corporation (NYSE:CHE) 223.43 3,567.28 3,630.91 1,641.84 238.50 4.54 2.2x 15.2x NM

LHC Group, Inc. (NasdaqNM:LHCG) 66.81 1,221.42 1,341.05 1,003.77 93.71 2.32 1.3x 14.3x 28.8x

MEAN (HOME HEALTH) 1.4x 15.1x 26.2x

MEDIAN (HOME HEALTH) 1.1x 15.2x 26.2x

AAC Holdings, Inc. (NYSE:AAC) 7.92 190.56 380.40 271.83 40.18 (0.06) 1.4x 9.5x NM

Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) 31.36 2,755.09 5,967.03 2,814.69 574.00 1.98 2.1x 10.4x 15.9x

Civitas Solutions, Inc. (NYSE:CIVI) 18.65 696.82 1,304.30 1,456.33 150.24 0.52 0.9x 8.7x NM

Concord Medical Services Holdings Limited (NYSE:CCM) 3.70 161.59 397.20 59.98 (7.98) (1.06) NM NM NM

CoreCivic, Inc. (NYSE:CXW) 24.66 2,914.30 4,284.91 1,821.15 452.80 1.80 2.4x 9.5x 13.7x

DaVita Inc. (NYSE:DVA) 60.74 11,613.50 20,980.49 15,014.18 2,448.28 6.57 1.4x 8.6x 9.3x

GEO Group, Inc. (NYSE: GEO) 25.95 3,172.62 5,868.82 2,261.02 389.26 1.35 2.6x 15.1x 19.3x

Hanger, Inc. (OTCPK:HNGR) 11.90 419.38 936.67 1,012.10 69.52 (0.09) 0.9x 13.5x NM

HealthSouth Corporation (NYSE:HLS) 46.14 4,536.06 7,548.96 3,844.40 819.40 2.76 2.0x 9.2x 16.7x

MEDNAX, Inc. (NYSE:MD) 43.79 4,055.81 5,777.39 3,378.26 598.87 2.82 1.7x 9.6x 15.5x

The Providence Service Corporation (NasdaqGS:PRSC) 55.60 750.69 772.39 1,606.21 68.15 (2.32) 0.5x 11.3x NM

RadNet, Inc. (NasdaqNM:RDNT) 10.95 517.57 1,140.56 908.61 118.35 0.19 1.3x 9.6x NM

Select Medical Holdings Corporation (NYSE:SEM) 19.15 2,545.74 5,830.97 4,298.85 492.34 0.72 1.4x 11.8x 26.6x

PROVIDERS - LABS

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

15


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

U.S. Physical Therapy, Inc. (NYSE:USPH) 67.95 854.90 1,007.11 391.92 61.66 1.61 2.6x 16.3x NM

MEAN (NON-ACUTE) 1.6x 11.0x 16.7x

MEDIAN (NON-ACUTE) 1.4x 9.6x 15.9x

Brookdale Senior Living Inc. (NYSE:BKD) 10.03 1,868.37 6,875.78 4,078.03 758.50 (2.65) 1.7x 9.1x NM

Capital Senior Living Corporation (NYSE:CSU) 13.30 403.62 1,397.57 464.10 79.57 (1.65) 3.0x 17.6x NM

Ensign Group, Inc. (NasdaqNM:ENSG) 23.08 1,174.04 1,426.18 1,751.13 121.76 0.86 0.8x 11.7x 26.9x

Five Star Senior Living Inc. (NasdaqCM:FVE) 1.50 75.08 115.63 1,129.71 13.10 (0.51) 0.1x 8.8x NM

Welltower Inc. (NYSE:HCN) 66.96 24,700.12 37,230.10 4,192.74 1,909.12 2.47 NM 19.5x 27.1x

Sabra Health Care REIT, Inc. (NasdaqGS:SBRA) 19.92 3,550.35 4,747.73 300.97 250.75 0.87 NM 18.9x 22.9x

Genesis Healthcare, Inc. (NYSE:GEN) 0.98 92.51 4,777.34 5,453.11 450.30 (1.91) 0.9x 10.6x NM

Ventas, Inc. (NYSE:VTR) 62.75 22,349.28 33,927.08 3,556.64 1,897.51 3.26 NM 17.9x 19.2x

MEAN (LONG-TERM CARE) 1.3x 14.3x 24.0x

MEDIAN (LONG-TERM CARE) 0.9x 14.6x 24.9x

Community Health Systems, Inc. (NYSE:CYH) 5.90 660.42 15,323.42 16,764.00 1,655.00 (5.82) 0.9x 9.3x NM

HCA Healthcare, Inc. (NYSE:HCA) 75.65 27,328.54 61,277.54 42,693.00 8,031.00 7.05 1.4x 7.6x 10.7x

Kindred Healthcare, Inc. (NYSE:KND) 6.05 526.47 3,848.96 6,995.55 449.12 (2.21) 0.6x 8.6x NM

LifePoint Health, Inc. (NasdaqNM:LPNT) 48.15 1,897.87 4,801.67 6,406.20 749.10 4.22 0.7x 6.4x 11.4x

Tenet Healthcare Corp. (NYSE:THC) 14.28 1,439.72 18,582.72 19,071.00 2,025.00 (5.52) 1.0x 9.2x NM

Universal Health Services, Inc. (NYSE:UHS) 102.70 9,823.93 13,870.69 10,242.76 1,697.23 7.28 1.4x 8.2x 14.1x

