SCOTT-MACON HEALTHCARE REVIEW: SECOND QUARTER 2017 · Healthcare Overview, Mean Revenue Multiples 4...

SCOTT-MACON HEALTHCARE REVIEW:

SECOND QUARTER 2017

2nd Quarter 2017 Healthcare Review 2

Healthcare Overview, Mean Revenue Multiples 4

Healthcare Overview, Mean EBITDA Multiples 5

Analysis of Selected Healthcare, Medical and 6

Pharmaceutical Merger and Acquisition Transactions

April 1—June 30, 2017

Analysis of Selected 19

Publicly-Traded Healthcare, Medical and

Pharmaceutical Companies

Scott-Macon Professionals’ 30

Representative Closed Transactions

Scott-Macon Contact Information 31 CO

NT

EN

TS

2

S E C O N D Q U A R T E R 2 0 1 7

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

Dear Clients and Friends,

Scott-Macon is pleased to present our Health-

care Review covering the second quarter of 2017. If

you haven’t done so already, please email me at

[email protected] to automatically con-

tinue receiving our publications in the future as we

are transitioning to digital publishing with email dis-

tribution.

Pages four and five represent a visual snap-

shot of the average multiples for all of the health-

care, medical and pharmaceutical transactions that

either closed or were announced during the second

quarter, along with the average multiples for the ma-

jor publicly-traded healthcare, medical and pharma-

ceutical companies.

In the Insurance Services sector, WellCare

closed on Universal American in the second quarter

for $467 million, or 18.2X EBITDA. In Technology

Services, Castlight closed on its Jiff acquisition for

$153 million; Olympus announced its $87 million

deal for Image Stream Medical, equal to 2.8X reve-

nues; Cochlear closed on Sycle in the practice man-

agement area for $78 million; and athenahealth

closed on Praxify in the electronic health record sec-

tor for $63 million. Moving on next to Outsourcing

Services, there were two megadeals announced in

the pharma services space: the going-private transac-

tion of CRO PARAXEL for $5 billion, or 14.6X

EBITDA, and INC Research teaming up with inVen-

tiv for $4.2 billion, or 13.7X EBITDA. Publicly-

traded Teladoc picked up Best Doctors for $444 mil-

lion, or a huge 4.5X revenues; HMS closed on Eliza

for $170 million; and KKR picked up Angelica in

the healthcare linen arena for $125 million. In addi-

tion, Envision, Express Scripts, and McKesson all

closed or announced deals in the second quarter.

Moving along next to the Providers, the Labo-

ratory area continues to see consolidation, with Lab-

Corp, Quest and Aurora all closing or announcing

multiple transactions this past quarter. In Home

Health & Hospice, Addus, Amedisys, and BAYADA

announced or closed acquisitions last quarter. In the

Non-Acute segment, two significant deals closed or

were announced: Surgery Partners going private for

$2.7 billion, or 11.1X EBITDA, and Air Methods

going private as well for $2.5 billion, equal to 8.7X

EBITDA. In addition, DaVita picked up Renal Ven-

tures for $160 million; GEO Group closed on Com-

munity Education Centers for $360 million; and

Physicians Realty announced its BCC Cancer Center

deal for $290 million. In Acute Care, the big just

keep getting bigger: Surgery Partners announced its

3

deal for National Specialty Hospitals for $760 mil-

lion; HCA is buying four hospitals in Houston for

$725 million; and HCA also announced its $430 mil-

lion deal for Memorial University Medical Center.

Turning lastly to the Products areas, Becton

Dickinson announced its $24.8 billion deal for C. R.

Bard at an eye-popping 21.4X EBITDA. In addi-

tion, Cardinal announced its $6.1 billion deal for

several Medtronic divisions, with a revenue multiple

of 2.5X. Allergan closed on ZELTIQ for $2.4 bil-

lion, and Nordson closed on Vention for $716 mil-

lion, or 14.9X EBITDA. In Non-Clinical Devices,

Avantor announced its deal for VWR valued at $6.5

billion, or 13.5X EBITDA; Stryker announced its

$644 million deal for Novadaq; Sartorius closed on

Essen BioScience for $320 million; and Varian

closed on several PerkinElmer businesses for $276

million. In the Disposables area, Philips is picking

up Spectranetics in the single-use device area for

$2.1 billion. In the Commercial Products area,

Thermo Fisher announced its $7.2 billion deal for

Patheon at 20.5X EBITDA; Albany Molecular an-

nounced its going-private deal at $1.6 billion, or

22.1X EBITDA; and Synutra announced its going-

private deal for $842 million, or 15.5X EBITDA.

The Pharmaceuticals sector saw its usual flurry of

monster deals: Fresenius/Akorn at $4.8 billion; Sa-

wai/Upsher-Smith’s generics business for $1.0 bil-

lion; Ipsen/Merrimack’s oncology business for $1.0

billion; and Sanpower/Dendreon at $819 million.

Lastly, in Products Distribution, Owens & Minor an-

nounced its $380 million deal for Byram Healthcare

Centers, and Linde, McKesson and VWR also closed

or announced deals in the second quarter.

Following the mergers and acquisitions analy-

sis, we present an analysis of publicly-traded Ser-

vices, Providers, and Products companies by sector.

Mean EBITDA multiples for Services companies

ended the second quarter at 14.1X (up from 13.7X in

Q1 2017); Providers at 12.5X (up from 12.1X in Q1

2017); and Products at 15.5X (up from 14.3X in Q1

2017). Technology services companies ended the

second quarter at 22.2X, while Outsourcing services

companies were 15.5X. The Insurance segment

EBITDA multiple came in at 10.4X (up from 9.6X

in Q1 2017).

Finally, contact information for the Scott-

Macon Healthcare Investment Banking Group Pro-

fessionals appears on the back cover. We welcome

your call or email to discuss your thoughts on this

article.

Sincerely yours,

Nathan D. Cortright

Managing Director

Group Head – Healthcare Investment Banking

4

2.0x 1.7x2.9x

1.9x 1.4x2.5x

Services Providers Products

OVERALL: Revenue Multiple

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

2.9x1.5x 1.7x 1.4x 1.1x

NA0.6x

1.8xNA

1.3x

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

PROVIDERS: Revenue Multiple

3.2x 3.0x 2.5x3.3x3.0x

1.4xNA

2.1x

Clinical Devices Non-Clinical Devices Disposables Commercial

PRODUCTS: Revenue Multiple

2.5x 3.2x

0.8xNA

3.8x

1.3x

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

1.3x

3.2x2.1x 1.8x

2.5x

0.3x

2.8x2.0x

NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: Revenue Multiple

5

14.1x 12.5x15.5x13.8x

9.6x14.5x

Services Providers Products

OVERALL: EBITDA Multiple

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

17.4x 16.6x 17.3x19.4x18.2x

13.5x

NA

15.6x

Clinical Non-Clinical Disposables Commercial

PRODUCTS: EBITDA Multiple

10.4x

22.2x

15.5x

9.3x

15.2x18.2x

NA

12.7x

NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: EBITDA Multiple

14.4x18.3x

11.1x13.3x

8.5x

NA NA

9.9x

NA

9.1x

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

PROVIDERS: EBITDA Multiple

16.5x13.3x

11.2x

NA

9.5x 9.6x

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

6

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Anne Arundel Health System Inc.; LifeBridge Health, Inc. /

Evergreen Health, Inc.

NA NA NA NA NA Provides health insurance solutions to

businesses, and individuals and families.

5/1/2017 WellCare Health Plans, Inc. (NYSE:WCG) /

Phoenix Health Plans, Inc., Medicaid Assets

NA NA NA NA NA Comprises Medicaid managed health insurance

membership and certain provider contracts.

4/28/2017 WellCare Health Plans, Inc. (NYSE:WCG) /

Universal American Corp (NYSE:UAM)

$467.9 $1,558.6 $25.7 0.3x 18.2x Provides health insurance and managed care

products and services to Medicare and Medicaid

customers.

MEAN (INSURANCE) 0.3x 18.2x

MEDIAN (INSURANCE) 0.3x 18.2x

5/9/2017 APX Labs, LLC /

Pristine Inc.

NA NA NA NA NA Offers Pristine EyeSight, a HIPAA-compliant

audio/video streaming telemedicine solution that

streams near real-time video and audio from

Google Glass to authorized iOS devices.

6/23/2017 athenahealth, Inc. (NasdaqGS:ATHN) /

Praxify Technologies, Inc.

$63.0 NA NA NA NA Develops electronic health record applications for

physicians and patients.

4/10/2017 Azalea Health Innovations, Inc. /

LeonardoMD, Inc.

NA NA NA NA NA Offers Web-based medical practice management

software and electronic health record to

physicians, medical billing services, and medical

providers.

4/24/2017 BTG plc (LSE:BTG) /

Oncoverse LLC

NA NA NA NA NA Develops and operates a digital health care

platform which enables health care professionals

to collaborate on cancer patient care decisions,

and to monitor the progress of patient therapies.

4/3/2017 Castlight Health, Inc. (NYSE:CSLT) /

Jiff, Inc.

$153.5 NA NA NA NA Provides HIPAA-compliant social network and

digital health apps platform for the healthcare

industry.

4/18/2017 Cellnovo Limited (ENXTPA:CLNV) /

TypeZero Technologies LLC, Commercial License For Artificial

Pancreas Technology

NA NA NA NA NA Comprises Artificial Pancreas software that

monitors blood glucose levels via a smartphone

application.

4/18/2017 CIOX Health /

Arrohealth

NA NA NA NA NA Provides technology-enabled risk adjustment

solutions to Medicare Advantage, managed

Medicaid, and commercial health plans.

4/19/2017 ClearCare, Inc. /

HomeTrak, Inc.

NA NA NA NA NA Provides private duty non-medical cloud-based

home care software for various agencies.

5/11/2017 Cochlear Limited (ASX:COH) /

Sycle, LLC

$78.0 NA NA NA NA Develops practice management software in

audiology.

6/14/2017 Continuum Health Alliance, LLC /

Captify Health, Inc.

NA NA NA NA NA Provides technology-enabled services for

physician practices, health plans systems/payers,

and employer groups.

5/31/2017 Digital Health Corp. /

Constant Therapy, Inc.

NA NA NA NA NA Provides a science-based mobile solution for

personalized and continuous therapy tools to

patients with traumatic brain injury, stroke,

aphasia, and learning disabilities.

4/27/2017 DocuTAP, Inc. /

Lightshed Healthcare Technologies LLC

NA NA NA NA NA Provides online self-scheduling and queue

management solutions for healthcare sector.

6/13/2017 Encoda, LLC /

MedCo Data, LLC, Revenue Cycle Management Services Division

NA NA NA NA NA Comprises medical billing and claims processing

software development and services for medical

groups.

5/9/2017 eResearchTechnology, Inc. /

ImageIQ, Inc

NA NA NA NA NA Operates as a contract research organization and

software developer for customized imaging,

analysis, and software.

Announced GTCR, LLC /

GreatCall, Inc.

NA NA NA NA NA Provides mobile health and safety solutions for

older adults and their family caregivers.

5/25/2017 i2b2 tranSMART Foundation /

i2b2 Foundation Inc.

NA NA NA NA NA Provides a platform that processes information in

clinical records and makes it usable in a research

context.

5/4/2017 iContracts, Inc. /

PolicyStat LLC

NA NA NA NA NA Provides a web-based policy management

software for healthcare organizations.

4/4/2017 Intermedix Corporation /

WPC Healthcare, Inc.

NA NA NA NA NA Develops, implements, and supports data

solutions for the healthcare industry.

5/3/2017 Koan Health LLC /

ZirMed, Inc., Value-Based Care Business

NA NA NA NA NA Aggregates clinical and financial data from

electronic health records and insurance claims to

deliver real-time quality tracking, identify gaps in

care, stratify at-risk patients, and provide deep

cost and utilization analyses.

4/24/2017 Lumeris, Inc. /

Forecast Health, Inc.

NA NA NA NA NA Provides predictive analytics and planning tools to

enable population health programs for health

systems.

6/20/2017 MDI Achieve, Inc. /

eHealth Solutions, Inc.

NA NA NA NA NA Develops and markets clinical solutions for long-

term and post-acute care providers.

SERVICES - INSURANCE

SERVICES - TECHNOLOGY

ANALYSIS OF SELECTED HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS MERGER & ACQUISITION TRANSACTIONS1

(CLOSED OR ANNOUNCED BETWEEN APRIL 1—JUNE 30, 2017)

($ Millions Except Per Share Data)

7


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

4/18/2019 Medidata Solutions, Inc. (NasdaqGS:MDSO) /

Mytrus, Inc.

$14.0 NA NA NA NA Specializes in patient-centered electronic

informed consent and data collection tools.

4/5/2017 MediSolution Ltd. /

Soft Informatique Inc.

NA NA NA NA NA Develops and offers electronic medical

recordkeeping, medical billing, and diagnostic

imaging software for health professionals and

their administrative collaborators.

6/29/2017 Mediware Information Systems, Inc. /

Kinnser Software, Inc.

NA NA NA NA NA Develops and delivers Web-based home health

software.

4/13/2017 NantOmics, LLC /

Genos Research, Inc.

NA NA NA NA NA Utilizes DNA sequencing solutions in a data

visualization and exploration platform to let users

explore their DNA and includes condition and

genetic variation summaries.

5/9/2017 Ocean Thermal Energy Corporation /

TetriDyn Solutions, Inc. (OTCPK:TDYS)

NA NA NA NA NA Provides business information technology

solutions primarily for the healthcare industry.

Announced Olympus America Inc. /

Image Stream Medical, Inc.

$87.0 $31.0 NA 2.8x NA Provides clinical visual collaboration solutions.

4/19/2017 Omnicell, Inc. (NasdaqGS:OMCL) /

InPharmics

NA NA NA NA NA Offers end-to-end medication use process cost

analytics and compliance systems for acute care

hospital pharmacies.

5/22/2017 Optima Healthcare Solutions, LLC /

Hospice Management, LLC

NA NA NA NA NA Provides management software for the hospice

industry.

6/13/2017 PokitDok, Inc. /

Oration PBC

NA NA NA NA NA Operates a cloud-based platform that provides

prescription saving services for people and

companies.

6/13/2017 Premier Diversified Holdings Inc. (OTCPK:PRDG.F) /

MyCare MedTech Inc.

NA NA NA NA NA Provides electronic healthcare solutions for

accessing virtual care through electronic devices.

Announced Relias Learning, LLC /

WhiteCloud Analytics Inc.

NA NA NA NA NA Designs, develops, and implements strategic

analytic solutions for healthcare systems.

5/11/2017 Senetas Corporation Limited (ASX:SEN) /

DeepRadiology Inc.

NA NA NA NA NA Develops a medical machine learning and artificial

intelligence based autonomous software system

for medical image interpretation.

6/1/2017 Siemens Healthineers, Inc. /

Medicalis Corp.

NA NA NA NA NA Provides radiology workflow technology solutions

to professional radiology groups, imaging centers,

hospitals, and at-risk entities.

6/1/2017 Simulations Plus, Inc. (NasdaqCM:SLP) /

DILIsym Services, Inc.

$9.5 NA NA NA NA Develops drug-induced liver injury simulation

software for the pharmaceutical industry.

4/25/2017 Surgical Information Systems, LLC /

Source Medical Solutions, Inc.

NA NA NA NA NA Provides ambulatory surgery center and therapy

software, outpatient information solutions, and

revenue cycle management services for ASCs,

specialty hospitals, and rehabilitation clinics.

4/3/2017 TeleTech Healthcare Solutions, Inc. /

Connextions, Inc.

NA NA NA NA NA Develops and provides health care consumer

engagement solutions.

Announced Temasek Capital Management Pte Ltd /

Global Healthcare Exchange, LLC

NA NA NA NA NA Provides supply chain solutions for healthcare

providers/suppliers, group purchasing

organizations, healthcare manufacturers, and

distributors worldwide.

5/18/2017 Vendor Credentialing Service LLC /

Vistar Technologies Corp.

NA NA NA NA NA Develops and supports provider management

software for healthcare providers, and managed

care and payer organizations.

Announced Verify Smart Corp. (OTCPK:VSMR) /

Med-Con Technologies LLC

NA NA NA NA NA Develops a mobile based patient adherence

software solution for the pharmaceutical industry.

5/9/2017 WIRB - Copernicus Group, Inc. /

MedAvante, Inc.

NA NA NA NA NA Provides technology-enabled signal detection

solutions in clinical trials of treatments for central

nervous system disorders.

MEAN (TECHNOLOGY) 2.8x NA

MEDIAN (TECHNOLOGY) 2.8x NA

4/6/2017 Alpha Source, Inc. /

Medical Optics, Inc.

NA NA NA NA NA Provides medical equipment, endoscope, and

instrument repair and restoration services to

hospitals and practices.

4/4/2017 American Dental Partners, Inc. /

Q Management Services LLC

NA NA NA NA NA Operates as a dental practice management

company.

