SCOTT MACON HEALTHCARE REVIEW: MAY 2018 · Analysis of Selected Healthcare, Medical and 6 ......

SCOTT-MACON HEALTHCARE REVIEW:

MAY 2018

May 2018 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

May 1—May 31, 2018

Analysis of Selected 11

Publicly-Traded Healthcare, Medical and

Pharmaceutical Companies

Scott-Macon Professionals’ 21

Representative Closed Transactions

Scott-Macon Contact Information 22

CO

NT

EN

TS

2

M A Y 2 0 1 8

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

Dear Clients and Friends,

Scott-Macon is pleased to present our

Healthcare Review covering May 2018. If

you haven’t done so already, please email

me at [email protected] to auto-

matically continue receiving our publica-

tions in the future as we are transitioning to

digital publishing with email distribution.

Pages four and five represent a visual

snapshot of the average multiples for all of

the healthcare, medical and pharmaceutical

transactions that either closed or were an-

nounced during May, along with the aver-

age multiples for the major publicly-traded

healthcare, medical and pharmaceutical

companies.

In the Insurance Services segment, the

big news for May was WellCare’s an-

nounced takeover of long-time Medicaid

player Caidan in Detroit for a cool $2.5 bil-

lion. Moving to Technology Services, an in-

vestment firm announced an eye-popping

$6.8 billion deal for athenahealth in the

highly competitive EHR space for enor-

mous multiples, yet another sign of how

healthcare technology companies have be-

come favorite investment vehicles by both

strategic corporate as well as financial in-

vestors. Intermedix went public with its

$460 million sale to R1 RCM, or 2.4X reve-

nues and 9.6X EBITDA. In addition, Exl

Services announced its deal for SCIOInspire

for $240 million, and Allscripts closed on

HealthGrid for $110 million. In the Out-

sourcing Services arena, both Stryker and

TransUnion announced or closed deals in

May..

In the Provider arena, Myriad Genet-

ics announced its $375 million deal for

Counsyl for $375 million, or 2.8X revenues.

In Home Health and Hospice, Encompass

closed on Camellia for $135 million, or

1.7X revenues, and Addus closed on Am-

bercare for $40 million, or 0.7X revenues.

In the Non-Acute space, giant Blues insurer

Anthem announced its deal for outpatient

services company Aspire Health, yet anoth-

3

er example of payers and providers hooking

up. In Long-Term Care, the month’s biggest

deal was MBK’s announced $382 million

deal for nine properties from WESTliving.

Looking last at the Product area, in

Clinical Devices we saw MedPlast’s an-

nounced $600 million deal for product lines

of Advanced Surgical, equal to 1.5X reve-

nues. In addition, DENTSPLY and Stryker

closed deals in May. In Non-Clinical Devic-

es, Zoetis announced a deal for Abaxis for

$1.8 billion. Commercial Products wit-

nessed three significant deals: Precision En-

gineered/Paragon Medical for $375 million,

or 2.7X revenues; Agilent/Advanced Ana-

lytical for $250 million; and Superior Uni-

form/CID for $88 million, or 1.4X reve-

nues. Pharmaceuticals saw a bit of activity,

the largest of which was Aurora Cannabis/

MedReleaf for $2.3 billion, one of many

cannabis-related deals in May as the domes-

tic market for both medical and non-medical

marijuana continues to expand. In addition,

Eli Lilly announced its deal for AurKa for

$575 million, and AmNeal closed on Gemi-

ni for $119 million.

Following the mergers and acquisi-

tions analysis, we present an analysis of

publicly-traded Services, Providers, and

Products companies by sector. Mean

EBITDA multiples for Services companies

ended May at 15.6X (up from 13.6X in

April 2018); Providers at 13.3X (up from

12.0X in April 2018); and Products at 15.5X

(up from 15.1X in April 2018). Technology

services companies ended May at 22.8X,

while Outsourcing services companies were

15.7X. The Insurance segment EBITDA

multiple came in at 11.2X (up from 10.6X

April 2018).

Finally, contact information for the

Scott-Macon Healthcare Investment Bank-

ing Group Professionals appears on the back

cover. We welcome your call or email to

discuss your thoughts on this article.

Sincerely yours,

Nathan D. Cortright

Managing Director

Group Head – Healthcare Investment Banking

4

2.0x 1.8x2.7x2.4x

1.7x 1.7x

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

3.0x 2.7x 3.1x 3.1x1.4x

NA NA

2.0x

Clinical Devices Non-Clinical Devices Disposables Commercial

PRODUCTS: Revenue Multiple

2.5x 3.1x

0.8xNA

1.7xNA

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

1.3x3.0x

2.0x 1.7x2.8x

NA

2.4x

NA NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: Revenue Multiple

2.6x 2.2x 1.8x 1.3x 1.1x2.8x

1.2xNA NA NA

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

PROVIDERS: Revenue Multiple

5

15.6x13.3x

15.5x

9.6x

NA NA

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

18.1x15.6x

19.6x 19.5x

NA NA NA NA

Clinical Non-Clinical Disposables Commercial

PRODUCTS: EBITDA Multiple

11.2x

22.8x

15.7x12.6x

23.5x

NA

9.6x

NA NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: EBITDA Multiple

10.7x

21.6x

12.2x15.0x

10.1x

NA NA NA NA NA

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

PROVIDERS: EBITDA Multiple

15.8x13.3x

9.7x

NA NA NA

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

6 ANALYSIS OF SELECTED HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS MERGER & ACQUISITION TRANSACTIONS1

(CLOSED OR ANNOUNCED BETWEEN MAY 1—MAY 31, 2018) ($ Millions Except Per Share Data)

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

5/22/2018 Wea Insurance Corp /

Health Tradition Health Plan

NA NA NA NA NA Offers health insurance plans.

Announced WellCare Management Group, Inc. /

Caidan Holding Company, Inc.; Caidan Management Company,

LLC; MeridianRx, LLC

$2,500.0 NA NA NA NA Provide Medicare, Medicaid and health insurance

services.

MEAN (INSURANCE) NA NA

MEDIAN (INSURANCE) NA NA

5/21/2018 Allscripts Healthcare, LLC /

HealthGrid

$110.0 NA NA NA NA Designs and develops patient engagement

solutions.

5/24/2018 ChroMedX Corp. (DB:EIY2) /

UX Data Sciences Corp.

$4.3 NA NA NA NA Designs and develops UX centric products and

system solutions for tracking and monitoring

patient compliance and medication adherence.

5/14/2018 Cumberland Consulting Group, LLC /

LinkEHR, LLC

NA NA NA NA NA Provides remote application support services to

healthcare industry.

Announced East Ocean Ventures; Tianjin Dazhen Asset Management Co.,

Ltd. /

RADLogics Inc.

NA NA NA NA NA Develops radiology image analytics software

platform for healthcare providers and radiologists.

Announced Elliott Management Corporation /

athenahealth, Inc. (NasdaqGS:ATHN)

$6,833.1 NM NM NM NM Provides network-based medical record, revenue

cycle, patient engagement, care coordination, and

population health services for medical groups and

health systems.

Announced Exl Service.com, LLC /

SCIOInspire, Corp.

$240.0 NA NA NA NA Provides healthcare analytics solutions and

services.

Announced Health Catalyst Inc. /

Medicity, Inc.

NA NA NA NA NA Develops software solutions for health information

exchange, business intelligence, and provider and

patient engagement.

5/14/2018 NovaQuest Capital Management, L.L.C.; Research Triangle

Institute /

Clinical Ink, Inc.

NA NA NA NA NA Provides eSource solutions and patient

engagement technologies for clinical trails data

capture.

5/8/2018 R1 RCM Inc. (NasdaqCM:RCM) /

Intermedix Corporation

$460.0 $193.0 $48.0 2.4x 9.6x Provides technology-enabled solutions that

supports and connects healthcare providers,

public health agencies, and emergency

management personnel.

Announced ResMed Inc. (NYSE:RMD) /

HEALTHCAREfirst Inc.

NA NA NA NA NA Develops and offers software and services that

improve business and clinical functions in home

healthcare and hospice care agencies.

MEAN (TECHNOLOGY) 2.4x 9.6x

MEDIAN (TECHNOLOGY) 2.4x 9.6x

5/20/2018 Aya Healthcare, Inc. /

Locums Unlimited, LLC

NA NA NA NA NA Provides healthcare staffing solutions.

5/1/2018 CareerStaff Unlimited, Inc. /

Remedy Rehab, Inc.

NA NA NA NA NA Provides rehabilitation therapy staffing of physical

and occupational therapist and speech-language

pathologists for healthcare organizations.

5/17/2018 Dipharma Inc. /

Kalexsyn, Inc.

NA NA NA NA NA A contract research organization which provides

medicinal chemistry services to the

pharmaceutical industry.

5/1/2018 GP Strategies Corporation (NYSE:GPX) /

IC Axon Inc.

$26.0 NA NA NA NA Develops clinical and sales training solutions to

pharmaceutical, biopharma, veterinary medicine,

and medical device industries.

5/3/2018 Innomar Strategies Inc. /

Therapeutic Products Inc.

NA NA NA NA NA Provides regulatory and quality assurance

consultation services to the pharmaceutical and

healthcare industry.

5/10/2018 Jeffersontown Propco LLC /

Evangelical Lutheran Good Samaritan Society

$3.5 NA NA NA NA Acts as a resource center for finding and

providing appropriate health care for patients.

Announced Medical Transcription Billing, Corp. (NasdaqCM:MTBC) /

Assets of Orion Healthcorp, Inc. and its 13 Affiliates

NA NA NA NA NA Comprise revenue cycle, practice management,

and group purchasing organization assets.

5/16/2018 PSKW, LLC /

Macaluso Group, LLC

NA NA NA NA NA Provides information-based pharmacy benefits

and patient assistance programs for the


5/1/2018 Stryker Sustainability Solutions, Inc. /

Hygia Health Services, Inc.

NA NA NA NA NA Operates as a third party reprocessor of non-

critical and semi-critical single-use medical

devices.

Announced TransUnion (NYSE:TRU) /

Healthcare Payment Specialists, LLC

NA NA NA NA NA Provides healthcare reimbursement calculation

services for hospitals on various reimbursement

and payment issues.

SERVICES - INSURANCE

SERVICES - TECHNOLOGY

SERVICES - OUTSOURCING

7


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

5/9/2018 Unknown Buyer /

Mark Krueger & Associates, Inc.