MEAN (ACUTE) 1.0x 8.2x 12.1x

MEDIAN (ACUTE) 0.9x 8.4x 11.4x

MEAN (PROVIDERS) 1.6x 12.2x 19.2x

MEDIAN (PROVIDERS) 1.4x 11.3x 19.3x

ABIOMED, Inc. (NasdaqNM:ABMD) 192.92 8,527.22 8,279.98 504.65 129.85 2.05 NM NM NM

Accelerate Diagnostics, Inc. (NasdaqCM:AXDX) 19.85 1,097.67 962.45 2.10 (61.87) (1.20) NM NM NM

Accuray Incorporated (NasdaqNM:ARAY) 4.75 397.83 464.01 387.86 2.91 (0.35) 1.2x NM NM

Agilent Technologies, Inc. (NYSE:A) 68.03 21,893.96 21,414.96 4,394.00 1,021.00 1.94 4.9x 21.0x NM

Align Technology, Inc. (NasdaqNM:ALGN) 238.98 19,154.39 18,475.32 1,345.29 346.31 3.30 NM NM NM

Alliqua BioMedical, Inc. (NasdaqCM:ALQA) 3.26 16.33 26.00 19.93 (16.79) (11.16) 1.3x NM NM

Alphatec Holdings, Inc. (NasdaqNM:ATEC) 3.59 55.85 100.86 106.16 (2.79) (3.01) 1.0x NM NM

Analogic Corporation (NasdaqGS:ALOG) 80.30 1,000.20 852.10 486.37 42.01 (5.96) 1.8x 20.3x NM

AngioDynamics, Inc. (NasdaqNM:ANGO) 16.97 623.07 668.80 346.96 47.67 0.10 1.9x 14.0x NM

Anika Therapeutics, Inc. (NasdaqGS:ANIK) 54.63 800.97 648.26 112.76 52.92 2.12 NM 12.2x 25.8x

AtriCure, Inc. (NasdaqNM:ATRC) 21.44 736.12 739.91 169.81 (20.27) (1.02) 4.4x NM NM

Avinger, Inc. (NasdaqGM:AVGR) 0.32 7.65 36.18 15.95 (46.30) (2.46) 2.3x NM NM

Baxter International Inc. (NYSE:BAX) 64.47 35,127.83 34,757.83 10,432.00 2,254.00 1.86 3.3x 15.4x NM

Bio-Techne Corporation (NasdaqGS:TECH) 131.02 4,899.26 5,114.03 577.04 175.42 1.95 NM 29.2x NM

PROVIDERS - LONG-TERM CARE

PROVIDERS - ACUTE

PRODUCTS - CLINICAL DEVICES

16


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

BioTelemetry, Inc. (NasdaqGS:BEAT) 29.05 940.06 937.96 211.19 41.34 1.49 4.4x 22.7x 19.5x

Boston Scientific Corporation (NYSE:BSX) 28.14 38,628.78 44,100.78 8,831.00 2,346.00 0.61 5.0x 18.8x NM

Bruker Corporation (NasdaqNM:BRKR) 31.40 4,988.17 4,986.07 1,705.70 289.10 0.94 2.9x 17.2x NM

Cardiovascular Systems, Inc. (NasdaqGS:CSII) 24.07 796.36 712.04 204.78 4.82 (0.06) 3.5x NM NM

Catalent, Inc. (NYSE:CTLT) 42.59 5,616.78 7,389.58 2,177.10 415.43 0.86 3.4x 17.8x NM

ConforMIS, Inc. (NasdaqGS:CFMS) 3.54 158.72 119.91 79.04 (54.61) (1.34) 1.5x NM NM

CONMED Corporation (NasdaqNM:CNMD) 52.22 1,458.20 1,914.54 777.93 122.56 0.55 2.5x 15.6x NM

Corindus Vascular Robotics, Inc. (AMEX:CVRS) 1.14 213.52 179.75 4.26 (34.71) (0.26) NM NM NM

C. R. Bard, Inc. (NYSE:BCR) 327.07 23,840.91 24,326.11 3,875.40 1,209.90 7.58 NM 20.1x NM

CryoLife, Inc. (NYSE:CRY) 19.45 650.75 664.58 181.91 17.99 0.28 3.7x NM NM

Cutera, Inc. (NasdaqGS:CUTR) 39.30 550.40 499.45 133.84 7.29 0.47 3.7x NM NM

Cytosorbents Corporation (NasdaqCM:CTSO) 6.15 173.02 166.56 12.18 (10.41) (0.37) NM NM NM

DexCom, Inc. (NasdaqNM:DXCM) 44.97 3,892.65 3,723.25 668.70 (45.10) (0.56) NM NM NM

Edwards Lifesciences Corporation (NYSE:EW) 102.23 21,633.90 21,265.10 3,314.50 1,073.30 3.43 NM 19.8x 29.8x

Ekso Bionics Holdings, Inc. (OTCBB:EKSO) - 64.70 60.98 7.49 (27.14) (1.59) NM NM NM

Endologix, Inc. (NasdaqNM:ELGX) 5.30 442.20 595.38 190.75 (54.38) (0.94) 3.1x NM NM

Entellus Medical, Inc. (NasdaqGM:ENTL) 16.93 430.58 389.01 86.25 (29.36) (1.24) 4.5x NM NM