5/2/2017 American Healthcare Staffing, LLC /

Thaxton Barabe

NA NA NA NA NA Provides interim healthcare leadership services to

hospitals and healthcare systems.

Announced Apax Partners LLP /

Keystone Peer Review Organization, Inc.

NA NA NA NA NA Offers case management, heart failure

management, oncology management, end of life

care, utilization management, chronic care

management, wellness program, quality

oversight, medical review, and maternity

management services.

6/21/2017 Armco Partners, LLC /

Radius Healthcare Solutions, LLC, Medical Coding Service

Business

NA NA NA NA NA Comprises a medical coding services business.

6/13/2017 Audax Group, Inc. /

Altasciences Company Inc.

NA NA NA NA NA Provides early stage clinical services in Phase

I/IIa, including support services in critical stage of

drug development.

5/2/2017 Cardiovascular Consultants Of Nevada HealthCare Partners

Cardiology /

MedSource Management Group, LLC

NA NA NA NA NA Operates as an accountable care medical

organization.

SERVICES - OUTSOURCING

8


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

6/7/2017 Chesapeake Research Review, Inc. /

MaGil IRB, Inc.

NA NA NA NA NA Provides independent IRB submission and review

services to pharmaceutical, biotech, and medical

device companies.

6/6/2017 Clariture Health, Inc. /

Aegis Health Group, Inc.

NA NA NA NA NA Provides business development strategies for

hospitals, health systems, accountable care

organizations and clinically integrated networks.

4/3/2017 Comprehensive Pharmacy Services, Inc. /

PharmaSource Healthcare, Inc.

NA NA NA NA NA Offers pharmacy management solutions and

services to hospitals.

Announced Cross Country Healthcare, Inc. (NasdaqGS:CCRN) /

Advantage RN, LLC

$88.0 $100.0 $10.0 0.9x 8.8x Provides nurses and healthcare professionals for

travel assignments for hospitals and medical

facilities.

4/10/2017 Dean Dorton Allen Ford, PLLC, Investment Arm /

MetroMedical Solutions LLC

NA NA NA NA NA Provides physician billing and credentialing

services.

5/22/2017 Envision Healthcare Corporation (NYSE:EVHC) /

Gwinnett Emergency Specialists, P.C.

NA NA NA NA NA Provides emergency medicine and board certified

physicians to local hospitals.

5/8/2017 Envoy Health Management LLC. /

WRB Communications, Inc.

$30.0 $15.0 $2.2 2.0x 13.6x Provides contact center and support solutions for

healthcare manufacturers and service

organizations.

5/17/2017 Express Scripts Holding Company (NasdaqGS:ESRX) /

Matrix Healthcare Services, Inc.

NA NA NA NA NA Offers pharmacy and ancillary medical benefits

management solutions for self-insured employers,

third party administrators, managed care

companies, and workers' compensation and auto

insurance companies.

5/2/2017 George Clinical Pty Ltd /

Vector Oncology, Pharma Services Division

NA NA NA NA NA Provides oncology trial delivery solutions.

4/25/2017 Germain & Co., Inc. /

FQHC Associates, LLC

NA NA NA NA NA Provides healthcare consulting services.

Announced Global Excel Management Inc. /

ChargeCare International Limited

NA NA NA NA NA Provides cost containment, claims administration,

cashless services, and local support services for

insurers and assistance companies to reduce the

costs of their inpatient and outpatient claims.

6/14/2017 Great Hill Partners, LLC /

Quantum Health, Inc.

NA NA NA NA NA Operates as a consumer navigation and care

coordination company that serves the healthcare

needs of self-funded public and private sector

employers.

5/2/2017 Healthcare Partners Nevada, Inc. /

WellHealth Quality Care

NA NA NA NA NA Operates a commercial accountable care medical

network.

4/18/2017 HMS Holdings Corp. (NasdaqGS:HMSY) /

Eliza Corporation

$170.0 NA NA NA NA Provides health engagement management

solutions.

5/11/2017 Hooper Holmes, Inc. (OTCPK:HPHW) /

Provant Health Solutions Inc.

$7.4 $36.7 NA 0.2x NA Provides remote and onsite workplace wellness

solutions such as assessment and awareness

services, such as biometric screenings, health

assessment services, and vaccination programs

for employee flu immunization.

4/5/2017 iHealth Solutions LLC /

emPower Doctors LLC

NA NA NA NA NA Offers billing, electronic medical and health

record system, claims, denials, and credentialing

services for physicians.

Announced INC Research Holdings, Inc. (NasdaqGS:INCR) /

inVentiv Health Inc.

$4,195.8 $2,156.2 $306.0 1.9x 13.7x Provides outsourced services to pharmaceutical,

biotechnology, medical device and diagnostics,

and healthcare industries.

4/18/2017 IntegriChain Incorporated /

PharmaMetrics, Inc.

NA NA NA NA NA Offers contract operations, deal and market

analysis, contract advisory, and data management

and analytics services for the pharmaceutical

sector.

Announced KBI Biopharma Inc. /

Alliance Protein Laboratories, Inc.

NA NA NA NA NA Provides contract research services in the areas of

protein and peptide biophysical characterization,

protein aggregation, protein purification, and

protein stabilization.

5/3/2017 Keizer Solutions Inc. /

Scryptions International, Inc.

NA NA NA NA NA Offers medical transcription services.

6/30/2017 KKR Credit Advisors (US) LLC /

Angelica Corporation

$125.0 NA NA NA NA Provides healthcare linen and medical laundry

services for hospitals, clinics, and long-term care

facilities.

5/8/2017 L2 Capital Partners /

Associates in Medical Physics, LLC

NA NA NA NA NA Provides services for radiology and radiation

oncology fields in hospitals, clinics, healthcare

systems, and architectural and engineering firms.

Announced McKesson Specialty Health /

intraFUSION, Inc.

NA NA NA NA NA Provides infusion center management services.

6/13/2017 MedCost, LLC /

Virginia Health Network, Inc.

NA NA NA NA NA Organizes and manages networks of health care

providers, leases those networks, and provides

other value-added services to payers.

6/21/2017 MidOcean Partners /

Affinity Dental Management Holdings LLC

NA NA NA NA NA Provides management and administrative support

services for dental practices.

4/4/2017 Mitchell International, Inc. /

PMOA, Inc.

NA NA NA NA NA Provides pharmacy management and ancillary

services to the workers compensation industry.

6/5/2017 Mitchell International, Inc. /

UniMed Direct, LLC

NA NA NA NA NA Provides physician advisor, utilization review, and

bill review services.

Announced Oregon Health Care Quality Corporation /

HealthInsight, Inc.

NA NA NA NA NA Provides healthcare quality improvement services.

9


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Pamplona Capital Management LLP /

PAREXEL International Corporation (NasdaqGS:PRXL)

$5,007.4 $2,097.0 $342.8 2.4x 14.6x Provides clinical research and logistics, medical

communications, consulting, commercialization,

and advanced technology products and services

for pharmaceutical, biotechnology, and medical

device industries.

4/18/2017 Platform Partners, LLC /

Beneplace Inc.

NA NA NA NA NA Operates as an employee voluntary benefit

program management company.

4/18/2017 Simione Healthcare Consultants, LLC /

Exact Recruiting Solutions, Inc.

NA NA NA NA NA Provides recruiting services for the home care and

hospice industry.

4/3/2017 Sirius International Insurance Corporation /

ArmadaCorp Capital, LLC

NA NA NA NA NA Provides insurance and healthcare technology

services.

4/4/2017 Sirrus Group /

Patient Account Services, LLC

NA NA NA NA NA Provides revenue cycle and accounts receivables

management services to the healthcare industry.

Announced Teladoc, Inc. (NYSE:TDOC) /

Best Doctors, Inc.

$440.0 $96.9 NM 4.5x NM Provides access to the medical experts and

treating physicians to have a better diagnosis and

treatment plan.

6/6/2017 Tentamus Group GmbH /

Symbiotic Research, LLC

NA NA NA NA NA Operates as a contract research organization.

6/14/2017 TPG Growth /

Medical Solutions L.L.C.

NA NA NA NA NA Operates as an interim clinical staffing company.

4/21/2017 UL LLC /

Emergo Group Inc.

NA NA NA NA NA Provides medical and IVD device consulting

services.

5/30/2017 Unknown Buyer /

Keystone Peer Review Organization, Inc.

NA NA NA NA NA Offers case management, heart failure

management, oncology management, end of life

care, utilization management, chronic care

management, wellness program, quality

oversight, medical review, and maternity

management services.

Announced Unknown Buyer /

Titan Health Management Solutions, Inc.

NA NA NA NA NA Specializes in identifying and capturing

unidentified sources of revenues for hospitals and

medical centers.

4/3/2017 Wellpartner, Inc. /

Comprehensive Pharmacy Services, Inc., 340B SMART and 340B

SMARTLINK Solutions

NA NA NA NA NA Comprises split-billing and retail pharmacy

gateway solutions.


ProPhase, LLC.

NA NA NA NA NA Provides clinical trials services and specialty

solutions.


ThreeWire, Inc.

NA NA NA NA NA Provides customized clinical trial recruitment,

enrollment, and retention services for

pharmaceutical, medical device, contract research

organization, and biotech industries.

MEAN (OUTSOURCING) 2.0x 12.7x

MEDIAN (OUTSOURCING) 2.0x 13.7x

Announced Blackstone Group L.P. (NYSE:BX); Canada Pension Plan

Investment Board /

Ascend Learning, LLC

NA NA NA NA NA Provides educational content, software and

analytics for healthcare professionals and other

high-growth professions.

Announced CareCapital Advisors; Clayton, Dubilier & Rice, Inc. /

Carestream Dental LLC

NA NA NA NA NA Offers orthodontists new patient education

software.

4/19/2017 Healthcare Information and Management Systems Society,

Endowment Arm /

Health 2.0 LLC

NA NA NA NA NA Promotes, showcases, and catalyzes technologies

through a series of conferences, code-a-thons,

and prize challenges for compelling panels,

discussions and product demonstrations, and

other areas to health care industries worldwide.

5/2/2017 Interactivation Health Networks LLC /

Milner-Fenwick, Inc.

NA NA NA NA NA Publishes and delivers health and patient

education videos.

5/15/2017 Mesmerize, LLC /

Elite Sampling and Media Group, LLC, National Network of

Doctors' Office Wallboards

NA NA NA NA NA Comprises national network of doctors' office

wallboards.

4/5/2017 Relias Learning, LLC /

Advanced Practice Strategies, Inc.

NA NA NA NA NA An assessment, education, and analytics

company that helps clinicians achieve their

highest potential through innovation in learning.

MEAN (INFORMATION) NA NA

MEDIAN (INFORMATION) NA NA

MEAN (SERVICES) 1.9x 13.8x

MEDIAN (SERVICES) 2.0x 13.7x

4/3/2017 Aurora Diagnostics Holdings, LLC /

University Pathologists, LLC

NA NA NA NA NA Provides pathology solutions in the areas of

surgical, molecular, dermatopathology, head and

neck, gastrointestinal, uropathology,

cytopathology and gynecologic,

hematopathology, and bone and podiatric

pathology.

5/15/2017 Aurora Diagnostics, LLC /

Cleveland Skin Pathology Laboratory Inc.

NA NA NA NA NA Provides skin disease diagnosing laboratory

services.

4/18/2017 Aurora Diagnostics, LLC /

Pathology Associates of Princeton

NA NA NA NA NA Provides laboratory and anatomic pathology

services.

SERVICES - INFORMATION

PROVIDERS - LABS

10


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

5/1/2017 Laboratory Corporation of America Holdings (NYSE:LH) /

Mount Sinai Health System, Inc., Clinical Outreach Laboratories

NA NA NA NA NA Comprises provision of laboratory services to

physicians and patients.

5/4/2017 Laboratory Corporation of America Holdings (NYSE:LH) /

Pathology Associates Medical Laboratories, LLC

NA NA NA NA NA Operates as a medical/clinical reference

laboratory.

5/4/2017 Poplar Healthcare /

Bostwick Laboratories, Inc.

$6.4 NA NA NA NA Provides laboratory services to hospitals.

6/6/2017 Poplar Healthcare /

Genetics of Memphis, Inc.

NA NA NA NA NA Operates a clinical cytogenetics reference

laboratory.

6/29/2017 Precipio Diagnostics, LLC /

Transgenomic Inc. (NasdaqCM:TBIO)

NA NA NM NA NM Provides genetic analytical laboratory services

related to oncology and pharmacogenomics

research services supporting Phase II and Phase

III clinical trials conducted by pharmaceutical and

biotechnology companies.

4/20/2017 Public Sector Pension Investment Board /

Cerba HealthCare SAS

$1.9 NA NA NA NA Operates a network of medical biology

laboratories.

Announced Quest Diagnostics Incorporated (NYSE:DGX) /

Cape Cod Healthcare, Inc., Laboratory Services Business

NA NA NA NA NA Outreach laboratory services to local physicians

and patients separate from hospital inpatient or

outpatient care.


ClearPoint Diagnostic Laboratories, LLC

NA NA NA NA NA Provides routine, anatomic, and reference test

services to physicians.


Med Fusion LLC

NA NA NA NA NA Provides clinical laboratory services for hospitals

and their admitting staff.

4/30/2017 Quest Diagnostics Incorporated (NYSE:DGX) /

PeaceHealth Laboratories, Outreach Laboratory Services

Operations

NA NA NA NA NA Comprises a medical laboratory center that

provides laboratory diagnostic services.

MEAN (LABS) NA NA

MEDIAN (LABS) NA NA

4/6/2017 AccentCare, Inc. /

Sta-Home Health & Hospice, Inc.

NA NA NA NA NA Provides home healthcare services.

Announced Addus HomeCare Corporation (NasdaqGS:ADUS) /

Options Services, Inc.

NA NA NA NA NA Provides in-home care services.

5/1/2017 Amedisys, Inc. (NasdaqGS:AMED) /

Tenet Healthcare Corp., Six Home Health and Hospice Care

Centers

NA NA NA NA NA Comprises home health and hospice operations.

Announced BAYADA Home Health Care, Inc. /

Lower Bucks Hospital, Home Health Care Operations

NA NA NA NA NA Comprises the business operations that offer

home healthcare services.

4/2/2017 CK Franchising, Inc. /

Companion Care, LLC

NA NA NA NA NA Provides in-home elderly care and assisted living

services.

4/10/2017 CK Franchising, Inc. /

Prestige Nursing Ltd.

NA NA NA NA NA Provides healthcare and homecare staffing

services.

5/1/2017 Cornerstone Healthcare, Inc. /

Rainier Home Health

NA NA NA NA NA Offers home healthcare services.

6/5/2017 Kare Intellex Inc. /

AlternaCare Home Health Services, Inc.

NA NA NA NA NA Offers home healthcare services for individuals.

Announced Nova Leap Health RI, LLC /

All About Home Care, LLC

$1.2 $2.1 NA 0.6x NA Provides personal care, homemaking, and

companionship services.

5/18/2017 Sunny Days In-Home Care, Inc. /

Daly Care Assoc - At Home Care

NA NA NA NA NA Provides senior care services at home.

6/20/2017 Traditions Hospice of South Houston, LLC /

Hallmark Hospice

NA NA NA NA NA Offers hospice services.

5/19/2017 Young Living Essential Oils LC /

LifeMatters, LLC

NA NA NA NA NA Provides in-home care and care management

services.

MEAN (HOME HEALTH & HOSPICE) 0.6x NA

MEDIAN (HOME HEALTH & HOSPICE) 0.6x NA

Announced 112 Ski Bowl Road Operating Co. LLC /

Adirondack Tri-County Nursing And Rehabilitation Center, Inc.

NA NA NA NA NA Owns and operates a skilled nursing facility that

provides short-term rehabilitation following a

hospital discharge, a certified nursing assistant

program, and medical model adult day care

services.

6/30/2017 A Clean Slate, Inc. (OTCPK:DRWN) /

United Ambulance, LLC

NA NA NA NA NA Provides medical transportation services.

6/22/2017 Aiken Regional Medical Centers, Inc. /

Hitchcock Health Care at Aiken Regional Medical Centers

NA NA NA NA NA Owns and operates a center which provides

outpatient physical and occupational therapy

services.

Announced Air Medical Group Holdings, Inc. /

Air Medical Resource Group, Inc.

NA NA NA NA NA Provides air medical services transporting patients

in rural area hospitals to large tertiary care

facilities in metropolitan areas.

Announced Albemarle Eye Center, PLLC /

Edenton Eye Care and Outer Banks Eye Care

NA NA NA NA NA Comprises an ophthalmology practice.

4/20/2017 American Securities /

Air Methods Corporation (NasdaqGS:AIRM)

$2,486.5 $1,170.5 $286.2 2.1x 8.7x Provides air medical transportation services to the

general population as an independent service as

well as to hospitals and other institutions under

operating agreements.