NA NA NA NA NA Provides healthcare consulting services to

pharmaceutical, biotech, device, and diagnostic

companies.

MEAN (OUTSOURCING) NA NA

MEDIAN (OUTSOURCING) NA NA

5/29/2018 Linden LLC /

Evolution Research Group, LLC

NA NA NA NA NA Provides medical and scientific clinical research

site services in the neurosciences area.

5/2/2018 Physicians' Education Resource, LLC /

Winter Lung Cancer Conference

NA NA NA NA NA Comprises medical education event.

MEAN (INFORMATION) NA NA

MEDIAN (INFORMATION) NA NA

MEAN (SERVICES) 2.4x 9.6x

MEDIAN (SERVICES) 2.4x 9.6x

5/17/2018 California Cryobank Stem Cell Services LLC /

All Assets of Cord Blood America, Inc.

$15.5 NA NA NA NA Provides cord blood and cord tissue stem cell

services.

Announced Myriad Genetics, Inc. (NasdaqGS:MYGN) /

Counsyl, Inc.

$375.0 $134.0 NA 2.8x NA Provides genetic testing and DNA analysis

services.

5/3/2018 PolarityTE, Inc. (NasdaqCM:COOL) /

Assets And Rights To A Preclinical Research And Veterinary

Sciences Business In Utah

$1.6 NA NA NA NA Comprises a preclinical research facility.

MEAN (LABS) 2.8x NA

MEDIAN (LABS) 2.8x NA

5/1/2018 Addus HealthCare Inc. /

Ambercare Corporation

$40.0 $57.0 NA 0.7x NA Provides homecare and hospice care services.

5/2/2018 Associated Home Care LLC /

East Tennessee Personal Care Service, LLC

NA NA NA NA NA Offers personal home care services.

Announced Aveanna Healthcare /

Premier Healthcare Services, LLC

NA NA NA NA NA Provides home care services for pediatric and

adult patients.

5/15/2018 Blue Wolf Capital Partners LLC; Kelso & Company /

Jordan Health Services, Inc.

NA NA NA NA NA Provides home care to adult and pediatric

patients.

5/1/2018 Encompass Health Corporation (NYSE:EHC) /

Camellia Healthcare

$135.0 $78.0 NA 1.7x NA Provides hospice, home health care, and private

duty services.

Announced Hospice of Central New York /

Hospice of the Finger Lakes

NA NA NA NA NA Owns and operates hospice centers.

Announced LHC Group, Inc. (NasdaqGS:LHCG) /

St. Mary's Home Care Services

NA NA NA NA NA Offers home care and rehabilitation services.

Announced Natur Holdings B.V. /

Future Healthcare of America (OTCPK:FUTU)

NA NA NA NA NA Provides home healthcare and healthcare staffing

services.

5/9/2018 Simplura Health Group /

Keystone In-Home Care, Inc.

NA NA NA NA NA Offers mental and physical home care services.

5/1/2018 Tailwind Capital Group, LLC /

Abode Healthcare, Inc.

NA NA NA NA NA Provides home health and hospice treatment

services to patients and families.


HomeWell Senior Care, Inc.

NA NA NA NA NA Owns and operates senior living facilities that

provide home care services to seniors.

MEAN (HOME HEALTH & HOSPICE) 1.2x NA

MEDIAN (HOME HEALTH & HOSPICE) 1.2x NA

5/11/2018 Akumin Inc. (TSX:AKU.U) /

Four Imaging Centers in Florida

NA NA NA NA NA Comprises imaging centers.

5/3/2018 AmeriHealth Administrators, Inc. /

Assets of Comprehensive Care Services, Inc.

NA NA NA NA NA Provides health care service.

Announced Anthem, Inc. (NYSE:ANTM) /

Aspire Health, Inc.

NA NA NA NA NA Operates a network of outpatient palliative care

practices that provide medical care for patients

facing a serious illness.

Announced Baylor Scott & White Health LLC; Select Medical Holdings

Corporation (NYSE:SEM) /

Vibra Hospital of Lake Travis LLC

NA NA NA NA NA Offers physical therapy and long-term

rehabilitation services.

5/23/2018 BenchMark Rehabilitation Partners, LLC /

c.h. Physical Therapy LLC

NA NA NA NA NA Provides physical therapy services.

5/1/2018 CRH Medical Corporation (TSX:CRH) /

Western Ohio Sedation Associates, LLC

NA NA NA NA NA Provides anesthesia services.

5/14/2018 Manhattan Cardiology, P.C.; Medical Offices of Manhattan /

Yaffe Ruden & Associates, LLP

NA NA NA NA NA Offer healthcare services.

5/15/2018 Northside Hospital, Inc. /

Northeast Georgia diagnostic clinic in Gainesville

NA NA NA NA NA Comprises a healthcare facility.

5/15/2018 Nueterra Holdings LLC; The Rothman Institute; Thomas Jefferson

University Hospitals, Inc. /

Blue Bell Surgery Center Management Company, LLC

NA NA NA NA NA Owns and operates as an ambulatory surgical

center.

SERVICES - INFORMATION

PROVIDERS - LABS

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

8


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Penn State Milton S. Hershey Medical Center /

Andrews & Patel Associates, P.C.

NA NA NA NA NA Provides oncology and hematology services.

5/15/2018 Pinnacle Dermatology, LLC /

Spencer Dermatology Associates, LLC

NA NA NA NA NA Provides dermatological services.

5/24/2018 Preferred Medical Imaging, LLC /

Seven Texas Based Diagnostic Imaging Centers

NA NA NA NA NA Comprises seven diagnostic imaging centers.

Announced Premier Health Group Inc. (CNSX:PHGI) /

HealthVue Ventures Ltd.

$1.2 NA NA NA NA Owns and operates a chain of medical clinics.

5/16/2018 Quip NYC Inc. /

Lavaan DL LLC

NA NA NA NA NA Provides dental cleaning, whitening, and

straightening services.

5/15/2018 Spindletop Capital /

Austin Institute for Clinical Research; Bonnie Furner, MD;

DermaSurgery Center; Sanova Dermatology, PLLC

NA NA NA NA NA Offer dermatologists services.

5/10/2018 TED Ventures, LLC /

All Assets of LuminCare Group, LLC

NA NA NA NA NA Comprises patient focused clinic that provides

personalized care.

5/1/2018 U.S. Dermatology Partners /

Trinity Dermatology, PA

NA NA NA NA NA Provides medical and cosmetic dermatology

treatments.

Announced Unknown Buyer /

Athens Bone & Joint, P.C.

NA NA NA NA NA Operates as an orthopedic surgery clinic and

provides orthopedic services.

MEAN (NON-ACUTE) NA NA

MEDIAN (NON-ACUTE) NA NA

5/1/2018 1031 Crowdfunding, LLC; Seasons Management, LLC /

48-Bed Memory Care Facility in Hillsboro, Oregon

$14.0 NA NA NA NA Comprises assisted living facility.

5/8/2018 Avenir Healthcare Group /

Optima Portfolio of Skilled Nursing Facilities

NA NA NA NA NA Comprises nursing home facilities.

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

104 Suite Living Residence in Edmonton, Alberta

$15.6 NA NA NA NA Comprises a senior living facility.

5/17/2018 Clearwater Living Management Inc. /

Clearwater at Riverpark LLC

NA NA NA NA NA Operates a senior living community.

Announced MBK Real Estate, LLC /

Nine Senior Living Properties and their Operations in the U.S. of

WESTliving, LLC

$382.0 NA NA NA NA Comprises senior living properties.

5/1/2018 National Health Investors, Inc. (NYSE:NHI) /

Five Assisted Living/Memory Care Communities in Columbus and

Cleveland, Ohio and Erie, Pennsylvania

$67.5 NA NA NA NA Comprises assisted living facilities.

MEAN (LONG-TERM CARE) NA NA

MEDIAN (LONG-TERM CARE) NA NA

Announced Heritage Valley Health System, Inc. /

Ohio Valley Hospital LLC

NA NA NA NA NA Operates a hospital providing health care

services.

5/15/2018 McLaren Health Care Corporation /

McLaren Thumb Region

NA NA NA NA NA Owns and operates a medical center.

Announced OEP Capital Advisors, L.P. /

Ernest Health, Inc.

NA NA NA NA NA Owns and operates community-based acute

rehabilitation and long-term acute care facilities.

5/1/2018 St. Luke's Hospital /

Des Peres Hospital, Inc.

NA NA NA NA NA Owns and operates a hospital.

MEAN (ACUTE) NA NA

MEDIAN (ACUTE) NA NA

MEAN (PROVIDERS) 1.7x NA

MEDIAN (PROVIDERS) 1.7x NA

5/7/2018 Celularity, Inc. /

All Assets of Alliqua BioMedical, Inc.

$26.9 $20.5 NM 1.3x NM Comprises regenerative medical products that

assist the body in the repair or replacement of soft

tissue.

5/24/2018 Cutting Edge HC, Inc. /

Respiratory Therapeutics Group, LLC

NA NA NA NA NA Develops, manufactures, promotes, and

distributes respiratory therapy products and

technologies.

5/1/2018 DENTSPLY SIRONA Inc. (NasdaqGS:XRAY) /

OraMetrix, Inc.

NA NA NA NA NA Provides 3-D technology solutions for orthodontic

care.

5/1/2018 DNA Diagnostics Center, Inc. /

ContraVac, Inc.

NA NA NA NA NA Develops products for male reproductive

healthcare.

5/18/2018 Graphic Controls Acquisition Corporation /

Assets of Heart Sync, Inc.

NA NA NA NA NA Comprises defibrillation electrodes and other

medical devices manufacturing business.

5/21/2018 In'Tech Medical S.A.S. /

Bradshaw Medical, Inc.

NA NA NA NA NA Designs and develops OEM orthopedic and spinal

surgical instruments.

Announced MedPlast Inc. /

Advanced Surgical and Orthopedics Product Lines

$600.0 $400.0 NA 1.5x NA Comprises healthcare equipment manufacturing

business.

5/24/2018 Spectrum Plastics Group /

Fermatex Vascular Technologies, LLC

NA NA NA NA NA Manufactures medical catheter components.

5/1/2018 Stryker Corporation (NYSE:SYK) /

Mita LLC

NA NA NA NA NA Develops orthopedic device for hip distraction.