Enzo Biochem, Inc. (NYSE:ENZ) 9.85 458.50 395.23 107.80 0.53 (0.05) 3.7x NM NM

Exactech, Inc. (NasdaqNM:EXAC) 41.85 608.07 610.35 264.45 43.03 0.03 2.3x 14.2x NM

Fresenius SE & Co. KGaA (DB:FRE) 83.75 46,432.06 77,263.26 38,556.91 7,109.09 3.79 2.0x 10.9x 22.1x

GenMark Diagnostics, Inc. (NasdaqGM:GNMK) 7.45 407.27 334.93 51.38 (52.63) (1.22) NM NM NM

Genomic Health, Inc. (NasdaqGS:GHDX) 32.79 1,136.03 1,026.23 334.47 2.61 (0.15) 3.1x NM NM

Glaukos Corporation (NYSE:GKOS) 35.31 1,215.86 1,112.07 139.94 8.15 (0.04) NM NM NM

Globus Medical, Inc. (NYSE:GMED) 31.87 3,068.82 2,756.63 595.44 207.13 1.11 4.6x 13.3x 28.7x

Hologic, Inc. (NasdaqNM:HOLX) 37.85 10,615.92 13,270.62 2,982.80 1,005.70 2.68 4.4x 13.2x 14.1x

Illumina, Inc. (NasdaqNM:ILMN) 205.19 29,957.74 29,222.74 2,594.37 691.78 5.25 NM NM NM

Inogen, Inc. (NasdaqGS:INGN) 98.93 2,050.46 1,906.25 221.89 36.52 1.15 NM NM NM

Integer Holdings Corporation (NYSE:ITGR) 48.60 1,539.15 3,125.47 1,431.03 274.70 0.63 2.2x 11.4x NM

Integra LifeSciences Holdings Corporation

(NasdaqNM:IART) 46.78 3,671.17 4,360.97 1,075.30 245.22 0.61 4.1x 17.8x NM

Intersect ENT, Inc. (NasdaqGM:XENT) 29.65 865.47 765.43 91.00 (17.74) (0.62) NM NM NM

Intuitive Surgical, Inc. (NasdaqNM:ISRG) 375.36 42,058.28 39,913.48 2,993.40 1,116.40 7.75 NM NM NM

Invuity, Inc. (NasdaqGM:IVTY) 8.95 152.60 149.21 36.63 (35.61) (2.52) 4.1x NM NM

IRadimed Corporation (NasdaqCM:IRMD) 14.25 150.79 125.58 22.37 2.30 0.13 NM NM NM

K2M Group Holdings, Inc. (NasdaqGS:KTWO) 19.69 852.56 889.45 252.02 (3.86) (0.96) 3.5x NM NM

LeMaitre Vascular, Inc. (NasdaqGM:LMAT) 32.01 608.93 571.41 98.00 23.69 0.78 NM 24.1x NM

LivaNova PLC (NasdaqGS:LIVN) 73.90 3,560.64 3,645.36 1,226.80 188.77 1.17 3.0x 19.3x NM

Masimo Corporation (NasdaqNM:MASI) 87.76 4,534.66 4,244.72 756.13 194.18 6.24 NM 21.9x 14.1x

Medtronic plc (NYSE:MDT) 80.52 109,071.70 130,119.70 29,934.00 9,193.00 2.97 4.3x 14.2x 27.1x

Meridian Bioscience, Inc. (NasdaqNM:VIVO) 14.95 630.94 631.45 198.07 52.80 0.50 3.2x 12.0x 29.9x

17


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

NanoString Technologies, Inc. (NasdaqGM:NSTG) 9.96 251.04 199.84 104.90 (37.40) (2.05) 1.9x NM NM

Natus Medical Incorporated (NasdaqNM:BABY) 42.40 1,384.09 1,405.92 477.23 56.29 (0.10) 2.9x 25.0x NM

Nevro Corp. (NYSE:NVRO) 87.58 2,578.62 2,456.86 299.24 (31.42) (1.44) NM NM NM

NuVasive, Inc. (NasdaqNM:NUVA) 56.73 2,891.41 3,451.69 1,028.98 233.26 1.16 3.4x 14.8x NM

Nxstage Medical, Inc. (NasdaqNM:NXTM) 26.95 1,784.03 1,735.10 378.01 14.26 (0.08) 4.6x NM NM

Orthofix International N.V. (NasdaqNM:OFIX) 53.73 976.32 922.40 425.46 47.13 0.04 2.2x 19.6x NM

Össur hf. (ICSE:OSSRU) 4.34 1,859.63 2,002.05 553.24 91.89 0.11 3.6x 21.8x NM

pSivida Corp. (NasdaqGM:PSDV) 1.17 52.84 35.94 7.65 (14.50) (0.47) 4.7x NM NM

Quidel Corporation (NasdaqNM:QDEL) 40.95 1,369.38 1,345.45 215.66 40.17 (0.15) NM NM NM

ResMed Inc. (NYSE:RMD) 84.18 11,945.47 12,153.24 2,124.95 589.10 2.46 NM 20.6x NM

REVA Medical, Inc. (ASX:RVA) 0.54 220.98 308.41 NM (22.12) (0.05) NM NM NM

ReWalk Robotics Ltd. (NasdaqCM:RWLK) 1.35 29.52 29.24 7.83 (22.60) (1.54) 3.7x NM NM

