Healthcare & Life Sciences Industry Update

HEALTHCARE & LIFE SCIENCES

INDUSTRY UPDATE │ AUGUST 2015

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

0 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

WHAT WE’RE READING

CONTENTS HOSPITALS| COMPETING FOR CHILDREN . PUBLIC MARKETS OVERVIEW As a result of megamergers in the marketplace, specialty pediatric hospitals are . EQUITY MARKETS OVERVIEW facing increased competition from integrated delivery networks. In order to provide a comprehensive service offering, hospitals must gather a large number of . M&A OVERVIEW subspecialties focused on children’s care. Whereas in the past, such an . DEBT MARKETS OVERVIEW aggregation required significant patient volume, now acquisitions, joint ventures . HEALTHCARE & LIFE SCIENCES and partnerships have enabled many health systems to acquire or share the PUBLIC COMPARABLES providers who target these specialized patient populations. The result is that the . M&A TRANSACTIONS children’s hospitals that had once cornered the market face heightened competition. In an article by Modern Healthcare, the publication explores whether this is best for the patient. Given the limited resources who care for these patients, CONTACTS too much competition may dilute the marketplace and drive physicians to other Turner Bredrup markets where there is a substantial patient base to support a world class pediatric Managing Director care center. A link to the article can be found here. [email protected] +1 (804) 915-0110 James Clark Managing Director [email protected] +1 (804) 915-0119 PHARMACY BENEFITS| SQUEEZING OUT EXPENSIVE, BRANDED DRUGS Todd Morris Viagra or Cialis? While some may never have to choose between two of Managing Director [email protected] America’s most well-recognized branded pharmaceuticals, CVS may have +1 (415) 217-3412 already chosen for a large portion of the population. CVS and Viagra made headlines this month when the pharmacy benefits manager (“PBM”) announced it Cheairs Porter would exclude the drug from its coverage. The decision represents a recent trend Managing Director whereby drug-benefit plans have transitioned from guiding patients to cheaper [email protected] drugs to a strategy whereby PBMs are excluding certain drugs altogether. +1 (804) 915-0130 Historically, patients would have been directed to try cheaper options but would Geoff Smith have retained the option to pay more out-of-pocket for more expensive options. Managing Director Excluding drugs altogether, however, may lead to significant cost savings for [email protected] benefit plans assuming the cheaper options have equivalent safety and efficacy. +1 (804) 915-0195 The move arrives amidst the greater issue of payers continuing to struggle with Andy Dixon rising drug prices. A link to the article can be found here. (A subscription to the Director Wall Street Journal may be required) [email protected] +1 (415) 217-3419 Paul Hepper Director [email protected] MEDICAID| CALIFORNIA’S PLAN TO CARVE IN COMPLEX CHILDREN +1 (804) 932-1326

We continue our review of children making the healthcare news as California Whit Knier Director announced its plan to carve in its California Children’s Services (“CCS”) program [email protected] into Medi-Cal managed care. This is not, however, the first controversial case of +1 (804) 932-1321 traditional fee-for-service populations being brought into managed care. Several populations, including the elderly, disabled and other child populations have been Jacques Fu highly contested nationwide. On one hand, there are benefits to a system Vice President [email protected] whereby a patient who sees a variety of specialists and physicians would benefit +1 (804) 915-0185 by being cared for under a single plan. The controversy lies in whether the plans themselves provide adequate coverage and are equipped to deal with the most Andy Hewlett acute (and high-cost) populations. For now, California’s legislature will review a bill Vice President to slow down the planned transition until further analyses can be completed. A [email protected] link to the article in the Kaiser Health News can be found here. +1 (415) 217-3427 Bill Kayser Vice President [email protected] +1 (804) 915-0180 Nick Owens Vice President [email protected] +1 (804) 887-6027

www.harriswilliams.com

PAGE | 1 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC MARKETS OVERVIEW

Key Trading Statistics (detail begins on page 6)

Median TEV/ Median TEV/ Number of Aggregate Sector Enterprise Value Change in Stock Price LTM Multiples Forward Mulitples Companies ($ mm) 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA Clinical Laboratories 3 $34,493 6.5% 22.8% 1.9x 11.0x 1.9x 10.5x Contract Pharma Manufacturing 3 12,297 12.4% 46.9% 3.9x 16.8x 3.6x 13.9x Contract Research Organizations 9 $40,310 17.1% 39.7% 3.0x 15.2x 3.0x 14.0x Disease Management 2 8,181 (12.4%) (2.6%) 1.9x 14.1x 1.9x 11.9x Emergency Services 1 $2,171 (13.8%) (21.6%) 2.1x 8.3x 2.1x 8.0x Healthcare Staffing 5 20,912 13.9% 41.9% 1.4x 17.5x 1.4x 14.0x HMO - Medical 10 $320,462 9.1% 51.4% 0.8x 10.0x 0.8x 9.7x Services Information Services 14 45,002 2.5% 21.5% 5.6x 20.4x 4.8x 17.2x Specialty Managed Care 3 $8,648 21.4% 17.7% 1.2x 9.9x 7.6x 6.4x Specialty Pharmacy 1 2,736 28.9% NM 1.0x NA 1.0x NM Retail Pharmacy 3 $269,870 15.6% 40.5% 0.9x 12.6x 0.9x 13.0x

Payor, Provider, Support & Pharmacy Specialty Pharmacy Management 2 78,224 11.7% 28.0% 0.7x 10.6x 0.7x 10.3x Dental Products 3 $113,971 11.6% 22.6% 3.2x 15.6x 3.3x 14.7x Durable Medical Equipment 3 11,965 (9.4%) 13.9% 1.9x 14.7x 1.9x 13.4x Life Sciences Tools 4 $131,176 4.5% 14.8% 3.0x 14.6x 3.7x 15.7x

Devices Medical Devices and Products 15 677,676 5.3% 25.7% 3.7x 14.9x 3.7x 14.0x

Products &Products Medical / Surgical / Dental Supplies & Distribution 6 $131,910 2.5% 22.9% 0.3x 13.0x 0.3x 11.2x Acute-Care Hospitals 4 116,882 14.1% 19.1% 1.2x 8.6x 1.1x 8.0x Assisted Living 3 $14,165 (8.6%) (4.4%) 3.0x 15.9x 2.5x 13.6x Diagnostic Imaging 3 9,714 (20.2%) 4.8% 1.7x 8.9x 1.9x 9.8x Dialysis Services 2 $60,082 (2.8%) 15.0% 2.0x 11.0x 2.0x 10.6x Home Care, Hospice, and Home Infusion 6 6,344 29.8% 66.0% 1.4x 13.7x 1.4x 12.3x Long-Term Care 3 $7,125 (0.2%) 15.0% 1.0x 11.2x 0.8x 8.7x Physician Practice Management 2 10,188 18.9% 39.7% 3.3x 15.4x 3.1x 14.5x Behavioral Health / Management 6 $30,565 13.6% 27.5% 1.6x 10.8x 1.5x 10.1x Provider-Based Services Provider-Based Surgicenters / Rehabilitation 5 18,661 5.3% 27.3% 2.2x 13.0x 2.0x 11.0x Payor, Provider, & Pharmacy Support Services 56 $843,307 10.9% 42.9% 1.5x 13.1x 1.4x 12.0x Products & Devices 31 $1,066,698 3.0% 14.6% 3.5x 14.1x 3.3x 12.9x Provider-Based Services 34 $273,726 11.1% 27.7% 2.1x 11.6x 2.0x 10.7x HW&Co. HCLS Composite Index 121 $2,183,731 6.8% 23.8% 2.6x 13.5x 2.5x 12.4x S&P 500 0.9% 9.0%

Public Company Sector Performance (12-month % change in stock price)

Home Care, Hospice, and Home Infusion

HMO - Medical

Contract Pharma Manufacturing

Healthcare Staffing

Physician Practice Management

Contract Research Organizations

Specialty Pharmacy Management

Behavioral Health / Management Surgicenters / Rehabilitation

Medical Devices and Products HW&Co. HCLS Composite Index

Medical / Surgical / Dental Supplies & Distribution Clinical Laboratories Dental Products

Information Services

Acute-Care Hospitals

Specialty Managed Care

Long-Term Care

Dialysis Services

Life Sciences Tools

Durable Medical Equipment

S&P 500

Diagnostic Imaging

Specialty Pharmacy

Disease Management

Assisted Living

Emergency Services

(40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

PAGE | 2 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

EQUITY MARKETS OVERVIEW

Healthcare & Life Sciences Industry Stock Performance 220

203.5% 200

180 169.9% 160 152.5%

140

120

100

40 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15

S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index Top 25 Equity Offerings (by proceeds)

Closing Date Issuer Ticker Transaction Type Gross Proceeds ($ mm)