6/5/2017 Avista Capital Holdings, L.P. /

National Spine & Pain Centers, LLC

NA NA NA NA NA Provides pain management services.

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

12


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Jefferson Health System, Inc.; Main Line Health, Inc. /

Physicians Care Surgical Hospital LP

NA NA NA NA NA Operates a specialty medical center for surgical

procedures.

4/1/2017 KEDPlasma LLC /

ImmunoTek Bio Centers LLC, Two Plasma Collection centers at

Kissimmee, FL & Burlington, NC

NA NA NA NA NA Comprises plasma collection centers.

5/4/2017 KG Health Partners, Inc. /

WOUND&SKINEXPERTS LLC

NA NA NA NA NA Provides skin care services to nursing homes,

home care, and other long-term care facilities.

Announced Knightswood Financial Corp. (TSXV:KWF) /

2557788 Ontario Ltd., Patient Services Agreements

$0.9 NA NA NA NA Comprises patient outreach and services

agreements for operating physical cannabis

clinics and resource centers.

6/1/2017 Lake Shore Behavioral Health, Inc. /

Child And Adolescent Treatment Services, Inc.

NA NA NA NA NA Treats children with mental health challenges.

Announced Leonard Green & Partners, L.P.; Ares Private Equity Group /

Aspen Dental Management, Inc.

NA NA NA NA NA Provides dental and denture services for short-

and long-term oral health needs.

6/20/2017 MEDNAX, Inc. (NYSE:MD) /

Greater Nashville Perinatology, PLC

NA NA NA NA NA Owns and operates a maternal-fetal medicine

physician practice.

5/9/2017 Novo Healthnet Limited /

Turbine Truck Engines, Inc., Prior to Reverse Merger with Novo

Healthnet Limited

NA NA NA NA NA Owns and operates rehabilitation clinics.

Announced OptumHealth, Inc. /

Reliant Medical Group, Inc.

NA NA NA NA NA Provides healthcare services.

6/1/2017 OrganiGram Holdings Inc. (TSXV:OGI) /

Trauma Healing Centers Incorporated

$1.7 NA NA NA NA Provides trauma, chronic pain, and disabling

illness treatment services.

5/4/2017 Orion Medical Enterprises, Inc. /

DaVita Inc., Seven Dialysis Facilities in New Jersey and Texas

NA NA NA NA NA Comprises dialysis centers.

6/8/2017 Perimeter Healthcare , LLC /

Professional Resources Management Psychiatric Services, LLC

NA NA NA NA NA Owns and operates psychiatric treatment centers.

Announced Physicians Realty L.P. /

BCC Cancer Center Venture, L.P.

$290.0 NA NA NA NA Owns and operates a cancer facility.

5/2/2017 Platinum Dermatology Partners, LLC /

Dermatology consutlants of North Dallas

NA NA NA NA NA Operates dermatology clinics.

Announced Regional Medical Imaging, P.C. /

Central Medical Imaging, Inc.

NA NA NA NA NA Provides radiology services.

5/30/2017 Riverchase Dermatology and Cosmetic Surgery /

Bowes Dermatology

NA NA NA NA NA Offers dermatology services.

5/4/2017 Schweiger Dermatology Group LLC /

Village Dermatology and Skin Rejuvenation LLP

NA NA NA NA NA Owns and operates a dermatology center for

adult and pediatric cosmetic dermatology, and

plastic and laser surgery.

4/10/2017 Senior Care Centers of America, Inc. /

Res-Care Inc., Health Center in Indiana

NA NA NA NA NA Provides adult day health services.

Announced Shenandoah Community Ambulance Association /

Lost Creek Community Ambulance Association; Ringtown

Community Ambulance Association, Inc.

NA NA NA NA NA Offer ambulance services.

6/12/2017 Siromed /

Ascent Medical Group LLC

NA NA NA NA NA Provides anesthesia care services to hospitals.

6/21/2017 Smile Brands Inc. /

Johnson Family Dental

NA NA NA NA NA Offers dental care services.

6/7/2017 Summit Behavioral Healthcare, LLC /

Canyon Vista Recovery Center

NA NA NA NA NA Operates an addiction treatment facility.

5/18/2017 Summit Behavioral Healthcare, LLC /

English Mountain Recovery

NA NA NA NA NA Operates residential inpatient treatment facility for

addictive disorders, including alcoholism and drug

abuse.

6/1/2017 Sun Life Financial United States /

Premier Dental Group, Inc.

NA NA NA NA NA Provides dentistry services.

5/1/2017 Team Health, Inc. /

Synergy Emergency Physicians, Inc.

NA NA NA NA NA Provides staffing and management services of

health care facilities.

5/9/2017 TRT Holdings, Inc. /

Origins Behavioral Healthcare, LLC

NA NA NA NA NA Provides residential substance abuse treatment

and care services for adults.

6/1/2017 U.S. Physical Therapy, Inc. (NYSE:USPH) /

Four Clinic Physical Therapy Practice

$2.5 $3.0 NA 0.8x NA Comprises four physical therapy practice clinic

locations.


Lexington Diagnostic Center & Open MRI

NA NA NA NA NA Provides scanning services by radiologists,

including CT, MRI, and X-ray imaging.


OMOP, LLC

NA NA NA NA NA Operates a residential health care facility.

Announced Wesley Spectrum Services /

Family Services of Western Pennsylvania

NA NA NA NA NA Provides mental health, intellectual disabilities,

vocational rehabilitation, child welfare, safety net,

and older adult services for children, teens,

adults, and families.

6/20/2017 Western Dental Services, Inc. /

Choice Family Dentistry

NA NA NA NA NA Provides dental services.

MEAN (NON-ACUTE) 1.8x 9.9x

MEDIAN (NON-ACUTE) 2.1x 9.9x

5/1/2017 AdCare Health Systems, Inc. (AMEX:ADK) /

Meadowood Properties, LLC And Meadowood Retirement Village,

LLC

$5.5 NA NA NA NA Comprises an assisted living facility.

4/28/2017 American Senior Housing REIT, LLC /

Glen Carr House

$10.5 NA NA NA NA Comprises a memory care community.

4/28/2017 American Senior Housing REIT, LLC /

Oxford Grand McKinney

$16.5 NA NA NA NA Comprises an assisted living and memory care

community.

PROVIDERS - LONG-TERM CARE

13


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

5/11/2017 Benchmark Senior Living LLC; Farallon Capital Management,

L.L.C. /

BH Brightview New Pond Village, L.L.C.

NA NA NA NA NA Owns and operates a retirement care community.

4/20/2017 Care Investment Trust LLC; Phoenix Senior Living LLC /

Senior Solutions Management Group, Hope Center Memory Care

NA NA NA NA NA Provides assisted living facilities for elderly.

Announced Chartwell Retirement Residences (TSX:CSH.UN) /

Portfolio of Three Retirement Residences in Ontario

$88.4 NA NA NA NA Comprises three retirement residences.

Announced Columbia Pacific Advisors, LLC /

Hawthorn Retirement Group, LLC

NA NA NA NA NA Develops and operates senior communities.

5/5/2017 CommuniCare Health Services, Inc. /

Four Health Care Centers in Maryland and Four Others in Virginia

NA NA NA NA NA Comprises eight health care centers.

6/5/2017 Ensign Group, Inc. (NasdaqGS:ENSG) /

Idaho and Utah Skilled Nursing Facilities

NA NA NA NA NA Comprises the operations of one intermediate

care and three skilled nursing facilities.

6/16/2017 Ensign Group, Inc. (NasdaqGS:ENSG) /

Texas and Wisconsin Assisted Living Facilities

NA NA NA NA NA Comprises operations and real estate of assisted

living facilities.

4/4/2017 InnovAge Home Care /

Kissito PACE of Roanoke, Inc.

NA NA NA NA NA Operates an elderly care center.

6/15/2017 Inspirit Senior Living LLC /

Palmerton and Willow

NA NA NA NA NA Comprises two seniors housing facilities.

Announced Kame-San JLLP /

Shady Lawn, LLC

$7.5 NA NA NA NA Owns and operates a nursing and long term

facility.

Announced MedEquities Realty Trust, Inc. (NYSE:MRT) /

Woodlake at Tolland Nursing and Rehabilitation Center

$10.0 NA NA NA NA Owns and operates a nursing center.

6/5/2017 National Health Investors Inc. (NYSE:NHI) /

60 Unit Assisted Living and Memory Care Facility in Lansing,

Michigan

$10.4 NA NA NA NA Comprises an assisted living facility.

Announced Port Development, LLC /

Sanctuary at Rye Operations, LLC; Sanctuary Care, LLC

$11.0 NA NA NA NA Own and operate senior assisted living facilities

for the memory impaired.

5/2/2017 Sagora Senior Living, Inc. /

Orchard Assisted Living & Memory Care

NA NA NA NA NA Comprises a senior healthcare facility.

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

Retirement Suites of Kawartha Lakes

$15.6 NA NA NA NA Owns and operates retirement residence and

independent and assisted living suites.

6/6/2017 Sienna Senior Living Inc. (TSX:SIA) /

Rosewood Retirement Residence

$7.1 NA NA NA NA Comprises a retirement residence.

5/1/2017 Solterra of Arizona, LLC /

Friendship Villas At La Cholla Assisted Living Facility In Tucson,

Arizona

NA NA NA NA NA Comprises an assisted living facility.


20 Skilled Nursing Facilities Leased To Genesis Healthcare

$103.3 NA NA NA NA Comprises skilled nursing facilities.

MEAN (LONG-TERM CARE) NA NA

MEDIAN (LONG-TERM CARE) NA NA

Announced Alternate Health Corp. (CNSX:AHG) /

Neubauer Hyperbaric Neurologic Center, Inc.

NA NA NA NA NA Owns and operates a hospital that provides

healthcare services.

Announced Ardent Health Services ; University of Kansas Health System /

St. Francis Health Center, Inc.

NA NA NA NA NA A hospital which provides healthcare services.

4/28/2017 Baptist Memorial Health Care Corporation /

Mississippi Baptist Health Systems, Inc.

NA NA NA NA NA Non-profit comprehensive medical center which

provides healthcare services.

6/30/2017 CHRISTUS Health, Inc. /

Women & Children Hospital, LLC

NA NA NA NA NA Operates as an acute care hospital.

Announced Greenville Health System LLC /

Palmetto Health

NA NA NA NA NA Not-for-profit health care resource which operates

various hospitals and a network of physician

practices.

Announced HCA Holdings, Inc. (NYSE:HCA) /

Four Hospitals in Houston

$725.0 $575.0 $80.0 1.3x 9.1x Comprises four hospitals.

5/1/2017 HCA Holdings, Inc. (NYSE:HCA) /

Mayo Clinic Health System in Waycross

NA NA NA NA NA Comprises a 231-bed hospital.

Announced HCA Holdings, Inc. (NYSE:HCA) /

Memorial University Medical Center, Inc.

$430.0 NA NA NA NA Provides healthcare services.

6/30/2017 HCA Holdings, Inc. (NYSE:HCA) /

Tomball Texas Hospital Company, LLC

NA NA NA NA NA Operates as a medical center to provide

healthcare services.

Announced Medical Properties Trust, Inc. (NYSE:MPW) /

10 Acute Care Hospitals and One Behavioral Health Facility

$1,400.0 NA NA NA NA Comprises 10 acute care hospitals and one

behavioral health facility.

6/30/2017 Methodist Healthcare System of San Antonio, LTD., L.L.P. /

Jourdanton Hospital Corporation

NA NA NA NA NA Comprises a 67-bed hospital.

6/30/2017 MultiCare Health System, Inc. /

Spokane Washington Hospital Company, LLC

$425.0 NA NA NA NA Operates as an acute care hospital.

6/30/2017 PinnacleHealth System Inc. /

Community Health Systems, Inc., Four Hospitals In Pennsylvania

NA NA NA NA NA Comprises hospital facilities.

Announced Prime Healthcare Services, Inc. /

Memorial Hospital of Rhode Island

NA NA NA NA NA Operates as a community hospital.

Announced Reading Health System /

Community Health Systems, Inc., Five Pennsylvania Hospitals

NA NA NA NA NA Comprises five healthcare facilities.

4/28/2017 Regional Medical Center Anniston /

Anniston HMA, LLC

$25.0 NA NA NA NA Owns and operates an acute care hospital.

6/30/2017 Richmond County Hospital Authority /

Augusta Hospital, LLC

NA NA NA NA NA Owns and operates an acute care hospital.

5/1/2017 Steward Health Care System, LLC /

Community Health Systems, Inc., Eight Hospitals

NA NA NA NA NA Comprises hospital facilities.

PROVIDERS - ACUTE

14


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Steward Health Care System, LLC /

IASIS Healthcare LLC

NA NA NA NA NA Owns and operates acute care hospitals in urban

and suburban markets.

Announced Surgery Partners, Inc. (NasdaqGS:SGRY) /

National Specialty Hospitals, Inc.

$760.0 NA NA NA NA Owns and operates a chain of surgical hospitals

and ambulatory surgery centers.


Lexington Hospital Corporation; McKenzie Tennessee Hospital

Company

NA NA NA NA NA Operate healthcare facilities.

Announced UPMC Susquehanna /

Clinton Hospital Corporation; Sunbury Hospital Company, LLC

NA NA NA NA NA Operate healthcare facilities.

MEAN (ACUTE) 1.3x 9.1x

MEDIAN (ACUTE) 1.3x 9.1x

MEAN (PROVIDERS) 1.4x 9.6x

MEDIAN (PROVIDERS) 1.3x 9.1x

6/22/2017 Acessa Health Inc. /

Halt Medical Inc., Acessa System

NA NA NA NA NA Comprises a laparoscopic radiofrequency ablation

system.

4/28/2017 Allergan plc (NYSE:AGN) /

ZELTIQ Aesthetics, Inc. (NasdaqGS:ZLTQ)

$2,414.9 NM NM NM NM Engages in developing and commercializing non-

invasive products for the selective reduction of fat.

Announced Allergan Sales, LLC /

Keller Medical, Inc.

NA NA NA NA NA Offers a funnel-shaped implant delivery device.

4/13/2017 Amendia, Inc. /

Spinal Elements, Inc.

NA NA NA NA NA Manufactures surgical, motion preservation, and

spinal fusion systems.

6/9/2017 American Medical Group LLC /

Solos Endoscopy, Inc. (OTCPK:SNDY)

NA NA NA NA NA Develops and markets technology, applications,

medical devices, and procedural techniques for

the screening, diagnosis, treatment, and

management of disease and medical conditions.

5/5/2017 Aytu BioScience, Inc. (OTCPK:AYTU) /

Nuelle, Inc.

$32.6 NA NA NA NA Designs and manufactures medical devices for

women’s health.

5/31/2017 Aziyo Biologics, Inc. /

Cormatrix Cardiovascular, Inc.

NA NA NA NA NA Researches, develops, manufactures, and

commercializes biomaterial devices that harness

the body’s own innate ability to repair damaged

heart tissue.

Announced Becton, Dickinson and Company (NYSE:BDX) /

C. R. Bard, Inc. (NYSE:BCR)

$24,821.6 NM $1,162.2 NM 21.4x Designs, manufactures, packages, distributes,

and sells medical, surgical, diagnostic, and

patient care devices.

4/4/2017 Becton, Dickinson and Company (NYSE:BDX) /

Caesarea Medical Electronics Ltd.

NA NA NA NA NA Engages in the design, manufacture, and supply

of infusion and syringe pump systems,

complementary accessories, and disposable

administration sets.

5/16/2017 Boston Scientific Corporation (NYSE:BSX) /

Symetis SA (ENXTPA:SYMS)

NA NA NA NA NA Engages in the development, manufacturing, and

marketing of transcatheter aortic valve

implantation devices for minimally invasive heart

valve replacement.

Announced Cardiff International, Inc. (OTCPK:CDIF) /

MedicaMetrix, Inc.

$6.0 NA NA NA NA Produces urological medical devices.

Announced Cardinal Health, Inc. (NYSE:CAH) /

Medtronic plc, Patient Care, Deep Vein Thrombosis and Nutritional

Insufficiency Businesses

$6,059.1 $2,400.0 NA 2.5x NA Comprises the business operations of

manufacturing compression systems and anti-

embolism stockings to reduce the incidence of

Deep Vein Thrombosis and Pulmonary Embolism.

6/28/2017 DePuy Synthes Products LLC /

Sentio, LLC

NA NA NA NA NA Develops nerve mapping and avoidance system to

allow surgeons to perform surgical procedures

while avoiding injury to nerves.

5/30/2017 Diagnostica Stago S.A.S. /

HemoSonics, LLC

NA NA NA NA NA Develops and commercializes a point-of-care

diagnostic instrument to guide the management

of critical bleeding in surgery and acute care

settings.

5/22/2017 EnteroMedics Inc. (NasdaqCM:ETRM) /

BarioSurg, Inc.

