Scott-Macon Healthcare Review: October 2017

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 CONTENTS

2 OCTOBER 2017 HEALTHCARE REVIEW

Dear Clients and Friends,

Scott-Macon is pleased to present our PBM giant Express Scripts announced its Healthcare Review covering October 2017. $3.6 billion deal for specialty care provider If you haven’t done so already, please eviCore, formerly known as CareCore. In email me at [email protected] addition, Allscripts closed on HIT company to automatically continue receiving our PF2 for $185 million; and Murata of Japan publications in the future as we are transi- closed on Vios Medical in the wireless tioning to digital publishing with email dis- monitoring space for $101 million. In Out- tribution. sourcing Services, publicly-traded Fortive closed on Landauer for $740 million, or Pages four and five represent a visual 17x EBITDA; and Fidelity National Finan- snapshot of the average multiples for all of cial Ventures closed on T-System for $200 the healthcare, medical and pharmaceutical million. transactions that either closed or were announced during October, along with the av- In the Provider arena, Ambry Genet- erage multiples for the major publicly- ics in the lab sector was acquired by Inno- traded healthcare, medical and pharmaceu- vation and Konica of Japan for $1 billion. tical companies. In the Non-Acute space, Concentra in the workers’ comp sector announced its take- In the Insurance Services space, be- over of U.S. Healthworks for $753 million, havioral-focused Magellan Healthcare and Canadian player New Vision closed on closed on its acquisition of Medicare/ IRIS in the eye care business for $93 mil- Medicaid plan provider Senior Whole lion. In Long-Term Care, BlueMountain Health for $400 million in a major diversi- closed on a cluster of facilities from Kin- fication move. In Technology Services, 3 dred for $700 million; and Sienna Senior ended October at 16.0X (up from 15.1X in Living closed on Storey Oaks of Tulsa for September 2017); Providers at 12.2X $130 million. (down from 12.6X in September 2017); and Products at 15.6X (unchangd from Turning next to Products, in Clinical 15.6X in September 2017). Technology Devices Teleflex picked up Neo Tract in services companies ended October at the urology arena for $1.1 billion; publicly- 23.7X, while Outsourcing services compa- traded Integra LifeSciences closed on nies were 16.8X. The Insurance segment DePuy Synthes’s Codman business for $1 EBITDA multiple came in at 12.4X (down billion; and Exactech went private for $625 from 12.9X in September 2017). million, or 14.6X EBITDA. In Commercial Products, Alere got sold to Abbott for $7.6 Finally, contact information for the billion, or 20.7X EBITDA; Catalent picked Scott-Macon Healthcare Investment Bank- up Cook Pharmica for $950 million; and ing Group Professionals appears on the Quidel acquired divisions of Alere for $680 back cover. We welcome your call or email million. In the Pharmaceuticals sector, to discuss your thoughts on this article. Nanjing Xinjlekou of Japan announced its deal for Dendreon Pharmaceuticals for Sincerely yours, $905 million, and publicly-traded Emer- gent BioSolutions closed on ACAM2000 for $125 million. Nathan D. Cortright

Following the mergers and acquisi- Managing Director Group Head – Healthcare Investment Banking tions analysis, we present an analysis of publicly-traded Services, Providers, and Products companies by sector. Mean EBITDA multiples for Services companies 4 HEALTHCARE OVERVIEW MEAN REVENUE MULTIPLES

OVERALL: Revenue Multiple

3.4x 2.9x 2.1x 1.6x 2.2x NA Services Providers Products

SERVICES: Revenue Multiple

4.8x 3.2x 2.2x 1.4x 2.1x 1.9x 1.9x NA NA NA Insurance Technology Outsourcing India-Based Outsourcing Information

PROVIDERS: Revenue Multiple

2.8x 1.4x 1.6x 1.3x 1.0x NA NA NA NA NA Labs Home Health & Hospice Non-Acute Long-Term Care Acute

PRODUCTS: Revenue Multiple

3.2x 3.1x 2.7x 2.9x 3.4x 1.7x NA NA Clinical Devices Non-Clinical Devices Disposables Commercial

3.2x 2.3x 0.9x NA NA NA Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions 5 HEALTHCARE OVERVIEW MEAN EBITDA MULTIPLES