07/29/15 Adeptus Health Inc ADPT Follow-On $410.6 07/22/15 Radius Health Inc RDUS Follow-On 345.0 07/08/15 Clovis Oncology Inc CLVS Follow-On 316.3 07/15/15 Ultragenyx Pharmaceutical Inc RARE Follow-On 303.6 07/27/15 NantKwest Inc NK IPO 238.3 07/30/15 AMAG Pharmaceuticals Inc AMAG Follow-On 230.9 07/09/15 Atara Biotherapeutics Inc ATRA Follow-On 207.0 07/01/15 Natera Inc NTRA IPO 180.0 07/21/15 Dynavax Technologies Corp DVAX Follow-On 143.8 07/23/15 Exelixis Inc EXEL Follow-On 135.0 07/14/15 MacroGenics Inc MGNX Follow-On 130.4 07/29/15 vTv Therapeutics Inc VTVT IPO 117.2 07/15/15 Chiasma Inc CHMA IPO 117.1 07/07/15 K2M Group Holdings Inc KTWO Follow-On 101.7 07/29/15 Zogenix Inc ZGNX Follow-On 98.3 07/28/15 Egalet Corp EGLT Follow-On 86.3 07/22/15 Neos Therapeutics Inc NEOS IPO 82.8 07/29/15 Cara Therapeutics Inc CARA Follow-On 80.5 07/29/15 Genocea Biosciences Inc GNCA Follow-On 50.1 07/16/15 Synthetic Biologics Inc AEN Follow-On 46.0 07/17/15 TrovaGene Inc TROV Follow-On 40.3 07/17/15 Discovery Laboratories Inc DSCO Follow-On 35.0 07/09/15 TherapeuticsMD Inc TXMD Follow-On 30.0 07/21/15 CytRx Corp CYTR Follow-On 28.8 07/09/15 Anthera Pharmaceuticals Inc ANTH Follow-On 28.8

PAGE | 3 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

M&A OVERVIEW

Announced Healthcare & Life Sciences M&A

QUARTERLY HEALTHCARE TRANSACTION M&A ACTIVITY HIGHLIGHTS

350 Announced Target Buyer 13 7/31/2015 Geritrex Corporation BelHealth Inv estment Partners, LLC 18 22 11 300 22 14 15 7/22/2015 Ingenios Health Co. Almost Family Inc. (NasdaqGS:AFAM) 11 7/17/2015 Pyramid Healthcare Solutions, Inc. Anthelio Healthcare Solutions Inc. 7/15/2015 Avalign Technologies, Inc. Arlington Capital Partners 250 15 7/14/2015 National HME Inc. Tailwind Capital Group, LLC 7/6/2015 MediciGroup, Inc. BioClinica, Inc. 12 12 7/6/2015 TIDI Products, LLC RoundTable Healthcare Management, LLC 16 200 7/2/2015 Health Net, Inc. (NYSE:HNT) Centene Corp. (NYSE:CNC) 7/2/2015 Coastal Anesthesiology, Inc Sheridan Healthcare, Inc. 7/1/2015 Interactiv e Health, Inc. FFL Partners LP 312 150 304 304 303 5 291 290 279 292

Number of Transactionsof Number 248 221 209 100 200 LTM DEAL STATISTICS 147 50 Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 $498.9 1,294 2.09x 13.6x PEG Acquirer Strategic Acquirer Note: Transactions based on publicly available information

Healthcare & Life Sciences M&A Trends

ANNOUNCED HEALTHCARE & MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTIONS LIFE SCIENCES TRANSACTION MULTIPLES

$500 1,400 21.0x 4.0x

$450 3.5x 1,200 18.0x

$400 Number of Transactions

3.0x EV / LTM Sales Multiple 15.0x $350 $336.6 1,000 13.6x 14.2x 12.8x 2.5x $300 800 12.0x 11.1x 10.9x $250 $236.6 10.0x 2.0x

($ in billions) in ($ 600 9.0x $200 1.5x $150 $141.4 400 6.0x $108.2 1.0x Aggregate Transaction Value Value Transaction Aggregate $110.6 $101.6

$100 EV / LTM EBITDA Multiple EBITDA LTM / EV 200 3.0x 0.5x $50

$0 0 0.0x 0.0x 2010 2011 2012 2013 2014 2015YTD 2010 2011 2012 2013 2014 2015YTD

Aggregate Deal Value Number of Transactions TEV / LTM EBITDA TEV / LTM Sales

Announced Private Equity M&A Activity

PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) PEG INVESTMENTS AND EXITS

HC&LS Industry Number of 160 144 Segment Companies 139 143 140 Biotechnology 3 120 120 113 Healthcare Technology 16 100 94 95 Healthcare Distributors 6 79 80 80 71 Healthcare Equipment 20 69 65 65 60 62 61 62 61 Healthcare Facilities 49 60 49 50

42 Number of Transactions of Number Healthcare Serv ices 45 40 29

Healthcare Supplies 11 20 Life Sciences Tools & Serv ices 15 0 Managed Healthcare 3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015YTD Pharmaceuticals 19 Number of Investments Number of Exits

PAGE | 4 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

DEBT MARKETS OVERVIEW

Key Credit Statistics

QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS

$24 L + 500

$21

L + 400 $18

$15 L + 300

$12

$9 L + 200

$6 Average Spread Over LIBOR Over Spread Average L + 100

Loan Volume by Quarter Quarter ($bybillions)Loan Volumein $3

$0 L + 0 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 2010 2011 2012 2013 2014 1H15

Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional

CREDIT STATISTICS AVERAGE SECONDARY SPREAD

6.0x L + 800

L + 600 4.0x

L + 400

EBITDA Multiple EBITDA 2.0x

L + 200 Average Spread Over LIBOR Over Spread Average

0.0x L + 0 Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash EBITDA - 2Q10 1Q11 4Q11 3Q12 2Q13 1Q14 4Q14 Interest Capex/Cash Interest 2010 2011 2012 2013 2014 2015 YTD Select Healthcare & Life Sciences Debt Offerings (by deal amount)

Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread 7/1/15 Baxalta Inc Pharmaceutical preparations $1,200.0 Revolver/Line >= 1 Yr. NR / NR L+ 125 7/16/15 Sunrise Medical Inc Surgical appliances and supplies 450.0 Term Loan NR / NR L+ 750 7/16/15 Sunrise Medical Inc Surgical appliances and supplies 450.0 Term Loan B NR / NR L+ 400 7/31/15 Ardent Health Services Inc General med'l/surgical hospitals 250.0 Term Loan B B1 / B L+ 550 7/9/15 Carecentrix Inc Hospital/medical service plans 205.0 Term Loan Ba3 / B L+ 500 7/20/15 Interactive Health Solutions Inc Hospital/medical service plans 145.9 Revolver/Line >= 1 Yr. NR / NR L+ 450 7/20/15 Interactive Health Solutions Inc Hospital/medical service plans 145.9 Term Loan A NR / NR L+ 450 7/20/15 Interactive Health Solutions Inc Hospital/medical service plans 145.9 Other Loan NR / NR L+ 1000

PAGE | 5 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

Payor, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc. $46.11 10.7% 35.9% $57.10 $31.85 $5,277 $1,125 $71 $6,323 $593 $208 $150 Dec-14 Dec-14 $969 $454 $427 10.7x 30.4x 6.5x 13.9x Cambrex Corporation. 49.25 28.0% 133.7% 51.75 15.76 1,545 60 63 1,543 395 106 83 Jun-15 Dec-14 430 119 97 3.9x 14.6x 3.6x 12.9x West Pharmaceutical Services, Inc. 59.87 12.4% 46.9% 61.73 39.11 4,308 327 252 4,431 1,401 263 174 Jun-15 Dec-14 1,413 291 191 3.2x 16.8x 3.1x 15.2x Number of Companies 3 Median: 12.4% 46.9% Total $11,129 $12,297 $2,389 $2,811 3.9x 16.8x 3.6x 13.9x Market Cap. Weighted Average: 13.8% 53.7% 6.8x 22.9x 4.8x 14.3x

Contract Research Organizations Albany Molecular Research Inc. $21.14 17.1% 11.0% $23.95 $13.73 $747 $202 $43 $919 $320 $35 $13 Jun-15 Dec-14 $378 $67 $43 2.9x 26.4x 2.4x 13.8x Catalent, Inc. 34.08 18.5% 70.5% 34.14 19.34 4,236 1,882 116 6,006 1,840 434 295 Mar-15 Jun-14 1,819 429 299 3.3x 13.9x 3.3x 14.0x Charles River Laboratories International, Inc. 77.62 12.2% 43.2% 84.69 52.39 3,631 773 151 4,269 1,317 291 197 Jun-15 Dec-14 1,346 319 245 3.2x 14.7x 3.2x 13.4x ICON Public Limited Company 80.80 25.6% 56.0% 81.90 49.51 4,895 60 107 4,723 1,555 311 255 Jun-15 Dec-14 1,587 338 281 3.0x 15.2x 3.0x 14.0x INC Research Holdings, Inc. 50.03 49.2% NM 50.13 19.61 2,814 475 99 3,191 860 181 124 Jun-15 Dec-14 907 202 176 3.7x 17.6x 3.5x 15.8x PAREXEL International Corporation 68.96 8.5% 28.8% 72.69 52.19 3,804 382 0 3,891 2,016 299 216 Jun-15 Jun-15 2,187 355 265 1.9x 13.0x 1.8x 10.9x PRA Health Sciences, Inc. 41.99 47.4% NM 44.02 18.47 2,526 944 61 3,410 1,312 187 101 Jun-15 Dec-14 1,369 239 216 2.6x 18.3x 2.5x 14.3x Quintiles Transnational Holdings Inc. 76.72 16.5% 39.7% 80.45 51.09 9,414 2,491 804 11,102 4,229 751 628 Jun-15 Dec-14 4,354 786 657 2.6x 14.8x 2.5x 14.1x WuXi PharmaTech (Cayman) Inc. 41.50 (3.9%) 34.7% 46.14 30.71 2,939 341 254 2,800 738 134 86 Jun-15 Dec-14 798 196 113 3.8x 21.0x 3.5x 14.3x Number of Companies 9 Median: 17.1% 39.7% Total $35,007 $40,310 $14,189 $14,746 3.0x 15.2x 3.0x 14.0x Market Cap. Weighted Average: 19.8% 37.8% 2.9x 15.8x 2.8x 13.8x