MEAN (CLINICAL DEVICES) 1.4x NA

MEDIAN (CLINICAL DEVICES) 1.4x NA

PROVIDERS - LONG-TERM CARE

PROVIDERS - ACUTE

PRODUCTS - CLINICAL DEVICES

9


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

5/23/2018 Astero Bio Corporation /

Former Assets and All Related Asset Rights of MedCision, Inc.

NA NA NA NA NA Comprises an automated instrument created to de-

risk thawing of live cell therapeutics and other

assets.

5/15/2018 Illumina, Inc. (NasdaqGS:ILMN) /

Edico Genome Inc.

NA NA NA NA NA Develops bioinformatics processor chip that helps

in DNA analysis.

Announced MiCo BioMed Co., Ltd. (XKON:A214610) /

Siloam Biosciences, Inc.

$4.4 NM NA NM NA Engages in research, development, production,

and sales of diagnostic kits and equipment based

on a biomedical microelectromechanical systems

platform.

5/9/2018 Team Technologies, Inc. /

DoseLogix, LLC

NA NA NA NA NA Manufactures topical dosing applicators.

Announced Zoetis Inc. (NYSE:ZTS) /

Abaxis, Inc. (NasdaqGS:ABAX)

$1,827.8 NM NM NM NM Develops, manufactures, markets, and sells

portable blood analysis systems for use in human

or veterinary patient care to provide rapid blood

constituent measurements for clinicians.

MEAN (NON-CLINICAL DEVICES) NA NA

MEDIAN (NON-CLINICAL DEVICES) NA NA

MEAN (DISPOSABLES) NA NA

MEDIAN (DISPOSABLES) NA NA

5/31/2018 Agilent Technologies, Inc. (NYSE:A) /

Advanced Analytical Technologies, Inc.

$250.0 NA NA NA NA Develops, manufactures, and markets nucleic

acid and genetic analysis systems.

5/7/2018 Precision Engineered Products LLC /

Paragon Medical, Inc.

$375.0 $141.0 NA 2.7x NA Designs, validates, and manufactures cases and

trays, reusable and single-use surgical

instruments, and implantable components for the

medical device marketplace.

5/2/2018 Superior Uniform Group, Inc. (NasdaqGM:SGC) /

CID Resources, Inc.

$88.2 $65.3 NA 1.4x NA Offers medical uniforms, nursing scrubs, tops,

pants, lab coats, and associated clothing used in

medical settings.

MEAN (COMMERCIAL) 2.0x NA

MEDIAN (COMMERCIAL) 2.0x NA

MEAN (CONSUMER PRODUCTS) NA NA

MEDIAN (CONSUMER PRODUCTS) NA NA

5/25/2018 10673242 Canada Inc. /

Enderlein Nurseries Ltd.

$1.9 NA NA NA NA Produces medical cannabis.

Announced 2114152 Alberta Ltd. /

Grunewahl Organics Inc.

$2.8 NA NA NA NA Focuses on the production and sale of medical

marijuana products.

Announced Aleafia Health Inc. (TSXV:ALEF) /

160,000 Square Feet Greenhouse Facility in Niagara Region

$7.5 NA NA NA NA Comprises greenhouse facility and growing

equipment for medical cannabis.

5/4/2018 Amneal Pharmaceuticals LLC /

Impax Laboratories, Inc. (NasdaqGS:IPXL)

NA NA NA NA NA Develops, manufactures, and markets

bioequivalent pharmaceutical products.

5/7/2018 Amneal Pharmaceuticals, Inc. (NYSE:AMRX) /

Gemini Laboratories, LLC

$119.7 NA NA NA NA Develops and markets pharmaceuticals and other

prescription products in various therapeutic areas.

5/7/2018 ANI Pharmaceuticals, Inc. (NasdaqGM:ANIP) /

A Portfolio of Generic Products and Other Assets

$2.3 NA NA NA NA Comprises five approved generic ANDAs and one

pipeline product.

Announced Aurora Cannabis Inc. (TSX:ACB) /

MedReleaf Corp. (TSX:LEAF)

$2,300.5 NM NM NM NM Produces and sells cannabis-based

pharmaceutical products.

5/2/2018 Avista Capital Holdings, L.P.; Dana Holdings LLC /

Kramer Laboratories, Inc.

NA NA NA NA NA Manufactures and markets over-the-counter

medicines for foot care and cough and cold.

5/10/2018 Beleave Inc. (CNSX:BE) /

9334416 Canada Inc.

$3.9 $2.3 NA 1.7x NA Owns and operates a network of medical

cannabis clinics for accessing medical cannabis.

5/17/2018 Cannabis Consortium, Inc. /

Indulge Oils

$4.0 NA NA NA NA Produces solvent-free cannabis oil.

5/17/2018 Cannabis Wheaton Income Corp. (TSXV:CBW) /

Dosecann Inc.

$28.1 NA NA NA NA Provides pharmaceutical research and

development for medical cannabis products.

5/11/2018 Cannabis Wheaton Income Corp. (TSXV:CBW) /

Robinson's Cannabis Incorporated

$11.5 NA NA NA NA Produces cannabis for medical use.

Announced Canopy Growth Corporation (TSX:WEED) /

Canopy Health Innovations Inc.

NA NA NA NA NA Engages in developing and researching clinically

ready whole plant cannabis drug formulations and

dose delivery systems.

Announced Chemistree Technology Inc. (OTCPK:CHMJ.F) /

Washington-Based Assets

$1.0 NA NA NA NA Comprises a suite of assets used in cannabis

cultivation, production, distribution, and branding.

5/3/2018 Choom Holdings Inc. (CNSX:CHOO) /

Island Green Cure Ltd.

$5.9 NA NA NA NA Researches, develops, and produces marijuana

for medical purposes.

5/15/2018 Cipher Pharmaceuticals Inc. (TSX:CPH) /

Cardiome Pharma Corp. (TSX:COM)

NA NA NA NA NA Specialty pharmaceutical company which

engages in the development and

commercialization of therapies for the treatment of

patients suffering from heart diseases.

PRODUCTS - DISPOSABLES

PRODUCTS - COMMERCIAL

PRODUCTS - CONSUMER

PRODUCTS - PHARMACEUTICALS

PRODUCTS - NON-CLINICAL DEVICES

10


Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Daré Bioscience, Inc. (NasdaqCM:DARE) /

Pear Tree Pharmaceuticals, Inc.

$0.2 NA NA NA NA Operates as a development stage pharmaceutical

company which engages in the development and

commercialization of pharmaceuticals for aging

women.

Announced Eli Lilly and Company (NYSE:LLY) /

AurKa Pharma Inc.

$575.0 NA NA NA NA Develops medication for cancer treatment.

5/2/2018 Emerald Health Therapeutics, Inc. (TSXV:EMH) /

8611165 Canada Inc.; 9353-8460 Québec Inc.

$70.1 NA NA NA NA Engage in production of Cannabis for


5/24/2018 FSD Pharma Inc. (CNSX:HUGE) /

FV Pharma Inc.

NA NA NA NA NA Focuses on the development and production of

pharmaceutical-grade cannabis products.

Announced Golden Leaf Holdings Ltd. (CNSX:GLH) /

Nevada and California Cannabis Cultivation Facilities

NA NA NA NA NA Comprises cannabis cultivation facilities.

5/22/2018 Grow Op Farms LLC /

Five-Leaf Remedies Inc.

NA NA NA NA NA Engages in growing and processing of medical

marijuana.

Announced Kaneh Bosm BioTechnology Inc. (CNSX:KBB) /

Marathon Global Inc.

$13.2 NA NA NA NA Procures and distributes medical cannabis

products.

Announced Leviathan Cannabis Group Inc. (CNSX:EPIC) /

Woodstock Biomed Inc.

$14.5 NA NA NA NA Engages in medicinal cannabis production.

5/29/2018 Marapharm Ventures Inc. (DB:2M0) /

Certain Operational Assets and Land and Water Rights

NA NA NA NA NA Comprises cannabis production rights.

Announced Radiant Health Care Inc. /

Tanta Therapeutics Inc.

NA NA NA NA NA Manufactures pharmaceuticals and distributes

over-the-counter drugs and medical devices.

Announced Santé Veritas Holdings Inc. (CNSX:SV) /

Sea Hunter Holdings, LLC

NA NA NA NA NA Provides cultivation, processing, and retailing of

medical cannabis.

5/1/2018 Sebela Pharmaceuticals, Inc. /

Braintree Laboratories, Inc.

NA NA NA NA NA Manufactures pharmaceutical products.

5/10/2018 Solis Tek Inc. (OTCPK:SLTK) /

YLK Partners NV, LLC

NA NA NA NA NA Provides turn-key services for the management,

administration, and operation of licensed medical

marijuana cultivation and processing.

Announced TurnKey Capital, Inc. (OTCPK:TKCI) /

HealthSpan Medical Systems, Inc.

NA NA NA NA NA Develops marijuana based intravenous therapy

infusion blends for healthcare practitioners.


Cannabis Wheaton Income Corp. (TSXV:CBW)

NA NA NM NA NM Provides funding for cannabis production; and

holds contractual rights and minority equity

interest relating to the operation of cannabis

facilities.

MEAN (PHARMACEUTICALS) 1.7x NA

MEDIAN (PHARMACEUTICALS) 1.7x NA

Announced High Hampton Holdings Corp. (CNSX:HC) /

Bravo Distro LLC

$3.5 NA NA NA NA Distributes medical cannabis.

Announced Santé Veritas Holdings Inc. (CNSX:SV) /

Briteside Holdings, LLC

NA NA NA NA NA Operates as a marijuana delivery company.

