Healthcare & Life Sciences Industry Update

Healthcare & Life Sciences Industry Update January 2014

Member FINRA/SIPC

www.harriswilliams.com What We’ve Been Reading January 2014

• Data released by the Obama Administration revealed that the enrollees through the online health insurance exchanges (HealthCare.gov) are demographically skewed towards older individuals. Through December 31, 2013, approximately one-third of enrollees were between the ages of 55 and 64 while less than 25% of enrollees were between the ages of 18 and 34. Several research organizations, including the Kaiser Family Foundation, estimate that for the government-sponsored health insurance plans offered on the exchanges to be sustainable, the proportion of younger enrollees would need to be closer to 40% in order to offset the higher costs of insuring older enrollees. An article in The Wall Street Journal presents additional analysis of the enrollment data and discusses the potential implications. (a registration to The Wall Street Journal Online may be required)

• According to data released by Office of the Actuary at CMS, healthcare spending grew at a slower pace than the GDP from 2010 to 2012. U.S. healthcare spending was $2.8 trillion in 2012, an increase of 3.7% over 2011. Healthcare expenditures also represented 17.2% of GDP, down from a peak of 17.4% in 2009. Proponents of the ACA have claimed that the decrease in spending is due to cost-saving measures instituted as part of healthcare reform. However, many independent organizations, including CMS, believe the data to be in line with historical patterns of falling healthcare spending following periods of recession, such as from 2007 to 2009. An article in the Huffington Post provides good color and additional commentary around the data.

• MedCity News published a piece discussing the drivers of M&A in healthcare technology and healthcare IT and predicts a robust deal environment in 2014. The article discusses trends such as large health insurers seeking acquisitions in data analytics, increased investment from private equity and venture firms, and multiple healthcare participants reacting to the shift from fee-for-service payment to outcomes-driven reimbursement. A link to the article can be found here. (a free online registration to MedCity News may be required)

1 HW&Co. HCLS Group Insight January 2014

2 Equity Trading Overview January 2014

Average Median TEV/ Median TEV/ Key Trading Number of Sector Enterprise Change in Stock Price LTM Multiples Forward Mulitples Companies Statistics Value ($ mm) 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA (detail begins Clinical Laboratories 3 $7,428 (13.4%) (8.1%) 1.5x 7.6x 1.6x 7.7x Contract Pharma Manufacturing 5 1,722 25.1% 79.2% 2.2x 14.6x 2.3x 13.0x on page 7) Contract Research Organizations 5 2,596 (1.3%) 52.4% 1.7x 12.2x 1.7x 11.1x Disease Management 2 3,938 0.7% 69.6% 1.8x 15.5x 1.8x 11.5x Emergency Services 1 2,882 36.9% 57.8% 3.3x 12.9x 3.2x 13.0x Health Care Staffing 4 1,705 13.4% 65.3% 1.0x 14.5x 1.1x 13.8x HMO - Medical 9 23,468 5.2% 44.6% 0.4x 7.1x 0.4x 7.4x

Support Services Information Services 11 3,263 5.6% 22.8% 3.4x 17.7x 3.2x 13.5x Specialty Managed Care 2 3,115 24.5% 99.8% 1.3x 10.2x 1.3x 5.4x Payer, Provider, & Pharmacy Specialty Pharmacy Management 4 22,130 11.2% 40.5% 0.7x 10.6x 0.7x 10.6x Dental Products 3 36,124 11.7% 22.4% 3.1x 13.5x 3.1x 12.0x Durable Medical Equipment 4 2,374 10.2% 27.8% 1.2x 11.2x 1.2x 10.0x Life Sciences Tools 3 18,872 10.5% 41.3% 2.8x 12.3x 2.7x 11.5x

Devices Medical Devices and Products 14 43,121 11.3% 37.1% 3.0x 11.9x 2.9x 10.8x Products & Medical / Surgical / Dental Supplies 6 16,160 12.6% 52.2% 0.3x 12.0x 0.3x 10.3x Acute-Care Hospitals 6 16,184 5.4% 40.3% 1.2x 8.4x 1.1x 7.7x Assisted Living 6 2,273 9.8% 8.5% 1.9x 11.3x 2.1x 13.5x Diagnostic Imaging 3 3,005 (10.7%) 10.6% 1.8x 6.3x 1.7x 8.5x Dialysis Services 2 22,082 9.4% 6.8% 2.0x 10.2x 1.7x 8.4x Home Care, Hospice, and Home Infusion 7 715 2.5% 23.5% 0.8x 9.2x 0.8x 10.1x Long-Term Care 3 1,414 14.0% 63.1% 1.0x 6.2x 1.0x 7.8x Physician Practice Management 3 2,135 6.3% 34.3% 1.8x 11.4x 2.1x 13.0x Psychiatric Hospitals / Management 3 3,363 (0.1%) 51.4% 0.4x 6.0x 0.4x 6.6x Provider-Based Services Surgicenters / Rehabilitation 5 2,481 14.6% 40.5% 2.1x 10.6x 1.9x 10.0x Payer, Provider, & Pharmacy Support Services 46 $7,225 10.8% 52.4% 1.7x 12.3x 1.7x 10.7x Products & Devices 30 $23,330 11.2% 36.1% 2.1x 12.2x 2.0x 10.9x Provider-Based Services 38 $5,961 5.7% 31.0% 1.4x 8.8x 1.4x 9.5x HW&Co. HCLS Composite Index 114 $10,106 9.0% 41.0% 1.7x 11.0x 1.7x 10.3x S&P 500 9.9% 29.6%

Public Company Specialty Managed Care Sector Contract Pharma Manufacturing Disease Management Performance Health Care Staffing (12-month % Long-Term Care Emergency Services change in stock Contract Research Organizations price) Medical / Surgical / Dental Supplies Psychiatric Hospitals / Management HMO - Medical Life Sciences Tools HW&Co. HCLS Composite Index Specialty Pharmacy Management Surgicenters / Rehabilitation Acute-Care Hospitals Medical Devices and Products Physician Practice Management S&P 500 Durable Medical Equipment Home Care, Hospice, and Home Infusion Information Services Dental Products Diagnostic Imaging Assisted Living Dialysis Services Clinical Laboratories

(10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% 120.0% 3 Equity Markets Overview January 2014

Healthcare & 200 Life Sciences

Industry Stock 180 78.2% Performance 160 52.9% 47.0% 140

120

100

40 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index

Top 25 Equity Gross Proceeds Closing Date Filing Date Issuer Ticker Transaction Type ($mm) Offerings 12/26/13 12/26/13 Aptalis Holdings Inc APTA IPO $500.0 (by proceeds) 12/04/13 12/04/13 Celldex Therapeutics Inc CLDX Follow-On 197.2 12/17/13 12/17/13 Spectrum Pharmaceuticals Inc SPPI Convertible 120.0 12/03/13 12/03/13 Clovis Oncology Inc CLVS Follow-On 115.0 12/02/13 12/02/13 Orexigen Therapeutics Inc OREX Convertible 115.0 12/26/13 12/26/13 Ampio Pharmaceuticals Inc AMPE Follow-On 110.6 12/27/13 12/27/13 Arno Therapeutics Inc LRRI Follow-On 103.6 12/31/13 12/31/13 Revance Therapeutics Inc RVNC IPO 86.3 12/04/13 12/03/13 Endologix Inc ELGX Convertible 86.3 12/02/13 12/02/13 Xencor Inc XNCR IPO 80.5 12/23/13 12/23/13 Genocea Biosciences Inc GNCA IPO 75.0 12/31/13 12/31/13 Dicerna Pharmaceuticals Inc DRNA IPO 69.0 12/30/13 12/30/13 Eleven Biotherapeutics Inc EBIO IPO 69.0 12/20/13 12/20/13 Auspex Pharmaceuticals Inc ASPX IPO 69.0 12/11/13 12/11/13 Kindred Biosciences Inc KIN IPO 60.4 12/30/13 12/30/13 Argos Therapeutics Inc A RGS IPO 60.0 12/20/13 12/20/13 Endocyte Inc ECYT Follow-On 60.0 12/11/13 12/11/13 Tetralogic TLOG IPO 57.6 12/13/13 12/13/13 XOMA Corp XOMA Follow-On 57.4 12/20/13 12/20/13 Eagle Pharmaceuticals Inc EGRX IPO 50.0 12/10/13 12/10/13 Cleveland Biolabs Inc CBLI Follow-On 50.0 12/12/13 12/12/13 Targacept Inc TRGT Follow-On 40.0 12/11/13 12/11/13 MiMedX Group Inc MDXG Follow-On 34.0 12/20/13 12/20/13 Cempra Inc CEMP Follow-On 25.0 12/04/13 12/04/13 Lion Biotechnologies Inc LBIO Follow-On 24.3