SeaSpine Holdings Corporation (NasdaqGS:SPNE) 10.02 125.77 117.47 130.35 (21.96) (2.89) 0.9x NM NM

Second Sight Medical Products, Inc. (NasdaqCM:EYES) 1.07 60.77 42.64 5.57 (31.09) (0.64) NM NM NM

Sientra, Inc. (NasdaqGS:SIEN) 14.66 283.04 232.54 28.68 (35.42) (2.67) NM NM NM

Smith & Nephew plc (LSE:SN.) 18.86 16,470.62 18,104.57 4,677.00 1,315.00 0.98 3.9x 13.8x 19.2x

Sonova Holding AG (SWX:SOON) 180.50 11,792.15 12,200.35 2,395.19 522.13 5.34 NM 23.4x NM

STAAR Surgical Company (NasdaqNM:STAA) 13.25 544.69 538.09 84.48 (0.67) (0.13) NM NM NM

Stryker Corporation (NYSE:SYK) 154.87 57,958.18 62,454.18 12,130.00 3,319.00 4.68 NM 18.8x NM

T2 Biosystems, Inc. (NasdaqGM:TTOO) 3.73 133.52 128.65 3.91 (49.54) (1.91) NM NM NM

Tandem Diabetes Care, Inc. (NasdaqGM:TNDM) 2.47 24.99 88.05 96.22 (60.50) (18.54) 0.9x NM NM

TransEnterix, Inc. (AMEX:TRXC) 2.96 440.11 423.27 5.05 (47.82) (0.47) NM NM NM

Unilife Corporation (OTCPK:UNIS.Q) 0.08 1.27 118.06 11.21 (56.71) (5.07) NM NM NM

Utah Medical Products, Inc. (NasdaqNM:UTMD) 75.40 280.41 242.90 40.07 20.84 3.68 NM 11.7x 20.5x

Varian Medical Systems, Inc. (NYSE:VAR) 104.19 9,564.74 9,202.84 2,668.20 468.90 2.75 3.4x 19.6x NM

Wright Medical Group N.V. (NasdaqNM:WMGI) 26.21 2,698.25 3,300.78 720.41 68.32 (1.17) 4.6x NM NM

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) 121.62 24,591.07 34,825.37 7,762.90 3,051.80 3.20 4.5x 11.4x NM

MEAN (CLINICAL) 3.2x 17.6x 22.8x

MEDIAN (CLINICAL) 3.4x 17.8x 22.1x

Abaxis, Inc. (NasdaqNM:ABAX) 48.40 1,098.23 949.70 228.08 47.67 1.19 4.2x 19.9x NM

Cerus Corporation (NasdaqNM:CERS) 2.87 313.23 279.78 37.45 (59.85) (0.59) NM NM NM

Getinge AB (OM:GETI B) 19.66 5,355.36 7,148.81 3,694.14 677.66 0.64 1.9x 10.5x NM

Haemonetics Corporation (NYSE:HAE) 47.56 2,501.96 2,633.24 892.24 162.43 0.09 3.0x 16.2x NM

Harvard Bioscience, Inc. (NasdaqGM:HBIO) 3.35 116.70 110.86 100.83 3.11 (0.09) 1.1x NM NM

IDEXX Laboratories, Inc. (NasdaqNM:IDXX) 166.17 14,493.13 15,329.66 1,905.93 480.91 3.08 NM NM NM

Invacare Corporation (NYSE:IVC) 15.50 509.49 587.31 980.13 (13.64) (1.93) 0.6x NM NM

Omnicell, Inc. (NasdaqGS:OMCL) 49.80 1,865.20 2,050.06 690.20 40.99 (0.10) 3.0x NM NM

Pacific Biosciences of California, Inc. (NasdaqGS:PACB) 4.23 488.95 399.44 94.26 (79.44) (0.91) 4.2x NM NM

PRODUCTS - NON-CLINICAL DEVICES

18


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

PerkinElmer, Inc. (NYSE:PKI) 72.32 7,970.72 8,446.03 2,182.12 434.42 2.34 3.9x 19.4x NM

Steris Plc (NYSE:STE) 73.64 6,474.90 7,143.30 2,570.09 553.87 1.68 2.8x 12.9x NM

Surmodics, Inc. (NasdaqGS:SRDX) 29.75 390.02 346.31 71.21 15.58 0.46 4.9x 22.2x NM

Thermo Fisher Scientific Inc. (NYSE:TMO) 193.83 77,572.17 98,823.77 19,824.40 4,975.30 5.89 5.0x 19.9x NM

Waters Corporation (NYSE:WAT) 196.05 15,649.41 14,352.24 2,250.59 775.90 6.79 NM 18.5x 28.9x

MEAN (NON-CLINICAL) 3.1x 17.5x 28.9x

MEDIAN (NON-CLINICAL) 3.0x 19.0x 28.9x

Atrion Corporation (NasdaqNM:ATRI) 657.65 1,217.86 1,170.57 145.80 48.82 17.85 NM 24.0x NM

Becton, Dickinson and Company (NYSE:BDX) 208.67 47,485.98 52,626.98 12,093.00 2,902.33 4.60 4.4x 18.1x NM

Halyard Health, Inc. (NYSE:HYH) 42.15 1,972.27 2,397.37 1,606.20 187.40 1.20 1.5x 12.8x NM

ICU Medical, Inc. (NasdaqNM:ICUI) 191.10 3,783.74 3,617.82 772.05 92.48 2.50 4.7x NM NM