MEAN (DISTRIBUTION) NA NA

MEDIAN (DISTRIBUTION) NA NA

MEAN (PRODUCTS) 1.7x NA

MEDIAN (PRODUCTS) 1.5x NA

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

11

ANALYSIS OF SELECTED PUBLICLY-TRADED

HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS COMPANIES1

(May 31, 2018) ($ 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) 176.13 57,612.12 59,163.12 60,705.00 6,266.00 10.54 1.0x 9.4x 16.7x

Amerisafe, Inc. (NasdaqGS:AMSF) 59.65 1,148.91 1,112.84 371.84 83.86 2.54 3.0x 13.3x 23.5x

Anthem, Inc. (NYSE:ANTM) 221.42 56,506.22 72,373.32 90,063.20 5,735.80 15.59 0.8x 12.6x 14.2x

Centene Corporation (NYSE:CNC) 117.16 24,038.89 23,751.89 47,198.00 2,117.00 5.81 0.5x 11.2x 20.2x

Cigna Corporation (NYSE:CI) 169.37 41,202.33 43,781.33 42,522.00 4,994.00 10.15 1.0x 8.8x 16.7x

CNO Financial Group, Inc. (NYSE:CNO) 20.02 3,350.47 6,711.77 4,234.30 902.00 1.16 1.6x 7.4x 17.3x

Humana Inc. (NYSE:HUM) 290.98 40,062.76 36,501.76 54,284.00 3,662.00 12.74 0.7x 10.0x 22.8x

Independence Holding Company (NYSE:IHC) 37.15 549.64 534.51 336.96 31.99 2.84 1.6x 16.7x 13.1x

Molina Healthcare, Inc. (NYSE:MOH) 84.93 5,238.91 3,591.91 19,194.00 375.00 (8.47) 0.2x 9.6x NM

ProAssurance Corporation (NYSE:PRA) 38.40 2,058.00 2,386.28 844.18 140.31 1.45 2.8x 17.0x 26.5x

Triple-S Management Corporation (NYSE:GTS) 36.65 855.65 673.64 2,951.71 114.70 2.63 0.2x 5.9x 14.0x

Trupanion, Inc. (NasdaqGM:TRUP) 31.77 990.81 974.87 258.73 2.37 (0.05) 3.8x NM NM

UnitedHealth Group Incorporated (NYSE:UNH) 241.51 232,086.58 253,801.58 207,624.00 17,593.00 11.35 1.2x 14.4x 21.3x

WellCare Health Plans, Inc. (NYSE:WCG) 221.67 9,920.74 6,279.64 17,699.20 709.60 9.06 0.4x 8.8x 24.5x

MEAN (INSURANCE) 1.3x 11.2x 19.2x

MEDIAN (INSURANCE) 1.0x 10.0x 18.7x

Allscripts Healthcare Solutions, Inc. (NasdaqNM:MDRX) 12.65 2,251.10 4,327.53 1,906.79 144.90 (1.26) 2.3x 29.9x NM

Castlight Health, Inc. (NYSE:CSLT) 3.60 489.82 420.80 140.21 (53.42) (0.42) 3.0x NM NM

Cerner Corporation (NasdaqNM:CERN) 59.68 19,802.67 19,326.89 5,073.18 1,327.35 2.53 3.8x 14.6x 23.6x

CompuGroup Medical Societas Europaea (DB:COP) 38.14 1,896.46 2,182.87 624.32 120.67 0.72 3.5x 18.1x NM

Computer Programs and Systems, Inc. (NasdaqNM:CPSI) 32.55 439.64 579.96 283.73 37.28 (1.00) 2.0x 15.6x NM

Craneware plc (AIM:CRW) 18.75 499.92 461.29 62.14 18.77 0.53 NM 24.6x NM

Evolent Health, Inc. (NYSE:EVH) 20.45 1,575.99 1,509.07 468.43 (24.20) (0.80) 3.2x NM NM

HealthEquity, Inc. (NasdaqGS:HQY) 74.31 4,591.56 4,351.29 229.53 70.37 0.77 NM NM NM

Inovalon Holdings, Inc. (NasdaqGS:INOV) 10.40 1,583.60 1,375.27 433.81 55.66 0.10 3.2x 24.7x NM

Medidata Solutions, Inc. (NasdaqGS:MDSO) 77.16 4,567.73 4,424.16 567.09 87.66 0.74 NM NM NM

Model N, Inc. (NYSE:MODN) 17.85 544.96 547.41 148.15 (11.09) (0.97) 3.7x NM NM

Quality Systems, Inc. (NasdaqGS:QSII) 17.60 1,123.76 1,131.92 531.02 44.50 0.04 2.1x 25.4x NM

RaySearch Laboratories AB (publ) (OM:RAY B) 112.00 3,839.67 3,804.97 574.56 157.15 3.00 NM 24.2x NM

Simulations Plus, Inc. (NasdaqCM:SLP) 19.20 332.66 325.74 27.44 11.47 0.47 NM 28.4x NM

Veeva Systems Inc. (NYSE:VEEV) 77.36 11,074.85 10,156.54 721.35 170.31 0.97 NM NM NM

MEAN (TECHNOLOGY) 3.0x 22.8x NM

MEDIAN (TECHNOLOGY) 3.2x 24.6x NM

AMN Healthcare Services, Inc. (NYSE:AMN) 56.50 2,703.81 2,969.35 2,015.77 248.10 2.90 1.5x 12.0x 19.5x

SERVICES - OUTSOURCING

SERVICES - TECHNOLOGY

SERVICES - INSURANCE

12


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

athenahealth, Inc. (NasdaqGS:ATHN) 150.47 6,080.45 6,207.65 1,264.30 211.90 2.09 4.9x 29.3x NM

BioScrip, Inc. (NasdaqNM:BIOS) 2.65 339.07 874.89 767.96 43.48 (0.53) 1.1x 20.1x NM

Cegedim SA (ENXTPA:CGM) 36.10 502.98 740.05 457.44 49.38 0.50 1.6x 15.0x NM

CorVel Corporation (NasdaqNM:CRVL) 50.50 953.44 897.67 558.35 69.25 1.87 1.6x 13.0x 27.0x

Cross Country Healthcare, Inc. (NasdaqNM:CCRN) 12.19 443.71 509.63 867.76 41.53 1.15 0.6x 12.3x 10.6x

eHealth, Inc. (NasdaqGS:EHTH) 21.31 404.74 370.00 173.87 (25.97) (1.68) 2.1x NM NM

Envision Healthcare Corporation (NYSE:EVHC) 42.88 5,129.71 9,807.81 8,017.70 1,048.90 2.17 1.2x 9.4x NM

EPS Holdings, Inc. (TSE:4282) 2,158.00 99,606.18 83,012.18 62,751.00 8,692.00 99.79 1.3x 9.6x 21.6x

Express Scripts Holding Company (NasdaqNM:ESRX) 75.81 42,584.07 55,258.17 100,179.10 7,110.00 8.01 0.6x 7.8x 9.5x

Healthcare Services Group, Inc. (NasdaqNM:HCSG) 36.15 2,664.69 2,605.83 1,963.45 103.72 0.89 1.3x 25.1x NM

HMS Holdings Corp. (NasdaqNM:HMSY) 21.63 1,799.98 1,956.08 548.90 108.03 0.52 3.6x 18.1x NM

ICON Public Limited Company (NasdaqGS:ICLR) 128.98 6,938.33 6,933.77 1,946.61 413.40 5.26 3.6x 16.8x 24.5x

Syneos Health, Inc. (NasdaqGS:SYNH) 43.00 4,419.59 7,203.99 2,657.96 369.98 (2.11) 2.7x 19.5x NM

Magellan Health, Inc. (NasdaqNM:MGLN) 91.45 2,213.27 2,723.11 6,338.04 226.35 4.19 0.4x 12.0x 21.8x

ASGN Incorporated (NYSE:ASGN) 77.00 4,027.42 4,515.45 2,684.57 294.76 3.10 1.7x 15.3x 24.8x

PRA Health Sciences, Inc. (NasdaqGS:PRAH) 84.90 5,440.07 6,654.61 2,162.45 361.52 1.52 3.1x 18.4x NM

IQVIA Holdings Inc. (NYSE: IQV ) 98.93 20,245.39 29,948.39 8,263.00 1,737.00 5.88 3.6x 17.2x 16.8x

Stericycle, Inc. (NasdaqGS:SRCL) 63.50 5,434.11 8,117.51 3,583.30 711.30 (0.11) 2.3x 11.4x NM

Teladoc, Inc. (NYSE:TDOC) 50.90 3,172.83 3,263.53 280.03 (37.54) (1.99) NM NM NM

MEAN (OUTSOURCING) 2.0x 15.7x 19.6x

MEDIAN (OUTSOURCING) 1.6x 15.2x 21.6x

Firstsource Solutions Limited (BSE:532809) 72.45 49,824.48 54,667.53 35,352.47 4,320.86 4.73 1.5x 12.7x 15.3x

HCL Technologies Limited (NSEI:HCLTECH) 910.35 1,267,559.38 1,174,313.41 7,837.70 1,772.90 0.97 NM NM NM

Hexaware Technologies Limited (BSE:532129) 439.60 1,172.00 1,115.00 40,304.67 6,449.56 17.25 0.0x 0.2x 25.5x

Infosys Limited (NSEI:INFY) 1,231.80 2,677,101.90 2,415,305.18 10,939.00 2,950.00 1.10 NM NM NM

KPIT Technologies Limited (BSE:532400) 276.80 52,415.84 48,922.88 36,636.98 3,351.50 12.69 1.3x 14.6x 21.8x

Mphasis Limited (BSE:526299) 1,099.95 212,601.98 194,782.09 65,458.36 10,623.77 43.26 3.0x 18.3x 25.4x

NIIT Technologies Limited (BSE:532541) 1,117.85 68,710.47 60,448.47 29,914.00 4,621.00 45.34 2.0x 13.1x 24.7x

Tata Consultancy Services Limited (NSEI:TCS) 1,741.05 6,665,740.82 6,234,680.82 1,231,040.00 325,320.00 67.09 NM 19.2x 25.9x

Tech Mahindra Limited (NSEI:TECHM) 712.35 698,045.29 626,087.29 307,729.30 47,096.40 42.66 2.0x 13.3x 16.7x

Wipro Limited (BSE:507685) 261.90 1,178,780.30 1,025,430.30 544,871.00 108,542.00 16.83 1.9x 9.4x 15.6x

MEAN (INDIA-BASED OUTSOURCING) 1.7x 12.6x 21.4x

MEDIAN (INDIA-BASED OUTSOURCING) 1.9x 13.2x 23.2x

HealthStream, Inc. (NasdaqNM:HSTM) 27.85 899.63 704.25 250.55 27.52 0.37 2.8x 25.6x NM

National Research Corporation (NasdaqGS:NRC) 34.45 847.77 812.34 118.30 37.96 0.93 NM 21.4x NM