4 M&A Overview January 2014

Announced Quarterly M&A Activity Middle Market Healthcare Transaction Highlights 350 Announced Ta r g e t Buyer Healthcare & 12/31/2013 Patient Safety Technologies, Inc. Stryker Corporation 18 12/24/2013 Ikaria, Inc. Madison Dearborn Partners, LLC 22 Life Sciences 300 12/20/2013 Professional Anesthesia Services, LLP Team Health Holdings, Inc. 16 12/19/2013 Tecomet, Inc. Genstar Capital, LLC

M&A __ 18 12/18/2013 Certara, L.P. Arsenal Capital Partners 13 15 12/18/2013 Fidelis SecureCare of Michigan, Inc. Centene Corp. 250 13 18 20 12/18/2013 Southeastern Health Plus, Inc., Rehab Division Numotion 11 12 12/16/2013 Vertical / Trigen Holdings Avista Capital Holdings, L.P. 12 16 12/10/2013 Infinity Hospice of Aiken, LLC Halcyon Home Health, LLC 200 12/2/2013 Homecare Homebase, LLC The Hearst Corporation

304 150 291 267 256 248 242 245 236 LTM Deal Statistics 229 221 Number of Transactions 219 209 100 200 Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Re v TEV/EB ITDA $107.3 1,136 1.99x 12.6x 50 Note: Transactions based on publicly available information 0 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

PEG Acquirer Strategic Acquirer

Healthcare & Announced Healthcare & Life Sciences Transactions Median Healthcare & Life Sciences Transaction Multiples

Life Sciences $500 1200 21x 4.0x M&A Trends $450 1000 18x 3.5x $400 __ EV / LTM Revenue Multiple Revenue LTM / EV Number of Transactions of Number $350 15.2x 3.0x 800 15x $300 12.8x 2.5x 10.9x 12x 11.1x $250 600 10.0x 2.0x $200 $194.1 9x $174.6 7.7x 1.5x $141.4 400 $150 6x $110.6 $101.6 $108.2 1.0x $100 __

200 Multiple / LTM EBITDA EV 3x __ $50 0.5x

Aggregate Transaction Value ($ in in billions) ($ Value Transaction Aggregate $0 0 0x 0.0x 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

Aggregate Deal Value # of deals TEV / LTM EBITDA TEV / LTM Sales

Announced PEG Investments by Segment (Last 3 Years) PEG Investments and Exits Private Equity HC&LS Industry Number of 160 Segment Companies 144 M&A Activity 139 Biotechnology 15 140 Healthcare Technology 28 120 120 113 Healthcare Distributors 10 ' Healthcare Equipment 20 100 94 95 Healthcare Facilities 44 Healthcare Services 37 79 80 80 71 Healthcare Supplies 7 69 62 65 65 58 60 61 Life Sciences Tools & Services 8 60

Transaction Volume Transaction 50 Managed Healthcare 6 49 40 40 42 Pharmaceuticals 21 40 27

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Investments Number of Exits

5 Debt Markets Overview January 2014

Key Credit Quarterly Healthcare Loan Volume Average Spread on Healthcare Loans $24 Statistics L + 500

___ $21 __ L + 400 $18

$15 L + 300 $12

$9 L + 200

$6 Average Spread Over LIBOR L + 100 $3 LoanVolumeQuarter by ($billions) in $0 L + 0 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2007 2008 2009 2010 2011 2012 2013

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

Credit Statistics Average Secondary Spread

L + 1000 6.0x 2007 2008 2009 2010 2011 2012 2013 __ L + 800

__ 4.0x L + 600

L + 400 2.0x EBITDA Multiple EBITDA L + 200 Average Spread Over LIBOR

0.0x L + 0 Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest

Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread Recent 12/31/13 Community Health Systems General medical & surgical hospitals $4,580,000,000 Bridge Loan BB / NR L+ 500 Healthcare & 12/31/13 Community Health Systems General medical & surgical hospitals 2,260,000,000 Term Loan B BB / NR L+ 325 Life Sciences 12/16/13 US Renal Care Inc Specialty outpatient clinics 637,000,000 Term Loan B B / Ba3 L+ 325 12/13/13 Sheridan Holdings Inc Health and allied services 400,000,000 Term Loan B / Caa1 L+ 725 Debt Offerings 12/13/13 Sheridan Holdings Inc Health and allied services 155,000,000 Term Loan B B / NR L+ 350 (by deal amount) 12/19/13 Prime Healthcare Services Inc General medical & surgical hospitals 250,000,000 Term Loan A B / NR L+ 450 12/19/13 Prime Healthcare Services Inc General medical & surgical hospitals 225,000,000 Revolver/Line >= 1 Yr. B / NR L+ 325 12/31/13 Providence Health & Services General medical & surgical hospitals 400,000,000 Revolver/Line >= 1 Yr. NR / NR N/A 12/19/13 ATI Holdings Inc Specialty outpatient clinics 305,000,000 Term Loan B B / NR L+ 400 12/31/13 Children's Hospital of Orange County Specialty hospitals exc. psychiatric 126,400,000 Standby Letter of Credit NR / NR N/A 12/20/13 MiraMed Global Services Health and allied services 87,000,000 Revolver/Line >= 1 Yr. NR / NR N/A 12/04/13 Firs t Choice ER LLC Health and allied services 75,000,000 Term Loan NR / NR N/A 12/31/13 Sycamore Street LLC Nursing and personal care 72,225,000 Term Loan NR / NR L+ 375 12/20/13 Accelecare Wound Centers Inc Offices & clinics of medical doctors 50,000,000 Term Loan NR / NR N/A 12/20/13 Accelecare Wound Centers Inc Offices & clinics of medical doctors 20,000,000 Revolver/Line >= 1 Yr. NR / NR N/A 12/20/13 Radiology Partners Inc Health and allied services 62,500,000 Term Loan NR / NR L+ 525 12/20/13 Radiology Partners Inc Health and allied services 2,500,000 Revolver/Line >= 1 Yr. NR / NR L+ 525 12/17/13 Caregiver Services Inc Home health care services 20,500,000 Term Loan A NR / NR L+ 500 12/17/13 Caregiver Services Inc Home health care services 10,000,000 Revolver/Line >= 1 Yr. NR / NR N/A 12/19/13 PT Solutions LLC Offices of health practitioners 18,000,000 Term Loan NR / NR L+ 600 12/19/13 PT Solutions LLC Offices of health practitioners 3,000,000 Revolver/Line >= 1 Yr. NR / NR L+ 600

6 Healthcare & Life Sciences Trading Statistics January 2014

Payer, Provider, & Pharmacy Support Services

Contract Pharma Manufacturing Akorn, Inc. $24.62 25.1% 84.3% $26.16 $12.44 $2,372 $108 $76 $2,404 $304 $97 $85 Sep-13 Dec-12 $316 $105 $96 7.9x 24.8x 7.6x 23.0x Cambrex Corporation. 17.83 35.1% 56.7% 19.74 10.92 539 102 25 616 285 59 36 Sep-13 Dec-12 308 67 43 2.2x 10.9x 2.0x 9.2x Integrated Biopharma Inc. 0.19 (5.0%) 18.8% 0.22 0.11 4 15 0 18 34 2 1 Sep-13 Jun-13 NA NA NA 0.5x 10.1x NA NA Patheon Inc. 9.81 60.3% 193.7% 9.86 3.00 1,383 609 62 1,969 1,023 128 80 Oct-13 Oct-13 1,108 169 NA 2.0x 16.2x 1.8x 11.7x West Pharmaceutical Services, Inc. 49.06 19.2% 79.2% 50.60 27.31 3,426 406 222 3,603 1,347 242 159 Sep-13 Dec-12 1,372 250 164 2.7x 14.6x 2.6x 14.4x Number of Companies 5 Median: 25.1% 79.2% Total $7,724 $1,722 $2,994 $3,105 2.2x 14.6x 2.3x 13.0x Mean: 26.9% 86.5% $1,722 3.1x 15.3x 3.5x 14.6x