Disease Management Alere Inc. $48.61 2.4% 21.5% $54.58 $33.76 $4,151 $3,599 $465 $7,479 $2,544 $538 $223 Jun-15 Dec-14 $2,564 $575 $497 2.9x 13.9x 2.9x 13.0x Healthways Inc. 12.66 (27.2%) (26.8%) 23.30 11.37 453 254 5 702 773 49 28 Jun-15 Dec-14 778 65 14 0.9x 14.3x 0.9x 10.8x Number of Companies 2 Median: (12.4%) (2.6%) Total $4,604 $8,181 $3,316 $3,342 1.9x 14.1x 1.9x 11.9x Market Cap. Weighted Average: (0.5%) 16.8% 2.7x 13.9x 2.7x 12.8x

Emergency Services Air Methods Corp. $39.39 (13.8%) (21.6%) $60.74 $35.00 $1,547 $664 $29 $2,171 $1,028 $261 $179 Jun-15 Dec-14 $1,059 $272 $191 2.1x 8.3x 2.1x 8.0x Number of Companies 1 Median: (13.8%) (21.6%) Total $1,547 $2,171 $1,028 $1,059 2.1x 8.3x 2.1x 8.0x Market Cap. Weighted Average: (13.8%) (21.6%) 2.1x 8.3x 2.1x 8.0x

Healthcare Staffing AMN Healthcare Services Inc. $29.43 29.0% 124.7% $32.53 $13.09 $1,400 $226 $14 $1,626 $1,222 $111 $93 Jun-15 Dec-14 $1,353 $124 $99 1.3x 14.6x 1.2x 13.1x Envision Healthcare Holdings, Inc. 44.80 18.0% 25.3% 45.50 30.48 8,317 2,237 173 10,368 4,907 593 427 Jun-15 Dec-14 5,429 659 486 2.1x 17.5x 1.9x 15.7x Cross Country Healthcare, Inc. 12.07 8.7% 67.9% 13.51 6.73 388 72 9 457 756 25 17 Jun-15 Dec-14 779 33 24 0.6x 18.2x 0.6x 14.0x On Assignment Inc. 38.32 13.9% 41.9% 41.49 25.98 2,013 830 42 2,801 1,934 194 155 Jun-15 Dec-14 2,014 234 160 1.4x 14.4x 1.4x 11.9x Team Health Holdings, Inc. 67.41 13.2% 19.2% 67.79 50.83 4,855 868 51 5,660 3,221 322 225 Jun-15 Dec-14 3,411 366 222 1.8x 17.6x 1.7x 15.5x Number of Companies 5 Median: 13.9% 41.9% Total $16,972 $20,912 $12,040 $12,986 1.4x 17.5x 1.4x 14.0x Market Cap. Weighted Average: 16.8% 34.7% 1.8x 17.6x 1.7x 15.5x

As of July 31, 2015. (1) To be acquired by Opko Health, Inc. (NYSE:OPK) in a $1.5 billion transaction announced June 3, 2015. PAGE | 6 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

Payor, Provider, & Pharmacy Support Services

Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 7/31/2015 3 mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA HMO - Medical Commercial: Aetna Inc. $112.97 5.7% 45.7% $134.40 $71.81 $39,381 $8,384 $1,126 $46,539 $59,724 $5,159 $4,511 Jun-15 Dec-14 $61,696 $5,244 $4,741 0.8x 9.0x 0.8x 8.9x Anthem, Inc. 154.27 2.2% 40.5% 173.59 106.52 40,355 18,352 1,553 57,154 76,608 6,587 5,794 Jun-15 Dec-14 78,295 5,296 4,793 0.7x 8.7x 0.7x 10.8x Cigna Corp(1) 144.06 15.6% 60.0% 170.68 85.75 37,095 5,196 1,969 40,411 36,644 3,930 3,601 Jun-15 Dec-14 38,174 4,170 3,524 1.1x 10.3x 1.1x 9.7x Health Net, Inc.(2) 66.86 27.0% 62.3% 76.67 40.84 5,167 610 757 4,744 15,602 380 361 Jun-15 Dec-14 17,267 566 NA 0.3x 12.5x 0.3x 8.4x Humana Inc.(3) 182.09 10.0% 54.8% 219.79 115.51 26,974 4,432 2,250 29,156 52,131 2,596 2,323 Jun-15 Dec-14 54,757 2,823 2,450 0.6x 11.2x 0.5x 10.3x UnitedHealth Group Incorporated 121.40 9.0% 49.8% 126.05 78.74 115,763 18,104 7,887 127,595 138,211 12,292 11,203 Jun-15 Dec-14 154,404 13,071 11,223 0.9x 10.4x 0.8x 9.8x Number of Companies 6 Median: 9.5% 52.3% Total $264,735 $305,597 $378,920 $404,593 0.8x 10.3x 0.7x 9.7x Market Cap. Weighted Average: 8.8% 49.9% 0.9x 10.0x 0.8x 9.8x

Government: Centene Corp. $70.13 13.1% 94.6% $83.00 $35.49 $8,352 $1,149 $1,967 $7,689 $18,548 $732 $632 Jun-15 Dec-14 $22,387 $810 $690 0.4x 10.5x 0.3x 9.5x Molina Healthcare, Inc. 75.43 27.4% 84.7% 76.97 39.65 4,228 920 2,014 3,134 11,619 416 334 Jun-15 Dec-14 14,265 518 413 0.3x 7.5x 0.2x 6.0x Universal American Corp 9.27 (7.2%) 16.8% 11.16 7.76 748 85 128 756 1,947 (7) (18) Jun-15 Dec-14 1,840 40 26 0.4x NM 0.4x 19.0x WellCare Health Plans, Inc. 80.80 4.4% 29.5% 95.09 55.43 3,559 1,213 1,340 3,286 13,719 402 367 Jun-15 Dec-14 13,964 539 483 0.2x 8.2x 0.2x 6.1x Number of Companies 4 Median: 8.7% 57.1% Total $16,887 $14,865 $45,833 $52,457 0.3x 8.2x 0.3x 7.8x Market Cap. Weighted Average: 13.9% 74.9% 0.3x 9.2x 0.3x 8.3x

Information Services Data/Analytics: Castlight Health, Inc. $7.18 (4.6%) (46.5%) $15.10 $6.52 $673 $0 $32 $488 $61 ($79) ($81) Jun-15 Dec-14 $76 ($69) ($68) 8.0x NM 6.4x NM Inovalon Holdings, Inc. 24.16 (4.3%) NM 33.75 22.06 3,569 290 194 3,071 387 139 119 Jun-15 Dec-14 438 162 138 7.9x 22.2x 7.0x 19.0x National Research Corp. 34.78 (2.0%) (13.1%) 40.10 30.20 432 7 41 402 100 30 26 Jun-15 Dec-14 104 31 27 4.0x 13.5x 3.9x 12.8x Number of Companies 3 Median: (4.3%) (29.8%) Total $4,674 $488 $548 $618 7.9x 17.8x 6.4x 15.9x Market Cap. Weighted Average: (4.2%) (7.9%) 7.6x 21.2x 6.6x 18.3x eHealth: WebMD Health Corp. $43.58 (1.3%) (12.5%) $50.47 $34.48 $1,604 $952 $757 $1,799 $598 $122 $104 Jun-15 Dec-14 $629 $187 $122 3.0x 14.7x 2.9x 9.6x Number of Companies 1 Median: (1.3%) (12.5%) Total $1,604 $1,799 $598 $629 3.0x 14.7x 2.9x 9.6x Market Cap. Weighted Average: (1.3%) (12.5%) 3.0x 14.7x 2.9x 9.6x

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $14.46 8.7% (9.2%) $15.99 $11.00 $2,723 $663 $77 $3,207 $1,373 $80 ($6) Jun-15 Dec-14 $1,401 $236 $132 2.3x NM 2.3x 13.6x Athenahealth, Inc. 139.96 14.1% 12.5% 153.25 107.88 5,408 301 105 5,593 835 62 (0) Jun-15 Dec-14 919 169 82 6.7x NM 6.1x 33.1x Cerner Corporation 71.72 (0.1%) 29.9% 75.72 53.65 24,677 623 294 24,619 3,812 1,070 808 Jul-15 Jan-15 4,724 1,508 1,137 6.5x 23.0x 5.2x 16.3x Computer Programs & Systems Inc. 46.77 (10.6%) (28.9%) 65.25 45.01 529 0 26 492 193 43 40 Jun-15 Dec-14 189 39 35 2.5x 11.3x 2.6x 12.5x HMS Holdings Corp. 11.52 (32.3%) (37.4%) 23.69 11.37 1,020 198 150 1,084 453 87 34 Jun-15 Dec-14 466 118 49 2.4x 12.4x 2.3x 9.2x MedAssets, Inc. 23.30 15.1% 9.7% 23.90 17.00 1,398 841 10 2,229 750 219 104 Jun-15 Dec-14 763 235 82 3.0x 10.2x 2.9x 9.5x Merge Healthcare Incorporated 5.49 10.5% 123.2% 6.20 2.04 533 219 20 783 228 39 30 Jun-15 Dec-14 251 54 30 3.4x 19.8x 3.1x 14.4x Premier, Inc. 35.76 (5.6%) 26.4% 39.81 27.95 1,350 20 156 1,022 976 321 270 Mar-15 Jun-14 1,003 392 297 1.0x 3.2x 1.0x 2.6x Quality Systems Inc. 12.75 (18.2%) (17.8%) 18.75 12.21 769 0 105 652 494 52 39 Jun-15 Mar-15 509 77 40 1.3x 12.5x 1.3x 8.5x The Advisory Board Company 59.90 15.4% 19.5% 60.38 37.47 2,542 564 50 3,035 666 62 26 Jun-15 Dec-14 789 174 55 4.6x NM 3.8x 17.4x Number of Companies 10 Median: 4.3% 11.1% Total $40,949 $42,716 $9,780 $11,015 2.8x 12.4x 2.8x 13.0x Market Cap. Weighted Average: 2.5% 21.5% 5.5x 20.6x 4.6x 17.4x