$31.3 NA NA NA NA Operates as a medical device company that

develops a long term minimally invasive and

reversible technology for bariatric surgeons to

treat obesity and metabolic diseases.

4/12/2017 Glaukos Corporation (NYSE:GKOS) /

Dose Medical Corporation, IOP Sensor System

$15.0 NA NA NA NA Comprises intraocular pressure sensor system, a

micro-invasive ocular implant that is designed to

capture and store a glaucoma patient’s short-

interval IOP measurements.

4/5/2017 iGAMBIT, Inc. (OTCPK:IGMB) /

CyberCare Health Network, LLC, Certain Assets

$3.6 NA NA NA NA Comprises a wearable health monitoring device.

5/10/2017 IZI Medical Products, Inc. /

Cook Medical Incorporated, Vertebroplasty Product Portfolio

NA NA NA NA NA Comprises medical needles, injectors, and

cement.

6/29/2017 Koninklijke Philips N.V. (ENXTAM:PHIA) /

CardioProlific Inc.

NA NA NA NA NA Develops catheter-based thrombectomy

approaches to treat peripheral vascular disease.

Announced Koninklijke Philips N.V. (ENXTAM:PHIA) /

Respiratory Technologies, Inc.

NA NA NA NA NA Engages in the development and marketing of

respiratory care products.

5/2/2017 LivaNova PLC (NasdaqGS:LIVN) /

Caisson Interventional, LLC

$95.3 NA NA NA NA A clinical-stage medical device company focused

on the design, development, and clinical

evaluation of a novel percutaneous mitral valve

replacement system.

4/3/2017 Menarini Silicon Biosystems, Inc. /

Janssen Diagnostics, LLC, Assets and Relevant Business of

CELLSEARCH® Circulating Tumor Cell System

NA NA NA NA NA Comprises the business of a healthcare system

that helps manage patients with metastatic

breast, prostate, and colorectal cancers.

PRODUCTS - CLINICAL DEVICES

15


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

4/3/2017 Nordson Corporation (NasdaqGS:NDSN) /

Vention Medical, Inc., Advanced Technologies Business

$716.5 $150.0 $48.0 4.8x 14.9x Comprises interventional delivery device and

component manufacturing business.

Announced Philips Holding USA Inc. /

Electrical Geodesics, Inc. (AIM:EGI)

$37.4 $16.3 NM 2.3x NM Designs, develops, and commercializes a range of

non-invasive neurodiagnostic products used to

monitor and interpret brain activity.

Announced Sientra, Inc. (NasdaqGS:SIEN) /

Miramar Labs, Inc. (OTCPK:MRLB)

$34.0 $20.0 NM 1.7x NM Focuses on developing and commercializing

products utilizing its proprietary microwave

technology platform.

6/19/2017 Sinclair Pharma plc (AIM:SPH) /

Refine LLC

$7.3 NA NA NA NA Develops and sells medical devices for cosmetic

and reconstructive procedures.

Announced South American Gold Corp. (OTCPK:SAGD) /

Rehaba Inc.

NA NA NA NA NA Develops medical devices.

4/12/2017 Steris Plc (NYSE:STE) /

Genii Inc.

NA NA NA NA NA Develops and markets electrosurgical products.

4/3/2017 Teleflex Medical Canada Inc. /

Pyng Medical Corp. (TSXV:PYT)

$16.7 $4.6 NM 3.5x NM Develops, engineers, and markets trauma and

resuscitation products for front-line critical care

personnel.


Halt Medical, Inc.

NA NA NA NA NA Comprises a laparoscopic surgery that uses

radiofrequency ablation to destroy the fibroids

while preserving a healthy uterus.

6/13/2017 Venus MedTech (HangZhou) Inc. /

InterValve Inc.

NA NA NA NA NA Develops medical devices for the catheter based

treatment of calcified aortic valve stenosis.

4/20/2017 Vyaire Medical, Inc. /

Ciel Medical, Inc.

NA NA NA NA NA Developed a medical device to treat ventilator

associated pneumonia.

5/3/2017 Young Innovations Inc. /

American Eagle Instruments, Inc.

NA NA NA NA NA Manufactures and markets dental instruments.

MEAN (CLINICAL DEVICES) 3.0x 18.2x

MEDIAN (CLINICAL DEVICES) 2.5x 18.2x

Announced Avantor Performance Materials, Inc. /

VWR Corporation (NasdaqGS:VWR)

$6,476.9 $4,555.0 $480.4 1.4x 13.5x VWR Corporation provides laboratory products,

services, and solutions to pharmaceutical and

other markets.

4/3/2017 Sartorius Aktiengesellschaft (DB:SRT) /

Essen BioScience Inc.

$320.0 NA NA NA NA Develops and manufactures instruments,

software, reagents, and consumables for

researchers to remotely image and quantitate

cellular processes.

Announced Stryker Corporation (NYSE:SYK) /

Novadaq Technologies Inc. (TSX:NDQ)

$644.5 NM NM NM NM Develops, manufactures, and markets

fluorescence imaging products for use by

surgeons in the operating room and other clinical

settings.


Champion Manufacturing, Inc.

NA NA NA NA NA Manufactures patient and staff seating and

accessories for healthcare providers.

5/1/2017 Varian Medical Systems, Inc. (NYSE:VAR) /

Dexela; PerkinElmer Health Sciences; PerkinElmer Medical

Holdings; PerkinElmer Technologies

$276.0 NA NA NA NA Engage in the manufacture of X-ray detectors.

MEAN (NON-CLINICAL DEVICES) 1.4x 13.5x

MEDIAN (NON-CLINICAL DEVICES) 1.4x 13.5x

4/21/2017 Beaver-Visitec International, Inc. /

Malosa Limited

NA NA NA NA NA Designs, manufactures, and supplies single-use

surgical instruments for ophthalmology and

aesthetic surgery.

Announced Koninklijke Philips N.V. (ENXTAM:PHIA) /

Spectranetics Corporation (NasdaqGS:SPNC)

$2,063.6 NM NM NM NM Develops, manufactures, markets, and distributes

single-use medical devices used in minimally

invasive procedures in the cardiovascular system.

MEAN (DISPOSABLES) NA NA

MEDIAN (DISPOSABLES) NA NA

5/17/2017 Ashland LLC /

Pharmachem Laboratories, Inc.

$660.0 $300.0 NA 2.2x NA Manufactures and distributes custom and

branded nutritional and nutraceutical ingredients.

Announced Carlyle Group LP (NasdaqGS:CG); GTCR, LLC /

Albany Molecular Research, Inc. (NasdaqGS:AMRI)

$1,584.3 $628.7 $71.8 2.5x 22.1x A contract research and manufacturing company

which provides integrated drug discovery,

development, and manufacturing services.

5/1/2017 Charlesbank Capital Partners, LLC /

Tecomet, Inc.

NA NA NA NA NA Provides net shape forging, photochemical

etching, precision machining, and metal joining of

components and assemblies for the medical

implant and other industries.

6/8/2017 Cressey & Company, LP /

SLMP, LLC

NA NA NA NA NA Manufactures and distributes consumables, kits,

and equipment for the anatomic pathology

laboratory.

6/13/2017 Cretex Companies, Inc. /

Quality Tech Services, Inc.

NA NA NA NA NA Provides engineering, project management,

research and development, testing, assembly,

and packaging of medical devices.

5/16/2017 Diversey España, S.L. /

Daylight Medical, UVC Disinfection Business

NA NA NA NA NA Provides disinfectant technologies designed to

disinfect rooms, surfaces, non-critical equipment

and devices.

PRODUCTS - DISPOSABLES

PRODUCTS - COMMERCIAL

PRODUCTS - NON-CLINICAL DEVICES

16


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

5/25/2017 Double Black Imaging Corporation /

Richardson Electronics, Ltd., PACS Display Business

NA NA NA NA NA Manufactures diagnostic and clinical imaging

displays.

4/3/2017 Dynatronics Corporation (NasdaqCM:DYNT) /

Hausmann Industries, Inc.

$10.0 $14.8 $1.2 0.7x 8.3x Designs and manufactures medical, therapy, and

athletic training equipment.

4/11/2017 Exova Group plc (LSE:EXO) /

SL Pharma Labs, Inc.

NA NA NA NA NA Provides pharmaceutical product development

and testing services.

5/9/2017 Healthcare Trust of America, Inc. (NYSE:HTA) /

11 Medical Office Buildings Located in Phoenix and Southern

California

$149.8 NA NA NA NA Comprises medical-related real estate properties.

6/12/2017 Healthcare Trust of America, Inc. (NYSE:HTA) /

Medical Office Portfolio

$2,750.0 NA NA NA NA Comprises a portfolio of 6.6 million square feet

medical office buildings.

Announced Healthcare Trust Operating Partnership, L.P. /

American Realty Capital Healthcare Trust III, Inc.

$120.0 NM $7.3 NM 16.5x Engages in the acquisition of various healthcare-

related assets.

5/18/2017 Hitachi Chemical Co. America, Ltd. /

PCT, LLC, a Caladrius Company

$97.5 NA NA NA NA Provides contract cell therapy development and

manufacturing services.

Announced KAREP Master JV, LLC /

Sentio Healthcare Properties, Inc.

$745.4 NM $40.7 NM 18.3x Comprises a real estate investment trust.

5/1/2017 Kush Bottles, Inc. (OTCPK:KSHB) /

CMP Wellness, LLC

$33.3 NM NA NM NA Manufactures Med-ePen brand vaporizer pens,

cartridges and tanks, and accessories and sells

its products through local stores as well as online.

4/28/2017 Machine Solutions Inc. /

SEBRA

NA NA NA NA NA Manufactures tube sealing equipment for blood

and plasma centers.

6/12/2017 Medical Specialties Distributors, LLC /

Attentus Medical Sales, Inc.

NA NA NA NA NA Manufactures and distributes medical, packaging,

and compliance products for home infusion,

specialty pharmacy, long term care, closed door

pharmacy, home respiratory, and HME markets.

4/28/2017 Permira Advisers Ltd. /

Lyophilization Services Of New England, Inc.

$80.0 NA NA NA NA A contract manufacturer which specializes in the

aseptic fill finish and lyophilization of drug and

medical device products.

Announced Quadrant Management, Inc. /

Associated Healthcare Systems, Inc.; Braden Partners, L.P.

NA NA NA NA NA Develops home medical equipment and provides

home healthcare services, including home oxygen

and sleep therapy services.

5/16/2017 Quidel Corporation (NasdaqGS:QDEL) /

RPS Diagnostics, Inc., InflammaDry(R) and AdenoPlus(R) Eye-

Health Businesses

$14.0 NA NA NA NA Comprises diagnostic tests manufacturing

business operations for eye health and primary

care markets.

Announced Sabra Health Care REIT, Inc. (NasdaqGS:SBRA) /

Care Capital Properties, Inc. (NYSE:CCP)

$4,076.2 NM $308.2 NM 13.2x Focuses on owning, acquiring, and leasing skilled

nursing facilities and other healthcare assets

operated by private regional and local care

providers.

6/16/2017 Savaria Corporation (TSX:SIS) /

Span-America Medical Systems, Inc. (NasdaqGM:SPAN)

$73.7 $61.8 $7.3 1.2x 10.1x Manufactures and distributes therapeutic support

surfaces and other related products for the

medical, consumer, and industrial markets.

4/18/2017 Stryker Corporation (NYSE:SYK) /

Cactus, LLC

NA NA NA NA NA Develops and supplies medication waste disposal

systems for medical facilities.

5/1/2017 TE Connectivity Ltd. (NYSE:TEL) /

MicroGroup, Inc.

NA NA NA NA NA Offers micro machined metal parts, tubing, solid

materials, and miniature valves and assemblies

for surgical devices and medical implants.

Announced Thermo Fisher (CN) Luxembourg S.à r.l. /

Patheon N.V. (NYSE:PTHN)

$7,205.3 $1,933.0 $351.2 3.7x 20.5x Provides outsourced pharmaceutical development

and manufacturing services.


ColonaryConcepts LLC, Novel Colonoscopy Preparation Assets

NA NA NA NA NA Comprises worldwide rights to the colon prep

technology.


Synutra International Inc. (NasdaqGS:SYUT)

$842.9 $355.9 $54.5 2.4x 15.5x Produces, distributes, and sells dairy based

nutritional products such as prepared pureed food

for babies as well as prepared adult foods for

patients with special nutritional needs after

surgical operations.

MEAN (COMMERCIAL) 2.1x 15.6x

MEDIAN (COMMERCIAL) 2.3x 16.0x

5/23/2017 New Age Beverages Corporation (NasdaqCM:NBEV) /

Premier Micronutrient Corporation

$5.2 NA NA NA NA Develops, manufactures, and markets

formulations of natural vitamins, minerals, and

antioxidant supplements/micronutrients.

MEAN (CONSUMER PRODUCTS) NA NA

MEDIAN (CONSUMER PRODUCTS) NA NA

Announced AGIC Capital; Hubei Province Yangtze River Economic Belt

Industry Fund Management Co.,Ltd.; Humanwell Healthcare

(Group) Co.,Ltd. (SHSE:600079) /

Ritedose Corporation

$605.0 NA NA NA NA Provides blow-fill-seal contract manufacturing

services for small fill volume pharmaceutical unit

dose sterile and non-sterile liquids.

Announced Alpine Immune Sciences Inc. /

Nivalis Therapeutics, Inc. (NasdaqGM:NVLS)

NA NA NA NA NA Focuses on the discovery and development of

product candidates for patients with cystic

fibrosis.Announced CGX Life Sciences Inc. /

GreenMart of Nevada LLC

$19.0 NA NA NA NA Cultivates, produces, and wholesales cannabis.

6/15/2017 CGX Life Sciences Inc. /

IMT, LLC

$10.0 NA NA NA NA Cultivates, produces, and sells medical cannabis

and cannabis-infused medical products.

PRODUCTS - CONSUMER

PRODUCTS - PHARMACEUTICALS

17


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Creative Pharmacy Solutions Central, LLC /

Imprimis Pharmaceuticals, Inc., Sinus Related Business and

Pennsylvania Based Pharmacy

$0.9 NA NA NA NA Comprises certain intellectual property rights,

trademarks, copyrights, inventories, equipment,

customer lists, databases, permits, licenses, and

assignment of lease obligation for a Pennsylvania

based pharmacy.

Announced CSPC Zhongqi Pharmaceutical Technology (Shijiazhuang) Co.,

Ltd. /

CSPC Dophen Corporation

$9.7 NA NA NA NA Provides research and development of

pharmaceutical products.

5/1/2017 EPI Health, LLC /

Cipher Pharmaceuticals US LLC

$14.4 NA NA NA NA Develops and acquires skin care solutions for

unmet medical needs.

6/13/2017 Eurofins Scientific SE (ENXTPA:ERF) /

Alphora Research Inc.

NA NA NA NA NA Provides active pharmaceutical ingredient

technology development services.

Announced Fresenius Kabi USA, LLC /

Akorn, Inc. (NasdaqGS:AKRX)

$4,782.6 $1,101.9 $445.9 4.3x 10.7x Specialty generic pharmaceutical company which

develops, manufactures, and markets specialized

generic and branded pharmaceuticals, over-the-

counter drug products, and animal health

products.

6/16/2017 Friday Night Inc. (CNSX:TGIF) /

91% of Alternate Medicine Association LC; Infused Mfg., LLC

$5.3 NA NA NA NA Produce hemp based and CBD-infused medical

products.

6/9/2017 General Cannabis Corp. (OTCPK:CANN) /

GC Finance Arizona, LLC

$0.1 NA NA NA NA Produces and distributes medical marijuana

infused products.

Announced Hadley Mining Inc. (CNSX:HM) /

SpeakEasy

NA NA NA NA NA Manufactures cannabis for medical purposes.

4/12/2017 Incumaker, Inc. (OTCPK:QMKR) /

CEN Biotech, Inc.

$62.0 NA NA NA NA Engages in the cultivation, processing, and

distribution of medical marijuana.

Announced Inspyr Therapeutics, Inc. (OTCPK:NSPX) /

Lewis and Clark Pharmaceuticals LLC

NA NA NA NA NA Focuses on early stage pharmaceutical

development for addressing the areas of arthritis,

diabetes, glaucoma, and atherosclerosis.

5/24/2017 International Sustainability Group, Inc. (OTCPK:ISGP) /

iMD Companies, Inc., CBD Health Products

$25.0 NA NA NA NA Produces cannabidiol based healthcare products.

4/26/2017 Invictus MD Strategies Corp. (TSXV:IMH) /

Acreage Pharms Ltd.

$32.3 NA NA NA NA Produces cannabis for medical purposes.

4/3/2017 Ipsen S.A. (ENXTPA:IPN) /

Merrimack Pharmaceuticals, Global Oncology Assets

$1,025.0 NA NA NA NA Comprises ONIVYDE for the treatment of patients

with metastatic adenocarcinoma of the pancreas,

in combination with fluorouracil and leucovorin.