MEAN (INFORMATION) 2.8x 23.5x NM

MEDIAN (INFORMATION) 2.8x 23.5x NM

MEAN (SERVICES) 2.0x 15.6x 20.0x

MEDIAN (SERVICES) 1.8x 14.6x 21.4x

SERVICES - INDIA-BASED OUTSOURCING

SERVICES - INFORMATION

13


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Charles River Laboratories International, Inc. (NYSE:CRL) 107.52 5,151.48 6,113.99 1,905.81 449.39 2.65 3.2x 13.6x NM

Global Cord Blood Corporation (NYSE:CO) 9.63 1,093.24 467.52 905.79 371.02 2.35 0.5x 1.3x 4.1x

Foundation Medicine, Inc. (NasdaqGS:FMI) 99.15 3,672.29 3,702.00 179.42 (132.32) (4.21) NM NM NM

Genomic Health, Inc. (NasdaqGS:GHDX) 39.92 1,412.40 1,282.01 349.40 11.88 (0.20) 3.7x NM NM

Invitae Corporation (NYSE:NVTA) 7.40 497.31 505.67 85.55 (116.49) (2.68) NM NM NM

Laboratory Corporation of America Holdings (NYSE:LH) 180.59 18,474.36 24,909.76 10,640.50 2,042.30 12.14 2.3x 12.2x 14.9x

NeoGenomics, Inc. (NasdaqCM:NEO) 11.60 935.16 1,056.50 264.61 28.40 (0.12) 4.0x NM NM

Quest Diagnostics Incorporated (NYSE:DGX) 106.53 14,468.61 18,430.61 7,776.00 1,573.00 5.61 2.4x 11.7x 19.0x

Sonic Healthcare Limited (ASX:SHL) 23.56 10,003.23 12,617.85 5,318.80 867.50 1.09 2.4x 14.5x 21.6x

MEAN (LABS) 2.6x 10.7x 14.9x

MEDIAN (LABS) 2.4x 12.2x 16.9x

Addus HomeCare Corporation (NasdaqGS:ADUS) 57.25 661.13 639.88 427.25 32.51 1.21 1.5x 19.7x NM

Amedisys, Inc. (NasdaqNM:AMED) 76.35 2,600.77 2,568.20 1,543.22 138.30 1.23 1.7x 18.6x NM

Chemed Corporation (NYSE:CHE) 326.00 5,195.68 5,324.49 1,700.04 254.71 6.75 3.1x 20.9x NM

LHC Group, Inc. (NasdaqNM:LHCG) 76.97 2,527.20 2,721.48 1,109.41 99.92 2.54 2.5x 27.2x NM

MEAN (HOME HEALTH) 2.2x 21.6x NM

MEDIAN (HOME HEALTH) 2.1x 20.3x NM

AAC Holdings, Inc. (NYSE:AAC) 10.76 264.75 562.05 292.75 43.85 (0.86) 1.9x 12.8x NM

Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) 40.19 3,546.17 6,754.93 2,899.36 590.73 2.48 2.3x 11.4x 16.2x

Civitas Solutions, Inc. (NYSE:CIVI) 16.10 590.44 1,300.96 1,540.94 150.83 0.09 0.8x 8.6x NM

Concord Medical Services Holdings Limited (NYSE:CCM) 4.14 179.53 482.67 330.98 (93.80) (6.56) 1.5x NM NM

CoreCivic, Inc. (NYSE:CXW) 21.52 2,551.06 3,964.35 1,760.73 402.78 1.40 2.3x 9.8x 15.4x

DaVita Inc. (NYSE:DVA) 66.84 11,663.58 22,000.03 11,109.77 2,390.56 3.47 2.0x 9.2x 19.3x

The GEO Group, Inc. (NYSE: GEO) 24.80 3,025.73 5,619.54 2,277.72 394.16 1.15 2.5x 14.3x 21.5x

Hanger, Inc. (OTCPK:HNGR) 17.32 634.85 1,083.61 1,040.77 74.31 (2.89) 1.0x 14.6x NM

Encompass Health Corporation (NYSE:EHC) 64.75 6,398.59 9,331.69 4,007.90 840.40 2.84 2.3x 11.1x 22.8x

MEDNAX, Inc. (NYSE:MD) 45.85 4,285.09 6,199.71 3,524.57 581.90 3.54 1.8x 10.7x 13.0x

The Providence Service Corporation (NasdaqGS:PRSC) 72.00 937.72 929.45 1,630.43 69.30 3.79 0.6x 13.4x 19.0x

RadNet, Inc. (NasdaqNM:RDNT) 12.70 612.64 1,218.30 924.57 110.72 (0.13) 1.3x 11.0x NM

Select Medical Holdings Corporation (NYSE:SEM) 18.10 2,426.52 6,549.05 4,525.56 542.71 1.46 1.4x 12.1x 12.4x

U.S. Physical Therapy, Inc. (NYSE:USPH) 93.35 1,182.70 1,320.59 420.99 66.01 1.64 3.1x 20.0x NM

MEAN (NON-ACUTE) 1.8x 12.2x 17.4x

MEDIAN (NON-ACUTE) 1.8x 11.4x 17.6x

Brookdale Senior Living Inc. (NYSE:BKD) 7.87 1,476.19 6,101.05 3,748.11 605.85 (4.84) 1.6x 10.1x NM

Capital Senior Living Corporation (NYSE:CSU) 10.91 339.66 1,333.47 463.90 85.20 (1.00) 2.9x 15.7x NM

Ensign Group, Inc. (NasdaqNM:ENSG) 36.61 1,908.52 2,158.26 1,899.71 148.93 1.15 1.1x 14.5x NM

Five Star Senior Living Inc. (NasdaqCM:FVE) 1.30 65.70 27.57 1,128.41 1.56 (0.45) 0.0x 17.7x NM

PROVIDERS - LONG-TERM CARE

PROVIDERS - LABS

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

14


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Welltower Inc. (NYSE:WELL) 57.65 21,444.73 34,200.01 4,283.60 1,984.20 1.58 NM 17.2x NM

Sabra Health Care REIT, Inc. (NasdaqGS:SBRA) 20.73 3,695.79 6,980.37 509.53 435.74 1.43 NM 16.0x 14.5x

Genesis Healthcare, Inc. (NYSE:GEN) 2.10 209.47 4,525.66 5,189.27 345.12 (6.23) 0.9x 13.1x NM

Ventas, Inc. (NYSE:VTR) 54.66 19,476.03 30,619.08 3,607.47 1,899.49 3.45 NM 16.1x 15.8x

MEAN (LONG-TERM CARE) 1.3x 15.0x 15.2x

MEDIAN (LONG-TERM CARE) 1.1x 15.8x 15.2x

Community Health Systems, Inc. (NYSE:CYH) 4.09 461.42 14,530.42 14,556.00 824.00 (20.30) 1.0x 17.6x NM

HCA Healthcare, Inc. (NYSE:HCA) 103.14 36,026.72 69,997.72 44,414.00 8,300.00 7.35 1.6x 8.4x 14.0x

Kindred Healthcare, Inc. (NYSE:KND) 8.95 816.78 4,318.08 6,008.42 429.68 (3.14) 0.7x 10.0x NM

LifePoint Health, Inc. (NasdaqNM:LPNT) 52.85 2,049.47 4,999.27 6,264.00 667.60 0.84 0.8x 7.5x NM

Tenet Healthcare Corporation (NYSE:THC) 35.43 3,615.66 20,153.66 19,065.00 2,416.00 (5.49) 1.1x 8.3x NM

Universal Health Services, Inc. (NYSE:UHS) 114.98 10,854.91 14,771.65 10,484.52 1,710.28 8.04 1.4x 8.6x 14.3x

MEAN (ACUTE) 1.1x 10.1x 14.2x

MEDIAN (ACUTE) 1.0x 8.5x 14.2x

MEAN (PROVIDERS) 1.8x 13.3x 16.1x

MEDIAN (PROVIDERS) 1.6x 13.0x 15.6x

ABIOMED, Inc. (NasdaqNM:ABMD) 381.14 16,952.28 16,590.03 593.75 169.48 2.45 NM NM NM

Accelerate Diagnostics, Inc. (NasdaqCM:AXDX) 20.40 1,101.24 1,006.81 4.45 (68.47) (1.28) NM NM NM

Accuray Incorporated (NasdaqNM:ARAY) 4.40 376.81 439.85 403.21 5.84 (0.34) 1.1x NM NM

Agilent Technologies, Inc. (NYSE:A) 61.92 19,811.44 18,919.44 4,720.00 1,141.00 0.73 4.0x 16.6x NM

Align Technology, Inc. (NasdaqNM:ALGN) 331.95 26,605.67 25,942.93 1,600.00 431.44 3.15 NM NM NM

Alliqua BioMedical, Inc. (NasdaqCM:ALQA) 2.10 10.51 21.81 20.82 (9.15) (5.61) 1.0x NM NM

Alphatec Holdings, Inc. (NasdaqNM:ATEC) 3.83 104.12 121.63 95.07 (2.88) (0.80) 1.3x NM NM

Analogic Corporation (NasdaqGS:ALOG) 83.65 1,045.76 880.13 467.57 38.08 (0.43) 1.9x 23.1x NM

AngioDynamics, Inc. (NasdaqNM:ANGO) 21.03 774.00 813.22 342.88 47.50 0.04 2.4x 17.1x NM

Anika Therapeutics, Inc. (NasdaqGS:ANIK) 40.66 581.86 418.82 111.30 40.84 1.30 3.8x 10.3x NM

AtriCure, Inc. (NasdaqNM:ATRC) 23.71 830.80 847.28 180.44 (19.82) (0.82) 4.7x NM NM

Avinger, Inc. (NasdaqCM:AVGR) 1.79 9.93 3.04 8.25 (30.00) (49.25) 0.4x NM NM

Baxter International Inc. (NYSE:BAX) 70.84 37,933.82 38,533.82 10,763.00 2,286.00 1.51 3.6x 16.9x NM

Bio-Techne Corporation (NasdaqGS:TECH) 150.32 5,648.10 5,864.17 619.32 204.75 2.96 NM 28.6x NM

BioTelemetry, Inc. (NasdaqGS:BEAT) 42.25 1,385.55 1,550.90 310.01 71.09 (0.33) NM 21.8x NM

Boston Scientific Corporation (NYSE:BSX) 30.39 41,932.44 47,410.44 9,267.00 2,547.00 0.08 NM 18.6x NM