Merit Medical Systems, Inc. (NasdaqNM:MMSI) 38.05 1,907.42 2,162.00 694.67 113.44 0.59 3.1x 19.1x NM

Nipro Corporation (TSE:8086) 14.50 2,410.33 5,564.92 3,241.44 532.13 0.74 1.7x 10.5x 19.5x

Retractable Technologies, Inc. (AMEX:RVP) 0.67 21.19 10.21 30.90 (3.18) (0.17) 0.3x NM NM

Teleflex Incorporated (NYSE:TFX) 236.98 10,672.97 11,996.51 2,065.13 556.04 5.53 NM 21.6x NM

Terumo Corporation (TSE:4543) 41.38 14,564.53 16,696.43 4,708.75 1,105.27 1.40 3.5x 15.1x 29.6x

MEAN (DISPOSABLES) 2.7x 17.3x 24.5x

MEDIAN (DISPOSABLES) 3.1x 18.1x 24.5x

Bio-Rad Laboratories, Inc. (NYSE:BIO) 219.79 6,531.55 6,253.59 2,111.17 257.28 0.80 3.0x 24.3x NM

Cambrex Corporation (NYSE:CBM) 43.25 1,415.56 1,321.38 529.74 175.10 3.04 2.5x 7.5x 14.2x

Cantel Medical Corp. (NYSE:CMD) 98.08 4,092.77 4,182.19 770.16 147.19 1.71 NM 28.4x NM

ChromaDex Corporation (NasdaqCM:CDXC) 4.09 196.56 183.12 20.41 (6.27) (0.20) NM NM NM

DENTSPLY SIRONA Inc. (NasdaqNM:XRAY) 61.07 14,015.68 15,368.28 3,898.90 852.80 (3.45) 3.9x 18.0x NM

Exact Sciences Corporation (NasdaqCM:EXAS) 54.99 6,583.97 6,127.54 213.82 (118.76) (1.15) NM NM NM

Fluidigm Corporation (NasdaqGS:FLDM) 5.80 170.60 323.67 99.28 (59.74) (2.22) 3.3x NM NM

Hill-Rom Holdings, Inc. (NYSE:HRC) 80.71 5,317.23 7,420.63 2,743.70 521.60 1.99 2.7x 14.2x NM

Ion Beam Applications SA (ENXTBR:IBAB) 30.62 894.20 869.55 382.50 30.14 0.45 2.3x 28.9x NM

Luminex Corporation (NasdaqNM:LMNX) 21.35 940.56 829.65 300.64 52.01 0.66 2.8x 16.0x NM

Mettler-Toledo International Inc. (NYSE:MTD) 682.63 17,521.78 18,344.84 2,656.72 641.44 16.49 NM 28.6x NM

Natera, Inc. (NasdaqGS:NTRA) 10.99 584.92 532.82 203.71 (118.85) (2.43) 2.6x NM NM

Neogen Corporation (NasdaqGS:NEOG) 80.20 3,066.31 2,906.55 373.21 81.84 1.19 NM NM NM

OraSure Technologies, Inc. (NasdaqNM:OSUR) 19.75 1,174.32 1,014.10 145.14 25.21 0.52 NM NM NM

Oxford Immunotec Global PLC (NasdaqGM:OXFD) 13.22 339.16 301.29 101.76 (23.87) (2.03) 3.0x NM NM

QIAGEN N.V. (NasdaqGS:QGEN) 33.86 7,709.98 8,497.47 1,361.90 443.36 0.33 NM 19.2x NM

Quotient Limited (NasdaqGM:QTNT) 5.11 232.81 316.29 23.10 (65.24) (2.80) NM NM NM

Rockwell Medical, Inc. (NasdaqGM:RMTI) 6.06 313.54 270.30 54.04 (21.07) (0.42) NM NM NM

Trinity Biotech plc (NasdaqGS:TRIB) 5.04 116.45 149.23 98.27 6.21 (1.65) 1.5x 24.0x NM

TrovaGene, Inc. (NasdaqCM:TROV) 0.71 27.07 20.93 0.35 (29.35) (1.25) NM NM NM

PRODUCTS - DISPOSABLES

PRODUCTS - COMMERCIAL

19


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Veracyte, Inc. (NasdaqGM:VCYT) 8.55 289.79 268.75 70.61 (21.49) (0.81) 3.8x NM NM

VWR Corporation (NasdaqGS:VWR) 33.10 4,363.74 6,480.34 4,639.90 477.80 1.14 1.4x 13.6x 29.0x

West Pharmaceutical Services, Inc. (NYSE:WST) 101.40 7,529.25 7,489.75 1,565.80 330.10 2.50 4.8x 22.7x NM

MEAN (COMMERCIAL) 2.9x 20.4x 21.6x

MEDIAN (COMMERCIAL) 2.8x 20.9x 21.6x

Cooper Companies Inc. (NYSE:COO) 240.26 11,760.54 12,928.04 2,096.11 641.95 6.97 NM 20.1x NM

Essilor International Société Anonyme (ENXTPA:EI) 126.54 27,072.01 30,188.42 8,489.45 1,973.76 4.06 3.6x 15.3x NM

Insulet Corporation (NasdaqNM:PODD) 58.81 3,414.48 3,496.72 436.82 9.14 (0.50) NM NM NM