6/5/2017 Marina Biotech, Inc. (OTCPK:MRNA) /

Symplmed Pharmaceuticals LLC, Prestalia

$0.6 NA NA NA NA Comprises U.S. FDA-approved drug for the

treatment of treatment of hypertension.

5/30/2017 MMJ Bioscience Inc. /

Current Production Facility in Duncan, British Columbia

$2.8 NA NA NA NA Produces marijuana for medical purposes.

4/11/2017 MYM Nutraceuticals Inc. (DB:0MY) /

HempMeds PX, LLC

$0.7 NA NA NA NA Produces and supplies cannabidiol oil and CBD

hemp oil products.

Announced Newco /

CTT Pharmaceutical Holdings, Inc., Certain Assets

NA NA NA NA NA Comprises opioids and medical marijuana oral

thin film wafer manufacturing business for

treatment of chronic pain, post operative surgical

pain, arthritis, and joint pain.

Announced Norgine B.V. /

Merus Labs International Inc. (TSX:MSL)

$247.8 $78.2 $31.1 3.3x 8.2x Specialty pharmaceutical company which owns,

markets, and distributes pharmaceutical products.

4/7/2017 Otsuka America, Inc. /

Neurovance, Inc.

$250.0 NA NA NA NA Focuses on the development and

commercialization of therapies for adults and

children with attention deficit hyperactivity

disorders.

Announced OXIS International, Inc. (OTCPK:OXIS) /

Georgetown Translational Pharmaceuticals, Inc.

$0.7 NA NA NA NA Manufactures treatment products for central

nervous system disorders, including neuropathic

pain, refractory epilepsies, myasthenia gravis, and

motion sickness.

Announced Platinex Inc. (TSXV:PTX) /

Cannabee Products, Inc.

NA NA NA NA NA Engages in research and development of

cannabinoid based products.

4/19/2017 PLx Pharma Inc. /

Dipexium Pharmaceuticals, Inc. (NasdaqCM:DPRX)

NA NA NA NA NA Focuses on the development and

commercialization of antibiotics.

5/4/2017 Proterris, Inc. /

CO Releasing Molecule Assets and Alfama Lda.

NA NA NA NA NA Comprises molecule assets used in drug

development.

4/20/2017 PTC Therapeutics, Inc. (NasdaqGS:PTCT) /

Marathon Pharmaceuticals, LLC, Emflaza Rights

$190.0 NA NA NA NA Comprises the commercialization rights and

business operations that manufacture a drug

called Emflaza for the treatment of patients

suffering from Duchenne muscular dystrophy.

Announced Ravencrest Resources Inc. (CNSX:RVT) /

Alberta Green Biotech Inc.

NA NA NA NA NA Engages in producing medical marijuana.

Announced Real Brands, Inc. (OTCPK:RLBD) /

CBD Pharmacy, Inc.

NA NA NA NA NA Manufactures consumable legal cannabis and

hemp products.

6/29/2017 Sanpower Group Co., Ltd. /

Dendreon Pharmaceuticals, Inc.

$819.9 NA NA NA NA Discovers, develops, manufactures, and sells

novel therapeutics products.

5/31/2017 Sawai Pharmaceutical Co., Ltd. (TSE:4555) /

Upsher-Smith Laboratories, Inc., Generic Pharmaceuticals

Business

$1,050.0 NA NA NA NA Develops and delivers therapies and solutions for

people living with central nervous system

conditions, such as seizure disorders.

Announced Sofie Biosciences, Inc. /

Zevacor Pharma, Inc.

NA NA NA NA NA Develops, manufactures, and distributes PET and

SPECT radiopharmaceuticals and provides

associated educational services used in nuclear

medicine and molecular imaging.

Announced Spherix Incorporated (NasdaqCM:SPEX) /

Hoth Therapeutics Inc.

NA NA NA NA NA Operates as a biopharmaceutical company that

develops therapeutics for patients suffering from

atopic dermatitis.

18


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Standard Graphite Corporation (TSXV:SGH) /

Marapharm Inc.

$5.2 NA NA NA NA Produces medical marijuana.

4/3/2017 Sucampo Pharmaceuticals, Inc. (NasdaqGM:SCMP) /

Vtesse, Inc.

$200.6 NA NA NA NA Develops drugs for patients suffering from rare

diseases.


THC Dispensaries Canada Ltd.

$0.7 NA NA NA NA Produces medical marijuana.

5/24/2017 WEED, Inc. (OTCPK:BUDZ) /

Sangre AT, LLC

NA NA NA NA NA Engages in research and development of

genomic sequencing, genetics-based breeding,

plant tissue culture, and plant biochemistry for

treatments and medical cures.

MEAN (PHARMACEUTICALS) 3.8x 9.5x

MEDIAN (PHARMACEUTICALS) 3.8x 9.5x

Announced 22NW Fund, LP /

InfuSystem Holdings Inc. (AMEX:INFU)

$80.5 $64.1 $8.4 1.3x 9.6x Supplies electronic ambulatory infusion pumps

and associated disposable supply kits to oncology

clinics, infusion clinics, hospital outpatient, and

chemotherapy clinics.

5/2/2017 ACE Surgical Supply Co., Inc. /

Southern Anesthesia & Surgical, Inc.

NA NA NA NA NA Distributes anesthesia supplies and

pharmaceuticals.

6/6/2017 Anatomy Holdings, LLC /

Professional Healing Solutions, LLC

NA NA NA NA NA Distributes disposable advanced wound care

dressing supplies.

4/3/2017 Cantel Medical Corp. (NYSE:CMD) /

CR Kennedy & Company Pty Ltd, Endoscopy Business Assets

NA NA NA NA NA Comprises the distribution operations of Cantel's

Medivators-branded automated endoscope

reprocessors, chemistries, procedure room

products, and other consumables.

4/4/2017 Concordance Healthcare Solutions LLC /

Rockwell Medical Supply, Inc.

NA NA NA NA NA Distributes medical supplies and equipment.

5/23/2017 Great Hill Partners, LLC /

PartsSource, Inc.

NA NA NA NA NA Supplies biomedical replacement parts and

procurement solutions to hospitals, imaging

centers, biomedical equipment technicians,

imaging engineers, clinical engineers, and

independent service organizations.

6/19/2017 Greater Cannabis Company, Inc. /

Bud Bank, Inc.

NA NA NA NA NA A seed bank that sells cannabis seeds for medical

uses.

5/8/2017 Linde Gas North America LLC /

Transfill Equipment Supplies and Services, Inc.

NA NA NA NA NA Supplies medical oxygen and offers cylinder

testing and repair services to healthcare

providers.

Announced McKesson Canada Corporation /

Uniprix Inc.

NA NA NA NA NA Owns and operates a retail pharmacy chain.

4/3/2017 McKesson Corporation (NYSE:MCK) /

GMD Distribution Inc.

NA NA NA NA NA Distributes pharmaceutical products and also

provides logistics support.

6/1/2017 Mercury Partners /

DirectMed Parts & Service, LLC

NA NA NA NA NA Supplies medical imaging aftermarket parts,

systems, and field service solutions.

5/30/2017 MIMA Healthcare LLC /

Mid-Atlantic Health Care, Inc.

NA NA NA NA NA Provides respiratory products and services.

5/3/2017 Namaste Technologies Inc. (OTCPK:NXTT.F) /

CannMart Inc.

$2.6 NA NA NA NA Engages in distribution of medical cannabis.

5/16/2017 National Seating & Mobility, Inc. /

Columbus Medical Equipment, Inc.; Dependable Medical

Equipment

NA NA NA NA NA Supplies healthcare equipment and home

healthcare equipment.

6/26/2017 National Seating & Mobility, Inc. /

Mobility Health, Inc.

NA NA NA NA NA Retails home medical equipment and supplies.

Announced Owens & Minor, Inc. (NYSE:OMI) /

Byram Healthcare Centers, Inc.

$380.0 NA NA NA NA Supplies disposable medical devices to patients

with chronic diseases.

4/7/2017 VWR Corporation (NasdaqGS:VWR) /

Medical Equipment Supplies and Management Ltd

NA NA NA NA NA Distributes laboratory and medical equipment as

well as ancillary supplies to clinical trial sector.

MEAN (DISTRIBUTION) 1.3x 9.6x

MEDIAN (DISTRIBUTION) 1.3x 9.6x

MEAN (PRODUCTS) 2.5x 14.5x

MEDIAN (PRODUCTS) 2.4x 14.2x

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

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

3) NA: Not Available

4) NM: Not Meaningful

PRODUCTS - DISTRIBUTION

19 ANALYSIS OF SELECTED PUBLICLY-TRADED

HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS COMPANIES1

(JUNE 30, 2017)

($ Millions Except Per Share Data)

Company Name (Ticker Symbol)

Stock

Price Market Cap2 TEV3

LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Aetna Inc. (NYSE:AET) 151.83 50,362.01 55,985.01 62,627.00 5,734.00 3.28 0.9x 9.8x NM

Amerisafe, Inc. (NasdaqGS:AMSF) 56.95 1,095.16 1,055.80 391.87 98.32 3.48 2.7x 10.7x 16.4x

Anthem, Inc. (NYSE:ANTM) 188.13 49,851.86 61,455.56 87,082.70 6,007.00 10.32 0.7x 10.2x 18.2x

Centene Corporation (NYSE:CNC) 79.88 13,761.73 13,793.73 42,468.00 2,125.00 4.04 0.3x 6.5x 19.8x

Cigna Corporation (NYSE:CI) 167.39 42,854.29 43,521.29 40,169.00 3,905.00 7.49 1.1x 11.1x 22.3x

CNO Financial Group, Inc. (NYSE:CNO) 20.88 3,576.98 7,241.58 4,095.40 881.10 2.13 1.8x 8.2x 9.8x

Humana Inc. (NYSE:HUM) 240.62 34,725.06 31,728.06 54,341.00 2,268.00 9.81 0.6x 14.0x 24.5x

Independence Holding Company (NYSE:IHC) 20.45 334.93 288.54 306.39 32.30 1.22 0.9x 8.9x 16.8x

Molina Healthcare, Inc. (NYSE:MOH) 69.18 3,943.54 2,399.54 17,873.00 381.00 1.86 0.1x 6.3x NM

ProAssurance Corporation (NYSE:PRA) 60.80 3,246.50 3,592.87 899.83 244.19 3.24 4.0x 14.7x 18.8x

Triple-S Management Corporation (NYSE:GTS) 16.91 410.44 225.34 2,950.58 15.77 0.39 0.1x 14.3x NM

Trupanion, Inc. (NasdaqGM:TRUP) 22.38 666.05 648.90 200.26 (1.41) (0.20) 3.2x NM NM

UnitedHealth Group Incorporated (NYSE:UNH) 185.42 178,682.13 200,200.13 189,036.00 14,994.00 7.81 1.1x 13.4x 23.7x

WellCare Health Plans, Inc. (NYSE:WCG) 179.56 7,989.09 4,458.79 14,650.80 656.20 6.08 0.3x 6.8x 29.5x

MEAN (INSURANCE) 1.3x 10.4x 20.0x

MEDIAN (INSURANCE) 0.9x 10.2x 19.3x

Allscripts Healthcare Solutions, Inc. (NasdaqNM:MDRX) 12.76 2,315.49 3,978.87 1,617.82 153.38 (0.26) 2.5x 25.9x NM

Castlight Health, Inc. (NYSE:CSLT) 4.15 541.63 438.43 106.73 (50.35) (0.51) 4.1x NM NM

Cerner Corporation (NasdaqNM:CERN) 66.47 21,963.63 21,981.87 4,827.03 1,351.46 1.94 4.6x 16.3x NM

CompuGroup Medical Societas Europaea (DB:COP) 56.25 2,796.80 3,159.81 618.10 114.47 1.01 NM 27.6x NM

Computer Programs and Systems, Inc. (NasdaqNM:CPSI) 32.80 443.98 588.45 261.70 28.24 0.43 2.2x 20.8x NM

Craneware plc (AIM:CRW) 16.66 449.03 401.59 53.52 16.32 0.42 NM 24.6x NM

Evolent Health, Inc. (NYSE:EVH) 25.35 1,463.32 1,592.32 310.98 (50.96) (1.15) NM NM NM

HealthEquity, Inc. (NasdaqGS:HQY) 49.83 2,988.49 2,792.93 189.78 57.61 0.53 NM NM NM

Inovalon Holdings, Inc. (NasdaqGS:INOV) 13.15 1,919.75 1,645.49 433.24 81.29 0.18 3.8x 20.2x NM

Medidata Solutions, Inc. (NasdaqGS:MDSO) 78.20 4,555.42 4,457.39 485.96 72.35 0.59 NM NM NM

Model N, Inc. (NYSE:MODN) 13.30 383.06 386.14 117.75 (30.67) (1.30) 3.3x NM NM

Quality Systems, Inc. (NasdaqGS:QSII) 17.21 1,079.05 1,057.43 509.62 58.85 0.29 2.1x 18.0x NM

RaySearch Laboratories AB (publ) (OM:RAY B) 27.90 956.46 952.57 63.02 23.67 0.52 NM NM NM

Simulations Plus, Inc. (NasdaqCM:SLP) 12.35 212.92 205.49 21.09 8.59 0.31 NM 23.9x NM

Veeva Systems Inc. (NYSE:VEEV) 61.31 8,568.22 7,904.31 582.20 141.37 0.62 NM NM NM

MEAN (TECHNOLOGY) 3.2x 22.2x NM

MEDIAN (TECHNOLOGY) 3.3x 22.4x NM

SERVICES - TECHNOLOGY

SERVICES - INSURANCE

20


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Advisory Board Company (NasdaqGS:ABCO) 51.50 2,090.06 2,543.75 797.23 118.16 2.47 3.2x 21.5x 20.9x

Albany Molecular Research, Inc. (NasdaqGS:AMRI) 21.70 923.05 1,529.31 628.69 71.80 (1.76) 2.4x 21.3x NM

AMN Healthcare Services, Inc. (NYSE:AMN) 39.05 1,870.57 2,195.12 1,929.39 226.88 2.27 1.1x 9.7x 17.2x

athenahealth, Inc. (NasdaqGS:ATHN) 140.55 5,598.69 5,784.39 1,112.20 112.40 0.51 NM NM NM

BioScrip, Inc. (NasdaqNM:BIOS) 2.72 345.73 876.65 914.94 25.34 (0.50) 1.0x NM NM

Cegedim SA (ENXTPA:CGM) 34.68 484.65 745.73 465.37 29.07 (1.94) 1.6x 25.7x NM

CorVel Corporation (NasdaqNM:CRVL) 47.45 889.91 861.30 518.69 68.50 1.51 1.7x 12.6x NM

Cross Country Healthcare, Inc. (NasdaqNM:CCRN) 12.91 470.36 493.74 844.53 39.17 (0.40) 0.6x 12.6x NM

eHealth, Inc. (NasdaqGS:EHTH) 18.80 346.51 278.28 192.06 7.13 0.57 1.4x NM NM

Envision Healthcare Corporation (NYSE:EVHC) 62.67 7,274.96 13,722.46 4,849.90 913.40 (0.34) 2.8x 15.0x NM

EPS Holdings, Inc. (TSE:4282) 15.66 721.65 595.13 515.25 78.47 0.79 1.2x 7.6x 19.8x

Express Scripts Holding Company (NasdaqNM:ESRX) 63.84 37,890.76 50,261.46 100,150.60 7,136.20 5.52 0.5x 7.0x 11.6x

Healthcare Services Group, Inc. (NasdaqNM:HCSG) 46.83 3,418.07 3,301.58 1,582.35 126.46 1.09 2.1x 26.1x NM

HMS Holdings Corp. (NasdaqNM:HMSY) 18.50 1,552.33 1,581.84 483.70 90.70 0.40 3.3x 17.4x NM

ICON Public Limited Company (NasdaqGS:ICLR) 97.79 5,258.73 5,288.36 1,697.92 388.40 4.82 3.1x 13.6x 20.3x

INC Research Holdings, Inc. (NasdaqGS:INCR) 58.50 3,165.08 3,487.73 1,033.42 230.43 2.10 3.4x 15.1x 27.8x

Magellan Health, Inc. (NasdaqNM:MGLN) 72.90 1,728.98 2,083.23 5,025.49 245.90 3.43 0.4x 8.5x 21.3x

On Assignment, Inc. (NYSE:ASGN) 54.15 2,860.03 3,453.10 2,484.90 256.09 1.91 1.4x 13.5x 28.3x

PAREXEL International Corporation (NasdaqNM:PRXL) 86.91 4,436.72 4,852.32 2,097.00 342.80 2.28 2.3x 14.2x NM

PRA Health Sciences, Inc. (NasdaqGS:PRAH) 75.01 4,686.00 5,382.93 1,634.78 262.56 1.67 3.3x 20.5x NM