Bruker Corporation (NasdaqNM:BRKR) 30.27 4,724.54 4,670.04 1,812.70 305.30 0.53 2.6x 15.3x NM

Cardiovascular Systems, Inc. (NasdaqGS:CSII) 30.10 1,001.07 912.26 210.81 4.70 (0.04) 4.3x NM NM

Catalent, Inc. (NYSE:CTLT) 39.26 5,236.08 7,610.98 2,395.00 484.60 0.48 3.2x 15.7x NM

Conformis, Inc. (NasdaqGS:CFMS) 1.39 84.67 57.08 77.32 (46.08) (1.05) 0.7x NM NM

CONMED Corporation (NasdaqNM:CNMD) 68.65 1,925.10 2,362.17 811.89 133.42 2.49 2.9x 17.7x 27.6x

Corindus Vascular Robotics, Inc. (AMEX:CVRS) 0.75 141.61 129.97 10.36 (33.48) (0.21) NM NM NM

CryoLife, Inc. (NYSE:CRY) 27.55 1,009.22 1,201.37 206.59 19.49 (0.07) NM NM NM

PROVIDERS - ACUTE

PRODUCTS - CLINICAL DEVICES

15


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Cutera, Inc. (NasdaqGS:CUTR) 42.00 572.65 548.68 156.32 4.76 1.98 3.5x NM 21.3x

Cytosorbents Corporation (NasdaqCM:CTSO) 11.30 339.49 328.27 16.96 (11.17) (0.36) NM NM NM

DexCom, Inc. (NasdaqNM:DXCM) 87.99 7,750.59 7,555.39 760.60 (14.40) (0.38) NM NM NM

Edwards Lifesciences Corporation (NYSE:EW) 137.31 28,942.08 28,497.38 3,446.60 1,056.00 2.60 NM 27.0x NM

Ekso Bionics Holdings, Inc. (OTCBB:EKSO) - 99.59 85.72 8.44 (29.47) (0.64) NM NM NM

Endologix, Inc. (NasdaqNM:ELGX) 5.61 471.30 651.34 180.83 (28.90) (0.78) 3.6x NM NM

Enzo Biochem, Inc. (NYSE:ENZ) 6.50 305.51 241.77 109.89 0.30 (0.03) 2.2x NM NM

EyePoint Pharmaceuticals, Inc. (NasdaqGM:EYPT) 2.17 117.24 113.75 2.95 (21.53) (0.59) NM NM NM

Fresenius SE & Co. KGaA (DB:FRE) 65.64 36,422.01 62,274.01 33,645.00 5,715.00 3.22 1.9x 10.9x 20.4x

GenMark Diagnostics, Inc. (NasdaqGM:GNMK) 7.33 406.17 369.01 60.63 (50.91) (1.11) NM NM NM

Genomic Health, Inc. (NasdaqGS:GHDX) 39.92 1,412.40 1,282.01 349.40 11.88 (0.20) 3.7x NM NM

Glaukos Corporation (NYSE:GKOS) 37.77 1,318.40 1,204.64 163.48 5.16 (0.11) NM NM NM

Globus Medical, Inc. (NYSE:GMED) 55.55 5,414.28 5,045.10 654.58 210.56 1.19 NM 24.0x NM

Hologic, Inc. (NasdaqNM:HOLX) 37.89 10,344.38 13,098.18 3,189.40 1,033.50 (0.48) 4.1x 12.7x NM

Illumina, Inc. (NasdaqNM:ILMN) 272.44 40,048.68 39,285.68 2,936.00 928.00 3.86 NM NM NM

Inogen, Inc. (NasdaqGS:INGN) 182.69 3,876.78 3,688.48 275.99 43.88 1.17 NM NM NM

Integer Holdings Corporation (NYSE:ITGR) 66.00 2,112.90 3,645.17 1,498.25 287.26 2.45 2.4x 12.7x 26.9x

Integra LifeSciences Holdings Corporation

(NasdaqNM:IART) 64.54 5,485.25 7,125.34 1,286.68 295.10 0.88 NM 24.1x NM

Intersect ENT, Inc. (NasdaqGM:XENT) 42.65 1,285.29 1,182.04 100.55 (15.65) (0.54) NM NM NM

Intuitive Surgical, Inc. (NasdaqNM:ISRG) 459.67 52,078.35 49,570.35 3,296.80 1,245.70 6.55 NM NM NM

Invuity, Inc. (NasdaqGM:IVTY) 3.50 84.14 85.13 40.10 (28.65) (2.19) 2.1x NM NM

IRadimed Corporation (NasdaqCM:IRMD) 18.55 197.67 169.75 25.03 4.06 0.13 NM NM NM

K2M Group Holdings, Inc. (NasdaqGS:KTWO) 23.69 1,028.04 1,092.32 264.02 (9.27) (0.88) 4.1x NM NM

LeMaitre Vascular, Inc. (NasdaqGM:LMAT) 34.08 658.17 612.77 102.72 26.38 0.89 NM 23.2x NM

LivaNova PLC (NasdaqGS:LIVN) 94.05 4,555.38 4,675.23 1,035.85 199.54 1.22 4.5x 23.4x NM

Masimo Corporation (NasdaqNM:MASI) 99.05 5,129.18 4,759.69 814.42 217.76 2.25 NM 21.9x NM

Medtronic plc (NYSE:MDT) 86.32 116,896.11 131,528.11 29,953.00 9,429.00 2.27 4.4x 13.9x NM

Meridian Bioscience, Inc. (NasdaqNM:VIVO) 14.80 626.70 622.71 208.57 50.81 0.41 3.0x 12.3x NM

NanoString Technologies, Inc. (NasdaqGM:NSTG) 12.89 331.93 320.75 119.93 (35.14) (1.78) 2.7x NM NM

Natus Medical Incorporated (NasdaqNM:BABY) 36.90 1,221.54 1,286.40 504.92 35.15 (0.73) 2.5x NM NM

Nevro Corp. (NYSE:NVRO) 78.69 2,359.04 2,246.25 345.87 (11.59) (1.35) NM NM NM

NuVasive, Inc. (NasdaqNM:NUVA) 51.26 2,627.58 3,196.56 1,041.03 226.09 0.80 3.1x 14.1x NM

Nxstage Medical, Inc. (NasdaqNM:NXTM) 27.64 1,837.97 1,789.96 404.41 14.39 (0.22) 4.4x NM NM

Orthofix International N.V. (NasdaqNM:OFIX) 54.65 1,030.86 937.75 439.79 57.91 0.78 2.1x 16.2x NM

Quidel Corporation (NasdaqNM:QDEL) 62.70 2,348.52 2,473.58 373.19 112.14 0.34 NM 22.1x NM

ResMed Inc. (NYSE:RMD) 102.81 14,674.93 14,780.65 2,273.25 649.65 2.14 NM 22.8x NM

REVA Medical, Inc. (ASX:RVA) 0.28 113.55 187.27 NM (20.04) (0.03) NM NM NM

ReWalk Robotics Ltd. (NasdaqCM:RWLK) 1.05 36.37 41.78 6.83 (21.40) (1.04) NM NM NM

SeaSpine Holdings Corporation (NasdaqGS:SPNE) 11.94 173.56 161.09 133.10 (22.42) (2.31) 1.2x NM NM

Second Sight Medical Products, Inc. (NasdaqCM:EYES) 2.04 135.93 130.92 7.93 (30.37) (0.54) NM NM NM

16


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Sientra, Inc. (NasdaqGS:SIEN) 18.06 509.00 520.93 43.73 (51.61) (3.72) NM NM NM

Smith & Nephew plc (LSE:SN.) 13.69 11,945.34 12,894.57 4,765.00 1,282.00 0.88 2.7x 10.1x 15.6x

Sonova Holding AG (SWX:SOON) 172.00 11,236.29 11,466.69 2,645.93 588.48 6.11 4.3x 19.5x 28.2x

STAAR Surgical Company (NasdaqNM:STAA) 29.75 1,238.21 1,225.19 97.35 2.35 0.01 NM NM NM

Stryker Corporation (NYSE:SYK) 174.02 65,033.18 70,491.18 12,730.00 3,476.00 2.67 NM 20.3x NM

T2 Biosystems, Inc. (NasdaqGM:TTOO) 7.41 312.11 326.38 6.04 (49.27) (1.81) NM NM NM

Tandem Diabetes Care, Inc. (NasdaqGM:TNDM) 14.03 702.45 706.98 115.90 (50.27) (8.74) NM NM NM

TransEnterix, Inc. (AMEX:TRXC) 3.55 724.12 649.93 9.93 (47.49) (0.77) NM NM NM

Utah Medical Products, Inc. (NasdaqNM:UTMD) 104.65 390.40 347.48 42.04 22.16 2.42 NM 15.7x NM

Varian Medical Systems, Inc. (NYSE:VAR) 117.87 10,785.66 10,299.06 2,811.90 574.30 1.52 3.7x 17.9x NM

Wright Medical Group N.V. (NasdaqNM:WMGI) 24.96 2,645.01 3,417.82 766.34 81.74 (0.46) 4.5x NM NM

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) 111.51 22,666.78 32,014.38 7,869.30 2,774.10 8.27 4.1x 11.5x 13.5x

MEAN (CLINICAL) 3.0x 18.1x 21.9x

MEDIAN (CLINICAL) 3.0x 17.4x 21.3x

Abaxis, Inc. (NasdaqNM:ABAX) 82.80 1,893.72 1,727.21 244.70 46.66 1.17 NM NM NM

Cerus Corporation (NasdaqNM:CERS) 6.59 860.29 784.24 50.13 (51.04) (0.49) NM NM NM

Getinge AB (OM:GETI B) 85.46 23,276.70 33,633.70 22,552.00 4,116.00 2.61 1.5x 8.2x NM

Haemonetics Corporation (NYSE:HAE) 90.35 4,716.89 4,790.40 903.92 154.40 0.85 NM NM NM

Harvard Bioscience, Inc. (NasdaqGM:HBIO) 4.40 158.31 215.55 110.56 4.98 (0.17) 1.9x NM NM

IDEXX Laboratories, Inc. (NasdaqNM:IDXX) 208.21 18,085.79 18,943.36 2,044.69 517.47 3.18 NM NM NM

Invacare Corporation (NYSE:IVC) 16.50 547.21 642.73 971.83 (9.72) (2.25) 0.7x NM NM