Contract Research Organizations Albany Molecular Research Inc. $10.08 (21.8%) 90.9% $14.37 $4.80 $319 $7 $40 $286 $247 $44 $28 Sep-13 Dec-12 $248 $47 $31 1.2x 6.4x 1.2x 6.2x Charles River Laboratories International, Inc. 53.04 14.7% 41.6% 53.81 37.38 2,552 640 130 3,069 1,156 266 178 Sep-13 Dec-12 1,166 275 196 2.7x 11.4x 2.6x 11.1x Covance Inc. 88.06 1.9% 52.4% 91.99 57.49 4,946 265 483 4,619 2,341 351 229 Sep-13 Dec-12 2,403 367 242 2.0x 13.2x 1.9x 12.6x ICON Public Limited Company 40.42 (1.3%) 45.6% 44.23 26.70 2,474 0 156 2,257 1,291 161 116 Sep-13 Dec-12 1,331 172 125 1.7x 14.0x 1.7x 13.2x PAREXEL International Corporation 45.18 (10.0%) 52.7% 55.02 30.39 2,553 501 203 2,750 1,789 226 149 Sep-13 Jun-13 1,928 265 185 1.5x 12.2x 1.4x 10.4x Number of Companies 5 Median: (1.3%) 52.4% Total $12,844 $2,596 $6,824 $7,076 1.7x 12.2x 1.7x 11.1x Mean: (3.3%) 56.6% $2,596 1.8x 11.4x 1.8x 10.7x

Disease Management Alere Inc. $36.20 18.4% 95.7% $36.78 $18.64 $2,964 $3,860 $354 $7,080 $3,013 $630 $168 Sep-13 Dec-12 $3,026 $667 $535 2.3x 11.0x 2.3x 10.6x Healthways Inc. 15.35 (17.1%) 43.5% 22.20 9.59 538 261 3 797 669 40 12 Sep-13 Dec-12 669 64 11 1.2x 20.1x 1.2x 12.4x Number of Companies 2 Median: 0.7% 69.6% Total $3,502 $3,938 $3,682 $3,695 1.8x 15.5x 1.8x 11.5x Mean: 0.7% 69.6% $3,938 1.8x 15.5x 1.8x 11.5x

Emergency Services Air Methods Corp. $58.26 36.9% 57.8% $59.07 $32.24 $2,274 $627 $19 $2,882 $874 $223 $143 Sep-13 Dec-12 $890 $222 $139 3.3x 12.9x 3.2x 13.0x Number of Companies 1 Median: 36.9% 57.8% Total $2,274 $2,882 $874 $890 3.3x 12.9x 3.2x 13.0x Mean: 36.9% 57.8% $2,882 3.3x 12.9x 3.2x 13.0x

Health Care Staffing AMN Healthcare Services Inc. $14.70 6.8% 27.3% $16.20 $10.34 $676 $149 $32 $793 $1,011 $74 $61 Sep-13 Dec-12 $1,012 $80 $65 0.8x 10.7x 0.8x 9.9x Cross Country Healthcare, Inc. 9.98 65.2% 107.9% 10.53 4.59 310 0 32 278 441 6 (1) Sep-13 Dec-12 439 7 1 0.6x 45.5x 0.6x 41.1x On Assignment Inc. 34.92 5.8% 72.2% 35.71 20.41 1,880 358 45 2,193 1,682 162 132 Sep-13 Dec-12 1,655 163 126 1.3x 13.5x 1.3x 13.4x Team Health Holdings, Inc. 45.55 20.1% 58.3% 48.83 29.20 3,182 506 132 3,557 2,307 230 178 Sep-13 Dec-12 2,372 249 188 1.5x 15.5x 1.5x 14.3x Number of Companies 4 Median: 13.4% 65.3% Total $6,049 $1,705 $5,440 $5,478 1.0x 14.5x 1.1x 13.8x Mean: 24.5% 66.4% $1,705 1.1x 21.3x 1.1x 19.7x

As of December 31, 2013 7 Healthcare & Life Sciences Trading Statistics January 2014

Payer, Provider, & Pharmacy Support Services

Stock Price Total Lastest Twelve Months Equity Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 Week Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 12/31/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA (TEV) HMO - Medical Commercial: Aetna Inc. $68.59 7.1% 48.1% $69.47 $44.38 $25,207 $8,817 $2,082 $31,992 $44,038 $3,921 $3,403 Sep-13 Dec-12 $47,193 $3,959 $3,611 0.7x 8.2x 0.7x 8.1x Cigna Corp. 87.48 13.8% 63.6% 88.57 53.91 24,181 5,244 3,055 26,465 31,849 3,732 3,344 Sep-13 Dec-12 31,962 3,576 2,998 0.8x 7.1x 0.8x 7.4x Health Net, Inc. 29.67 (6.4%) 22.1% 33.90 24.16 2,359 499 686 2,172 11,148 343 307 Sep-13 Dec-12 11,051 402 350 0.2x 6.3x 0.2x 5.4x Humana Inc. 103.22 10.6% 50.4% 105.80 65.88 16,093 2,876 1,255 17,714 40,683 2,645 2,384 Sep-13 Dec-12 41,188 2,628 2,337 0.4x 6.7x 0.4x 6.7x UnitedHealth Group Incorporated 75.30 5.2% 38.8% 75.88 51.36 75,809 16,860 7,276 85,515 122,489 10,998 9,623 Dec-13 Dec-13 131,736 11,567 10,130 0.7x 8.3x 0.6x 7.4x WellPoint Inc. 92.39 10.5% 51.7% 94.36 58.75 27,294 15,702 2,186 40,810 68,989 5,499 4,876 Sep-13 Dec-12 70,807 4,632 4,171 0.6x 7.4x 0.6x 8.8x Number of Companies 6 Median: 8.8% 49.3% Total $170,942 $34,111 $319,196 $333,938 0.7x 7.3x 0.6x 7.4x Mean: 6.8% 45.8% $34,111 0.6x 7.3x 0.6x 7.3x

Gove rnme nt: Centene Corp. $58.95 (7.8%) 43.8% $67.84 $40.57 $3,229 $521 $741 $3,014 $10,589 $275 $220 Sep-13 Dec-12 $10,969 $347 $274 0.3x 11.0x 0.3x 8.7x Molina Healthcare, Inc. 34.75 (2.4%) 28.4% 40.90 25.70 1,590 770 857 1,504 6,576 235 185 Sep-13 Dec-12 6,652 217 147 0.2x 6.4x 0.2x 6.9x WellCare Health Plans, Inc. 70.42 1.0% 44.6% 75.31 44.75 3,078 337 1,391 2,024 9,077 325 300 Sep-13 Dec-12 9,543 385 343 0.2x 6.2x 0.2x 5.3x Number of Companies 3 Median: (2.4%) 43.8% Total $7,896 $2,180 $26,242 $27,164 0.2x 6.4x 0.2x 6.9x Mean: (3.1%) 38.9% $2,180 0.2x 7.9x 0.2x 7.0x

Information Services Data/Analytics: Accelrys Inc. $9.54 (3.0%) 5.4% $10.00 $7.75 $531 $0 $78 $428 $166 $11 ($13) Sep-13 Dec-12 $174 $35 $24 2.6x 38.7x 2.5x 12.3x National Research Corp. 34.71 16.2% 124.1% 46.52 14.29 510 11 19 502 92 28 25 Sep-13 Dec-12 93 29 25 5.5x 17.7x 5.4x 17.5x Number of Companies 2 Median: 6.6% 64.8% Total $1,041 $465 $258 $267 4.0x 28.2x 3.9x 14.9x Mean: 6.6% 64.8% $465 4.0x 28.2x 3.9x 14.9x

eHealth: WebMD Health Corp. 39.50 38.4% 175.5% 40.86 14.74 1,775 700 776 1,699 502 61 44 Sep-13 Dec-12 $513 $120 $53 3.4x 27.7x NA NA Number of Companies 1 Median: 38.4% 175.5% Total $1,775 $1,699 $502 $513 3.4x 27.7x NA NA Mean: 38.4% 175.5% $1,699 3.4x 27.7x NA NA