OVERALL: EBITDA Multiple

17.0x 16.0x 15.6x 14.8x 12.2x

NA Services Providers Products

SERVICES: EBITDA Multiple

23.7x 24.2x 16.8x 17.0x 12.4x 10.3x

NA NA NA NA Insurance Technology Outsourcing India-Based Outsourcing Information

PROVIDERS: EBITDA Multiple

14.1x 15.1x 14.3x 11.0x 8.2x NA NA NA NA NA Labs Home Health & Hospice Non-Acute Long-Term Care Acute

PRODUCTS: EBITDA Multiple

20.4x 20.7x 17.6x 17.5x 17.3x 11.9x

NA NA Clinical Non-Clinical Disposables Commercial

15.0x 13.6x 10.2x

NA NA NA Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions 6 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)

Target Target Price/ Price/ Date Acquirer / Target Price Revenue EBITDA2 Revenue EBITDA2 Target Description

SERVICES - INSURANCE 10/31/2017 Magellan Healthcare, Inc. / $400.0 NA NA NA NA Operates as a health maintenance organization. Senior Whole Health, LLC 10/9/2017 Paramount Care, Inc. / NA NA NA NA NA Comprises workers' health insurance plans. Health Plan of The Upper Ohio Valley Inc., Workers' Compensation Divisions MEAN (INSURANCE) NA NA MEDIAN (INSURANCE) NA NA

SERVICES - TECHNOLOGY 10/2/2017 Allscripts Healthcare, LLC / $185.0 NA NA NA NA Comprises healthcare information technology PF2 EIS LLC and PF2 Enterprise Information Solutions Canada solutions. Announced ANGLEULC Biosciences Inc.; ANGLE Europe Limited / $4.9 NA NA NA NA Develops and delivers a portfolio of tools that Axela Inc. provide enhanced analysis of proteins, DNA, and RNA. 10/11/2017 Azalea Health Innovations, Inc. / NA NA NA NA NA Provides clinical enterprise software for rural and Prognosis Innovation Healthcare community hospitals and health systems. 10/24/2017 Bracket Global LLC / NA NA NA NA NA Provides mobile technologies for life science and Montentia, LLC pharmaceutical companies. 10/16/2017 Convey Health Solutions, Inc. / NA NA NA NA NA Provides health care professional and software Gorman Health Group, LLC services. 10/16/2017 Eye Care Leaders, LLC / NA NA NA NA NA Develops electronic medical record, enterprise iMedicWare Inc. practice management, and ambulatory surgery centers software for ophthalmologists. 10/24/2017 Imprivata, Inc. / NA NA NA NA NA Comprises identity and access management Caradigm USA LLC, Identity And Access Management Business 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. / NA NA NA NA NA Comprises population health management AxisPoint Health, Platform Business software platform and related clientele. 10/30/2017 Medicine-On-Time / NA NA NA NA NA Provides medication management, care Clinical Support Services, Inc. management, and care coordination software and services to Medicare, Medicaid, ACO, self-insured employer, and pharmacy organizations. Announced Medsphere Systems Corporation / NA NA NA NA NA Provides software solutions and services to Stockell Healthcare Systems, Inc. manage revenue cycles for hospitals, behavioral healthcare providers, and integrated health networks. 10/13/2017 Murata Electronics North America, Inc. / $101.7 NA NA NA NA Develops wireless monitoring platform for Vios Medical, Inc. intensive healthcare applications. Announced Oz Parent, Inc. / $3,600.0 NA NA NA NA Develops and operates evidence-based cloud eviCore healthcare, LLC centric healthcare solutions for managed care organizations, self-insured entities, and risk- bearing provider organizations. 10/12/2017 Paradigm Management Services, LLC / NA NA NA NA NA Designs and develops cost containment software ForeSight Medical, LLC that provides suite of surgical management solutions in the workers' compensation marketplace. 10/3/2017 Trilliant Health, Inc. / NA NA NA NA NA Operates a big data platform that provides Expression Health Analytics LLC insights needed to make strategic decisions for healthcare organizations and providers. 10/11/2017 Unknown Buyer / NA NA NA NA NA Provides electronic data interchange solutions to Practice Insight, LLC the healthcare industry. 10/12/2017 UPMC Work Partners / NA NA NA NA NA Provides cloud based health information service. HCMS Group LLC 10/5/2017 VitalHub Corp. (TSXV:VHI) / $2.8 $1.4 NA 2.1x NA Designs and develops specialty documentation B Sharp Technologies Inc. and case management software. 10/3/2017 WebPT, Inc. / NA NA NA NA NA Develops and offers patient relationship Strive Labs, Inc. management platform for rehab therapy providers. 10/5/2017 Welltok, Inc. / $90.0 NA NA NA NA Provides SaaS-based communication solutions for Tea Leaves Health, LLC the healthcare industry.