Nutrisystem, Inc. (NasdaqGS:NTRI) 49.95 1,486.81 1,397.20 674.67 94.69 1.83 2.1x 14.8x 27.3x

USANA Health Sciences, Inc. (NYSE:USNA) 65.70 1,606.06 1,414.32 1,027.05 144.60 3.62 1.4x 9.8x 18.2x

MEAN (CONSUMER) 2.3x 15.0x 22.7x

MEDIAN (CONSUMER) 2.1x 15.0x 22.7x

Abbott Laboratories (NYSE:ABT) 54.23 94,221.55 108,662.55 25,134.00 5,559.00 1.17 4.3x 19.5x NM

AbbVie Inc. (NYSE:ABBV) 90.25 143,867.05 174,205.05 27,273.00 11,708.00 4.12 NM 14.9x 21.9x

AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) 1.90 86.22 46.09 15.57 (35.16) (1.10) 3.0x NM NM

Achillion Pharmaceuticals, Inc. (NasdaqGS:ACHN) 4.02 549.78 199.79 15.00 (69.40) (0.49) NM NM NM

Acorda Therapeutics, Inc. (NasdaqNM:ACOR) 26.58 1,239.74 1,379.47 540.52 63.69 (1.21) 2.6x 21.7x NM

Adamas Pharmaceuticals, Inc. (NasdaqGM:ADMS) 24.66 555.20 460.62 0.04 (73.21) (3.37) NM NM NM

Akorn, Inc. (NasdaqGS:AKRX) 32.57 4,068.53 4,558.38 938.66 296.16 0.59 4.9x 15.4x NM

Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) 119.66 26,733.20 28,465.20 3,472.00 1,378.00 2.24 NM 20.7x NM

Alimera Sciences, Inc. (NasdaqGM:ALIM) 1.23 85.00 160.87 37.45 (13.38) (0.31) 4.3x NM NM

Allergan plc (NYSE:AGN) 177.23 59,249.09 88,603.59 15,478.90 6,491.90 (22.20) NM 13.6x NM

Amphastar Pharmaceuticals, Inc. (NasdaqGS:AMPH) 18.07 834.76 797.80 249.62 17.41 0.08 3.2x NM NM

Ampio Pharmaceuticals, Inc. (AMEX:AMPE) 1.06 80.50 75.50 - (12.50) (0.20) NM NM NM

ANI Pharmaceuticals, Inc. (NasdaqGM:ANIP) 58.08 675.96 821.97 167.76 65.85 0.64 4.9x 12.5x NM

Antares Pharma, Inc. (NasdaqCM:ATRS) 1.82 284.66 266.01 54.67 (14.73) (0.11) 4.9x NM NM

Aradigm Corporation (NasdaqCM:ARDM) 4.17 60.17 62.23 12.22 (10.70) (0.98) NM NM NM

Array BioPharma Inc. (NasdaqNM:ARRY) 10.45 2,058.94 1,731.10 47.26 (111.42) (0.74) NM NM NM

Arrowhead Pharmaceuticals, Inc. (NasdaqGS:ARWR) 3.64 272.17 199.06 22.73 (47.97) (0.64) NM NM NM

Astellas Pharma Inc. (TSE:4503) 13.27 26,921.17 23,795.55 11,542.52 2,769.93 0.79 2.1x 8.6x 16.7x

AstraZeneca PLC (LSE:AZN) 66.78 84,538.74 100,128.20 21,740.00 5,913.00 3.05 4.6x 16.9x 21.9x

BioDelivery Sciences International, Inc. (NasdaqCM:BDSI) 2.88 159.49 167.24 44.33 (31.81) 0.03 3.8x NM NM

Bristol-Myers Squibb Company (NYSE:BMY) 61.66 100,918.90 102,370.90 20,570.00 5,984.00 2.55 5.0x 17.1x 24.2x

Clovis Oncology, Inc. (NasdaqGS:CLVS) 75.37 3,684.04 3,294.27 38.55 (238.83) (8.26) NM NM NM

Compugen Ltd. (NasdaqGM:CGEN) 3.00 153.43 108.37 0.05 (34.99) (0.71) NM NM NM

Corcept Therapeutics Incorporated (NasdaqCM:CORT) 19.69 2,232.80 2,171.21 129.73 36.24 0.29 NM NM NM

Curis, Inc. (NasdaqGM:CRIS) 1.58 258.93 251.77 9.00 (53.17) (0.40) NM NM NM

Depomed, Inc. (NasdaqGS:DEPO) 4.84 304.87 817.62 425.34 112.64 (1.79) 1.9x 7.3x NM

PRODUCTS - PHARMACEUTICALS

PRODUCTS - CONSUMER

20


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

DURECT Corporation (NasdaqGM:DRRX) 0.80 117.20 103.63 20.65 (31.13) (0.15) NM NM NM

Egalet Corporation (NasdaqGM:EGLT) 0.98 41.61 79.42 22.53 (79.77) (4.03) 3.5x NM NM

Egalet Corporation (NasdaqGM:EGLT) 0.98 41.61 79.42 22.53 (79.77) (4.03) 3.5x NM NM

Eli Lilly and Company (NYSE:LLY) 81.94 85,798.37 92,454.37 22,471.10 6,202.80 2.10 4.1x 14.9x NM

Elite Pharmaceuticals, Inc. (OTCPK:ELTP) 0.08 60.22 68.43 8.07 (7.64) (0.01) NM NM NM