Hospital/Physician: Allscripts Healthcare Solutions, Inc. $15.46 4.0% 64.1% $16.43 $9.25 $2,729 $545 $61 $3,213 $1,373 $29 ($63) Sep-13 Dec-12 $1,370 $168 $76 2.3x NM 2.3x 19.2x athenahealth, Inc. 134.50 23.9% 83.5% 144.42 74.45 5,002 243 62 5,183 540 48 4 Sep-13 Dec-12 592 110 69 9.6x NM 8.8x 47.0x Cerner Corporation 55.74 6.1% 43.8% 59.42 39.36 19,133 183 288 18,395 2,761 812 653 Sep-13 Dec-12 2,913 973 715 6.7x 22.7x 6.3x 18.9x Computer Programs & Systems Inc. 61.81 5.7% 22.8% 62.87 46.08 690 0 3 676 198 50 47 Sep-13 Dec-12 202 51 49 3.4x 13.5x 3.3x 13.2x HMS Holdings Corp. 22.70 5.6% (12.4%) 31.93 17.39 2,004 268 109 2,141 503 146 96 Sep-13 Dec-12 503 154 86 4.3x 14.7x 4.3x 13.9x MedAssets, Inc. 19.83 (22.0%) 18.2% 26.58 16.31 1,227 802 0 2,029 674 208 103 Sep-13 Dec-12 676 218 89 3.0x 9.8x 3.0x 9.3x Merge Healthcare Incorporated 2.32 (11.1%) (6.1%) 4.71 2.13 218 246 20 445 243 16 3 Sep-13 Dec-12 237 39 21 1.8x 27.2x 1.9x 11.5x Quality Systems Inc. 21.06 (3.1%) 21.3% 24.15 17.01 1,266 0 73 1,182 446 89 74 Sep-13 Mar-13 456 107 79 2.6x 13.3x 2.6x 11.0x Number of Companies 8 Median: 4.8% 22.0% Total $1,635 $4,158 $521 $547 3.2x 14.1x 3.2x 13.5x Mean: 1.1% 29.4% $2,085 4.2x 16.8x 4.1x 18.0x

As of December 31, 2013 8 Healthcare & Life Sciences Trading Statistics January 2014

Payer, Provider, & Pharmacy Support Services

Specialty Pharmacy Management Express Scripts Holding Company 70.24 13.7% 30.1% 70.79 53.05 56,599 14,114 1,722 69,007 105,826 6,553 4,264 Sep-13 Dec-12 103,854 6,677 6,308 0.7x 10.5x 0.7x 10.3x Catamaran Corporation 50.45 6.6% 7.8% 60.93 45.86 10,408 1,020 436 11,013 13,581 690 455 Sep-13 Dec-12 14,295 658 450 0.8x 15.5x 0.8x 16.7x Omnicare Inc. 60.36 8.8% 67.2% 60.93 36.12 6,216 1,975 506 7,685 6,206 718 579 Sep-13 Dec-12 6,264 704 592 1.2x 10.7x 1.2x 10.9x PharMerica Corporation 21.50 62.0% 51.0% 22.85 11.84 633 234 52 815 1,741 120 86 Sep-13 Dec-12 1,722 129 95 0.5x 6.8x 0.5x 6.3x Number of Companies 4 Median: 11.2% 40.5% Total $73,856 $22,130 $127,354 $126,134 0.7x 10.6x 0.7x 10.6x Mean: 22.8% 39.0% $22,130 0.8x 10.9x 0.8x 11.1x

As of December 31, 2013 9 Healthcare & Life Sciences Trading Statistics January 2014

Products & Devices

Durable Medical Equipment Hill-Rom Holdings, Inc. $41.34 15.4% 45.1% $42.56 $28.94 $2,413 $307 $127 $2,592 $1,716 $268 $169 Sep-13 Sep-13 $1,736 $315 $211 1.5x 9.7x 1.5x 8.2x Invacare Corporation 23.21 34.4% 42.4% 23.40 10.26 743 56 33 766 1,395 21 (16) Sep-13 Dec-12 1,371 18 (26) 0.5x 35.9x 0.6x 43.8x Prism Medical Ltd. 5.25 5.0% 1.0% 5.89 4.50 44 21 1 65 74 8 6 Aug-13 Nov-12 75 10 NA 0.9x 8.5x 0.9x 6.5x ResMed Inc. 47.08 (10.9%) 13.3% 57.34 41.98 6,689 361 977 6,073 1,532 473 396 Sep-13 Jun-13 1,618 519 437 4.0x 12.8x 3.8x 11.7x Number of Companies 4 Median: 10.2% 27.8% Total $9,889 $2,374 $4,717 $4,800 1.2x 11.2x 1.2x 10.0x Mean: 11.0% 25.4% $2,374 1.7x 16.7x 1.7x 17.6x

Life Sciences Tools Agilent Technologies Inc. $57.19 11.6% 39.7% $57.94 $40.19 $18,976 $2,699 $2,675 $19,003 $6,782 $1,391 $1,019 Oct-13 Oct-13 $7,041 $1,610 $1,383 2.8x 13.7x 2.7x 11.8x Becton, Dickinson and Company 110.49 10.5% 41.3% 110.94 78.73 21,433 3,970 1,890 22,795 8,014 2,129 1,621 Sep-13 Sep-13 8,408 2,275 1,698 2.8x 10.7x 2.7x 10.0x Life Technologies Corporation 75.80 1.3% 54.6% 75.82 49.87 13,100 2,072 336 14,818 3,842 1,200 806 Sep-13 Dec-12 3,845 1,288 1,111 3.9x 12.3x 3.9x 11.5x Number of Companies 3 Median: 10.5% 41.3% Total $53,509 $18,872 $18,638 $19,294 2.8x 12.3x 2.7x 11.5x Mean: 7.8% 45.2% $18,872 3.2x 12.2x 3.1x 11.1x

Medical Devices and Products Abbott Laboratories $38.33 15.5% (41.5%) $38.81 $31.64 $59,265 $8,263 $2,882 $59,014 $21,848 $4,353 $9,158 Dec-13 Dec-13 $21,956 $5,665 $4,356 1.5x 5.3x 2.7x 10.4x ArthroCare Corporation 40.24 13.1% 16.3% 40.48 31.56 1,142 0 208 1,017 373 87 71 Sep-13 Dec-12 377 79 68 2.7x 11.7x 2.7x 12.9x Baxter International Inc. 69.55 5.9% 4.3% 74.60 62.80 37,745 9,066 2,376 44,432 14,644 4,071 3,320 Sep-13 Dec-12 15,139 4,185 3,384 3.0x 10.9x 2.9x 10.6x Boston Scientific Corporation 12.02 2.4% 109.8% 12.48 5.76 16,049 4,249 571 19,727 7,126 1,618 930 Sep-13 Dec-12 7,131 1,662 961 2.8x 12.2x 2.8x 11.9x CR Bard Inc. 133.94 16.3% 37.0% 141.02 97.14 10,433 1,504 782 11,155 2,999 831 697 Sep-13 Dec-12 3,038 821 685 3.7x 13.4x 3.7x 13.6x Danaher Corp. 77.20 11.4% 38.1% 77.39 56.17 53,824 3,502 1,996 55,396 18,827 4,235 3,354 Sep-13 Dec-12 19,057 4,169 3,306 2.9x 13.0x 2.9x 13.3x Hanger, Inc. 39.34 16.5% 43.8% 39.75 27.26 1,359 471 7 1,823 1,049 174 137 Sep-13 Dec-12 1,063 188 144 1.7x 10.5x 1.7x 9.7x Hologic Inc. 22.35 8.2% 11.7% 23.96 18.46 6,104 4,839 822 10,121 2,477 843 327 Sep-13 Sep-13 2,458 928 757 4.1x 12.0x 4.1x 10.9x Hospira Inc. 41.28 5.3% 32.1% 42.60 28.71 6,847 1,822 632 8,037 4,017 307 71 Sep-13 Dec-12 4,072 684 469 2.0x 24.5x 2.0x 11.8x Johnson & Johnson 91.59 5.7% 30.7% 95.99 70.30 258,416 15,107 0 248,295 71,312 22,960 18,957 Dec-13 Dec-13 73,910 24,812 20,585 3.5x 10.9x 3.4x 10.0x Medtronic, Inc. 57.39 7.8% 39.9% 58.85 41.16 57,295 12,288 1,066 56,999 16,764 5,646 4,802 Oct-13 Apr-13 16,990 6,140 5,352 3.4x 10.1x 3.4x 9.3x Stryker Corporation 75.14 11.2% 37.1% 75.55 55.24 28,434 2,774 1,110 26,070 8,891 1,648 1,353 Sep-13 Dec-12 8,990 2,450 2,120 2.9x 15.8x 2.9x 10.6x Thermo Fisher Scientific, Inc. 111.35 20.8% 74.6% 111.44 64.54 40,238 7,114 1,846 45,492 12,883 2,732 1,727 Sep-13 Dec-12 12,931 2,737 2,513 3.5x 16.6x 3.5x 16.6x Zimmer Holdings, Inc. 93.19 13.5% 39.8% 93.70 67.34 15,934 1,688 917 16,119 4,563 1,701 1,349 Sep-13 Dec-12 4,604 1,725 1,362 3.5x 9.5x 3.5x 9.3x Number of Companies 14 Median: 11.3% 37.1% Total $593,086 $43,121 $187,772 $191,718 3.0x 11.9x 2.9x 10.8x Mean: 11.0% 33.8% $43,121 3.0x 12.6x 3.0x 11.5x