MEAN (TECHNOLOGY) 2.1x NA MEDIAN (TECHNOLOGY) 2.1x NA

SERVICES - OUTSOURCING 10/20/2017 AHS Staffing, LLC / NA NA NA NA NA Offers healthcare staffing services. Advance Med, LLC 10/10/2017 Avizia, Inc. / NA NA NA NA NA Provides medical care via phone, Webcam, or Carena, Inc. house call to diagnose and treat patients’ injuries or illness. 10/24/2017 Century Ambulance Service, Inc. / NA NA NA NA NA Provides dedicated transport services to St. St. Vincent Ambulance Services Vincent HealthCare facilities. 7

Target Target Price/ Price/ Date Acquirer / Target Price Revenue EBITDA2 Revenue EBITDA2 Target Description

Announced Community Care Health Network, Inc. / NA NA NA NA NA Provides case management services. LP Health Services, LLC Announced ExlService Holdings, Inc. (NasdaqGS:EXLS) / NA NA NA NA NA Provides care management services that enable Health Integrated, Inc. health plans to manage their most vulnerable members. 10/26/2017 Factory-CRO bv / NA NA NA NA NA Engages in clinical research and reimbursement MileStone Research Cro, Inc. solutions for medical devices and biological industry. 10/17/2018 Fidelity National Financial Ventures (NYSE:FNFV) / $200.0 NA NA NA NA Provides clinical, financial, operational, and T-System Inc. regulatory solutions for hospitals and urgent care clinics. 10/18/2017 Fortive Corporation (NYSE:FTV) / $740.7 $153.4 $43.7 4.8x 17.0x Provides technical and analytical services, and Landauer, Inc. (NYSE:LDR) outsourced medical physics services. 10/16/2017 Mobile Science Technologies Inc. / $0.4 NA NA NA NA Provides pharmacogenetic testing, genetic DxT Medical, LLC screening, and blood toxicology testing services. Announced Sunset Dental Technologies, LLC / NA NA NA NA NA Provides information technology consulting Dental Technology Designs, Inc. services and digital solutions to the dental community. 10/16/2017 Terra Health Network Inc. / $0.2 NA NA NA NA Provide medical marijuana advice and arrange Canna Relief Consulting Canada Inc. free consultations with doctors. 10/30/2017 U.S. Healthworks, Inc. / NA NA NA NA NA Provides occupational health services, employee Workforce Health evaluation and screening, corporate wellness programs, and injury prevention services. Announced Unknown Buyer / $10.0 NA NA NA NA Comprises billing and collection services, Inspira Financial Inc., Billing Division including consulting and reporting division for behavioral health and substance abuse treatment facilities. 10/19/2017 Webster Capital / $39.4 NA NA NA NA Operates as a nurse staffing company. Cirrus Medical Staffing, Inc. 10/17/2017 WuXi AppTec Co., Ltd. / NA NA NA NA NA Provides contract research services for Cycle Solutions, Inc. pharmaceutical, biotechnology, and medical device industries.

MEAN (OUTSOURCING) 4.8x 17.0x MEDIAN (OUTSOURCING) 4.8x 17.0x

SERVICES - INFORMATION 10/10/2017 Staywell Company, LLC / NA NA NA NA NA Owns and operates an online health community MedHelp International, Inc. 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

PROVIDERS - LABS 10/31/2017 CiToxLAB Group / NA NA NA NA NA A non-clinical contract laboratory that provides Xenometrics LLC non-clinical research services to the pharmaceutical, biotechnology, veterinary, and agro-chemical industries. 10/19/2017 Innovation Network Corporation of Japan; Konica Minolta $1,000.0 NA NA NA NA Provides clinical diagnostics testing services for Healthcare Americas, Inc. / genetic diseases. Ambry Genetics Corp. 10/26/2017 inviCRO, LLC / NA NA NA NA NA Operates as a medical imaging core laboratory. Core Clinical, Inc. 10/5/2017 National Dentex Labs / NA NA NA NA NA Operates a dental laboratory. NDX Albensi 10/26/2017 Ovation Fertility / NA NA NA NA NA Comprises fertilization laboratory services. Fertility Answers, Vitro Fertilization Laboratory Services in Baton Rouge and Lafayette, Louisiana 10/2/2017 Prescient Medicine Holdings LLC / $0.7 NA NA NA NA Comprises commercial and research laboratory. Pharmacogenetics Diagnostic Laboratory, LLC, Substantially all of the assets 10/30/2017 Quest Diagnostics Incorporated (NYSE:DGX) / NA NA NA NA NA Comprises certain asset of a medical laboratory. California Laboratory Associates, Certain Assets Announced Quest Diagnostics Incorporated (NYSE:DGX) / NA NA NA NA NA Operates as a clinical laboratory and Cleveland HeartLab, Inc. cardiovascular disease management company.