As of July 31, 2015. (1) To be acquired by Anthem (NYSE:ANTM) in a $54.2 billion transaction announced July 24, 2015. (2) To be acquired by Centene (NYSE:CNC) in a $6.8 billion transaction announced July 2, 2015. PAGE | 7 (3) To be acquired by Aetna (NYSE:AET) in a $37.0 billion transaction announced July 3, 2015. HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

Payor, Provider, & Pharmacy Support Services

Retail Pharmacy CVS Health Corporation $112.47 13.3% 47.3% $113.65 $74.69 $126,754 $13,145 $1,244 $137,887 $145,577 $10,920 $8,976 Jun-15 Dec-14 $150,638 $980 NA 0.9x 12.6x 0.9x NM Walgreens Boots Alliance, Inc. 96.63 16.5% 40.5% 97.03 57.75 105,547 16,247 4,449 117,627 93,979 6,395 4,927 May-15 Aug-14 103,619 7,486 5,993 1.3x 18.4x 1.1x 15.7x Rite Aid Corporation 8.91 15.6% 33.2% 9.07 4.42 9,043 7,235 1,922 14,356 26,710 1,306 882 May-15 Feb-15 30,591 1,409 868 0.5x 11.0x 0.5x 10.2x Number of Companies 3 Median: 15.6% 40.5% Total $241,344 $269,870 $266,266 $284,849 0.9x 12.6x 0.9x 13.0x Market Cap. Weighted Average: 14.1% 43.2% 1.2x 15.0x 1.1x 14.9x

Specialty Pharmacy Diplomat Pharmacy, Inc. $46.18 28.9% NM $52.33 $15.45 $2,894 $191 $17 $2,736 $2,640 $44 $30 Jun-15 Dec-14 $2,796 $46 $56 1.0x NM 1.0x NM Number of Companies 1 Median: 28.9% NM Total $2,894 $2,736 $2,640 $2,796 1.0x NA 1.0x NM Market Cap. Weighted Average: 28.9% NM 1.0x NM 1.0x NM

Specialty Pharmacy Management Express Scripts Holding Company $90.07 4.2% 29.3% $94.61 $68.78 $60,863 $16,734 $721 $76,884 $102,445 $6,820 $4,776 Jun-15 Dec-14 $104,012 $7,031 $6,606 0.8x 11.3x 0.7x 10.9x PharMerica Corporation 34.17 19.2% 26.6% 36.96 19.42 1,038 350 21 1,339 2,003 134 87 Jun-15 Dec-14 2,023 139 86 0.7x 10.0x 0.7x 9.6x Number of Companies 2 Median: 11.7% 28.0% Total $61,901 $78,224 $104,448 $106,034 0.7x 10.6x 0.7x 10.3x Market Cap. Weighted Average: 4.5% 29.3% 0.7x 11.3x 0.7x 10.9x

As of July 31, 2015. PAGE | 8 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

Products & Devices

Durable Medical Equipment Hill-Rom Holdings, Inc. $56.03 12.2% 42.2% $57.95 $38.85 $3,175 $578 $123 $3,639 $1,894 $274 $175 Jun-15 Sep-14 $1,871 $305 $215 1.9x 13.3x 1.9x 11.9x Invacare Corporation 17.05 (15.0%) 13.9% 23.59 11.65 552 48 23 577 1,214 1 (23) Jun-15 Dec-14 1,162 11 (15) 0.5x NM 0.5x NM ResMed Inc. 57.95 (9.4%) 12.0% 75.33 45.58 8,166 301 717 7,750 1,679 482 409 Jun-15 Jun-15 1,769 520 443 4.6x 16.1x 4.4x 14.9x Number of Companies 3 Median: (9.4%) 13.9% Total $11,893 $11,965 $4,787 $4,802 1.9x 14.7x 1.9x 13.4x Market Cap. Weighted Average: (3.9%) 20.2% 3.7x 15.3x 3.6x 14.1x

Life Sciences Tools Agilent Technologies Inc. $40.95 (1.0%) (27.0%) $59.40 $37.68 $13,644 $1,656 $2,197 $13,106 $6,974 $1,221 $899 Apr-15 Oct-14 $4,067 $864 $746 1.9x 10.7x 3.2x 15.2x Becton, Dickinson and Company 152.15 8.0% 30.9% 152.88 112.15 31,858 13,171 1,559 43,728 9,410 2,417 1,733 Jun-15 Sep-14 10,327 2,702 2,150 4.6x 18.1x 4.2x 16.2x Thermo Fisher Scientific, Inc. 139.53 11.0% 14.8% 141.25 14.00 55,601 14,064 768 68,858 16,854 4,026 2,308 Jun-15 Dec-14 16,809 4,247 3,808 4.1x 17.1x 4.1x 16.2x VWR Corporation 26.79 0.9% NM 28.83 20.60 3,519 2,067 130 5,484 4,327 456 332 Jun-15 Dec-14 4,288 459 384 1.3x 12.0x 1.3x 12.0x Number of Companies 4 Median: 4.5% 14.8% Total $104,622 $131,176 $37,565 $35,492 3.0x 14.6x 3.7x 15.7x Market Cap. Weighted Average: 8.2% 13.8% 3.9x 16.4x 3.9x 15.9x

Medical Devices and Products Abbott Laboratories $50.69 9.2% 20.3% $51.74 $39.28 $75,465 $8,778 $4,048 $74,633 $20,502 $4,638 $3,229 Jun-15 Dec-14 $20,652 $5,043 $4,062 3.6x 16.1x 3.6x 14.8x Baxter International Inc. 40.08 (41.7%) (46.3%) 76.34 36.40 21,785 14,230 6,680 29,346 16,326 4,049 3,036 Jun-15 Dec-14 9,885 1,533 919 1.8x 7.2x 3.0x 19.1x Boston Scientific Corporation 17.34 (2.7%) 35.7% 18.62 11.10 23,247 5,112 903 27,456 7,272 1,741 1,009 Jun-15 Dec-14 7,384 2,012 1,193 3.8x 15.8x 3.7x 13.6x ConforMIS, Inc. 23.08 0.0% NM 26.00 17.69 902 11 14 890 59 (45) (47) Jun-15 Dec-14 72 (47) (51) 15.0x NM 12.3x NM CR Bard Inc. 196.65 18.1% 31.8% 196.85 141.49 14,591 1,400 1,098 14,888 3,377 1,048 873 Jun-15 Dec-14 3,411 1,021 853 4.4x 14.2x 4.4x 14.6x Danaher Corp. 91.56 11.8% 23.9% 92.18 70.12 62,580 3,163 3,342 62,472 20,288 4,604 3,630 Jul-15 Dec-14 20,163 4,672 3,676 3.1x 13.6x 3.1x 13.4x Hanger, Inc. 21.64 (3.1%) (31.6%) 32.71 18.25 743 540 5 1,278 1,061 156 117 Jun-14 Dec-13 1,072 163 116 1.2x 8.2x 1.2x 7.8x Hologic Inc. 41.66 23.5% 59.8% 42.35 22.70 11,740 3,942 885 14,796 2,641 964 464 Jun-15 Sep-14 2,694 1,026 892 5.6x 15.3x 5.5x 14.4x Hospira Inc.(1) 89.45 2.5% 61.3% 89.68 46.56 15,469 1,751 820 16,399 4,636 916 696 Jun-15 Dec-14 4,713 943 932 3.5x 17.9x 3.5x 17.4x Johnson & Johnson 100.21 1.0% 0.1% 109.49 95.10 277,492 19,307 10,639 262,845 71,882 23,498 19,784 Jun-15 Dec-14 70,658 23,552 20,088 3.7x 11.2x 3.7x 11.2x K2M Group Holdings, Inc. 22.88 8.9% 34.8% 26.29 12.31 923 0 29 884 201 (14) (40) Jun-15 Dec-14 216 1 (31) 4.4x NM 4.1x NM Medtronic plc 78.39 5.3% 27.0% 79.50 59.83 110,858 36,257 4,843 127,625 20,126 6,264 4,958 Apr-15 Apr-15 28,755 9,922 8,402 6.3x 20.4x 4.4x 12.9x Stryker Corporation 102.27 10.9% 28.2% 103.99 77.87 38,511 3,469 3,626 37,700 9,818 2,623 2,242 Jun-15 Dec-14 9,969 2,638 2,476 3.8x 14.4x 3.8x 14.3x Teleflex Incorporated 133.99 9.0% 24.4% 140.50 101.95 5,574 1,112 325 6,363 1,802 410 309 Jun-15 Dec-14 1,821 485 402 3.5x 15.5x 3.5x 13.1x Zemach Hammerman Ltd. 0.00 4.3% (10.2%) 2.77 2.18 49 79 13 101 47 1 1 Mar-15 Dec-14 NA NA NA 2.1x NM NA NA Number of Companies 15 Median: 5.3% 25.7% Total $659,929 $677,676 $180,038 $181,466 3.7x 14.9x 3.7x 14.0x Market Cap. Weighted Average: 3.6% 14.0% 4.1x 14.1x 3.8x 12.9x

Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $105.75 (7.5%) 37.5% $120.68 $74.32 $23,232 $3,750 $2,555 $24,427 $132,080 $1,544 $1,319 Jun-15 Sep-14 $135,089 $2,088 $1,869 0.2x 15.8x 0.2x 11.7x Cardinal Health, Inc. 84.98 0.8% 18.6% 91.91 68.54 28,114 5,492 4,616 28,990 102,531 2,642 2,191 Jun-15 Jun-15 111,222 3,066 2,833 0.3x 11.0x 0.3x 9.5x Henry Schein, Inc. 147.98 7.9% 27.3% 149.95 109.34 12,341 736 47 13,600 10,419 890 736 Jun-15 Dec-14 10,643 923 766 1.3x 15.3x 1.3x 14.7x McKesson Corporation 220.57 (1.3%) 15.0% 243.61 178.28 51,261 9,796 5,635 56,938 183,115 4,237 3,311 Jun-15 Mar-15 193,814 5,271 4,717 0.3x 13.4x 0.3x 10.8x Owens & Minor Inc. 35.16 4.3% 6.3% 36.35 31.55 2,216 575 201 2,589 9,691 258 213 Jun-15 Dec-14 9,848 278 215 0.3x 10.0x 0.3x 9.3x Patterson Companies, Inc. 50.16 6.8% 28.6% 51.49 38.04 5,040 726 347 5,366 4,375 429 378 Apr-15 Apr-15 5,447 460 411 1.2x 12.5x 1.0x 11.7x Number of Companies 6 Median: 2.5% 22.9% Total $122,204 $131,910 $442,211 $466,064 0.3x 13.0x 0.3x 11.2x Market Cap. Weighted Average: (0.6%) 21.7% 0.4x 13.4x 0.4x 11.1x

As of July 31, 2015. (1) To be acquired by Pfizer in a $16.3 billion transaction announced February 5, 2015. PAGE | 9 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

Provider-Based Services

Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 7/31/2015 3 mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $58.51 9.0% 22.7% $65.00 $44.74 $6,906 $16,937 $365 $24,333 $19,491 $2,917 $1,786 Jun-15 Dec-14 $20,056 $3,084 $1,834 1.2x 8.3x 1.2x 7.9x HCA Holdings, Inc. 93.01 25.7% 42.4% 95.49 62.50 38,536 29,904 673 68,887 38,429 7,699 5,838 Jun-15 Dec-14 39,529 7,831 5,902 1.8x 8.9x 1.7x 8.8x LifePoint Health, Inc. 82.86 10.7% 15.5% 88.18 62.95 3,680 2,211 423 5,585 4,963 628 350 Jun-15 Dec-14 5,198 708 420 1.1x 8.9x 1.1x 7.9x Tenet Healthcare Corp. 56.30 17.6% 6.7% 63.61 41.47 5,586 14,754 299 18,076 17,568 2,187 1,336 Jun-15 Dec-14 18,659 2,210 1,330 1.0x 8.3x 1.0x 8.2x Number of Companies 4 Median: 14.1% 19.1% Total $54,708 $116,882 $80,451 $83,442 1.2x 8.6x 1.1x 8.0x Market Cap. Weighted Average: 21.7% 34.5% 1.6x 8.8x 1.6x 8.6x

Assisted Living Brookdale Senior Living Inc. $33.13 (8.6%) (4.4%) $39.89 $30.12 $6,235 $6,476 $78 $12,593 $4,151 $792 ($43) Jun-15 Dec-14 $5,084 $924 $131 3.0x 15.9x 2.5x 13.6x Capital Senior Living Corp. 22.29 (14.8%) (9.5%) 27.75 20.33 657 724 39 1,312 398 70 16 Jun-15 Dec-14 410 82 23 3.3x 18.8x 3.2x 15.9x Five Star Quality Care Inc. 4.52 6.4% (1.1%) 5.07 3.23 221 80 22 260 1,115 17 (17) Jun-15 Dec-14 1,371 44 10 0.2x 15.2x 0.2x 6.0x Number of Companies 3 Median: (8.6%) (4.4%) Total $7,113 $14,165 $5,664 $6,865 3.0x 15.9x 2.5x 13.6x Market Cap. Weighted Average: (8.7%) (4.8%) 3.0x 16.1x 2.5x 13.6x

Long-Term Care Kindred Healthcare Inc. $20.63 (10.1%) (13.7%) $24.66 $16.94 $1,722 $3,260 $120 $4,988 $6,003 $444 $289 Jun-15 Dec-14 $7,226 $616 $453 0.8x 11.2x 0.7x 8.1x National Healthcare Corp. 63.20 (0.2%) 15.0% 66.42 54.33 898 45 72 902 892 107 71 Jun-15 Dec-14 NA NA NA 1.0x 8.5x NA NA The Ensign Group, Inc. 51.12 21.4% 55.2% 54.08 28.00 1,301 50 51 1,236 1,155 96 73 Jun-15 Dec-14 1,299 132 107 1.1x 12.9x 1.0x 9.3x Number of Companies 3 Median: (0.2%) 15.0% Total $3,921 $7,125 $8,050 $8,525 1.0x 11.2x 0.8x 8.7x Market Cap. Weighted Average: 2.6% 15.8% 1.0x 11.1x 0.8x 8.6x

Diagnostic Imaging Alliance Healthcare Services, Inc. $14.96 (29.7%) (47.6%) $31.01 $13.65 $158 $543 $43 $740 $448 $115 $57 Jun-15 Dec-14 NA NA NA 1.7x 6.5x NA NA RadNet, Inc. 6.69 (20.2%) 30.9% 10.35 4.71 296 647 5 898 755 101 43 Jun-15 Dec-14 769 125 51 1.2x 8.9x 1.2x 7.2x Varian Medical Systems, Inc. 86.07 (3.1%) 4.8% 96.67 76.73 8,590 494 951 8,075 3,093 659 592 Jul-15 Sep-14 3,109 653 583 2.6x 12.3x 2.6x 12.4x Number of Companies 3 Median: (20.2%) 4.8% Total $9,044 $9,714 $4,296 $3,878 1.7x 8.9x 1.9x 9.8x Market Cap. Weighted Average: (4.2%) 4.7% 2.5x 12.0x 2.5x 12.2x

Dialysis Services DaVita HealthCare Partners Inc. $79.03 (2.6%) 12.2% $85.17 $70.49 $16,987 $9,211 $934 $25,099 $13,290 $2,415 $1,800 Jun-15 Dec-14 $13,668 $2,506 $1,887 1.9x 10.4x 1.8x 10.0x Fresenius Medical Care AG & Co. KGAA 81.76 (3.0%) 17.7% 90.88 55.32 24,906 9,272 582 34,983 16,982 3,005 2,285 Jun-15 Dec-14 16,908 3,125 2,399 2.1x 11.6x 2.1x 11.2x Number of Companies 2 Median: (2.8%) 15.0% Total $41,893 $60,082 $30,272 $30,576 2.0x 11.0x 2.0x 10.6x Market Cap. Weighted Average: (2.8%) 15.5% 2.0x 11.1x 2.0x 10.7x

Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $27.14 1.1% 22.6% $29.19 $17.02 $299 $4 $42 $295 $332 $25 $20 Jun-15 Dec-14 $347 $27 $23 0.9x 12.0x 0.8x 10.8x Almost Family Inc. 43.76 1.1% 86.7% 49.71 23.11 430 47 6 474 506 37 33 Jul-15 Dec-14 526 40 34 0.9x 13.0x 0.9x 11.9x Amedisys Inc. 43.63 56.9% 116.2% 46.40 19.03 1,469 96 33 1,532 1,204 89 65 Jun-15 Dec-14 1,243 110 79 1.3x 17.1x 1.2x 13.9x Chemed Corp. 148.46 28.8% 45.8% 150.48 97.85 2,512 160 33 2,639 1,496 205 178 Jun-15 Dec-14 1,528 226 184 1.8x 12.9x 1.7x 11.7x LHC Group, Inc. 40.29 25.7% 71.6% 42.17 22.37 724 41 18 782 756 72 61 Jun-15 Dec-14 778 67 58 1.0x 10.9x 1.0x 11.7x Number of Companies 5 Median: 25.7% 71.6% Total $5,433 $5,722 $4,294 $4,422 1.0x 12.9x 1.0x 11.7x Market Cap. Weighted Average: 32.3% 70.2% 1.4x 13.7x 1.4x 12.2x

Home Infusion: BioScrip, Inc. $2.51 (46.6%) (66.5%) $8.75 $2.36 $172 $419 $1 $622 $1,022 ($52) ($73) Jun-15 Dec-14 $1,083 $48 $9 0.6x NM 0.6x 13.1x Number of Companies 1 Median: (46.6%) (66.5%) Total $172 $622 $1,022 $1,083 0.6x NM 0.6x 13.1x Market Cap. Weighted Average: (46.6%) (66.5%) 0.6x NM 0.6x 13.1x

As of July 31, 2015. PAGE | 10 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

PUBLIC COMPARABLES

Provider-Based Services

Specialty: MEDNAX, Inc. $84.64 19.6% 43.0% $85.22 $49.82 $7,916 $1,297 $65 $9,144 $2,593 $589 $535 Jun-15 Dec-14 $2,796 $630 $563 3.5x 15.5x 3.3x 14.5x Number of Companies 1 Median: 19.6% 43.0% Total $7,916 $9,144 $2,593 $2,796 3.5x 15.5x 3.3x 14.5x Market Cap. Weighted Average: 19.6% 43.0% 3.5x 15.5x 3.3x 14.5x