Quintiles IMS Holdings, Inc. (NYSE:Q) 89.50 19,635.57 27,316.57 6,167.00 1,278.00 0.45 4.4x 21.4x NM

Stericycle, Inc. (NasdaqGS:SRCL) 76.32 6,507.66 9,335.29 3,580.56 798.79 1.92 2.6x 11.7x NM

Teladoc, Inc. (NYSE:TDOC) 34.70 1,899.19 1,765.67 139.17 (43.10) (1.63) NM NM NM

MEAN (OUTSOURCING) 2.1x 15.5x 20.9x

MEDIAN (OUTSOURCING) 2.1x 14.2x 20.6x

Firstsource Solutions Limited (BSE:532809) 0.53 359.79 437.81 548.75 66.16 0.06 0.8x 6.6x 8.4x

HCL Technologies Limited (NSEI:HCLTECH) 13.17 18,788.77 17,320.93 6,975.20 1,556.34 0.89 2.5x 11.1x 14.8x

Hexaware Technologies Limited (BSE:532129) 3.75 1,172.00 1,115.00 567.48 94.02 0.23 2.0x 11.9x 16.5x

Infosys Limited (NSEI:INFY) 14.48 33,088.51 28,048.28 10,208.00 2,765.00 0.94 2.7x 10.1x 15.5x

KPIT Technologies Limited (BSE:532400) 1.90 356.47 331.76 512.39 46.99 0.18 0.6x 7.1x 10.3x

MphasiS Limited (BSE:526299) 9.27 1,789.77 1,383.68 937.78 149.53 0.59 1.5x 9.3x 15.7x

NIIT Technologies Limited (BSE:532541) 8.93 548.27 440.40 432.45 64.47 0.63 1.0x 6.8x 14.2x

Tata Consultancy Services Limited (NSEI:TCS) 36.55 72,028.48 65,057.80 18,206.03 4,989.27 2.06 3.6x 13.0x 17.8x

Tech Mahindra Limited (NSEI:TECHM) 5.91 5,765.92 4,739.70 4,497.39 645.80 0.49 1.1x 7.3x 12.1x

Wipro Limited (BSE:507685) 4.00 19,373.48 16,281.49 8,494.51 1,684.19 0.27 1.9x 9.7x 14.9x

MEAN (INDIA-BASED OUTSOURCING) 1.8x 9.3x 14.0x

MEDIAN (INDIA-BASED OUTSOURCING) 1.7x 9.5x 14.8x

SERVICES - OUTSOURCING

SERVICES - INDIA-BASED OUTSOURCING

21


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Connecture, Inc. (NasdaqGM:CNXR) 0.62 13.98 102.93 82.61 (11.31) (1.19) 1.2x NM NM

HealthStream, Inc. (NasdaqNM:HSTM) 26.32 839.14 723.84 231.77 21.62 0.11 3.1x NM NM

National Research Corporation (NasdaqGS:NRCI.B) 47.74 731.82 699.98 111.79 37.54 0.87 NM 18.6x NM

WebMD Health Corp. (NasdaqNM:WBMD) 58.65 2,127.82 2,139.14 700.55 181.67 1.92 3.1x 11.8x NM

MEAN (INFORMATION) 2.5x 15.2x NM

MEDIAN (INFORMATION) 3.1x 15.2x NM

MEAN (SERVICES) 2.0x 14.1x 18.1x

MEDIAN (SERVICES) 1.9x 12.8x 17.5x

Charles River Laboratories International, Inc. (NYSE:CRL) 101.15 4,818.72 5,898.01 1,772.33 423.96 3.41 3.3x 13.9x 29.7x

China Cord Blood Corporation (NYSE:CO) 9.48 1,143.29 783.91 110.38 45.75 0.23 NM 17.1x NM

Foundation Medicine, Inc. (NasdaqGS:FMI) 39.75 1,416.78 1,317.73 112.82 (125.89) (4.06) NM NM NM

Genomic Health, Inc. (NasdaqGS:GHDX) 32.55 1,117.84 1,023.42 330.95 (0.19) (0.25) 3.1x NM NM

Invitae Corporation (NYSE:NVTA) 9.56 410.47 355.42 31.43 (95.64) (2.84) NM NM NM

Laboratory Corporation of America Holdings (NYSE:LH) 154.14 15,768.52 21,339.62 9,550.10 1,851.30 7.28 2.2x 11.5x 21.2x

NeoGenomics, Inc. (NasdaqCM:NEO) 8.96 709.96 835.35 246.06 27.30 (0.36) 3.4x NM NM

Quest Diagnostics Incorporated (NYSE:DGX) 111.16 15,209.52 18,772.52 7,551.00 1,422.00 4.97 2.5x 13.2x 22.4x

Sonic Healthcare Limited (ASX:SHL) 18.59 7,791.27 9,696.49 3,644.85 594.99 0.80 2.7x 16.3x 23.3x

MEAN (LABS) 2.9x 14.4x 24.1x

MEDIAN (LABS) 2.9x 13.9x 22.8x

Addus HomeCare Corporation (NasdaqGS:ADUS) 37.20 427.82 433.09 409.69 31.98 1.41 1.1x 13.5x 26.5x

Almost Family, Inc. (NasdaqNM:AFAM) 61.65 859.37 1,009.56 671.16 41.65 1.58 1.5x 24.2x NM

Amedisys, Inc. (NasdaqNM:AMED) 62.81 2,118.47 2,163.47 1,437.18 95.50 1.35 1.5x 22.7x NM

Chemed Corporation (NYSE:CHE) 204.53 3,289.29 3,389.11 1,592.36 217.50 6.82 2.1x 15.6x NM

LHC Group, Inc. (NasdaqNM:LHCG) 67.89 1,241.03 1,332.22 926.33 85.92 2.16 1.4x 15.5x NM

MEAN (HOME HEALTH) 1.5x 18.3x 26.5x

MEDIAN (HOME HEALTH) 1.5x 15.6x 26.5x

AAC Holdings, Inc. (NYSE:AAC) 6.93 166.82 348.20 264.87 27.46 (0.09) 1.3x 12.7x NM

Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) 49.38 4,336.63 7,592.49 2,873.30 585.16 0.17 2.6x 13.0x NM

Adeptus Health Inc. (OTCPK:ADPT.Q) 1.71 28.04 267.79 403.74 37.54 5.64 0.7x 7.1x 0.3x

Alliance Healthcare Services, Inc. (NasdaqGM:AIQ) 13.30 144.06 795.66 511.76 127.82 0.09 1.6x 6.2x NM

Civitas Solutions, Inc. (NYSE:CIVI) 17.50 652.98 1,270.70 1,437.95 147.66 0.46 0.9x 8.6x NM

Concord Medical Services Holdings Limited (NYSE:CCM) 3.75 163.78 393.27 65.54 2.92 (0.87) NM NM NM

CoreCivic, Inc. (NYSE:CXW) 27.58 3,258.57 4,646.59 1,848.08 470.24 1.90 2.5x 9.9x 14.5x

DaVita Inc. (NYSE:DVA) 64.76 12,602.30 21,086.40 14,850.18 2,463.99 6.09 1.4x 8.6x 10.6x

The GEO Group, Inc. (NYSE: GEO) 29.57 3,615.07 5,775.58 2,219.92 388.80 1.39 2.6x 14.9x 21.2x

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

HealthSouth Corporation (NYSE:HLS) 48.40 4,332.82 7,577.82 3,711.10 824.90 2.68 2.0x 9.2x 18.1x

SERVICES - INFORMATION

PROVIDERS - LABS

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

22


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

MEDNAX, Inc. (NYSE:MD) 60.37 5,558.23 7,407.61 3,266.13 648.79 3.35 2.3x 11.4x 18.0x

The Providence Service Corporation (NasdaqGS:PRSC) 50.61 681.57 677.12 1,596.35 71.84 (2.39) 0.4x 9.4x NM

RadNet, Inc. (NasdaqNM:RDNT) 7.75 365.93 996.92 897.16 111.45 0.15 1.1x 8.9x NM

Select Medical Holdings Corporation (NYSE:SEM) 15.35 2,037.86 5,341.73 4,235.73 458.06 0.57 1.3x 11.7x 26.9x

U.S. Physical Therapy, Inc. (NYSE:USPH) 60.40 759.71 880.16 363.35 59.41 1.66 2.4x 14.8x NM

VCA Inc. (NasdaqGS:WOOF) 92.31 7,501.84 8,916.53 2,631.68 513.37 2.61 3.4x 17.4x NM

MEAN (NON-ACUTE) 1.7x 11.1x 15.7x

MEDIAN (NON-ACUTE) 1.5x 10.6x 18.0x

Brookdale Senior Living Inc. (NYSE:BKD) 14.71 2,738.99 7,846.65 4,194.28 808.62 (2.59) 1.9x 9.7x NM

Capital Senior Living Corporation (NYSE:CSU) 15.21 440.53 1,441.63 452.54 77.27 (1.51) 3.2x 18.7x NM

Ensign Group, Inc. (NasdaqNM:ENSG) 21.77 1,103.80 1,333.55 1,713.37 119.84 0.83 0.8x 11.1x 26.3x

Five Star Senior Living Inc. (NasdaqCM:FVE) 1.50 74.99 106.54 1,129.02 17.06 (0.54) 0.1x 6.2x NM

Welltower Inc. (NYSE:HCN) 74.85 27,407.57 40,059.62 4,202.89 2,090.97 3.25 NM 19.2x 23.1x

Sabra Health Care REIT, Inc. (NasdaqGS:SBRA) 24.10 1,576.40 2,756.07 260.62 223.73 1.45 NM 12.3x 16.7x

Genesis Healthcare, Inc. (NYSE:GEN) 1.74 161.35 4,871.82 5,544.49 503.52 (1.47) 0.9x 9.7x NM

Ventas, Inc. (NYSE:VTR) 69.48 24,656.64 36,749.74 3,478.14 1,851.77 1.97 NM 19.8x NM

MEAN (LONG-TERM CARE) 1.4x 13.3x 22.0x

MEDIAN (LONG-TERM CARE) 0.9x 11.7x 23.1x

Community Health Systems, Inc. (NYSE:CYH) 9.96 1,112.74 16,814.74 17,925.00 1,896.00 (17.27) 0.9x 8.9x NM

HCA Healthcare, Inc. (NYSE:HCA) 87.20 31,994.08 64,373.08 41,853.00 8,168.00 7.36 1.5x 7.9x 11.8x

Kindred Healthcare, Inc. (NYSE:KND) 11.65 997.63 4,359.02 7,149.94 520.04 (7.94) 0.6x 8.4x NM

LifePoint Health, Inc. (NasdaqNM:LPNT) 67.15 2,710.59 5,659.89 6,413.50 738.40 3.79 0.9x 7.7x 17.7x

Tenet Healthcare Corp. (NYSE:THC) 19.34 1,944.26 19,684.26 19,390.00 2,168.00 (1.85) 1.0x 9.1x NM

Universal Health Services, Inc. (NYSE:UHS) 122.08 11,804.12 15,713.93 9,929.27 1,702.38 7.33 1.6x 9.2x 16.7x

MEAN (ACUTE) 1.1x 8.5x 15.4x

MEDIAN (ACUTE) 1.0x 8.6x 16.7x

MEAN (PROVIDERS) 1.7x 12.5x 19.2x

MEDIAN (PROVIDERS) 1.5x 11.6x 19.6x

ABIOMED, Inc. (NasdaqNM:ABMD) 143.30 6,122.40 5,908.79 445.30 97.93 1.17 NM NM NM

Accelerate Diagnostics, Inc. (NasdaqCM:AXDX) 27.35 1,498.37 1,434.42 0.61 (63.33) (1.27) NM NM NM

Accuray Incorporated (NasdaqNM:ARAY) 4.75 394.25 480.22 366.29 (5.10) (0.39) 1.3x NM NM

Agilent Technologies, Inc. (NYSE:A) 59.31 19,058.52 18,715.52 4,324.00 983.00 1.78 4.3x 19.0x NM

Align Technology, Inc. (NasdaqNM:ALGN) 150.12 12,059.34 11,513.75 1,151.50 284.34 2.68 NM NM NM

Alliqua BioMedical, Inc. (NasdaqCM:ALQA) 0.37 17.01 26.41 18.88 (20.24) (1.09) 1.4x NM NM

Alphatec Holdings, Inc. (NasdaqNM:ATEC) 1.85 20.09 60.84 114.02 (1.76) (3.15) 0.5x NM NM

Analogic Corporation (NasdaqGS:ALOG) 72.65 905.98 747.35 512.87 65.24 (3.29) 1.5x 11.5x NM

AngioDynamics, Inc. (NasdaqNM:ANGO) 16.21 596.37 657.11 356.15 49.13 (0.70) 1.8x 13.4x NM

Anika Therapeutics, Inc. (NasdaqGS:ANIK) 49.34 722.83 584.21 104.48 51.71 2.07 NM 11.3x 23.8x

PROVIDERS - LONG-TERM CARE

PROVIDERS - ACUTE

PRODUCTS - CLINICAL DEVICES

23


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

AtriCure, Inc. (NasdaqNM:ATRC) 24.25 823.20 827.56 160.44 (21.00) (1.06) NM NM NM

Avinger, Inc. (NasdaqGM:AVGR) 0.45 10.72 29.57 18.17 (47.92) (2.86) 1.6x NM NM

Baxter International Inc. (NYSE:BAX) 60.54 32,913.73 32,831.73 10,263.00 2,131.00 3.37 3.2x 15.4x 18.0x

Bio-Techne Corporation (NasdaqGS:TECH) 117.50 4,386.69 4,631.28 541.19 201.56 1.86 NM 23.0x NM

BioTelemetry, Inc. (NasdaqGS:BEAT) 33.45 958.52 958.54 205.49 39.10 1.60 4.7x 24.5x 20.9x

Boston Scientific Corporation (NYSE:BSX) 27.72 37,959.82 43,317.82 8,582.00 2,222.00 0.31 NM 19.5x NM

Bruker Corporation (NasdaqNM:BRKR) 28.84 4,612.48 4,539.68 1,620.80 264.30 0.94 2.8x 17.2x NM

Cardiovascular Systems, Inc. (NasdaqGS:CSII) 32.23 1,054.31 972.15 199.17 (1.90) (0.23) 4.9x NM NM

Catalent, Inc. (NYSE:CTLT) 35.10 4,386.10 6,166.30 1,990.70 395.30 0.85 3.1x 15.6x NM

ConforMIS, Inc. (NasdaqGS:CFMS) 4.29 188.12 138.54 80.10 (55.08) (1.42) 1.7x NM NM

CONMED Corporation (NasdaqNM:CNMD) 50.94 1,419.79 1,883.47 768.89 124.94 0.44 2.4x 15.1x NM

Corindus Vascular Robotics, Inc. (AMEX:CVRS) 1.86 347.97 305.38 2.51 (33.77) (0.29) NM NM NM

C. R. Bard, Inc. (NYSE:BCR) 316.11 22,953.77 23,815.37 3,779.30 1,162.20 7.86 NM 20.5x NM

CryoLife, Inc. (NYSE:CRY) 19.95 663.55 675.91 182.42 25.17 0.31 3.7x 26.9x NM

Cutera, Inc. (NasdaqGS:CUTR) 25.90 358.94 310.51 124.93 4.15 0.26 2.5x NM NM

Cytosorbents Corporation (NasdaqCM:CTSO) 4.30 120.87 122.55 10.83 (10.77) (0.45) NM NM NM

DexCom, Inc. (NasdaqNM:DXCM) 73.15 6,317.94 6,218.54 599.40 (69.80) (1.04) NM NM NM

Edwards Lifesciences Corporation (NYSE:EW) 118.24 24,807.08 24,736.78 3,149.90 1,007.60 3.01 NM 24.6x NM

Ekso Bionics Holdings, Inc. (OTCBB:EKSO) - 59.68 57.21 7.17 (27.45) (2.01) NM NM NM

Endologix, Inc. (NasdaqNM:ELGX) 4.86 403.26 548.89 193.17 (61.29) (1.55) 2.8x NM NM

Entellus Medical, Inc. (NasdaqGM:ENTL) 16.56 362.94 316.01 77.39 (25.43) (1.56) 4.1x NM NM

Enzo Biochem, Inc. (NYSE:ENZ) 11.04 512.34 450.76 106.24 (4.59) 0.71 4.2x NM 15.5x

Exactech, Inc. (NasdaqNM:EXAC) 29.80 426.50 431.33 261.76 42.88 0.02 1.6x 10.1x NM

Fresenius SE & Co. KGaA (DB:FRE) 85.89 47,538.26 78,487.49 32,538.49 6,170.87 3.28 2.4x 12.7x 26.2x

GenMark Diagnostics, Inc. (NasdaqGM:GNMK) 11.83 632.51 628.27 50.75 (45.60) (1.14) NM NM NM