MEAN (LABS) NA NA MEDIAN (LABS) NA NA

PROVIDERS - HOME HEALTH & HOSPICE 10/2/2017 Associated Home Care LLC / NA NA NA NA NA Provides home health care services for the elderly Intercity Home Care Inc. and disabled. 10/16/2017 Invo HealthCare Associates, Inc. / NA NA NA NA NA Provides at-home and center-based evidence- Autism Home Support Services Inc. based therapy and counseling services for children with autism spectrum disorders and their families. 8

Target Target Price/ Price/ Date Acquirer / Target Price Revenue EBITDA2 Revenue EBITDA2 Target Description

10/6/2017 Northern Family Home Care LLC / $1.0 NA NA NA NA Provides in-home care and services to seniors. AME, LLC

MEAN (HOME HEALTH & HOSPICE) NA NA MEDIAN (HOME HEALTH & HOSPICE) NA NA

PROVIDERS - NON-ACUTE 10/11/2017 CCMP Capital Advisors, LP / NA NA NA NA NA Provides eating disorder treatment services for Eating Recovery Center LLC men, women, children, and adolescents. 10/25/2017 Civitas Solutions, Inc. (NYSE:CIVI) / NA NA NA NA NA Provides post-acute neuro-rehabilitation services Mentis Neuro Rehabilitation LP 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. / $753.0 NA NA NA NA Owns and operates occupational healthcare and U.S. Healthworks, Inc. urgent care centers. 10/2/2017 EnteroMedics Inc. (NasdaqCM:ETRM) / NA NA NA NA NA Provides a non-surgical weight loss procedure ReShape Medical Inc. that helps people to lose weight. Announced FFL Partners, LLC; Lee Equity Partners, LLC / NA NA NA NA NA Develops and operates a network of behavioral Summit Behavioral Healthcare, LLC health centers. Announced G Medical Innovations USA Inc. / $4.2 NA NA NA NA Operates an independent diagnostic testing CardioStaff Diagnostic Services Inc. facility that provides physicians practices and hospitals with patient medical monitoring services. 10/10/2017 Halifax Group / NA NA NA NA NA Provides addiction and mental health treatment Delphi Behavioral Health Group, LLC programs. 10/4/2017 KKR & Co. L.P. (NYSE:KKR) / NA NA NA NA NA Owns and operates ambulatory surgery centers. Covenant Surgical Partners, Inc. 10/6/2017 Lindsay Goldberg / NA NA NA NA NA Provides women healthcare services. Women's Care Florida, LLC 10/24/2017 MB2Dental Solutions / NA NA NA NA NA Offers dental care services. Taos Dental Group, LLC 10/25/2017 Meridian Behavioral Health LLC / NA NA NA NA NA Provides inpatient and outpatient substance New Beginnings Minnesota, LLC abuse care. 10/2/2017 MSI Bel Air, LLC / NA NA NA NA NA Provides chiropractic services. Chiroplus of Fullerton, LLC 10/1/2017 Navicent Health Inc. / $12.2 NA NA NA NA Operates as a healthcare facility. Navicent Health Baldwin, Inc. 10/24/2017 New Look Vision Group Inc. (TSX:BCI) / $92.9 NA NA NA NA Provides eye care services for patients. IRIS The Visual Group Inc. Announced On4 Communications, Inc. (OTCPK:ONCI) / NA NA NA NA NA Provides dental services. New York Dental Group LLP 10/4/2017 Pain Specialists of America LLC / NA NA NA NA NA Comprise pain management services. Nonclinical Assets of Pain Specialists of Austin and Central Texas Pain Center 10/4/2017 Physical Rehabilitation Network, LLC / NA NA NA NA NA Operates physical therapy centers. Armada Physical Therapy Of Albuquerque LLC 10/17/2017 Predictive Service, LLC / NA NA NA NA NA Provides diagnostic predictive testing, including Mid Atlantic Infrared Services, Inc. infrared, vibration and ultrasonic diagnostic services. Announced Prelude Fertility Inc. / NA NA NA NA NA Owns and operates a chain of In Vitro Fertilization Houston Fertility Institute, PLLC centers. Announced Prelude Fertility Inc. / NA NA NA NA NA Owns and operates ambulatory surgery centers Vivere Health, LLC and in vitro fertilization facilities. 10/24/2017 Sanders Trust LLC / $7.8 NA NA NA NA Comprises a multi-specialty ambulatory surgery Multi-Specialty Ambulatory Surgery Center in Pascagoula, center. Mississippi 10/24/2017 Southwest Vision Center Inc. / NA NA NA NA NA Operates as a vision care center. Alan K Montgomery, OD,PLC. 10/13/2017 SSM Physical Therapy / NA NA NA NA NA Provide health care services. St. Louis Physical Therapy 10/16/2017 U.S. Dermatology Partners / NA NA NA NA NA Provide general dermatology, as well as surgical Lakeway Dermatology; Medical Center Dermatology and cosmetic dermatology services. 10/1/2017 WellStone Inc. / NA NA NA NA NA Offers treatment for mental illness of children and Mental Healthcare of Cullman older adults.