Behavioral Health / Management AAC Holdings, Inc. $38.01 9.7% NM $46.60 $17.91 $830 $76 $45 $860 $158 $31 $25 Jun-15 Dec-14 $194 $42 $27 5.5x 27.9x 4.4x 20.6x Acadia Healthcare Company, Inc. 79.78 16.5% 67.4% 81.76 46.48 5,713 1,953 35 7,729 1,409 301 252 Jun-15 Dec-14 1,723 383 309 5.5x 25.7x 4.5x 20.2x Civitas Solutions, Inc. 22.49 19.9% NM 24.40 11.88 831 652 17 1,484 1,343 143 72 Jun-15 Sep-14 1,365 152 68 1.1x 10.4x 1.1x 9.8x Magellan Health, Inc. 60.59 (4.3%) 5.2% 73.00 52.37 1,630 265 168 1,633 4,044 233 177 Jun-15 Dec-14 4,551 283 107 0.4x 7.0x 0.4x 5.8x Providence Service Corp. 47.06 10.7% 18.8% 55.99 34.03 755 488 145 1,166 1,862 111 62 Jun-15 Dec-14 1,994 124 56 0.6x 10.5x 0.6x 9.4x Universal Health Services Inc. 145.23 24.2% 36.2% 148.28 95.63 14,389 3,035 42 17,693 8,576 1,585 1,198 Jun-15 Dec-14 9,607 1,695 1,316 2.1x 11.2x 1.8x 10.4x Number of Companies 6 Median: 13.6% 27.5% Total $24,149 $30,565 $17,391 $19,433 1.6x 10.8x 1.5x 10.1x Market Cap. Weighted Average: 19.4% 38.5% 2.8x 14.8x 2.4x 12.7x

Surgicenters / Rehabilitation Surgery Centers(1): AmSurg Corp. $71.74 14.4% 50.2% $72.85 $45.19 $3,473 $2,249 $126 $5,733 $2,297 $340 $294 Jun-15 Dec-14 $2,461 $457 NA 2.5x 16.9x 2.3x 12.5x Surgical Care Affiliates, Inc. 38.02 0.8% 29.4% 40.99 26.55 1,495 804 78 2,163 935 146 96 Jun-15 Dec-14 990 171 NA 2.3x 14.8x 2.2x 12.7x Number of Companies 2 Median: 7.6% 39.8% Total $4,969 $7,896 $3,231 $3,452 2.4x 15.8x 2.3x 12.6x Market Cap. Weighted Average: 10.3% 43.9% 2.4x 16.2x 2.3x 12.6x

Rehabilitation: HEALTHSOUTH Corp. $45.70 1.1% 19.2% $48.32 $35.84 $4,179 $2,126 $46 $6,509 $2,678 $622 $502 Jun-15 Dec-14 $3,042 $680 $551 2.4x 10.5x 2.1x 9.6x Select Medical Holdings Corporation 14.43 (0.8%) (7.1%) 17.20 11.46 1,892 2,476 25 3,538 3,165 367 293 Jun-15 Dec-14 3,192 392 302 1.1x 9.6x 1.1x 9.0x US Physical Therapy Inc. 52.86 12.1% 51.3% 56.37 33.81 655 43 13 717 313 53 45 Jun-15 Dec-14 331 50 49 2.3x 13.6x 2.2x 14.5x Number of Companies 3 Median: 1.1% 19.2% Total $6,726 $10,765 $6,156 $6,564 2.3x 10.5x 2.1x 9.6x Market Cap. Weighted Average: 1.6% 14.9% 2.0x 10.5x 1.9x 9.9x

As of July 31, 2015. (1) Figures are adjusted for minority interest. PAGE | 11 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

M&A TRANSACTIONS

Announced U.S. Healthcare & Life Sciences M&A

Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement

7/31/2015hoh18.75 Healthcare Insights, LLC - Premier Healthcare Solutions, Inc. $69.0 - - - No 7/31/2015 Five Seniors Housing Communities AEW Capital Management, LP CNL Healthcare Properties, Inc. $195.0 - - - No 7/31/2015 Medac Health Services, P.A. - American Caresource Holdings, Inc. $5.6 - - - No (NasdaqCM:ANCI) 7/31/2015 50,800-Square-Foot Southwest Health Center at OhioHealth Corporation Physicians Realty Trust (NYSE:DOC) $11.5 - - - No 2030 Stringtown Road in Grove City 7/31/2015 Health Care DataWorks, Inc. - Health Catalyst, LLC - - - - No 7/31/2015 CECity.com, Inc. - Premier Healthcare Solutions, Inc. $400.0 - - - No 7/31/2015 Brookhaven Anesthesia Associates, LLP - Team Health Holdings, Inc. (NYSE:TMH) - - - - No 7/31/2015 Courtyard Senior Apartments - The Bascom Group $31.2 - - - No 7/31/2015 ZEE Medical, Inc. McKesson Corporation (NYSE:MCK) Cintas Corporation (NasdaqGS:CTAS) $130.0 - - - No 7/31/2015 Comprehensive Industrial Disability Management, - GENEX Services, LLC - - - - No Inc. 7/31/2015 Cara Clinicals, Inc. - Securus Technologies, Inc. - - - - No 7/31/2015 St. Joseph Health System - Providence Health & Services, - - - - No Endowment Arm 7/31/2015 Advanced Urotech, LLC and Carolina Lithotripsy, - HealthTronics, Inc. - - - - No a Limited Partnership 7/31/2015 Geritrex Corporation - BelHealth Investment Partners, LLC - - - - Yes 7/30/2015 Vision Source, L.P. Brazos Private Equity Partners, LLC Essilor of America, Inc. - - - - Yes 7/30/2015 Tendyne Holdings Inc. Apple Tree Partners Abbott Laboratories (NYSE:ABT) $275.0 - - - No 7/30/2015 Bay Area Dermatology - Advanced Dermatology & Cosmetic - - - - No Surgery Inc. 7/30/2015 Altura Medical, Inc. Advanced Technology Ventures; SV Lombard Medical, Inc. $49.0 - - - No Life Sciences Advisers, LLC; New Leaf (NasdaqGM:EVAR) Venture Partners, L.L.C. 7/30/2015 Curative Medical Inc. - ResMed Inc. (NYSE:RMD) - - - - No 7/30/2015 The Blood Alliance, Inc. - OneBlood, Inc., Endowment Arm - - - - No 7/30/2015 Pasadena Villa and Lifeskills Nautic Partners, LLC Odyssey Behavioral Healthcare LLC - - - - Yes 7/30/2015 MQ Associates, Inc., 22 Medical Imaging Centers MQ Associates, Inc. Northside Hospital, Inc. - - - - No In Georgia 7/30/2015 St. Francis Hospital, Inc. - LifePoint Health, Inc. (NasdaqGS:LPNT) - - - - No 7/29/2015 Novartis AG, Three Innovative Clinical-Stage Novartis AG (SWX:NOVN) Mereo BioPharma Group Limited - - - - No Development Programmes 7/29/2015 Dunwoody Senior Living & Roswell Senior Living Pacifica Companies, LLC - $10.8 - - - No 7/29/2015 Hank Fisher Properties, Inc. ------No 7/29/2015 Greenlight Recovery LLC - Sherwood Hills Recovery Resort - - - - No 7/28/2015 NRAD Medical Associates, P.C., Radiation Therapy NRAD Medical Associates, P.C. Catholic Health Services of Long Island, $3.3 - - - No Practice Inc. 7/28/2015 Roxane Laboratories, Inc. Boehringer Ingelheim Hikma Pharmaceuticals PLC (LSE:HIK); $2,600.9 - - - No Pharmaceuticals, Inc. Eurohealth (U.S.A.), Inc. 7/28/2015 Custom Spine, Inc. - Amendia, Inc. - - - - No 7/28/2015 Four Urgent Care Centers in The Greater San - CHRISTUS Santa Rosa Health Care - - - - No Antonio Corporation 7/28/2015 Prestige Health Choice LLC - Florida True Health, Inc. - - - - No 7/27/2015 The Ranch at Dove Tree - Summit Behavioral Healthcare, LLC - - - - No 7/27/2015 Marijuana Grow Operation in Colorado - Marapharm Ventures Inc. (DB:2M0) $9.0 1.1x - - No 7/27/2015 Futures Behavior Therapy Center, LLC - South Bay Mental Health Center, Inc. - - - - No 7/27/2015 X-spine Systems, Inc. - Xtant Medical Holdings, Inc. $86.6 2.1x 11.8x 17.4x No (OTCPK:BONE) 7/26/2015 Allergan plc, Global Generic Pharmaceuticals Allergan plc (NYSE:AGN) Teva Pharmaceutical Industries Limited $40,500.0 - - - No Business (NYSE:TEVA) 7/26/2015 Naurex, Inc. Adams Street Partners, LLC; Cowen Allergan plc (NYSE:AGN) $560.0 - - - Yes Group, Inc. (NasdaqGS:COWN) 7/26/2015 Sentara Pratt Medical Group - Sentara Healthcare, Inc. - - - - No 7/24/2015 Capella Healthcare, Inc., Four Hospitals in Middle Capella Healthcare, Inc. Saint Thomas Health - - - - No Tennessee 7/24/2015 Community Psychiatry Management, LLC - New Harbor Capital Management LLC - - - - No 7/23/2015 Fairfield Village in Lancaster, OH - National Health Investors Inc. $21.0 - - - No (NYSE:NHI); Bickford Senior Living, L.L.C. 7/23/2015 Solo Dermatology Practice in Philadelphia - Advanced Dermatology & Cosmetic - - - - No Surgery Inc. 7/23/2015 GAVIS Pharmaceuticals LLC and Novel - Lupin Limited (BSE:500257) $880.0 9.2x 25.1x - No Laboratories Inc. 7/23/2015 Commonwealth Laboratories, Inc., U.S. and Commonwealth Laboratories Inc. Valeant Pharmaceuticals International, - - - - No Canadian Business Inc. (TSX:VRX) 7/23/2015 Quantia, Inc. Fuse Capital; Safeguard Scientifics, Physicians Interactive, Inc. - - - - No Inc. (NYSE:SFE) 7/23/2015 DRG Review, Inc., Certain Assets DRG Review, Inc. BESLER & Company, Inc. - - - - No 7/23/2015 AccelCare, Two Urgent Care Centers AccelCare, Urgent Care Services University of Rochester Medical Center, - - - - No Endowment Arm 7/22/2015 Ingenios Health Co. LLM Capital Partners, LLC; Hickory Almost Family Inc. (NasdaqGS:AFAM) $13.4 - - - Yes Ridge Capital LLC 7/22/2015 Healthcare Data Solutions, LLC Sopris Capital Associates, LLC IMS Health Holdings, Inc. (NYSE:IMS) - - - - No 7/22/2015 MedX Group, Corp. - Millennium Healthcare, Inc. - - - - No (OTCPK:MHCC) 7/14/2015 L+M Healthcare VHA-UHC Alliance NewCo, Inc. Northeast Medical Group Inc. - - - - No