Medical / Surgical / Dental Supplies AmerisourceBergen Corporation $70.31 15.1% 62.8% $71.38 $43.01 $16,174 $1,397 $1,231 $16,339 $87,959 $1,156 $989 Sep-13 Sep-13 $114,295 $1,618 $1,460 0.2x 14.1x 0.1x 10.1x Cardinal Health, Inc. 66.81 28.1% 62.2% 67.75 41.06 22,814 3,883 2,753 23,944 99,727 2,514 2,088 Sep-13 Jun-13 86,573 2,432 2,027 0.2x 9.5x 0.3x 9.8x Henry Schein, Inc. 114.26 10.1% 42.1% 116.07 81.59 9,810 408 70 10,625 9,443 801 672 Sep-13 Dec-12 9,561 807 678 1.1x 13.2x 1.1x 13.2x McKesson Corporation 161.40 25.8% 66.5% 166.57 96.67 37,075 4,874 2,960 38,989 127,163 3,216 2,561 Sep-13 Mar-13 132,128 3,696 2,997 0.3x 12.1x 0.3x 10.5x Owens & Minor Inc. 36.56 5.7% 28.2% 38.55 28.62 2,308 214 154 2,369 9,172 239 201 Sep-13 Dec-12 9,179 256 207 0.3x 9.9x 0.3x 9.2x Patterson Companies, Inc. 41.20 2.5% 20.4% 44.39 34.34 4,348 861 516 4,693 3,760 398 350 Oct-13 Apr-13 4,080 424 373 1.2x 11.8x 1.2x 11.1x Number of Companies 6 Median: 12.6% 52.2% Total $92,528 $16,160 $337,224 $355,816 0.3x 12.0x 0.3x 10.3x Mean: 14.6% 47.0% $16,160 0.6x 11.8x 0.5x 10.7x

As of December 31, 2013 10 Healthcare & Life Sciences Trading Statistics January 2014

Provider-Based Services

Stock Price Total Lastest Twelve Months Equity Cash and LTM Lastest Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples Company Name % Change 52 Week Total Debt Ent. (LTM) Mkt. Value Equiv. Period FYE Date 12/31/2013 3 mos. 12 mos. High Low Value Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $39.27 (5.4%) 27.7% $51.29 $30.85 $3,664 $9,656 $144 $13,606 $13,043 $1,628 $1,056 Sep-13 Dec-12 $13,052 $1,895 $1,091 1.0x 8.1x 1.0x 7.2x Health Management Associates Inc. 13.10 2.3% 40.6% 17.28 8.76 3,465 3,780 1 7,191 5,843 763 370 Sep-13 Dec-12 6,757 795 379 1.2x 9.4x 1.1x 9.0x HCA Holdings, Inc. 47.71 11.6% 58.1% 49.52 30.65 20,845 28,700 484 50,330 33,780 6,433 4,716 Sep-13 Dec-12 37,933 6,433 4,697 1.5x 7.8x 1.3x 7.8x Lifepoint Hospitals Inc. 52.84 13.3% 40.0% 53.87 38.08 2,484 1,765 195 4,107 3,619 485 245 Sep-13 Dec-12 4,407 540 311 1.1x 8.5x 0.9x 7.6x Tenet Healthcare Corp. 42.12 2.3% 29.7% 49.48 33.00 4,179 5,823 82 10,098 9,548 1,226 756 Sep-13 Dec-12 11,617 1,324 777 1.1x 8.2x 0.9x 7.6x Universal Health Services Inc. 81.26 8.4% 68.1% 83.83 48.94 7,985 3,528 12 11,771 7,248 1,383 1,053 Sep-13 Dec-12 8,417 1,274 944 1.6x 8.5x 1.4x 9.2x Number of Companies 6 Median: 5.4% 40.3% Total $42,624 $16,184 $73,081 $82,183 1.2x 8.4x 1.1x 7.7x Mean: 5.4% 44.0% $16,184 1.3x 8.4x 1.1x 8.1x

Assisted Living Algoma Central Corp. $16.60 9.2% 17.6% $17.18 $13.33 $646 $225 $139 $733 $524 $113 $67 Sep-13 Dec-12 NA NA NA 1.4x 6.5x NA NA Brookdale Senior Living Inc. 27.18 3.3% 7.3% 30.65 24.42 3,378 2,607 43 5,943 2,518 408 145 Sep-13 Dec-12 2,893 430 142 2.4x 14.6x 2.1x 13.8x Capital Senior Living Corp. 23.99 13.4% 28.4% 27.90 18.81 670 441 19 1,092 338 56 13 Sep-13 Dec-12 352 60 14 3.2x 19.4x 3.1x 18.2x Emeritus Corp. 21.63 16.7% (12.5%) 30.95 18.15 1,033 4,026 110 4,956 1,829 336 153 Sep-13 Dec-12 1,948 368 171 2.7x 14.8x 2.5x 13.5x Five Star Quality Care Inc. 5.49 6.2% 9.6% 6.87 4.41 265 63 19 296 1,231 46 20 Jun-13 Dec-12 1,364 45 15 0.2x 6.5x 0.2x 6.6x Skilled Healthcare Group, Inc. 4.81 10.3% (24.5%) 7.51 4.10 189 435 3 621 864 77 52 Sep-13 Dec-12 860 76 50 0.7x 7.9x 0.7x 8.2x Number of Companies 6 Median: 9.8% 8.5% Total $6,180 $2,273 $7,304 $7,417 1.9x 11.3x 2.1x 13.5x Mean: 9.9% 4.3% $2,273 1.8x 11.6x 1.7x 12.0x

Diagnostic Imaging Alliance Healthcare Services, Inc. $24.74 (10.7%) 287.8% $32.85 $6.25 $258 $546 $49 $804 $453 $141 $61 Sep-13 Dec-12 NA NA NA 1.8x 5.5x NA NA RadNet, Inc. 1.67 (30.7%) (34.0%) 3.35 1.51 67 585 0 653 684 96 37 Sep-13 Dec-12 700 102 40 1.0x 6.3x 0.9x 6.4x Varian Medical Systems, Inc. 77.69 4.0% 10.6% 80.66 63.10 8,230 506 1,118 7,556 2,943 678 616 Sep-13 Sep-13 3,152 713 634 2.6x 11.1x 2.4x 10.6x Number of Companies 3 Median: (10.7%) 10.6% Total $8,555 $3,005 $4,080 $3,852 1.8x 6.3x 1.7x 8.5x Mean: (12.5%) 88.1% $3,005 1.8x 7.7x 1.7x 8.5x