MEAN (NON-ACUTE) NA NA MEDIAN (NON-ACUTE) NA NA

PROVIDERS - LONG-TERM CARE 10/2/2017 BlueMountain Capital Management LLC / $700.0 NA NA NA NA Comprises nursing facility business operations. Kindred Healthcare Operating, Inc., Skilled Nursing Facility 10/1/2017 CareTrustBusiness REIT, Inc. (NasdaqGS:CTRE) / $65.5 NA NA NA NA Comprises seven skilled nursing facilities. Seven Skilled Nursing Facilities in Idaho 10/31/2017 CareTrust REIT, Inc. (NasdaqGS:CTRE) / $69.0 NA NA NA NA Comprises a business operation that operates Three Skilled Nursing Facilities in California nursing facilities. 10/1/2017 CareTrust REIT, Inc. (NasdaqGS:CTRE) / $30.4 NA NA NA NA Comprises healthcare facilities. Three Skilled Nursing Facilities in Washington and Three Assisted Living Communities in Virginia Announced InnovAge Home Care / NA NA NA NA NA Comprises medical and support services for NewCourtland Elder Services, Living Independently for Elders seniors. (LIFE) Program 9

Target Target Price/ Price/ Date Acquirer / Target Price Revenue EBITDA2 Revenue EBITDA2 Target Description

10/4/2017 Sagora Senior Living, Inc. / NA NA NA NA NA Comprises a memory care community. Storey Oaks of Tulsa Announced Sienna Senior Living Inc. (TSX:SIA) / $130.9 NA NA NA NA Comprises two assisted living and memory care Waterford Retirement Residence Barrie; Waterford Retirement communities. Residence Kingston 10/17/2017 Unknown Buyer / $9.2 NA NA NA NA Comprises a 110-unit community for senior living. Pacific Pointe Active Senior Living

MEAN (LONG-TERM CARE) NA NA MEDIAN (LONG-TERM CARE) NA NA

PROVIDERS - ACUTE 10/2/2017 Bethesda Health, Inc. / NA NA NA NA NA Operates medical plazas, surgical facilities, and Baptist Health South Florida, Inc. hospitals. 10/31/2017 HCA Healthcare, Inc. (NYSE:HCA) / NA NA NA NA NA Operates as a hospital. Sebring Hospital Management Associates, LLC Announced Loyola University Health System / NA NA NA NA NA Operates a hospital. MacNeal Health Network, Inc. 10/2/2017 Medical City Healthcare / NA NA NA NA NA Operates a hospital. Weatherford Texas Hospital Company, LLC 10/2/2017 Piedmont Healthcare, Inc. / NA NA NA NA NA Operates an acute-care hospital that offers a Rockdale Medical Center, Inc. range of in-patient and out-patient services. 10/31/2017 Unknown Buyer / NA NA NA NA NA Operates a hospital that provides healthcare L.V. Stabler Memorial Hospital services. 10/2/2017 UPMC Susquehanna / NA NA NA NA NA Operate healthcare facilities. Clinton Hospital Corporation; Sunbury Hospital Company, LLC Announced Wake Forest Baptist Medical Center / NA NA NA NA NA Provides health care services to medical and High Point Regional Health System Inc. surgical patients.