PAGE | 12 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

M&A TRANSACTIONS

Announced U.S. Healthcare & Life Sciences M&A cont.

Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 7/23/2015 Quantia, Inc. Fuse Capital; Safeguard Scientifics, Physicians Interactive, Inc. - - - - No Inc. (NYSE:SFE) 7/23/2015 DRG Review, Inc., Certain Assets DRG Review, Inc. BESLER & Company, Inc. - - - - No 7/23/2015 AccelCare, Two Urgent Care Centers AccelCare, Urgent Care Services University of Rochester Medical Center, - - - - No Endowment Arm 7/22/2015 Ingenios Health Co. LLM Capital Partners, LLC; Hickory Almost Family Inc. (NasdaqGS:AFAM) $13.4 - - - Yes Ridge Capital LLC 7/22/2015 Healthcare Data Solutions, LLC Sopris Capital Associates, LLC IMS Health Holdings, Inc. (NYSE:IMS) - - - - No 7/22/2015 MedX Group, Corp. - Millennium Healthcare, Inc. - - - - No (OTCPK:MHCC) 7/22/2015 General Medical Applications, Inc. - Modernizing Medicine, Inc. - - - - No 7/22/2015 42,000 Square Feet Tower Pointe Medical Center - The Sanders Trust $8.4 - - - No In Greenwood, S.C. 7/22/2015 Advocate Home Health Care, Inc. - American In-Home Care, LLC - - - - No 7/21/2015 Capella Healthcare, Inc. GTCR, LLC MPT Operating Partnership, L.P. $1,509.6 2.0x 17.0x 29.3x Yes 7/21/2015 Thoratec Corp. (NasdaqGS:THOR) Oracle Investment Management, Inc. SJM International, Inc. $3,422.4 7.1x 48.6x 62.0x No

7/21/2015 Central Medical Clinic Inc. - Ekahi Health System LLC - - - - No 7/21/2015 Main Street Clinical Laboratory, Inc. and On-Site - Schryver Medical Sales And Marketing, - - - - No Imaging Solutions, Inc. Inc. 7/21/2015 Life Wear Technologies, Inc. - Life Wear Technologies, Inc. - - - - No 7/21/2015 Professional Hearing Center, Inc. - ENT Associates of Greater Kansas City, - - - - No P.C. 7/21/2015 Baylor Scott & White Health LLC, Our Children's Baylor Scott & White Health LLC Children's Medical Center of Dallas - - - - No House at Baylor 7/21/2015 CareVacations USA Inc. - Scootaround Inc. - - - - No 7/21/2015 Med-Trans Corporation Air Medical Group Holdings, Inc. EagleMed, LLC - - - - No 7/20/2015 James Square Health and Rehabilitation Centre - Investment 360 L.L.C - - - - No

7/20/2015 Alpha Bio/Med Services LLC - Sharps Compliance Corp. - - - - No (NasdaqCM:SMED) 7/20/2015 OmniLytics, Inc. - Phagelux, Inc. - - - - No 7/20/2015 Southern Regional Health System, Inc. - Prime Healthcare Services, Inc. - - - - No 7/20/2015 Egenix, Inc. - Bantam Pharmaceutical LLC $5.1 - - - No 7/20/2015 Health Access Solutions, Inc. - MedVision, Inc. - - - - No 7/17/2015 SCYNEXIS, GMP Contract Manufacturing, SCYNEXIS, Inc. (NasdaqGM:SCYX) Avista Pharma Solutions $3.9 - - - No Development and Animal Health Services Business

7/17/2015 Pyramid Healthcare Solutions, Inc. Avantha Group Anthelio Healthcare Solutions Inc. - - - - No 7/17/2015 Georgia Sports Medicine and Orthopedic Clinic, - Tift Regional Medical Center - - - - No PC Foundation, Inc. 7/17/2015 Hyperion Billing Solutions, LLC - Infinity Behavioral Health Services, Inc. - - NM - No

7/16/2015 Outcomes Incorporated - Cardinal Health, Inc. (NYSE:CAH) - - - - No 7/16/2015 Southern Illinois Center for Health, Select Assets Southern Illinois Medical Development Community Health Systems, Inc. - - - - No Corporation (NYSE:CYH) 7/16/2015 Spirit Health Group Inc. - Relevate Health Group - - - - No 7/15/2015 Eisai Inc., Research Triangle Park (RTP) Eisai Inc. Biogen Inc. (NasdaqGS:BIIB) - - - - No Manufacturing Campus 7/15/2015 Applied Clinical Intelligence, LLC Take Solutions Ltd. (BSE:532890) - - - - - No 7/15/2015 Avalign Technologies, Inc. RoundTable Healthcare Management, Arlington Capital Partners - - - - Yes LLC 7/15/2015 The Advanced Center for Physical Therapy LLC - PHOENIX Rehabilitation and Health - - - - No Services, Inc. 7/15/2015 Accountable Care Chicago, LLC, Certain Assets Accountable Care Chicago, LLC Molina Healthcare of Illinois, Inc. - - - - No Of Medicaid Business 7/15/2015 IMEBASE Innova Partners, Limited TechSource National Inc. - - - - No 7/15/2015 Harris Corporation, Commercial Healthcare Harris Corporation (NYSE:HRS) Nanthealth, LLC - - - - No Solutions Business 7/15/2015 Jackson Pharmacy Professionals, LLC - Jackson & Coker Locum Tenens, LLC - - - - No 7/15/2015 State Road Family Practice, Inc. - The MetroHealth System, Inc. - - - - No 7/14/2015 AdvanDx, Inc. bioMérieux SA (ENXTPA:BIM); LD OpGen, Inc. (NasdaqCM:OPGN) $2.6 0.5x - - No Pensions; SLS Invest; Merck Global Health Innovation LLC 7/14/2015 Five Skilled Nursing Facilities in South Texas - Granite Investment Group $90.1 - - - No 7/14/2015 Robert Wood Johnson Health System, Inc. - Barnabas Health, Inc. - - - - No 7/14/2015 Receptos, Inc. (NasdaqGS:RCPT) Arch Venture Partners, L.P.; Polaris Celgene Corporation (NasdaqGS:CELG) $6,741.7 - - - No Partners 7/14/2015 L+M Healthcare VHA-UHC Alliance NewCo, Inc. Northeast Medical Group Inc. - - - - No 7/14/2015 National HME Inc. EDG Partners, LLC Tailwind Capital Group, LLC - - - - Yes 7/13/2015 RF Surgical Systems, Inc. Menlo Ventures; Split Rock Partners, Medtronic plc (NYSE:MDT) $235.0 - - - No LLC 7/13/2015 CIS by Deloitte - Deloitte & Touche LLP - - - - No 7/13/2015 Western New York Urology Associates LLC and - Kaleida Health, Inc. - - - - No Cancer Care of Western New York 7/13/2015 Southern Dental Associates PC - Tralongo, LLC - - - - No 7/10/2015 Promega Corporation ------No

PAGE | 13 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

M&A TRANSACTIONS

Announced U.S. Healthcare & Life Sciences M&A cont.

Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 7/10/2015 Baxalta Incorporated (NYSE:BXLT) Baxter International Inc. (NYSE:BAX); Shire plc (LSE:SHP) $30,907.4 5.2x 14.2x 15.8x No BlackRock, Inc. (NYSE:BLK) 7/10/2015 JT Pharmacy, Inc. - Imprimis Pharmaceuticals, Inc. $0.4 - - - No (NasdaqCM:IMMY) 7/10/2015 US Diagnostics, Inc. - Alere Inc. (NYSE:ALR) $60.0 - - - No 7/10/2015 SoftCare Solutions, Inc., RCM Assets SoftCare Solutions, Inc. Medical Transcription Billing, Corp. $0.0 - - - No (NasdaqCM:MTBC) 7/10/2015 Unilens Vision Inc. (OTCPK:UVIC) Baker Street Capital Management LLC Valeant Pharmaceuticals International, $28.3 3.2x 14.3x 16.2x No Inc. (TSX:VRX) 7/10/2015 Teva Pharmaceutical Industries Limited, 22 Teva Pharmaceutical Industries Limited ANI Pharmaceuticals, Inc. $25.0 - - - No Generic Drug Products (NYSE:TEVA) (NasdaqGM:ANIP) 7/10/2015 CardiAQ Valve Technologies, Inc. Advent Venture Partners; Versant Edwards Lifesciences Corp. (NYSE:EW) $400.0 - - - No Ventures, Inc. 7/9/2015 Tauriga Sciences, Inc., Natural Wellness Business Tauriga Sciences, Inc. (OTCPK:TAUG) - - - - - No 7/9/2015 CWIBENEFITS, Inc. - Patriot Risk Services, Inc. $7.4 - - - No 7/9/2015 Grant & Weber Washington Inc., Early-Out Grant & Weber Washington, Inc. GetixHealth, LLC - - - - No Recovery Services Business 7/8/2015 Phyhealth Corp., Prior to Reverse Merger with Pizz - Phyhealth Corp. (OTCPK:PYHH) - - - - No Inc. 7/8/2015 Quantitative Solutions, Inc. - Certara Strategic Consulting - - - - No 7/8/2015 Analytical Bio-Chemistry Laboratories, Inc. Celerity Partners EAG Inc. - - - - Yes 7/8/2015 Cutanogen Corporation Cambrex Bio Science Walkersville, Inc. Amarantus Bioscience Holdings, Inc $9.0 - - - No (OTCPK:AMBS) 7/8/2015 TeleMend Medical, Inc. - Supurva Healthcare Group, Inc. - - - - No (OTCPK:SPRV) 7/7/2015 CRABTREE REHAB CENTERS Traditions Management USA LLC Hillcrest Convalescent Center, Inc. - - - - No 7/7/2015 Merck Ltd., Exclusive Worldwide Rights To CGRP Merck Ltd. (BSE:500126) Allergan plc (NYSE:AGN) $250.0 - - - No Migraine Development Program 7/7/2015 AHS Medical Holdings LLC, Hospital Operations AHS Medical Holdings LLC Equity Group Investments; Ventas, Inc. $475.0 - - - No (NYSE:VTR) 7/6/2015 Buena Vista Hospice Care, Inc. - Cornerstone Healthcare, Inc. - - - - No

7/6/2015 Oculeve, Inc. Kleiner Perkins Caufield & Byers; New Allergan plc (NYSE:AGN) $125.0 - - - No Enterprise Associates; Versant 7/6/2015 HealthPath, LLC - Millennium Healthcare, Inc. - - - - No (OTCPK:MHCC) 7/6/2015 MediciGroup, Inc. - BioClinica, Inc. - - - - No

7/6/2015 TIDI Products, LLC J.H. Whitney & Co., LLC RoundTable Healthcare Management, - - - - Yes LLC 7/6/2015 Kendallwood Hospice Company - Hospice Partners of America LLC - - - - No

7/6/2015 US Medical Systems, Inc. - Relias Learning, LLC - - - - No

7/6/2015 BeHealthy America, Inc. - GuideWell Mutual Holding Corporation - - - - No

7/6/2015 Glacier Hills, Inc. - Trinity Senior Living Communities Inc. - - - - No

7/3/2015 Altegra Health, Inc. Parthenon Capital Partners; Stockwell MediFAX-EDI Holding Company, Inc. $910.0 - - - Yes Capital LLC 7/2/2015 NYU Lutheran Medical Center - NYU Langone Medical Center LLC - - - - No

7/2/2015 Humana Inc. (NYSE:HUM) Fidelity Management & Research Aetna Inc. (NYSE:AET) $36,270.2 0.7x 14.0x 15.6x No Company; Capital World Investors 7/2/2015 Shamrock Nursing and Rehabilitation Center - CareTrust REIT, Inc. (NasdaqGS:CTRE) $8.3 10.4x - - No

7/2/2015 Health Net, Inc. (NYSE:HNT) OrbiMed Advisors, L.L.C. Centene Corp. (NYSE:CNC) $6,092.3 0.4x 16.0x 16.9x No

7/2/2015 Coastal Anesthesiology, Inc - Sheridan Healthcare, Inc. - - - - No

7/2/2015 Invacare Outcomes Management, LLC And Invacare Continuing Care, Inc. Joerns Healthcare Parent, LLC $15.5 - - - No Dynamic Medical Systems, LLC 7/2/2015 Referral Solutions Group, LLC Taj Media, LLC; Venture Quick, Inc.; Sober Media Group, LLC $55.7 - - - No Conversion Media LLC 7/2/2015 Pharmitas, Inc. Alliance of Angels, Investment Arm Appriss Inc. - - - - No

7/2/2015 DeVilbiss Healthcare LLC GoldPoint Partners LLC; Vestar Capital Medical Depot, Inc. - - - - Yes Partners, Inc.; Park Avenue Equity 7/2/2015 Athletic Advantage, Inc. - Pivot Physical Therapy - - - - No

7/2/2015 SPALF Holdings, LLC - CTR Partnership, L.P. $8.4 11.7x - - No

7/1/2015 Vascular Pathways, Inc. CHL Healthcare Partners; The Angels' CR Bard Inc. (NYSE:BCR) - - - - No Forum LLC; MVM Life Science Partners

PAGE | 14 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

M&A TRANSACTIONS

Announced U.S. Healthcare & Life Sciences M&A cont.

Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 7/1/2015 Chiro-Novo, LLC, Two Franchises in Maricopa Chiro-Novo, LLC The Joint Corp. (NasdaqCM:JYNT) $0.3 - - - No County, Arizona 7/1/2015 Audeo Oncology, Inc. Alchemia Limited (ASX:ACL) Panther Biotechnology, Inc. $16.0 - - - No (OTCPK:PBYA) 7/1/2015 South Bay Sports & Physical Therapy, P.C. - Professional Orthopedic and Sports - - - - No Physical Therapy, P.C. 7/1/2015 Eight Skilled Nursing Facilities And Three Assisted - Bandera Healthcare, Inc. - - - - No Living Campuses 7/1/2015 Manassas Anesthesia Associates, P.C. - MEDNAX, Inc. (NYSE:MD) - - - - No

7/1/2015 Lakeshore Anesthesia Services, P.C. - MEDNAX, Inc. (NYSE:MD) - - - - No

7/1/2015 Four Location Physical Therapy Practice - US Physical Therapy Inc. (NYSE:USPH) $6.1 1.1x - - No

7/1/2015 The Manor Clinic - Acadia Healthcare Company, Inc. $5.9 - - - No (NasdaqGS:ACHC) 7/1/2015 Patterson Medical Supply, Inc. Patterson Companies, Inc. Madison Dearborn Partners, LLC $715.0 1.5x 10.6x - Yes (NasdaqGS:PDCO) 7/1/2015 BBANYAN Realty Br, LLC JCM Franchise Development, LLC - - - - - No

7/1/2015 Dr. Susan Love Research Foundation, Ductal Dr. Susan Love Research Foundation Atossa Genetics, Inc. (NasdaqCM:ATOS) - - - - No Lavage Specimen Bank 7/1/2015 Three Senior Living Campuses East Lake Capital Management National Health Investors Inc. (NYSE:NHI) $67.0 - - - No

7/1/2015 Interactive Health, Inc. CI Capital Partners LLC; InTandem FFL Partners LP - - - - Yes Capital Partners, LLC 7/1/2015 ProMD LLC BoomStartup, LLC SilverVue, Inc. - - - - No

7/1/2015 West Bend Assisted Living Pharmacy - Genoa, a QoL Healthcare Company - - - - No

7/1/2015 Memorial Health System, Harmar Place and Memorial Health System United Church Homes, Inc. - - - - No Glenwood Retirement Community

PAGE | 15 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

OUR FIRM

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries.

Aerospace, Defense Building Products Business Consumer Energy, Power & Government & Materials Services & Infrastructure Services

Healthcare Industrials Specialty Technology, Transportation & Life Sciences Distribution Media & Telecom & Logistics

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

Boston Richmond (Headquarters) Frankfurt Two International Place 1001 Haxall Point Bockenheimer Landstrasse 33-35 24th Floor 9th Floor 60325 Frankfurt Boston, Massachusetts 02110 Richmond, Virginia 23219 Germany Phone: +1 (617) 482-7501 Phone: +1 (804) 648-0072 Phone: +49 069 3650638 00 Fax: +1 (617) 482-7503 Fax: +1 (804) 648-0073 Fax: +49 069 3650638 01 Cleveland San Francisco London 1900 East 9th Street 575 Market Street 63 Brook Street 20th Floor 31st Floor London W1K 4HS, England Cleveland, Ohio 44114 San Francisco, California 94105, USA Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (415) 288-4260 Fax: +44 (0) 20 7526 2187 Fax: +1 (216) 689-2401 Fax: +1 (415) 288-4269 Minneapolis NETWORK OFFICES 222 South 9th Street Suite 3350 Beijing New Delhi Minneapolis, Minnesota 55402 Phone: +1 (612) 359-2700 Hong Kong Shanghai Fax: +1 (612) 359-2701 Mumbai

PAGE | 16 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015

HARRIS WILLIAMS & CO.

SOURCES

Company Filings.

Capital IQ.

Thomson Financial.

S&P.

Reuters.

Bloomberg.

DISCLOSURES

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell- side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

PAGE | 17