Endo International plc (NasdaqNM:ENDP) 6.38 1,424.60 9,093.51 4,039.18 313.33 (19.67) 2.3x 29.0x NM

Foamix Pharmaceuticals Ltd. (NasdaqGM:FOMX) 6.11 228.72 130.83 5.76 (47.96) (1.33) NM NM NM

GlaxoSmithKline plc (LSE:GSK) 18.02 87,475.73 111,024.19 40,400.34 11,890.97 0.63 2.7x 9.3x 28.4x

Heska Corporation (NasdaqCM:HSKA) 97.50 704.54 704.85 135.69 22.32 1.91 NM NM NM

ImmunoGen, Inc. (NasdaqGS:IMGN) 5.80 747.59 694.56 84.23 (66.09) (1.33) NM NM NM

Impax Laboratories, Inc. (NasdaqGS:IPXL) 18.15 1,346.19 1,959.07 812.82 144.42 (8.08) 2.4x 13.6x NM

Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) 2.33 118.11 51.91 6.00 (27.96) (1.14) NM NM NM

Innoviva, Inc. (NasdaqGS:INVA) 12.24 1,322.45 1,757.70 191.31 157.52 0.85 NM 11.2x 14.3x

INSYS Therapeutics, Inc. (NasdaqGM:INSY) 5.15 374.39 232.77 164.07 (35.58) (2.57) 1.4x NM NM

Ironwood Pharmaceuticals, Inc. (NasdaqGS:IRWD) 15.38 2,300.72 2,420.79 291.53 (88.56) (0.96) NM NM NM

Jazz Pharmaceuticals PLC (NasdaqGS:JAZZ) 141.53 8,504.67 9,857.35 1,541.24 758.97 6.49 NM 13.0x 21.8x

Johnson & Johnson (NYSE:JNJ) 139.41 374,176.40 396,164.40 74,361.00 25,672.00 5.75 NM 15.4x 24.2x

Juniper Pharmaceuticals, Inc. (NasdaqGS:JNP) 4.85 52.59 35.04 59.12 8.66 0.62 0.6x 4.0x 7.8x

Karyopharm Therapeutics Inc. (NasdaqGS:KPTI) 10.21 481.29 337.83 0.12 (117.53) (2.65) NM NM NM

Lannett Company, Inc. (NYSE:LCI) 19.90 741.96 1,500.78 630.74 237.52 1.13 2.4x 6.3x 17.6x

Mallinckrodt Public Limited Company (NYSE:MNK) 31.67 3,077.65 8,600.35 3,179.30 638.00 (9.43) 2.7x 13.5x NM

Merck & Co., Inc. (NYSE:MRK) 55.09 150,249.95 163,441.95 39,804.00 12,886.00 1.03 4.1x 12.7x NM

Mylan N.V. (NasdaqGS:MYL) 35.71 19,150.59 33,372.09 11,936.60 3,787.90 1.62 2.8x 8.8x 22.1x

Neos Therapeutics, Inc. (NasdaqGM:NEOS) 10.40 292.04 279.44 15.62 (69.70) (4.30) NM NM NM

Novartis AG (SWX:NOVN) 82.38 191,731.05 211,951.29 49,527.00 14,898.00 2.81 4.3x 14.2x 29.4x

Novo Nordisk A/S (CPSE:NOVO B) 49.72 122,008.05 118,934.39 17,991.11 8,480.17 2.46 NM 14.0x 20.2x

Opko Health, Inc. (NasdaqGS:OPK) 6.73 3,764.80 3,766.73 1,183.83 (17.02) (0.15) 3.2x NM NM

Osiris Therapeutics, Inc. (OTCPK:OSIR) 5.00 172.63 - 86.60 4.41 0.05 NM NM NM

Pacira Pharmaceuticals, Inc. (NasdaqGS:PCRX) 32.05 1,292.95 1,180.15 281.47 (34.94) (1.72) 4.2x NM NM

Pernix Therapeutics Holdings, Inc. (NasdaqGM:PTX) 2.78 32.06 311.20 135.70 8.63 (16.97) 2.3x NM NM

Perrigo Company plc (NYSE:PRGO) 80.99 11,550.07 14,450.47 5,024.70 1,103.10 (20.57) 2.9x 13.1x NM

Pfizer Inc. (NYSE:PFE) 35.06 208,514.06 238,295.06 52,471.00 20,718.00 1.62 4.5x 11.5x 21.7x

Phibro Animal Health Corporation (NasdaqGM:PAHC) 37.65 1,512.43 1,769.48 769.71 118.82 1.69 2.3x 14.9x 22.3x

Progenics Pharmaceuticals, Inc. (NasdaqGS:PGNX) 6.19 434.97 370.57 12.46 (51.44) (0.80) NM NM NM

Recro Pharma, Inc. (NasdaqCM:REPH) 8.63 164.48 138.95 69.99 (13.04) (2.12) 2.0x NM NM

Rigel Pharmaceuticals, Inc. (NasdaqNM:RIGL) 3.75 542.45 460.15 10.34 (67.71) (0.68) NM NM NM

Roche Holding AG (SWX:ROG) 231.01 197,321.00 214,000.86 56,548.20 22,346.43 11.76 3.8x 9.6x 19.7x

Sanofi (ENXTPA:SAN) 94.63 118,496.98 127,473.69 43,020.92 12,098.45 4.26 3.0x 10.5x 22.2x