MEAN (ACUTE) NA NA MEDIAN (ACUTE) NA NA

MEAN (PROVIDERS) NA NA MEDIAN (PROVIDERS) NA NA

PRODUCTS - CLINICAL DEVICES 10/10/2017 Boston Scientific Corporation (NYSE:BSX) / $300.0 NA NA NA NA Manufactures catheter ablation technology Apama Medical, Inc. devices for the treatment of atrial fibrillation. 10/5/2017 BTG plc (LSE:BTG) / $80.0 NA NA NA NA Focuses on developing tools for cardiac cath labs Roxwood Medical, Inc. to tackle complex cases in interventional cardiology. 10/2/2017 Dynatronics Corporation (NasdaqCM:DYNT) / $15.5 $24.0 NA 0.6x NA Manufactures orthopedic soft goods, sports Bird and Cronin, Inc. medicine related items, and specialty patient care products for healthcare professionals and their patients. 10/18/2017 EQT Partners AB / NA NA NA NA NA Engages in the research, development, and Clinical Innovations, LLC manufacturing of medical devices that improve the lives of mothers and their babies. Announced Ferring Holding SA / $14.5 NA NA NA NA Comprises of needle-free auto injector device Antares Pharma, Inc., Worldwide Rights Including Certain Fixed manufacturing business. Assets, for ZOMAJET 10/2/2017 Integra LifeSciences Holdings Corporation (NasdaqGS:IART) / $1,045.0 $370.0 $114.7 2.8x 9.1x Offers research, development, manufacture, DePuy Synthes, Inc., Codman Neurosurgery Business marketing, distribution, and sale of healthcare equipment for neurosurgery procedures. Announced Jordan Company, L.P.; Linden LLC / NA NA NA NA NA Engages in the development, manufacture, and Young Innovations Inc. marketing of supplies and equipment used by dentists, dental hygienists, dental assistants, and consumers. 10/23/2017 K2M Group Holdings, Inc. (NasdaqGS:KTWO) / NA NA NA NA NA Comprises a medical device. Cardinal Spine, LLC, Palo Alto Cervical Static Corpectomy Cage System 10/24/2017 Katena Products, Inc. / NA NA NA NA NA Manufactures and distributes ophthalmic surgical Rhein Medical, Inc. instruments. 10/6/2017 Natus Medical Incorporated (NasdaqGS:BABY) / $47.5 $50.0 NA 1.0x NA Comprises neurosurgery medical instruments Integra LifeSciences Holdings Corporation, Neurosurgery Business manufacturing business. Assets 10/2/2017 NN, Inc. (NasdaqGS:NNBR) / NA NA NA NA NA Distributes precision manufactured medical DRT Medical LLC instruments and orthopedic implants. 10/2/2017 OCULUS Surgical, Inc. / NA NA NA NA NA Develops, produces, and sells instruments to Insight Instruments, Inc. ophthalmic surgeons. 10/27/2017 Salter Labs Inc. / NA NA NA NA NA Provides respiratory products. RespCare, Inc. 10/31/2017 Siemens Healthineers, Inc. / NA NA NA NA NA Offers a wireless bedside blood testing solution Epocal Inc. that provides lab results directly to a hand-held mobile computer. Announced Smith & Nephew plc (LSE:SN.) / $210.0 NA NA NA NA Developed a minimally invasive rotator cuff Rotation Medical Inc. implant system for the treatment of rotator cuff disease. 10/2/2017 Teleflex Urology Limited / $1,100.0 NM NA NM NA Develops and manufactures minimally invasive NeoTract, Inc. medical devices that address unmet needs in the field of urology. 10

Target Target Price/ Price/ Date Acquirer / Target Price Revenue EBITDA2 Revenue EBITDA2 Target Description

Announced TPG Capital, L.P. / $625.7 $264.4 $42.8 2.4x 14.6x Develops, manufactures, markets, distributes, and Exactech, Inc. (NasdaqGS:EXAC) sells orthopedic implant devices, related surgical instrumentation, and biologic services. 10/4/2017 Vance Street Capital LLC / NA NA NA NA NA Manufactures medical catheter components. Fermatex Vascular Technologies, LLC 10/20/2017 Vyaire Medical, Inc. / NA NA NA NA NA Designs and develops airway management Revolutionary Medical Devices, Inc. products to improve patient outcomes from anesthesia.