Omnicell, Inc. (NasdaqGS:OMCL) 46.55 1,809.77 1,974.19 750.23 63.81 0.85 2.6x NM NM

Pacific Biosciences of California, Inc. (NasdaqGS:PACB) 2.53 333.65 268.26 87.92 (83.04) (0.82) 3.1x NM NM

PerkinElmer, Inc. (NYSE:PKI) 74.33 8,223.45 10,120.10 2,386.84 461.70 1.32 4.2x 21.9x NM

STERIS plc (NYSE:STE) 73.64 6,474.90 7,143.30 2,620.00 598.10 3.39 2.7x 11.9x 21.7x

Surmodics, Inc. (NasdaqGS:SRDX) 51.80 686.76 620.72 73.92 8.94 0.08 NM NM NM

Thermo Fisher Scientific Inc. (NYSE:TMO) 208.27 83,791.88 103,939.88 22,006.00 5,509.00 5.63 4.7x 18.9x NM

Waters Corporation (NYSE:WAT) 192.62 15,090.39 13,786.50 2,341.78 812.65 0.32 NM 17.0x NM

MEAN (NON-CLINICAL) 2.7x 15.6x 21.7x

MEDIAN (NON-CLINICAL) 2.7x 17.0x 21.7x

Atrion Corporation (NasdaqNM:ATRI) 590.00 1,092.59 1,037.61 147.49 50.07 18.92 NM 20.7x NM

Becton, Dickinson and Company (NYSE:BDX) 221.59 59,209.26 80,735.26 13,503.00 3,862.00 (0.42) NM 20.9x NM

Halyard Health, Inc. (NYSE:HYH) 54.90 2,581.21 2,920.11 622.30 22.20 (0.61) 4.7x NM NM

ICU Medical, Inc. (NasdaqNM:ICUI) 291.05 5,909.48 5,640.36 1,432.86 263.42 0.83 3.9x 21.4x NM

Merit Medical Systems, Inc. (NasdaqNM:MMSI) 51.30 2,586.21 2,938.57 759.82 113.40 0.35 3.9x 25.9x NM

Nipro Corporation (TSE:8086) 1,322.00 220,010.35 613,377.35 395,397.00 63,085.00 64.51 1.6x 9.7x 20.5x

Retractable Technologies, Inc. (AMEX:RVP) 0.87 28.42 17.49 35.24 (2.46) (0.11) 0.5x NM NM

Teleflex Incorporated (NYSE:TFX) 267.16 12,167.41 14,020.26 2,245.65 624.96 3.64 NM 22.4x NM

PRODUCTS - NON-CLINICAL DEVICES

PRODUCTS - DISPOSABLES

17


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LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Terumo Corporation (TSE:4543) 6,460.00 2,284,865.22 2,453,373.22 587,775.00 150,589.00 242.06 4.2x 16.3x 26.7x

MEAN (DISPOSABLES) 3.1x 19.6x 23.6x

MEDIAN (DISPOSABLES) 3.9x 20.9x 23.6x

Bio-Rad Laboratories, Inc. (NYSE:BIO) 287.13 8,557.16 8,229.27 2,211.62 314.09 25.48 3.7x 26.2x 11.3x

Cambrex Corporation (NYSE:CBM) 45.30 1,493.09 1,305.52 570.74 177.87 3.19 2.3x 7.3x 14.2x

Cantel Medical Corp. (NYSE:CMD) 109.09 4,550.68 4,667.76 848.57 164.31 2.18 NM 28.4x NM

ChromaDex Corporation (NasdaqCM:CDXC) 3.37 184.90 144.32 24.40 (20.92) (0.47) NM NM NM

DENTSPLY SIRONA Inc. (NasdaqNM:XRAY) 43.81 9,964.08 11,327.58 4,049.00 828.90 (6.70) 2.8x 13.7x NM

Exact Sciences Corporation (NasdaqCM:EXAS) 59.54 7,257.82 6,708.06 307.92 (102.20) (1.00) NM NM NM

Fluidigm Corporation (NasdaqGS:FLDM) 5.57 216.76 333.67 101.65 (46.02) (1.60) 3.3x NM NM

Hill-Rom Holdings, Inc. (NYSE:HRC) 92.00 6,097.55 8,106.65 2,807.60 548.90 2.85 2.9x 14.8x NM

Ion Beam Applications SA (ENXTBR:IBAB) 22.52 660.22 675.69 287.42 (7.57) (1.34) 2.4x NM NM

Luminex Corporation (NasdaqNM:LMNX) 28.32 1,258.77 1,130.12 311.45 61.32 0.76 3.6x 18.4x NM

Mettler-Toledo International Inc. (NYSE:MTD) 550.74 13,984.87 14,879.52 2,791.31 672.65 14.34 NM 22.1x NM

Natera, Inc. (NasdaqGS:NTRA) 11.66 635.62 645.18 223.90 (121.83) (2.53) 2.9x NM NM

Neogen Corporation (NasdaqGS:NEOG) 75.71 3,905.36 3,713.48 391.81 86.02 1.13 NM NM NM

OraSure Technologies, Inc. (NasdaqNM:OSUR) 17.01 1,038.70 895.21 175.98 30.72 0.27 NM 29.1x NM

Oxford Immunotec Global PLC (NasdaqGM:OXFD) 14.42 373.21 326.07 102.95 (24.17) (1.43) 3.2x NM NM

QIAGEN N.V. (NYSE:QGEN) 36.31 8,250.40 9,050.99 1,453.40 475.01 0.23 NM 19.1x NM

Quotient Limited (NasdaqGM:QTNT) 7.21 329.90 409.39 24.73 (59.58) (2.02) NM NM NM

Rockwell Medical, Inc. (NasdaqGM:RMTI) 5.38 278.51 250.41 57.66 (27.15) (0.55) 4.3x NM NM

Trinity Biotech plc (NasdaqGS:TRIB) 4.65 97.32 138.59 99.40 9.12 (1.85) 1.4x 15.2x NM

TrovaGene, Inc. (NasdaqCM:TROV) 2.88 14.25 8.77 0.51 (16.40) (5.90) NM NM NM

Veracyte, Inc. (NasdaqGM:VCYT) 7.65 262.75 260.84 75.56 (25.12) (0.94) 3.5x NM NM

West Pharmaceutical Services, Inc. (NYSE:WST) 93.00 6,842.74 6,840.94 1,627.10 335.20 1.76 4.2x 20.4x NM

MEAN (COMMERCIAL) 3.1x 19.5x 12.7x

MEDIAN (COMMERCIAL) 3.2x 19.1x 12.7x

Cooper Companies Inc. (NYSE:COO) 226.31 11,094.24 13,405.14 2,229.90 699.40 3.54 NM 19.2x NM

Essilor International Société Anonyme (ENXTPA:EI) 116.90 25,071.43 27,175.43 7,490.00 1,600.00 3.57 3.6x 17.0x NM

Insulet Corporation (NasdaqNM:PODD) 93.79 5,509.64 5,730.97 485.63 11.97 (0.40) NM NM NM

Nutrisystem, Inc. (NasdaqGS:NTRI) 37.30 1,101.00 1,024.64 695.21 91.13 1.74 1.5x 11.2x 21.4x

USANA Health Sciences, Inc. (NYSE:USNA) 117.00 2,828.65 2,562.46 1,083.94 162.66 2.85 2.4x 15.8x NM

MEAN (CONSUMER) 2.5x 15.8x 21.4x

MEDIAN (CONSUMER) 2.4x 16.4x 21.4x

Abbott Laboratories (NYSE:ABT) 61.53 107,873.64 126,123.64 28,445.00 6,560.00 0.21 4.4x 19.2x NM

AbbVie Inc. (NYSE:ABBV) 98.94 157,005.85 185,403.85 29,612.00 12,898.00 3.98 NM 14.4x 24.9x

AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) 3.40 174.49 140.73 5.23 (33.47) (0.99) NM NM NM

Achillion Pharmaceuticals, Inc. (NasdaqGS:ACHN) 3.39 468.97 165.35 - (87.38) (0.62) NM NM NM

PRODUCTS - COMMERCIAL

PRODUCTS - PHARMACEUTICALS

PRODUCTS - CONSUMER

18


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LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Acorda Therapeutics, Inc. (NasdaqNM:ACOR) 26.25 1,235.50 1,240.24 575.07 145.07 (4.61) 2.2x 8.5x NM

Adamas Pharmaceuticals, Inc. (NasdaqGM:ADMS) 28.64 772.77 681.35 3.12 (101.46) (4.62) NM NM NM

Akorn, Inc. (NasdaqGS:AKRX) 13.97 1,749.86 2,256.98 771.69 113.94 (0.76) 2.9x 19.8x NM

Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) 116.13 25,839.00 27,429.00 3,612.40 1,568.00 2.33 NM 17.5x NM

Alimera Sciences, Inc. (NasdaqGM:ALIM) 0.78 54.91 141.21 39.10 (13.04) (0.34) 3.6x NM NM

Allergan plc (NYSE:AGN) 150.80 51,130.79 75,679.29 16,039.90 7,603.70 (5.10) 4.7x 10.0x NM

Amphastar Pharmaceuticals, Inc. (NasdaqGS:AMPH) 15.80 736.50 724.90 241.90 3.33 (0.09) 3.0x NM NM

Ampio Pharmaceuticals, Inc. (AMEX:AMPE) 1.82 157.10 149.58 - (14.92) (0.39) NM NM NM

ANI Pharmaceuticals, Inc. (NasdaqGM:ANIP) 63.29 745.96 896.52 186.70 76.56 0.00 4.8x 11.7x NM

Antares Pharma, Inc. (NasdaqCM:ATRS) 2.61 409.31 406.13 55.21 (15.09) (0.12) NM NM NM

Aradigm Corporation (NasdaqCM:ARDM) 1.39 20.29 34.39 14.25 (7.87) (0.79) 2.4x NM NM

Array BioPharma Inc. (NasdaqNM:ARRY) 16.35 3,443.92 3,112.86 84.93 (107.05) (0.67) NM NM NM

Arrowhead Pharmaceuticals, Inc. (NasdaqGS:ARWR) 10.72 938.83 849.16 22.22 (40.20) (0.58) NM NM NM

Astellas Pharma Inc. (TSE:4503) 1,664.50 3,295,415.67 2,950,167.67 1,300,316.00 317,186.00 81.02 2.3x 9.3x 20.5x