Genomic Health, Inc. (NasdaqGS:GHDX) 32.55 1,117.84 1,023.42 330.95 (0.19) (0.25) 3.1x NM NM

Glaukos Corporation (NYSE:GKOS) 41.47 1,421.88 1,322.67 127.21 8.53 0.11 NM NM NM

Globus Medical, Inc. (NYSE:GMED) 33.15 3,185.24 2,859.14 580.54 205.33 1.09 4.9x 13.9x NM

Hologic, Inc. (NasdaqNM:HOLX) 45.38 12,706.89 14,872.29 2,894.10 1,012.20 2.79 NM 14.7x 16.3x

Illumina, Inc. (NasdaqNM:ILMN) 173.52 25,333.92 24,670.92 2,424.37 678.78 4.94 NM NM NM

Inogen, Inc. (NasdaqGS:INGN) 95.42 1,963.91 1,835.67 212.34 35.35 1.12 NM NM NM

Integer Holdings Corporation (NYSE:ITGR) 43.25 1,353.66 3,000.95 1,399.95 270.28 0.46 2.1x 11.1x NM

Integra LifeSciences Holdings Corporation

(NasdaqNM:IART) 54.51 4,122.09 4,841.23 1,013.94 235.27 0.84 4.8x 20.6x NM

Intersect ENT, Inc. (NasdaqGM:XENT) 27.95 804.19 705.83 82.49 (23.42) (0.83) NM NM NM

Intuitive Surgical, Inc. (NasdaqNM:ISRG) 935.37 34,459.74 32,994.94 2,784.10 1,077.10 19.84 NM NM NM

Invuity, Inc. (NasdaqGM:IVTY) 7.25 123.07 110.89 35.08 (35.41) (2.65) 3.2x NM NM

IRadimed Corporation (NasdaqCM:IRMD) 8.60 92.45 67.20 28.69 7.47 0.40 2.3x 9.0x 21.5x

K2M Group Holdings, Inc. (NasdaqGS:KTWO) 24.36 1,038.12 1,072.67 242.21 (4.21) (1.01) 4.4x NM NM

Landauer, Inc. (NYSE:LDR) 52.30 504.16 597.65 151.32 39.19 2.01 3.9x 15.3x 26.0x

24


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

LeMaitre Vascular, Inc. (NasdaqGM:LMAT) 31.22 587.23 561.42 93.03 21.22 0.60 NM 26.5x NM

LivaNova PLC (NasdaqGS:LIVN) 61.21 2,949.46 3,010.32 1,212.06 193.82 (0.23) 2.5x 15.5x NM

Masimo Corporation (NasdaqNM:MASI) 91.18 4,663.28 4,319.45 709.76 171.03 5.89 NM 25.3x 15.5x

Medtronic plc (NYSE:MDT) 88.75 120,613.62 140,479.62 29,710.00 9,217.00 2.89 4.7x 15.2x NM

Meridian Bioscience, Inc. (NasdaqNM:VIVO) 15.75 664.69 666.83 198.60 55.72 0.71 3.4x 12.0x 22.2x

NanoString Technologies, Inc. (NasdaqGM:NSTG) 16.54 408.27 398.91 89.86 (42.26) (2.49) 4.4x NM NM

Natus Medical Incorporated (NasdaqNM:BABY) 37.30 1,215.37 1,252.40 419.22 66.04 1.04 3.0x 19.0x NM

Nevro Corp. (NYSE:NVRO) 74.43 2,180.46 2,056.14 255.29 (25.29) (1.29) NM NM NM

NuVasive, Inc. (NasdaqNM:NUVA) 76.92 3,896.98 4,399.54 996.83 222.39 0.95 4.4x 19.8x NM

Nxstage Medical, Inc. (NasdaqNM:NXTM) 25.07 1,647.99 1,606.41 374.00 14.68 (0.07) 4.3x NM NM

Orthofix International N.V. (NasdaqNM:OFIX) 46.48 838.70 797.05 413.85 48.07 (0.19) 1.9x 16.6x NM

Össur hf. (ICSE:OSSRU) 4.38 1,883.22 2,046.97 537.56 92.11 0.12 3.8x 22.2x NM

pSivida Corp. (NasdaqGM:PSDV) 1.71 67.30 51.93 7.14 (16.14) (0.55) NM NM NM

Quidel Corporation (NasdaqNM:QDEL) 27.14 901.21 853.47 214.97 39.80 0.12 4.0x 21.4x NM

ResMed Inc. (NYSE:RMD) 77.87 11,043.46 11,384.50 2,028.70 559.02 2.28 NM 20.4x NM

REVA Medical, Inc. (ASX:RVA) 0.66 282.80 364.99 NM (24.23) (0.05) NM NM NM

ReWalk Robotics Ltd. (NasdaqCM:RWLK) 1.75 29.18 28.93 6.31 (28.97) (2.25) 4.6x NM NM

SeaSpine Holdings Corporation (NasdaqGS:SPNE) 11.52 135.24 126.50 129.36 (24.87) (3.56) 1.0x NM NM

Second Sight Medical Products, Inc. (NasdaqCM:EYES) 1.26 71.02 47.13 3.94 (34.50) (0.83) NM NM NM

Sientra, Inc. (NasdaqGS:SIEN) 9.72 185.80 127.04 26.75 (36.01) (2.15) 4.7x NM NM

Smith & Nephew plc (LSE:SN.) 17.21 15,031.02 16,661.42 4,669.00 1,292.00 0.88 3.6x 12.9x 19.6x

Sonova Holding AG (SWX:SOON) 162.52 10,616.09 11,041.22 2,395.19 522.13 5.34 4.6x 21.1x NM

The Spectranetics Corporation (NasdaqNM:SPNC) 38.40 1,680.61 1,948.81 277.62 (16.31) (1.38) NM NM NM

STAAR Surgical Company (NasdaqNM:STAA) 10.80 442.28 435.97 83.51 (1.64) (0.16) NM NM NM

Stryker Corporation (NYSE:SYK) 138.78 51,871.11 55,764.11 11,785.00 3,231.00 4.45 4.7x 17.3x NM

Syneron Medical Ltd. (NasdaqGS:ELOS) 10.95 385.80 332.55 296.29 13.40 (0.12) 1.1x 24.8x NM

T2 Biosystems, Inc. (NasdaqGM:TTOO) 3.21 98.21 80.45 3.93 (48.86) (2.03) NM NM NM

Tandem Diabetes Care, Inc. (NasdaqGM:TNDM) 0.80 39.87 69.62 83.17 (74.46) (2.80) 0.8x NM NM

TransEnterix, Inc. (AMEX:TRXC) 0.71 105.46 103.43 3.47 (47.59) (1.05) NM NM NM

Unilife Corporation (ASX:UNS) 0.00 1.11 117.91 11.21 (56.71) (5.07) NM NM NM

Utah Medical Products, Inc. (NasdaqNM:UTMD) 72.40 269.05 238.31 39.26 19.42 3.31 NM 12.3x 21.8x

Varian Medical Systems, Inc. (NYSE:VAR) 103.19 9,485.39 9,330.49 3,253.60 625.10 3.56 2.9x 14.9x 29.0x

Wright Medical Group N.V. (NasdaqNM:WMGI) 27.49 2,830.02 3,408.62 698.26 36.15 (1.56) 4.9x NM NM

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) 128.40 25,891.09 36,365.19 7,757.20 2,808.20 2.44 4.7x 12.9x NM

MEAN (CLINICAL) 3.2x 17.4x 21.3x

MEDIAN (CLINICAL) 3.2x 16.1x 21.5x

Abaxis, Inc. (NasdaqNM:ABAX) 53.02 1,201.12 1,058.60 227.22 51.83 1.44 4.7x 20.4x NM

Cerus Corporation (NasdaqNM:CERS) 2.51 263.19 227.59 36.56 (62.24) (0.63) NM NM NM

PRODUCTS - NON-CLINICAL DEVICES

25


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Getinge AB (OM:GETI B) 19.54 4,655.74 7,002.12 3,363.64 641.09 0.64 2.1x 10.9x NM

Haemonetics Corporation (NYSE:HAE) 39.49 2,073.32 2,248.34 886.12 139.75 (0.51) 2.5x 16.1x NM

Harvard Bioscience, Inc. (NasdaqGM:HBIO) 2.55 88.28 97.34 101.71 2.53 (0.14) 1.0x NM NM

IDEXX Laboratories, Inc. (NasdaqNM:IDXX) 161.42 14,224.89 15,090.59 1,819.89 449.79 2.70 NM NM NM

Invacare Corporation (NYSE:IVC) 13.20 432.73 505.38 1,021.65 (8.17) (1.57) 0.5x NM NM

Omnicell, Inc. (NasdaqGS:OMCL) 43.10 1,601.75 1,769.94 672.17 43.90 (0.27) 2.6x NM NM

Pacific Biosciences of California, Inc. (NasdaqGS:PACB) 3.56 410.94 373.06 96.50 (70.10) (0.86) 3.9x NM NM

PerkinElmer, Inc. (NYSE:PKI) 68.14 7,498.06 8,264.59 2,131.62 409.68 1.91 3.9x 20.2x NM

Steris Plc (NYSE:STE) 73.64 6,474.90 7,143.30 2,612.76 518.83 1.28 2.7x 13.8x NM

Surmodics, Inc. (NasdaqGS:SRDX) 28.15 373.73 327.41 73.39 21.68 0.71 4.5x 15.1x NM

Thermo Fisher Scientific Inc. (NYSE:TMO) 174.47 68,256.14 84,729.44 18,744.30 4,686.40 5.49 4.5x 18.1x NM

Waters Corporation (NYSE:WAT) 183.84 14,714.10 13,615.02 2,190.15 747.04 6.58 NM 18.2x 28.0x

MEAN (NON-CLINICAL) 3.0x 16.6x 28.0x

MEDIAN (NON-CLINICAL) 2.7x 17.1x 28.0x

Atrion Corporation (NasdaqNM:ATRI) 643.30 1,181.62 1,135.07 145.78 48.83 16.47 NM 23.2x NM

Becton, Dickinson and Company (NYSE:BDX) 195.11 44,358.75 54,105.75 12,321.00 3,197.00 6.02 4.4x 16.9x NM

Halyard Health, Inc. (NYSE:HYH) 39.28 1,834.19 2,270.49 1,603.10 166.40 0.82 1.4x 13.6x NM

ICU Medical, Inc. (NasdaqNM:ICUI) 172.50 3,415.47 3,288.60 526.06 102.13 5.63 NM NM NM

Merit Medical Systems, Inc. (NasdaqNM:MMSI) 38.15 1,904.33 2,114.94 636.83 95.95 0.67 3.3x 22.0x NM

Nipro Corporation (TSE:8086) 13.04 2,166.38 5,335.05 3,226.00 563.55 0.55 1.7x 9.5x 23.7x

Retractable Technologies, Inc. (AMEX:RVP) 1.27 40.22 28.00 30.83 (2.43) (0.15) 0.9x NM NM

Teleflex Incorporated (NYSE:TFX) 207.76 9,345.31 10,745.07 1,931.02 505.98 4.81 NM 21.2x NM

Terumo Corporation (TSE:4543) 39.39 13,864.86 16,008.44 4,611.34 1,093.98 1.26 3.5x 14.6x NM

MEAN (DISPOSABLES) 2.5x 17.3x 23.7x

MEDIAN (DISPOSABLES) 2.5x 16.9x 23.7x

Bio-Rad Laboratories, Inc. (NYSE:BIO) 226.31 6,693.27 6,453.95 2,097.03 271.79 0.94 3.1x 23.7x NM

Cambrex Corporation (NYSE:CBM) 59.75 1,946.06 1,846.88 500.61 161.83 2.83 3.7x 11.4x 21.1x

Cantel Medical Corp. (NYSE:CMD) 77.91 3,250.72 3,365.17 741.62 141.91 1.69 4.5x 23.7x NM

ChromaDex Corporation (NasdaqCM:CDXC) 3.82 176.08 175.53 23.93 (4.02) (0.14) NM NM NM

DENTSPLY SIRONA Inc. (NasdaqNM:XRAY) 64.84 14,863.27 16,062.57 3,873.20 820.80 1.55 4.1x 19.6x NM

Exact Sciences Corporation (NasdaqCM:EXAS) 35.37 4,180.65 3,912.35 132.90 (144.34) (1.46) NM NM NM

Fluidigm Corporation (NasdaqGS:FLDM) 4.04 118.84 263.58 100.98 (64.73) (2.52) 2.6x NM NM

Hill-Rom Holdings, Inc. (NYSE:HRC) 79.61 5,235.69 7,426.99 2,677.70 458.00 2.32 2.8x 16.2x NM

Ion Beam Applications SA (ENXTBR:IBAB) 55.05 1,606.38 1,555.42 347.06 38.34 0.88 4.5x NM NM

Luminex Corporation (NasdaqNM:LMNX) 21.12 927.72 841.25 285.44 50.46 0.32 2.9x 16.7x NM

Mettler-Toledo International Inc. (NYSE:MTD) 588.54 15,196.10 15,994.90 2,563.15 612.51 15.33 NM 26.1x NM

Natera, Inc. (NasdaqGS:NTRA) 10.86 574.30 508.33 202.07 (114.96) (2.38) 2.5x NM NM

PRODUCTS - DISPOSABLES

PRODUCTS - COMMERCIAL

26


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Neogen Corporation (NasdaqGS:NEOG) 69.11 2,634.44 2,509.98 352.83 75.97 1.08 NM NM NM

OraSure Technologies, Inc. (NasdaqNM:OSUR) 17.26 996.99 857.36 126.26 21.28 0.52 NM NM NM

Oxford Immunotec Global PLC (NasdaqGM:OXFD) 16.82 385.63 372.14 90.47 (22.95) (1.04) 4.1x NM NM

QIAGEN N.V. (NasdaqGS:QGEN) 33.53 7,633.41 8,431.58 1,347.32 411.52 0.36 NM 20.5x NM

Quotient Limited (NasdaqGM:QTNT) 7.36 277.07 355.79 22.23 (64.60) (3.02) NM NM NM

Rockwell Medical, Inc. (NasdaqGM:RMTI) 7.93 412.82 360.08 54.25 (19.87) (0.39) NM NM NM

Trinity Biotech plc (NasdaqGS:TRIB) 6.00 138.63 164.24 99.63 7.90 (1.59) 1.6x 20.8x NM

TrovaGene, Inc. (NasdaqCM:TROV) 1.26 39.03 26.80 0.36 (35.52) (1.33) NM NM NM

Veracyte, Inc. (NasdaqGM:VCYT) 8.33 282.14 256.10 67.97 (23.99) (0.97) 3.8x NM NM

VWR Corporation (NasdaqGS:VWR) 33.01 4,350.67 6,390.17 4,555.00 480.40 1.12 1.4x 13.3x 29.5x

West Pharmaceutical Services, Inc. (NYSE:WST) 94.52 6,952.29 7,012.19 1,534.70 324.30 2.42 4.6x 21.6x NM

MEAN (COMMERCIAL) 3.3x 19.4x 25.3x

MEDIAN (COMMERCIAL) 3.4x 20.5x 25.3x

Alere Inc. (NYSE:ALR) 50.19 4,385.04 7,338.64 2,377.61 318.64 (2.50) 3.1x 23.0x NM

Cooper Companies Inc. (NYSE:COO) 239.42 11,697.29 12,963.09 2,054.91 635.85 6.67 NM 20.4x NM

Essilor International Société Anonyme (ENXTPA:EI) 127.10 27,185.58 29,991.05 7,510.82 1,796.69 3.92 4.0x 16.7x NM

Insulet Corporation (NasdaqNM:PODD) 51.31 2,971.70 3,054.43 387.49 11.22 (0.46) NM NM NM

Nutraceutical International Corporation (NasdaqGS:NUTR) 41.65 385.14 415.49 235.37 43.04 2.00 1.8x 9.7x 20.9x

Nutrisystem, Inc. (NasdaqGS:NTRI) 52.05 1,542.81 1,476.37 596.02 74.32 1.35 2.5x 19.9x NM

USANA Health Sciences, Inc. (NYSE:USNA) 64.10 1,571.95 1,395.63 1,020.96 151.43 3.96 1.4x 9.2x 16.2x

MEAN (CONSUMER) 2.5x 16.5x 18.5x

MEDIAN (CONSUMER) 2.5x 18.3x 18.5x

Abbott Laboratories (NYSE:ABT) 48.61 84,351.47 99,742.47 22,303.00 4,768.00 0.89 4.5x 20.9x NM

AbbVie Inc. (NYSE:ABBV) 72.51 115,402.60 146,458.60 26,218.00 11,150.00 3.86 NM 13.1x 18.8x

AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) 2.15 97.57 46.88 17.44 (33.49) (1.05) 2.7x NM NM

Achillion Pharmaceuticals, Inc. (NasdaqGS:ACHN) 4.59 627.56 249.02 15.00 (66.23) (0.47) NM NM NM