MEAN (CLINICAL DEVICES) 1.7x 11.9x MEDIAN (CLINICAL DEVICES) 1.7x 11.9x

PRODUCTS - NON-CLINICAL DEVICES 10/6/2017 CMR Naviscan Corporation / NA NA NA NA NA Develops, manufactures, and markets digital Gamma Medica, Inc. molecular imaging systems.

MEAN (NON-CLINICAL DEVICES) NA NA MEDIAN (NON-CLINICAL DEVICES) NA NA

PRODUCTS - DISPOSABLES

MEAN (DISPOSABLES) NA NA MEDIAN (DISPOSABLES) NA NA

PRODUCTS - COMMERCIAL 10/3/2017 Abbott Laboratories (NYSE:ABT) / $7,634.3 $2,377.6 $369.3 3.2x 20.7x Provides point-of-care diagnostics and services for Alere Inc. (NYSE:ALR) infectious disease, cardiometabolic disease, and toxicology. 10/23/2017 Catalent Pharma Solutions, Inc. / $950.0 NM NA NM NA Provides contract development and Cook Pharmica LLC manufacturing services to pharmaceutical and biopharmaceutical companies. 10/6/2017 Quidel Corporation (NasdaqGS:QDEL) / $680.0 $197.0 NA 3.5x NA Comprises diagnostic tests for infectious Alere Inc., Triage MeterPro Assets and B-type Naturietic Peptide diseases. Assay Business

MEAN (COMMERCIAL) 3.4x 20.7x MEDIAN (COMMERCIAL) 3.4x 20.7x

PRODUCTS - CONSUMER Announced Hildred Capital Partners, LLC / NA NA NA NA NA Manufactures and markets products like Crown Laboratories, Inc. shampoos, lotions and moisturizers referred by dermatologists and oncologists.

MEAN (CONSUMER PRODUCTS) NA NA MEDIAN (CONSUMER PRODUCTS) NA NA

PRODUCTS - PHARMACEUTICALS 10/31/2017 Ally Bridge Group; Ally Bridge Lb Healthcare Master Fund Ltd; NA NA NA NA NA Provides therapies for oncology, infectious Ascendent Capital Partners; Ascendent Capital Partners II, L.P.; diseases, and cardiovascular disorders. Avengers Limited; Bank Of China Group Investment Limited; Boying Investments Limited; GL Trade Investment Limited / SciClone Pharmaceuticals, Inc. (NasdaqGS:SCLN) Announced American Patriot Brands, Inc. (OTCPK:GRLD) / $1.4 NA NA NA NA Own and operate medical cannabis grow facilities. SF Farms; SF Finest Announced Amneal Pharmaceuticals LLC / NA NA NA NA NA Develops, manufactures, and markets Impax Laboratories, Inc. (NasdaqGS:IPXL) bioequivalent pharmaceutical products. 10/31/2017 Cannabis Wheaton Income Corp. (TSXV:CBW) / $21.3 NA NA NA NA Produces medical cannabis products. RockGarden Medicinals Inc. Announced CGX Life Sciences Inc. / $18.0 NA NA NA NA Engages in cultivation, production, and wholesale GreenMart of Nevada NLV, LLC of recreational and medical cannabis. Announced Corden Pharma Colorado, Inc. / NA NA NA NA NA Manufactures active pharmaceutical ingredients Hospira Boulder, Inc. and intermediate products with specialized capabilities in small- to medium-scale highly potent and cytotoxic APIs. 10/6/2017 Emergent BioSolutions Inc. (NYSE:EBS) / $125.0 NA NA NA NA Comprises the business of manufacturing and ACAM2000 distributing vaccine to cure smallpox. 10/23/2017 Finch Therapeutics Group / NA NA NA NA NA Engages in developing of Full-Spectrum Crestovo LLC Microbiota that harnesses the human gut microbiome. Announced Future Farm Technologies Inc. (CNSX:FFT) / $0.2 NA NA NA NA Comprises business unit that cultivates and Cannatech LLC, 120 Acre Licensed Industrial Hemp Farm in produces hemp and cannabis. Amity, Maine Announced Nanjing Xinjiekou Department Store Co., Ltd. (SHSE:600682) / $905.7 NA NA NA NA Discovers, develops, manufactures, and sells Dendreon Pharmaceuticals, Inc. novel therapeutics products. Announced NuLife Sciences, Inc. (OTCPK:NULF) / NA NA NA NA NA Engages in the research on the use of fullerene Ensysce Biosciences, Inc. carbon nanotubes for novel therapeutic applications in the area of cancer treatment. Announced PDL BioPharma, Inc. (NasdaqGS:PDLI) / NA NA NA NA NA Engages in the development, manufacture, and Neos Therapeutics, Inc. (NasdaqGM:NEOS) commercialization of products for the treatment of attention deficit hyperactivity disorder. 11