Dialysis Services DaVita HealthCare Partners Inc. $63.37 11.4% 14.7% $65.67 $52.75 $13,479 $8,455 $971 $21,747 $11,174 $2,278 $1,779 Sep-13 Dec-12 $11,729 $2,392 $1,885 1.9x 9.4x 1.9x 9.1x Fresenius Medical Care AG & Co. KGAA 0.00 7.5% (1.0%) 56.45 46.58 15,977 8,434 602 22,417 14,727 2,761 2,125 Sep-13 Dec-12 14,617 2,900 2,262 2.1x 10.9x 1.5x 7.7x Number of Companies 2 Median: 9.4% 6.8% Total $29,456 $22,082 $25,901 $26,347 2.0x 10.2x 1.7x 8.4x Mean: 9.4% 6.8% $22,082 2.0x 10.2x 1.7x 8.4x

Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $22.45 (22.5%) 214.1% $32.40 $7.12 $245 $0 $29 $216 $260 $19 $17 Sep-13 Dec-12 $264 $19 $17 0.8x 11.1x 0.8x 11.3x Almost Family Inc. 32.33 66.4% 59.6% 33.97 17.66 304 1 28 277 353 23 20 Sep-13 Dec-12 357 22 18 0.8x 12.2x 0.8x 12.7x Amedisys Inc. 14.63 (15.0%) 29.4% 18.70 8.81 475 71 44 503 1,326 53 14 Sep-13 Dec-12 1,245 50 13 0.4x 9.2x 0.4x 10.1x Gentiva Health Services Inc. 12.41 3.1% 23.5% 13.85 8.47 450 910 183 1,180 1,666 160 141 Sep-13 Dec-12 1,738 161 141 0.7x 7.5x 0.7x 7.3x LHC Group, Inc. 24.04 2.5% 12.9% 26.90 19.06 423 25 0 462 642 60 52 Sep-13 Dec-12 662 54 47 0.7x 7.7x 0.7x 8.6x Chemed Corp. 76.62 7.2% 11.7% 82.00 61.68 1,351 181 83 1,449 1,433 191 166 Sep-13 Dec-12 1,423 206 169 1.0x 7.6x 1.0x 7.0x Number of Companies 6 Median: 2.8% 26.4% Total $3,248 $681 $5,679 $5,691 0.8x 8.5x 0.7x 9.3x Mean: 6.9% 58.5% $681 0.7x 9.2x 0.7x 9.5x

Home Infusion: BioScrip Inc. $7.40 (15.7%) (31.3%) $17.62 $5.61 $504 $416 $0 $920 $779 $36 $21 Sep-13 Dec-12 $838 $49 $24 1.2x 25.7x 1.1x 18.7x Number of Companies 1 Median: (15.7%) (31.3%) Total $504 $920 $779 $838 1.2x 25.7x 1.1x 18.7x Mean: (15.7%) (31.3%) $920 1.2x 25.7x 1.1x 18.7x

Long-Term Care The Ensign Group, Inc. $44.27 7.7% 63.1% $46.39 $27.54 $974 $214 $46 $1,140 $880 $121 $89 Sep-13 Dec-12 $906 $132 $103 1.3x 9.4x 1.3x 8.7x Kindred Healthcare Inc. 19.74 47.0% 82.4% 20.51 9.75 1,070 1,392 45 2,360 6,162 391 191 Sep-13 Dec-12 5,256 342 190 0.4x 6.0x 0.4x 6.9x National Healthcare Corp. 53.91 14.0% 14.7% 56.69 44.68 758 10 88 741 757 105 76 Sep-13 Dec-12 775 NA NA 1.0x 6.2x 1.0x NA Number of Companies 3 Median: 14.0% 63.1% Total $2,801 $1,414 $7,799 $6,936 1.0x 6.2x 1.0x 7.8x Mean: 22.9% 53.4% $1,414 0.9x 7.2x 0.9x 7.8x

As of December 31, 2013 11 Healthcare & Life Sciences Trading Statistics January 2014

Provider-Based Services

Specialty: MEDNAX, Inc. $53.38 6.3% 34.3% $56.45 $40.33 $5,235 $124 $16 $5,338 $2,058 $469 $431 Sep-13 Dec-12 $2,142 $491 $449 2.6x 11.4x 2.5x 10.9x Number of Companies 1 Median: 6.3% 34.3% Total $5,235 $5,338 $2,058 $2,142 2.6x 11.4x 2.5x 10.9x Mean: 6.3% 34.3% $5,338 2.6x 11.4x 2.5x 10.9x

Dental: Birner Dental Management Services Inc. $16.36 (6.9%) 2.0% $23.03 $17.00 $32 $9 $2 $40 $64 $4 $1 Sep-13 Dec-12 NA NA NA 0.6x 9.9x NA NA Number of Companies 1 Median: (6.9%) 2.0% Total $32 $40 $64 $0 0.6x 9.9x NA NA Mean: (6.9%) 2.0% $40 0.6x 9.9x NA NA

Psychiatric Hospitals / Management Magellan Health Services Inc. $59.91 (0.1%) 22.3% $62.00 $46.00 $1,622 $27 $282 $1,294 $3,368 $243 $205 Sep-13 Dec-12 $3,485 $257 $181 0.4x 5.3x 0.4x 5.0x Providence Service Corp. 25.72 (10.4%) 51.4% 31.31 15.86 347 124 91 387 1,132 58 43 Sep-13 Dec-12 1,127 58 43 0.3x 6.6x 0.3x 6.6x Universal Health Services Inc. 81.26 8.4% 68.1% 83.83 48.94 7,985 3,528 12 11,771 7,248 1,383 1,053 Sep-13 Dec-12 8,417 1,274 944 1.6x 8.5x 1.4x 9.2x Number of Companies 3 Median: (0.1%) 51.4% Total $9,954 $3,363 $11,749 $13,029 0.4x 6.0x 0.4x 6.6x Mean: (0.7%) 47.2% $3,363 0.6x 5.1x 0.7x 7.0x

Surgicenters / Rehabilitation Surge ry Ce nte rs 1: AmSurg Corp. $45.92 15.7% 53.0% $48.71 $29.02 $1,480 $621 $46 $2,055 $1,042 $172 $140 Sep-13 Dec-12 $1,079 $180 NA 2.5x 12.0x 1.9x 11.4x Surgical Care Affiliates, Inc. 34.84 NA NA 35.80 25.50 1,400 811 110 2,100 770 146 103 Sep-13 Dec-12 784 NA NA 2.9x 14.4x 2.7x NA Number of Companies 2 Median: 15.7% 53.0% Total $2,879 $2,078 $1,812 $1,864 2.7x 13.2x 2.3x 11.4x Mean: 15.7% 53.0% $2,078 2.7x 13.2x 2.3x 11.4x

Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $33.32 (3.4%) 57.8% $37.01 $21.53 $2,913 $1,320 $65 $4,645 $2,224 $537 $446 Sep-13 Dec-12 $2,272 $544 $456 2.1x 8.5x 2.0x 8.5x Select Medical Holdings Corporation 11.61 43.9% 23.1% 11.89 7.21 1,620 1,496 9 3,150 2,936 378 314 Sep-13 Dec-12 2,966 375 307 1.1x 8.3x 1.1x 8.4x US Physical Therapy Inc. 35.26 13.4% 28.0% 35.84 22.80 427 15 12 452 256 43 37 Sep-13 Dec-12 262 37 NA 1.8x 10.6x 1.7x 12.3x Number of Companies 3 Median: 13.4% 28.0% Total $4,960 $2,749 $5,416 $5,501 1.8x 8.5x 1.7x 8.5x Mean: 18.0% 36.3% $2,749 1.6x 9.1x 1.6x 9.8x

As of December 31, 2013 12 (1) EBITDA, EBIT, and Enterprise Value figures are adjusted for minority interest. M&A Detail January 2014

Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 12/31/2013 Saint Marys Hospital and Methodist Hospital In - Mayo Clinic Hospital-Rochester - - - - No Announced U.S. Rochester 12/31/2013 Patient Safety Technologies, Inc. A Plus International Inc.; Francis Stryker Corporation (NYSE:SYK) 107.6 5.4x 35.2x 235.8x Yes Healthcare & (OTCPK:PSTX) Capital Management, LLC; Kinderhook Partners LLC; Compass Life Sciences Global Management Ltd. 12/31/2013 Terrace House Detoxification Program Alcohol And Drug Dependency Horizon Health Services, Inc. - - - - No M&A Services, Inc. 12/30/2013 Trinity Rx Solutions, LLC - Fresh Start Private Management Inc. 0.7 - - - No (OTCPK:CEYY) 12/30/2013 Nucelis Inc. - Cibus Global - - - - No 12/30/2013 Comprehensive Behavioral Care, Inc. Comprehensive Care Corporation Imagen Radiomagnetica, S De R. L. - - - - No (OTCPK:CHCR) 12/30/2013 StratCenter.com - Healthcare Data Solutions LLC - - - - No 12/30/2013 Fabrus, LLC Opko Health, Inc. (NYSE:OPK) Senesco Technologies Inc. - - - - No (OTCBB:SNTI) 12/30/2013 Amery Regional Medical Center, Inc. - HealthPartners, Inc. - - - - No 12/30/2013 Casa Grande Community Hospital Regional Care Services Corporation Banner Health - - - - No 12/27/2013 Vinings Memory Care Facility Vinings Senior Real Estate, LLC; Golden Grove NT-HCI, LLC 10.1 - - - No Peregrine Way Of GA, LLC 12/26/2013 Scientific Protein Laboratories LLC American Capital, Ltd. Shenzhen Hepalink Pharmaceutical 337.5 - - - Yes (NasdaqGS:ACAS) Co., Ltd. (SZSE:002399) 12/26/2013 Four Senior Living Communities in Indiana and - Capital Senior Living Corp. 64.9 - - - No South Carolina (NYSE:CSU) 12/26/2013 Teva Pharmaceutical Industries Limited, 31 Teva Pharmaceuticals USA, Inc. ANI Pharmaceuticals, Inc. 12.5 - - - No Generic Drug Products (NasdaqGM:ANIP) 12/24/2013 Semprae Laboratories, Inc. Versant Ventures, Inc.; BR Venture Innovus Pharmaceuticals, Inc. 1.1 - - - Yes Fund; Quaker BioVentures; The (OTCPK:INNV) Jannick Group, LLC 12/24/2013 Frisco Ambulatory Surgery Center, LLC - Physician Partners of America, LLC - - - - No 12/24/2013 Pinnacle Biologics, Inc. Esperante Ventures; Numoda Capital Concordia Healthcare Corp. - - - - Yes Innovations, LLC; NXT Capital (TSX:CXR) Venture Finance 12/24/2013 Ikaria, Inc. Arch Venture Partners, L.P.; Madison Dearborn Partners, LLC 1,600.0 - - - Yes Venrock; New Mountain Capital, LLC; 5AM Venture Management LLC 12/23/2013 Bayer HealthCare, LLC, A1CNow Product Bayer HealthCare, LLC Polymer Technology Systems, Inc. - - - - No Portfolio 12/23/2013 ATMI Inc., LifeSciences Business ATMI Inc. (NasdaqGS:ATMI) Pall Corporation (NYSE:PLL) 185.0 - - - No 12/23/2013 AmeriReach.com, LLC - Supplement Research and - - - - No Development, LLC 12/23/2013 The Giving Tree, Inc. - Firelands Regional Medical Center - - - - No 12/20/2013 Quantum Health and Wellness, LLC - MMARS, Inc. - - - - No 12/20/2013 Greenestone Healthcare Corporation, Assets of Greenestone Healthcare Corporation - 7.8 - - - No Addiction and Mental Health Business (OTCBB:GRST) 12/20/2013 Professional Anesthesia Services, LLP - Team Health Holdings, Inc. - - - - No (NYSE:TMH) 12/20/2013 St. Mary's Hospital - Prime Healthcare Services, Inc. 30.0 - - - No 12/19/2013 Medistem, Inc. (OTCPK:MEDS) Randber LLC Intrexon Corporation (NYSE:XON) 19.8 - - - No 12/19/2013 Global Diabetes Business Bristol-Myers Squibb Company AstraZeneca AB 7,025.0 - - - No (NYSE:BMY) 12/19/2013 Neonatology Center of Winchester, P.C. - MEDNAX, Inc. (NYSE:MD) - - - - No 12/19/2013 The Frankel Group LLC - Huron Consulting Group Inc. - - - - No (NasdaqGS:HURN) 12/19/2013 Endoscopic Technologies, Inc. Tullis Health Investors Inc.; Psilos AtriCure, Inc. (NasdaqGM:ATRC) 60.7 - - - Yes Group; Saints Capital; Telegraph Hill Partners; NBGI Ventures; Waveland Capital Partners LLC 12/19/2013 Tecomet, Inc. Charlesbank Capital Partners, LLC Genstar Capital, LLC - - - - Yes 12/18/2013 40-Unit Assisted Living Facility in Redding, - Summit Healthcare REIT, Inc. 3.5 - - - No California 12/18/2013 Certara, L.P. Vector Capital Arsenal Capital Partners - - - - Yes 12/18/2013 Fidelis SecureCare of Michigan, Inc. Fidelis SeniorCare, Inc. Centene Corp. (NYSE:CNC) - - - - No 12/18/2013 William Laboratories, Inc. - Temptime Corporation - - - - No 12/18/2013 Southeastern Health Plus, Inc., Rehab Division Southeastern Health Plus, Inc. Numotion - - - - No 12/18/2013 Pfizer Inc., Exclusive Worldwide Rights to Pfizer Inc. (NYSE:PFE) Mylan, Inc. (NasdaqGS:MYL) - - - - No Novel LAMA Respiratory Compound 12/18/2013 Global Medical, LLC - RecoverCare LLC - - - - No 12/18/2013 Journey Healing Centers - Elements Behavioral Health, Inc. - - - - No 12/18/2013 Wing Memorial Hospital Corporation UMass Memorial Medical Center, Baystate Health, Inc. - - - - No Inc. 12/18/2013 PT Solutions Holdings, LLC - New Harbor Capital Management LLC - - - - Yes 12/18/2013 Open Monoclonal Technology, Inc., OmniRat® Open Monoclonal Technology, Inc. Genentech, Inc.; Roche Holding AG - - - - No Assets (SWX:ROG) 12/17/2013 FunGuys LLC - Entia Biosciences, Inc 0.2 - - - No (OTCPK:ERGO) 12/17/2013 Aqua Pharmaceuticals, LLC RoundTable Healthcare Management, Almirall, S.A. (CATS:ALM) 402.6 - - - Yes LLC 12/16/2013 Maplewood Manor Nursing Home - Zenith Care Health Group 14.1 - - - No 12/16/2013 Quinnova Pharmaceuticals, Inc. Amneal Enterprises, LLC Everett Laboratories, Inc. - - - - No 12/16/2013 Vertical / Trigen Holdings - Avista Capital Holdings, L.P. - - - - Yes 12/16/2013 Special Design Health Care - Town Total Nutrition, Inc. - - - - No