Acorda Therapeutics, Inc. (NasdaqNM:ACOR) 19.70 919.19 1,112.69 523.08 20.62 (1.16) 2.1x NM NM

Adamas Pharmaceuticals, Inc. (NasdaqGM:ADMS) 17.49 391.07 278.99 0.40 (64.67) (2.84) NM NM NM

Akorn, Inc. (NasdaqGS:AKRX) 33.54 4,184.58 4,687.13 1,101.92 445.85 1.46 4.3x 10.5x 22.9x

Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) 121.67 27,321.79 29,140.79 3,253.00 1,256.00 2.10 NM 23.2x NM

Alimera Sciences, Inc. (NasdaqGM:ALIM) 1.39 90.21 166.02 35.15 (21.82) (0.50) 4.7x NM NM

Allergan plc (NYSE:AGN) 243.09 81,645.92 109,384.32 14,744.20 5,796.20 (9.97) NM 18.9x NM

Amphastar Pharmaceuticals, Inc. (NasdaqGS:AMPH) 17.86 816.88 775.78 252.47 25.34 0.19 3.1x NM NM

Ampio Pharmaceuticals, Inc. (AMEX:AMPE) 0.52 35.56 33.21 - (12.45) (0.26) NM NM NM

ANI Pharmaceuticals, Inc. (NasdaqGM:ANIP) 46.80 544.56 686.23 144.70 58.86 0.32 4.7x 11.7x NM

Antares Pharma, Inc. (NasdaqCM:ATRS) 3.22 502.08 478.40 51.91 (19.23) (0.14) NM NM NM

Aradigm Corporation (NasdaqCM:ARDM) 1.31 19.44 15.87 1.88 (24.57) (1.93) NM NM NM

Array BioPharma Inc. (NasdaqNM:ARRY) 8.37 1,429.60 1,354.35 41.51 (96.30) (0.72) NM NM NM

PRODUCTS - PHARMACEUTICALS

PRODUCTS - CONSUMER

27


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Arrowhead Pharmaceuticals, Inc. (NasdaqGS:ARWR) 1.62 121.13 36.58 13.42 (61.94) (0.89) 2.7x NM NM

Astellas Pharma Inc. (TSE:4503) 12.24 25,302.50 22,286.09 11,763.81 3,027.85 0.93 1.9x 7.4x 13.2x

AstraZeneca PLC (LSE:AZN) 66.69 84,412.73 100,633.88 22,292.00 5,842.00 2.67 4.5x 17.2x 25.0x

BioDelivery Sciences International, Inc. (NasdaqCM:BDSI) 2.80 154.91 154.50 40.83 (35.53) (0.00) 3.8x NM NM

Bristol-Myers Squibb Company (NYSE:BMY) 55.72 91,794.80 94,238.80 19,965.00 6,893.00 2.88 4.7x 13.7x 19.4x

Cempra, Inc. (NasdaqGS:CEMP) 4.60 241.52 52.42 20.21 (103.09) (2.17) 2.6x NM NM

Clovis Oncology, Inc. (NasdaqGS:CLVS) 93.63 4,558.86 4,431.48 7.12 (262.07) (8.13) NM NM NM

Compugen Ltd. (NasdaqGM:CGEN) 3.80 194.30 139.81 0.62 (30.92) (0.62) NM NM NM

Corcept Therapeutics Incorporated (NasdaqCM:CORT) 11.80 1,335.61 1,292.95 92.86 14.40 0.11 NM NM NM

Curis, Inc. (NasdaqGM:CRIS) 1.89 271.73 255.74 7.93 (46.08) (0.49) NM NM NM

Depomed, Inc. (NasdaqGS:DEPO) 10.74 669.54 1,198.46 441.56 125.09 (1.54) 2.7x 9.6x NM

DURECT Corporation (NasdaqGM:DRRX) 1.56 221.47 224.66 14.98 (32.18) (0.26) NM NM NM

Egalet Corporation (NasdaqGM:EGLT) 2.37 59.30 77.76 19.73 (79.93) (3.96) 3.9x NM NM

Egalet Corporation (NasdaqGM:EGLT) 2.37 59.30 77.76 19.73 (79.93) (3.96) 3.9x NM NM

Eli Lilly and Company (NYSE:LLY) 82.30 86,574.08 93,379.78 21,585.30 5,639.70 2.07 4.3x 16.6x NM

Elite Pharmaceuticals, Inc. (OTCPK:ELTP) 0.19 145.80 137.86 9.64 (6.66) (0.01) NM NM NM

Endo International plc (NasdaqNM:ENDP) 11.17 2,492.17 10,124.75 4,084.34 411.84 (14.81) 2.5x 24.6x NM

Foamix Pharmaceuticals Ltd. (NasdaqGM:FOMX) 4.64 173.66 73.15 5.71 (39.50) (1.16) NM NM NM

GlaxoSmithKline plc (LSE:GSK) 21.24 103,119.05 126,005.36 36,371.38 9,137.93 0.43 3.5x 13.8x NM

Heska Corporation (NasdaqCM:HSKA) 102.07 726.33 714.97 133.32 21.99 1.87 NM NM NM

ImmunoGen, Inc. (NasdaqGS:IMGN) 7.11 635.27 605.83 51.80 (104.78) (1.64) NM NM NM

Impax Laboratories, Inc. (NasdaqGS:IPXL) 16.10 1,186.57 1,812.23 783.32 148.90 (7.85) 2.3x 12.2x NM

Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) 1.57 79.20 3.77 9.47 (88.20) 0.00 0.4x NM NM

Innocoll Holdings plc (NasdaqGM:INNL) 2.28 68.62 91.60 4.02 (50.40) (1.64) NM NM NM

Innoviva, Inc. (NasdaqGS:INVA) 12.80 1,399.74 1,938.96 149.89 120.94 0.63 NM 16.0x 20.2x

INSYS Therapeutics, Inc. (NasdaqGM:INSY) 12.65 912.44 757.16 217.82 3.16 (0.02) 3.5x NM NM

Ironwood Pharmaceuticals, Inc. (NasdaqGS:IRWD) 18.88 2,805.88 2,899.95 260.08 (64.81) (0.83) NM NM NM

Jazz Pharmaceuticals PLC (NasdaqGS:JAZZ) 155.50 9,344.14 10,812.84 1,528.02 760.64 6.62 NM 14.2x 23.5x

Johnson & Johnson (NYSE:JNJ) 132.29 356,366.77 349,730.77 72,174.00 25,120.00 5.95 4.8x 13.9x 22.2x

Juniper Pharmaceuticals, Inc. (NasdaqGS:JNP) 5.05 54.76 37.42 55.34 7.46 0.56 0.7x 5.0x 8.9x

Karyopharm Therapeutics Inc. (NasdaqGS:KPTI) 9.05 426.42 316.54 0.22 (112.94) (2.88) NM NM NM

Lannett Company, Inc. (NYSE:LCI) 20.40 759.50 1,542.00 667.11 261.24 (0.07) 2.3x 5.9x NM

Mallinckrodt Public Limited Company (NYSE:MNK) 44.81 4,451.72 10,131.82 3,314.70 744.30 (7.49) 3.1x 13.6x NM

Merck & Co., Inc. (NYSE:MRK) 64.09 175,296.69 188,807.69 39,929.00 15,155.00 1.57 4.7x 12.5x NM

Mylan N.V. (NasdaqGS:MYL) 38.82 20,807.56 34,896.86 11,605.10 3,803.40 1.00 3.0x 9.2x NM

Neos Therapeutics, Inc. (NasdaqGM:NEOS) 7.30 199.73 211.51 12.20 (77.12) (5.18) NM NM NM

Novartis AG (SWX:NOVN) 83.29 196,181.89 220,375.21 49,361.00 14,339.00 2.66 4.5x 15.4x NM

Novo Nordisk A/S (CPSE:NOVO B) 42.78 105,858.65 103,226.59 16,251.23 7,586.98 2.20 NM 13.6x 19.4x

Opko Health, Inc. (NasdaqGS:OPK) 6.58 3,680.78 3,653.05 1,226.72 43.12 (0.08) 3.0x NM NM

28


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Osiris Therapeutics, Inc. (OTCPK:OSIR) 6.40 220.97 - 86.60 4.41 0.05 NM NM NM

Pacira Pharmaceuticals, Inc. (NasdaqGS:PCRX) 47.70 1,912.48 1,795.53 280.18 (31.10) (1.44) NM NM NM

Pernix Therapeutics Holdings, Inc. (NasdaqGM:PTX) 4.02 40.26 309.42 138.13 1.79 (19.67) 2.2x NM NM

Perrigo Company plc (NYSE:PRGO) 75.52 10,829.36 13,522.56 5,127.30 1,118.60 (23.80) 2.6x 12.1x NM

Pfizer Inc. (NYSE:PFE) 33.59 200,459.90 230,310.90 52,598.00 19,512.00 1.19 4.4x 11.8x 28.3x

Phibro Animal Health Corporation (NasdaqGM:PAHC) 37.05 1,475.32 1,735.48 758.62 116.09 1.61 2.3x 14.9x 23.0x

Progenics Pharmaceuticals, Inc. (NasdaqGS:PGNX) 6.79 476.83 399.37 69.33 9.25 0.10 NM NM NM

Recro Pharma, Inc. (NasdaqCM:REPH) 7.03 133.95 102.95 70.34 (9.47) (2.41) 1.5x NM NM

Rigel Pharmaceuticals, Inc. (NasdaqNM:RIGL) 2.73 334.25 236.10 18.94 (61.86) (0.67) NM NM NM

Roche Holding AG (SWX:ROG) 254.89 217,626.44 234,038.95 51,818.31 20,307.55 10.96 4.5x 11.5x 23.3x

Sanofi (ENXTPA:SAN) 95.56 116,776.49 126,410.26 38,149.06 11,262.30 3.88 3.3x 11.2x 24.6x

Sarepta Therapeutics, Inc. (NasdaqGS:SRPT) 33.71 1,852.54 1,475.91 21.76 (236.66) (2.42) NM NM NM

SciClone Pharmaceuticals, Inc. (NasdaqGS:SCLN) 11.00 569.69 428.35 166.49 39.03 0.71 2.6x 11.0x 15.5x

Sucampo Pharmaceuticals, Inc. (NasdaqNM:SCMP) 10.50 487.88 536.77 239.13 128.05 0.60 2.2x 4.2x 17.5x

Supernus Pharmaceuticals, Inc. (NasdaqGM:SUPN) 43.10 2,167.17 2,083.35 228.39 67.28 1.86 NM NM 23.2x

Takeda Pharmaceutical Company Limited (TSE:4502) 50.82 39,836.96 47,690.86 15,534.09 2,622.10 1.31 3.1x 18.2x NM

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) 112.06 4,539.91 3,159.46 879.39 530.06 11.06 3.6x 6.0x 10.1x

Teligent, Inc. (NasdaqGS:TLGT) 9.15 487.02 541.22 71.12 9.15 (0.19) NM NM NM

Teva Pharmaceutical Industries Limited (NYSE:TEVA) 33.22 33,751.52 72,829.52 22,723.00 7,320.00 0.08 3.2x 9.9x NM

TherapeuticsMD, Inc. (AMEX:TXMD) 5.27 1,074.55 961.03 18.41 (90.40) (0.46) NM NM NM

Valeant Pharmaceuticals International, Inc. (TSX:VRX) 17.34 27,899.20 57,468.90 9,411.00 3,897.00 (4.05) NM 14.7x NM

Zoetis Inc. (NYSE:ZTS) 62.38 30,616.10 34,464.10 4,957.00 1,708.00 1.72 NM 20.2x NM

Zogenix, Inc. (NasdaqGM:ZGNX) 14.50 359.80 302.03 22.34 (68.12) (3.21) NM NM NM

MEAN (PHARMACEUTICALS) 3.2x 13.3x 19.9x

MEDIAN (PHARMACEUTICALS) 3.1x 13.4x 21.2x

AmerisourceBergen Corporation (NYSE:ABC) 94.53 20,641.57 22,692.58 149,758.95 2,340.78 5.15 0.2x 9.7x 18.3x

Aceto Corporation (NasdaqGS:ACET) 15.45 465.06 771.17 579.12 63.31 0.52 1.3x 12.2x 29.5x

Cardinal Health, Inc. (NYSE:CAH) 77.92 24,613.37 28,842.37 128,394.00 3,099.00 4.19 0.2x 9.3x 18.6x

CVS Health Corporation (NYSE:CVS) 80.46 81,892.19 107,028.19 178,825.00 12,813.00 4.80 0.6x 8.4x 16.7x

Diplomat Pharmacy, Inc. (NYSE:DPLO) 14.80 993.95 1,114.71 4,493.26 75.88 0.25 0.2x 14.7x NM

Henry Schein, Inc. (NasdaqNM:HSIC) 183.02 14,518.88 16,582.30 11,781.66 1,004.74 6.58 1.4x 16.5x 27.8x

McKesson Corporation (NYSE:MCK) 164.54 34,793.02 42,060.02 198,533.00 4,354.00 23.28 0.2x 9.7x 7.1x

Medicines Company (NasdaqGS:MDCO) 38.01 2,741.92 2,989.51 141.75 (306.00) (1.87) NM NM NM

Owens & Minor, Inc. (NYSE:OMI) 32.19 1,970.08 2,407.06 9,596.21 254.51 1.68 0.3x 9.5x 19.1x

Patterson Companies, Inc. (NasdaqNM:PDCO) 46.95 4,456.10 5,434.35 5,593.13 408.06 1.82 1.0x 13.3x 25.8x

PetMed Express, Inc. (NasdaqGS:PETS) 40.60 823.91 765.19 249.18 38.85 1.17 3.1x 19.7x NM

PharMerica Corporation (NYSE:PMC) 26.25 816.23 1,267.33 2,133.40 130.20 0.67 0.6x 9.7x NM

Premier, Inc. (NasdaqGS:PINC) 36.00 1,863.21 2,010.63 1,353.00 395.31 2.12 1.5x 5.1x 17.0x

PRODUCTS - DISTRIBUTION

29


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Prestige Brands Holdings, Inc. (NYSE:PBH) 52.81 2,796.56 4,948.44 882.06 304.43 1.30 NM 16.3x NM

Rite Aid Corporation (NYSE:RAD) 2.95 3,108.32 10,134.14 32,442.35 999.93 (0.06) 0.3x 10.1x NM

Vitamin Shoppe, Inc. (NYSE:VSI) 11.65 277.81 397.95 1,269.37 108.63 0.78 0.3x 3.7x 15.0x

MEAN (DISTRIBUTION) 0.8x 11.2x 19.5x

MEDIAN (DISTRIBUTION) 0.5x 9.7x 18.5x

MEAN (PRODUCTS) 2.9x 15.5x 20.6x

MEDIAN (PRODUCTS) 3.0x 14.9x 20.9x

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

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

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

4) LTM: Latest Twelve Months

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

6) NA: Not Available

7) NM: Not Meaningful

Note: Disclaimer

In the preparation of the information contained in this document, Scott-Macon, Ltd. has endeavored to present information that is as accurate and cur-

rent as possible from sources believed to be reliable. However, inadvertent errors can occur. Therefore, the information is provided “as is”, without any

representation or warranty of any kind, expressed or implied. Any reproduction, retransmission, republication, or other use of all or part of this docu-

ment is expressly prohibited, unless written permission has been granted by Scott-Macon, Ltd. All other rights are reserved.

Copyright 2017 © Scott-Macon, Ltd.

ABOUT SCOTT-MACON

Scott-Macon is an investment banking firm providing corporate advisory services to a broad range of industries, including a spe-

cific focus on the healthcare, medical and pharmaceutical services and products industries. Founded in 1973, Scott-Macon has

20 senior professionals with an average of 20 years’ experience in investment banking.

SERVICES AND CAPABILITIES

Corporate Sales — Assisting privately-held and publicly-traded companies to arrange sale, divestiture and merger transac-

tions as well as corporate valuations for board or management use.

Acquisition Advisory — Providing assistance in identifying acquisition prospects, contacting companies, and negotiating ac-

quisition transactions.

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

Strategic Planning — Planning overall corporate objectives, reviewing strategic alternatives, and creating plans for maximiz-

ing value.

HEALTHCARE INVESTMENT BANKING GROUP

PROFESSIONALS

Robert B. Dimmitt

Senior Managing Director

[email protected]

Spencer R. Berg

Vice President

[email protected]

Leslie S. Lau

Vice President

[email protected]

Peter J. Moreno

Associate

[email protected]

Nathan D. Cortright

Group Head

[email protected]

Jeffrey M. Tepper

Managing Director

[email protected]

Joshua H. Keatts

Vice President

[email protected]

George B. James

Senior Associate

[email protected]

Merritt Piro

Analyst

[email protected]

CONTACT INFORMATION

Telephone: 212-755-8200

Facsimile: 212-755-8255

www.scott-macon.com

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