Target Target Price/ Price/ Date Acquirer / Target Price Revenue EBITDA2 Revenue EBITDA2 Target Description

10/2/2017 Stallergenes Greer Plc (ENXTPA:STAGR) / NA NA NA NA NA Manufactures allergy immunotherapy therapies. Medic Savoure Ltd. 10/2/2017 Unknown Buyer / NA NA NA NA NA Provides process R&D and API manufacturing Apicore, LLC services for the pharmaceutical industry.

MEAN (PHARMACEUTICALS) NA NA MEDIAN (PHARMACEUTICALS) NA NA

PRODUCTS - DISTRIBUTION

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 12

ANALYSIS OF SELECTED PUBLICLY-TRADED HEALTHCARE, MEDICAL AND PHARMACEUTICAL SERVICES AND PRODUCTS COMPANIES1 (OCTOBER 31, 2017) ($ Millions Except Per Share Data)

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 Extra SERVICES - INSURANCE

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

SERVICES - TECHNOLOGY

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 13

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 Extra SERVICES - OUTSOURCING

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

SERVICES - INDIA-BASED OUTSOURCING

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

SERVICES - INFORMATION

Connecture, Inc. (OTCPK:CNXR) 0.18 4.12 98.60 82.18 (8.20) (1.02) 1.2x NM NM 14

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

PROVIDERS - LABS

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

PROVIDERS - HOME HEALTH & HOSPICE

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

PROVIDERS - NON-ACUTE

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 15

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

PROVIDERS - LONG-TERM CARE

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

PROVIDERS - ACUTE

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

PRODUCTS - CLINICAL DEVICES

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 16

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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 46.78 3,671.17 4,360.97 1,075.30 245.22 0.61 4.1x 17.8x NM (NasdaqNM:IART) 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

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

PRODUCTS - NON-CLINICAL DEVICES

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 18

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

PRODUCTS - DISPOSABLES

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

PRODUCTS - COMMERCIAL

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 19

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

PRODUCTS - CONSUMER

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

PRODUCTS - PHARMACEUTICALS

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 20

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

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

LTM4 P/ Diluted 4 3 Stock LTM4 LTM Diluted EPS TEV3/ TEV / EPS Before Company Name (Ticker Symbol) Price Market Cap2 TEV3 Revenue EBITDA5 Before Extra Revenue EBITDA5 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

PRODUCTS - DISTRIBUTION

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 22

Note: Disclaimer

In the preparation of the information contained in this document, Scott-Macon, Ltd. has endeavored to present information that is as accurate and cur- rent as possible from sources believed to be reliable. However, inadvertent errors can occur. Therefore, the information is provided “as is”, without any representation or warranty of any kind, expressed or implied. Any reproduction, retransmission, republication, or other use of all or part of this document is expressly prohibited, unless written permission has been granted by Scott-Macon, Ltd. All other rights are reserved. 23 ABOUT SCOTT-MACON

Scott-Macon is an investment banking firm providing corporate advisory services to a broad range of industries, including a spe- cific focus on the healthcare, medical and pharmaceutical services and products industries. Founded in 1973, Scott-Macon has 20 senior professionals with an average of 20 years’ experience in investment banking.

SERVICES AND CAPABILITIES

 Corporate Sales — Assisting privately-held and publicly-traded companies to arrange sale, divestiture and merger transactions as well as corporate valuations for board or management use.

 Acquisition Advisory — Providing assistance in identifying acquisition prospects, contacting companies, and negotiating acquisition transactions.

 Capital Raising — Arranging for the private placement of equity and debt securities.

 Strategic Planning — Planning overall corporate objectives, reviewing strategic alternatives, and creating plans for maximiz- ing value. HEALTHCARE INVESTMENT BANKING GROUP PROFESSIONALS

Nathan D. Cortright Robert B. Dimmitt

Group Head Senior Managing Director

[email protected] [email protected]

Jeffrey M. Tepper Spencer R. Berg

Managing Director Vice President

[email protected] [email protected]

Joshua H. Keatts Leslie S. Lau

Vice President Vice President

[email protected] [email protected]

George B. James Merritt Piro

Senior Associate Analyst

[email protected] [email protected]