13 M&A Detail January 2014

Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 12/15/2013 Solta Medical, Inc. (NasdaqGS:SLTM) Delphi Ventures; Essex Woodlands Valeant Pharmaceuticals International, 271.5 1.8x 110.6x - Yes Announced U.S. Health Ventures; MeriTech Capital Inc. (TSX:VRX) Partners; New Enterprise Associates; Healthcare & Technology Partners 12/15/2013 NuPathe, Inc. (NasdaqGM:PATH) Bay City Capital LLC; Ben Franklin Endo Health Solutions Inc. 256.0 - - - Yes Life Sciences Technology Partners of Southeastern (NasdaqGS:ENDP) Pennsylvania M&A 12/12/2013 Former Brown Hand Center Outpatient Surgery - Northstar Healthcare Inc. (TSX:NHC) 0.5 - - - No Center Near Phoenix (Continued) 12/12/2013 Orthopedic Surgeons LTD - Appalachian Orthopedic Center, LTD - - - - No 12/11/2013 James R Wall PC Dermatology - DermOne Inc. - - - - No 12/11/2013 Vericom Corporation - Spectrio, LLC - - - - No 12/11/2013 APEX Print Technologies, LLC Tonka Bay Equity Partners LLC WestView Capital Partners - - - - Yes 12/11/2013 Zephyr's Garden, LLC - Uckele Animal Health Distributing Inc. - - - - No 12/11/2013 Tristar Midatlantic Imaging, Inc. - Alpha Imaging, LLC - - - - No 12/10/2013 Amian Health Services, L.L.C. - Angels of Mercy, Inc. 0.1 0.1x - - No 12/10/2013 Moduline Systems, Inc. - Calbiotech, Inc. - - - - No 12/10/2013 Habit OPCO, Inc. Salix Ventures; Three Arch Partners; CRC Health Group, Inc. - - - - Yes NewSpring Capital; Altos Health Management, Inc. 12/10/2013 12-Clinic Physical Therapy Business - US Physical Therapy Inc. 2.8 0.4x - - No (NYSE:USPH) 12/10/2013 Wellstar Health System, WellStar HME & Wellstar Health System, Inc. Advanced Home Care, Inc. - - - - No Infusion Division 12/10/2013 Infinity Hospice of Aiken, LLC Infinity HomeCare, L.L.C. Halcyon Home Health, LLC - - - - No 12/9/2013 Verilogue, Inc. Edison Venture Fund Publicis Healthcare Communications - - - - No Group, Inc. 12/9/2013 WellnessFX, Inc. Voyager Capital; FLOODGATE; Health Elements, LLC - - - - Yes Javelin Venture Partners; HealthTech Capital 12/9/2013 J&S Medical Associates, Inc. - Laboratory Supply Company, Inc. - - - - No 12/9/2013 Wellbrooke of Crawfordsville Mainstreet Property Group, LLC HealthLease Properties Real Estate 15.9 - - - No Investment Trust (TSX:HLP.UN) 12/9/2013 RX-21 LLC - Giant Eagle, Inc. - - - - No 12/9/2013 Rainbow Health & Rehab Of Memphis, LLC Covenant Dove, LLC OHI Asset, LLC 13.5 - - - No 12/9/2013 Advanced BioScience Laboratories Inc., In- Advanced BioScience Laboratories, BIOQUAL, Inc. (OTCPK:BIOQ) - - - - No Vivo Animal Model Services Related Assets Inc. 12/9/2013 Bedford Physical Therapy, PLLC - ATI Holdings, LLC - - - - No 12/6/2013 Dwight Orthopedic Rehabilitation Company - ATI Holdings, LLC - - - - No 12/5/2013 Four Properties In Ohio And Indiana - Aviv REIT, Inc. (NYSE:AVIV) 44.9 - - - No 12/5/2013 Clinical Development Group, LLC - Sarah Cannon Research Institute, LLC - - - - No 12/5/2013 Bayer HealthCare, LLC, OTC Brands Bayer HealthCare, LLC Moberg Pharma AB (publ) 4.9 1.6x - - No (OM:MOB) 12/5/2013 Baywater Healthcare Ltd Air Products & Chemicals Inc. Duke Street; Souter Investments LLP - - - - Yes (NYSE:APD) 12/4/2013 Pine Hurst Surgical Clinic PA, Imaging Pine Hurst Surgical Clinic PA Alliance Healthcare Services, Inc. - - - - No Department (NasdaqGM:AIQ) 12/4/2013 SentiCare, Inc. - RxAdvance Corporation - - - - No 12/4/2013 The Inn at Robbins Brook and Forge Hill AEW Capital Management, LP Health Care REIT, Inc. (NYSE:HCN); 63.2 - - - Yes Benchmark Senior Living LLC 12/4/2013 Institute for Health Technology Transformation - Vendome Group, LLC - - - - No 12/3/2013 Intuitive Genomics, Inc. - NewLeaf Symbiotics, Inc. - - - - No 12/3/2013 Rempex Pharmaceuticals, Inc. Vivo Capital, LLC; Adams Street The Medicines Company 467.7 - - - Yes Partners, LLC; Frazier Healthcare (NasdaqGS:MDCO) Ventures; OrbiMed Advisors, L.L.C.; SV Life Sciences Advisers 12/3/2013 Health Guru Media, Inc. Castile Ventures; Western Kitara Media Corp. (OTCBB:KITM) 16.7 - - - Yes Technology Investment; The Berkshires Capital Investors; Village Ventures; Long River Ventures 12/3/2013 Orthopaedic Specialists of the Carolinas, P.A. - OrthoCarolina, P.A. - - - - No 12/3/2013 Associates in Ob-Gyn, Inc. - Trihealth, Inc. - - - - No 12/3/2013 Allegiance Health Services, Inc. DDA Management Services, LLC University of Michigan Health System, - - - - No Endowment Arm 12/2/2013 Crown Marketing, Prior to Reverse Merger with - Crown Marketing (OTCPK:CWNM) - - - - No Okra Energy, Inc. 12/2/2013 CM Information Specialists, Inc. - HealthPort Incorporated - - - - No 12/2/2013 Allied Healthcare Staffing Division On Assignment Staffing Services, Local Staff, LLC 28.7 0.7x - - No Inc.; Assignment Ready, Inc. 12/2/2013 Homecare Homebase, LLC Cressey & Co. The Hearst Corporation - - - - No 12/2/2013 Zoomedia, Inc. - Harris D. McKinney, Inc. - - - - No 12/2/2013 Dermatology Associates of Northeast Florida, - Advanced Dermatology & Cosmetic - - - - No PA Surgery Inc. 12/1/2013 Tyler & Company - Jackson Healthcare, LLC - - - - No 12/1/2013 CircuLite, Inc. Oxford Bioscience Partners; Omnes Heartware International Inc. 401.8 - - - No Capital; Giza Venture Capital; Saints (NasdaqGS:HTWR) Capital; SB Life Science Equity Management, LLC

14 Contacts January 2014

Contacts Turner Bredrup James Clark Todd Morris Managing Director Managing Director Managing Director [email protected] [email protected] [email protected] +1 (804) 915-0110 +1 (804) 915-0119 +1 (415) 217-3412

Cheairs Porter Andy Dixon Geoff Smith Managing Director Director Director [email protected] [email protected] [email protected] +1 (804) 915-0130 +1 (415) 217-3419 +1 (804) 915-0195

Paul Hepper Andy Hewlett Whit Knier Vice President Vice President Vice President [email protected] [email protected] [email protected] +1 (804) 932-1326 +1 (415) 217-3427 +1 (804) 932-1321

15 Two International Place Sources: 24th Floor Capital IQ. Boston, MA 02110 Thomson Financial. Phone: +1 (617) 482-7501 S&P. Fax: +1 (617) 482-7503 Reuters. Bloomberg. Irving Levin Associates. 1900 East 9th Street 20th Floor Cleveland, OH 44114 Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the Phone: +1 (216) 689-2400 advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an Fax: +1 (216) 689-2401 unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Bockenheimer Landstrasse Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA 33-35 and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. 60325 Frankfurt am Main Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct Germany Phone: +49 069 3650638 00 business. Fax: +49 069 3650638 01 THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS 63 Brook Street AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD- London, W1K 4HS PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY Phone: +44 20 7518 8900 WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL Fax: +44 20 7526 2187 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 222 South Ninth Street INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE Suite 3350 INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE Minneapolis, MN 55402 Phone: +1 (612) 359-2700 CONTACT US AT +1 (804) 648-0072. Fax: +1 (612) 359-2701 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 1600 Market Street 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 21st Floor instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Philadelphia, PA 19103 Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such Phone: +1 (267) 675-5900 information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, Fax: +1 (267) 675-5901 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, 1001 Haxall Point 9th Floor options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections Richmond, VA 23219 in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments Phone: +1 (804) 648-0072 discussed in this report may not be suitable for all investors, and investors must make their own investment decisions Fax: +1 (804) 648-0073 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 575 Market Street consent. 31st Floor San Francisco, CA 94105 Phone: +1 (415) 288-4260 Fax: +1 (415) 288-4269