Sarepta Therapeutics, Inc. (NasdaqGS:SRPT) 49.31 3,172.23 2,882.50 102.73 (192.89) (2.04) NM NM NM

21


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Sucampo Pharmaceuticals, Inc. (NasdaqNM:SCMP) 10.00 463.25 671.56 250.47 107.24 (3.37) 2.7x 6.3x NM

Supernus Pharmaceuticals, Inc. (NasdaqGM:SUPN) 41.60 2,109.08 2,017.59 276.18 86.19 1.10 NM 23.4x NM

Takeda Pharmaceutical Company Limited (TSE:4502) 56.24 44,101.04 50,563.01 15,653.53 3,009.55 1.85 3.2x 16.8x NM

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) 112.42 4,554.49 3,115.88 806.92 465.05 9.83 3.9x 6.7x 11.4x

Teligent, Inc. (NasdaqGS:TLGT) 5.68 303.27 369.08 69.89 0.99 (0.23) NM NM NM

Teva Pharmaceutical Industries Limited (NYSE:TEVA) 13.80 14,009.91 53,696.91 23,418.00 6,548.00 (5.87) 2.3x 8.2x NM

TherapeuticsMD, Inc. (NasdaqGS:TXMD) 4.72 1,021.54 925.06 17.14 (78.68) (0.39) NM NM NM

Valeant Pharmaceuticals International, Inc. (TSX:VRX) 11.68 27,899.20 57,468.90 8,964.00 4,144.40 3.94 NM 13.9x 3.0x

Zoetis Inc. (NYSE:ZTS) 63.82 31,215.11 35,096.11 5,124.00 1,806.00 1.90 NM 19.4x NM

Zogenix, Inc. (NasdaqGM:ZGNX) 37.50 1,182.72 1,139.55 27.38 (72.48) (3.38) NM NM NM

MEAN (PHARMACEUTICALS) 3.2x 13.6x 19.5x

MEDIAN (PHARMACEUTICALS) 3.2x 13.6x 21.8x

AmerisourceBergen Corporation (NYSE:ABC) 76.95 16,860.63 19,335.08 153,143.83 2,417.25 1.87 0.1x 8.0x NM

Aceto Corporation (NasdaqGS:ACET) 10.07 308.56 605.08 695.56 74.02 0.21 0.9x 8.2x NM

Cardinal Health, Inc. (NYSE:CAH) 61.90 19,511.86 23,186.86 130,578.00 3,004.00 3.43 0.2x 7.7x 18.0x

CVS Health Corporation (NYSE:CVS) 68.53 69,665.18 94,265.18 182,351.00 12,103.00 4.86 0.5x 7.8x 14.1x

Diplomat Pharmacy, Inc. (NYSE:DPLO) 21.05 1,431.06 1,555.74 4,475.00 65.82 0.12 0.3x 23.6x NM

Henry Schein, Inc. (NasdaqNM:HSIC) 78.60 12,427.60 14,510.69 12,264.42 1,033.47 3.48 1.2x 14.0x 22.6x

McKesson Corporation (NYSE:MCK) 137.88 28,744.46 36,276.46 201,955.00 3,885.00 21.15 0.2x 9.3x 6.5x

Medicines Company (NasdaqGS:MDCO) 28.74 2,073.21 2,375.40 85.03 (352.86) (9.17) NM NM NM

Owens & Minor, Inc. (NYSE:OMI) 24.57 1,504.33 2,026.38 9,296.80 214.64 1.26 0.2x 9.4x 19.5x

Patterson Companies, Inc. (NasdaqNM:PDCO) 37.00 3,462.71 4,539.87 5,564.81 400.22 1.75 0.8x 11.3x 21.1x

PetMed Express, Inc. (NasdaqGS:PETS) 35.36 720.21 651.78 262.27 48.05 1.49 2.5x 13.6x 23.7x

PharMerica Corporation (NYSE:PMC) 29.30 911.78 1,331.18 2,205.80 133.00 0.74 0.6x 10.0x NM

Premier, Inc. (NasdaqGS:PINC) 32.67 1,749.85 1,827.39 1,531.97 445.86 1.75 1.2x 4.1x 18.7x

Prestige Brands Holdings, Inc. (NYSE:PBH) 46.90 2,485.71 4,586.98 972.03 325.58 2.00 4.7x 14.1x 23.4x

Rite Aid Corporation (NYSE:RAD) 1.65 1,738.55 8,642.50 32,091.44 904.09 0.08 0.3x 9.6x 19.6x

Vitamin Shoppe, Inc. (NYSE:VSI) 4.60 109.43 234.05 1,241.49 99.96 (6.39) 0.2x 2.3x NM

MEAN (DISTRIBUTION) 0.9x 10.2x 18.7x

MEDIAN (DISTRIBUTION) 0.5x 9.4x 19.5x

MEAN (PRODUCTS) 2.9x 15.6x 20.8x

MEDIAN (PRODUCTS) 3.0x 14.5x 21.7x

1) Source: Financial Information from SEC filings and other publicly-available sources

2) Market Cap: Total Value of Company's Stock; Equal to the Number of Shares Outstanding Times the Price per Share

3) TEV (Total Enterprise Value): Market Capitalization Plus Debt Less Cash

4) LTM: Latest Twelve Months

5) EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

6) NA: Not Available

7) NM: Not Meaningful

PRODUCTS - DISTRIBUTION

22

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[email protected]

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