AstraZeneca PLC (LSE:AZN) 54.66 69,234.31 81,838.26 22,238.00 5,189.00 2.21 3.7x 15.8x 24.7x

BioDelivery Sciences International, Inc. (NasdaqCM:BDSI) 2.55 151.15 187.34 43.01 (39.29) (0.96) 4.4x NM NM

Bristol-Myers Squibb Company (NYSE:BMY) 52.62 86,009.41 87,052.41 21,040.00 5,684.00 0.56 4.1x 15.3x NM

Clovis Oncology, Inc. (NasdaqGS:CLVS) 46.96 2,467.70 2,286.62 66.99 (247.69) (7.51) NM NM NM

Compugen Ltd. (NasdaqGM:CGEN) 3.75 194.22 173.69 10.00 (26.89) (0.55) NM NM NM

Corcept Therapeutics Incorporated (NasdaqCM:CORT) 18.50 2,131.85 2,006.49 189.26 69.25 1.13 NM 29.0x 16.4x

Curis, Inc. (NasdaqGM:CRIS) 2.78 92.09 83.39 10.24 (44.38) (1.56) NM NM NM

Depomed, Inc. (NasdaqGS:DEPO) 6.22 395.51 925.97 418.68 166.11 (0.67) 2.2x 5.6x NM

DURECT Corporation (NasdaqGM:DRRX) 1.92 310.48 286.18 35.59 (14.57) (0.03) NM NM NM

Egalet Corporation (NasdaqGM:EGLT) 0.46 24.27 52.23 26.97 (52.80) (1.43) 1.9x NM NM

Eli Lilly and Company (NYSE:LLY) 85.04 86,798.47 93,882.57 23,343.00 6,931.80 1.07 4.0x 13.5x NM

Elite Pharmaceuticals, Inc. (OTCPK:ELTP) 0.10 77.57 88.07 7.21 (8.73) (0.01) NM NM NM

Endo International plc (NasdaqNM:ENDP) 6.29 1,407.64 8,698.92 3,131.79 455.68 (7.01) 2.8x 19.1x NM

Foamix Pharmaceuticals Ltd. (NasdaqGM:FOMX) 5.24 212.24 164.85 3.65 (76.50) (2.06) NM NM NM

GlaxoSmithKline plc (LSE:GSK) 15.24 74,872.64 91,908.64 30,024.00 8,701.00 0.21 3.1x 10.6x NM

Heska Corporation (NasdaqCM:HSKA) 106.94 797.65 791.52 132.55 22.16 0.97 NM NM NM

ImmunoGen, Inc. (NasdaqGS:IMGN) 11.46 1,524.60 1,308.27 106.76 (73.72) (1.08) NM NM NM

Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) 2.03 113.82 66.01 6.00 (34.40) (0.80) NM NM NM

Innoviva, Inc. (NasdaqGS:INVA) 14.79 1,500.74 1,929.69 229.11 198.29 1.29 NM 9.7x 11.5x

INSYS Therapeutics, Inc. (NasdaqGM:INSY) 6.52 481.23 366.79 128.64 (59.03) (3.34) 2.9x NM NM

Ironwood Pharmaceuticals, Inc. (NasdaqGS:IRWD) 18.58 2,823.07 3,032.31 315.27 (86.59) (0.72) NM NM NM

Jazz Pharmaceuticals PLC (NasdaqGS:JAZZ) 169.00 10,139.36 11,012.65 1,687.25 758.60 7.30 NM 14.5x 23.1x

Johnson & Johnson (NYSE:JNJ) 119.62 320,838.78 338,181.78 78,693.00 26,366.00 0.45 4.3x 12.8x NM

Juniper Pharmaceuticals, Inc. (NasdaqGS:JNP) 8.65 96.02 79.14 54.26 1.74 0.05 1.5x NM NM

Karyopharm Therapeutics Inc. (NasdaqGS:KPTI) 18.58 1,118.44 987.52 11.54 (138.50) (2.88) NM NM NM

Lannett Company, Inc. (NYSE:LCI) 16.55 629.13 1,357.56 652.77 228.43 1.20 2.1x 5.9x 13.7x

19


Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

Mallinckrodt Public Limited Company (NYSE:MNK) 16.85 1,399.98 7,701.68 3,234.20 1,336.40 18.95 2.4x 5.8x 0.9x

Merck & Co., Inc. (NYSE:MRK) 59.53 160,153.79 176,711.79 40,725.00 11,861.00 0.58 4.3x 14.9x NM

Mylan N.V. (NasdaqGS:MYL) 38.46 19,824.98 34,471.38 11,872.70 3,586.70 1.35 2.9x 9.6x 28.4x

Neos Therapeutics, Inc. (NasdaqGM:NEOS) 6.75 195.73 218.43 30.12 (52.09) (2.34) NM NM NM

Novartis AG (SWX:NOVN) 72.96 186,093.59 212,630.05 51,279.00 15,196.50 3.41 4.1x 14.0x 21.4x

Novo Nordisk A/S (CPSE:NOVO B) 302.45 732,997.44 722,712.44 110,174.00 51,014.00 15.72 NM 14.2x 19.2x

OPKO Health, Inc. (NasdaqGS:OPK) 3.88 2,170.76 2,279.96 1,056.04 (161.38) (0.57) 2.2x NM NM

Osiris Therapeutics, Inc. (OTCPK:OSIR) 7.80 269.30 241.76 123.17 (2.13) (0.06) 2.0x NM NM

Pacira Pharmaceuticals, Inc. (NasdaqGS:PCRX) 34.25 1,395.08 1,335.30 291.95 1.09 (0.83) 4.6x NM NM

Pernix Therapeutics Holdings, Inc. (NasdaqGM:PTX) 2.32 27.55 279.43 144.47 28.23 (5.94) 1.9x 9.9x NM

Perrigo Company plc (NYSE:PRGO) 73.16 10,129.89 12,767.59 4,969.20 1,130.00 0.91 2.6x 11.3x NM

Pfizer Inc. (NYSE:PFE) 35.93 210,175.09 240,348.09 52,673.00 21,290.00 3.60 4.6x 11.3x 10.0x

Phibro Animal Health Corporation (NasdaqGM:PAHC) 45.20 1,822.70 2,056.53 803.03 123.34 1.44 2.6x 16.7x NM

Progenics Pharmaceuticals, Inc. (NasdaqGS:PGNX) 7.60 560.26 526.58 12.54 (52.91) (0.68) NM NM NM

Recro Pharma, Inc. (NasdaqCM:REPH) 5.45 111.77 114.45 72.63 (24.59) (2.85) 1.6x NM NM

Rigel Pharmaceuticals, Inc. (NasdaqNM:RIGL) 3.25 531.64 437.34 0.90 (87.70) (0.65) NM NM NM

Roche Holding AG (SWX:ROG) 211.05 180,807.35 190,349.35 55,746.00 21,489.00 10.04 3.4x 8.9x 21.0x

Sanofi (ENXTPA:SAN) 65.63 81,401.98 86,779.98 35,428.00 10,060.50 2.80 2.4x 8.6x 23.4x

Sarepta Therapeutics, Inc. (NasdaqGS:SRPT) 93.85 6,150.09 5,531.91 202.85 (118.84) (2.78) NM NM NM

Supernus Pharmaceuticals, Inc. (NasdaqGM:SUPN) 56.35 2,918.73 2,747.23 335.09 123.25 1.37 NM 22.3x NM

Takeda Pharmaceutical Company Limited (TSE:4502) 4,452.00 3,477,502.43 4,107,981.43 1,770,531.00 362,960.00 237.56 2.3x 11.3x 18.7x

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) 118.97 4,771.00 3,353.62 661.91 321.39 5.27 NM 10.4x 22.6x

Teligent, Inc. (NasdaqGS:TLGT) 2.79 149.30 260.11 61.91 (13.07) (0.39) 4.2x NM NM

Teva Pharmaceutical Industries Limited (NYSE:TEVA) 21.50 21,891.73 56,402.73 21,800.00 5,942.00 (15.79) 2.6x 9.5x NM

TherapeuticsMD, Inc. (NasdaqGS:TXMD) 5.91 1,280.01 1,172.66 16.57 (80.84) (0.38) NM NM NM

Valeant Pharmaceuticals International, Inc. (TSX:VRX) 28.53 27,899.20 57,468.90 8,610.00 3,401.00 (2.62) NM 16.9x NM

Zoetis Inc. (NYSE:ZTS) 83.70 40,499.54 43,814.54 5,442.00 2,066.00 1.99 NM 21.2x NM

Zogenix, Inc. (NasdaqGM:ZGNX) 42.55 1,498.75 1,226.80 7.13 (105.37) (4.54) NM NM NM

MEAN (PHARMACEUTICALS) 3.1x 13.3x 18.8x

MEDIAN (PHARMACEUTICALS) 2.9x 12.3x 20.8x

AmerisourceBergen Corporation (NYSE:ABC) 82.14 18,054.71 21,032.31 159,327.35 2,375.80 3.86 0.1x 8.9x 21.3x

Aceto Corporation (NasdaqGS:ACET) 2.64 81.28 335.61 737.10 55.08 (5.93) 0.5x 6.1x NM

Cardinal Health, Inc. (NYSE:CAH) 52.09 16,183.58 23,599.58 134,426.00 3,222.00 5.35 0.2x 7.3x 9.7x

CVS Health Corporation (NYSE:CVS) 63.39 64,445.21 87,401.21 185,944.00 12,619.00 6.52 0.5x 6.9x 9.7x

Diplomat Pharmacy, Inc. (NYSE:DPLO) 23.54 1,743.10 2,333.48 4,748.97 81.27 0.15 0.5x 28.7x NM

Henry Schein, Inc. (NasdaqNM:HSIC) 69.20 10,658.53 13,208.07 12,759.03 1,081.04 2.59 1.0x 12.2x 26.7x

McKesson Corporation (NYSE:MCK) 141.94 28,679.12 35,828.12 208,357.00 3,872.00 0.30 0.2x 9.3x NM

Medicines Company (NasdaqGS:MDCO) 33.86 2,491.72 2,907.18 35.10 (283.46) (8.51) NM NM NM

Owens & Minor, Inc. (NYSE:OMI) 16.30 1,007.21 1,816.65 9,362.28 198.57 1.02 0.2x 9.1x 16.0x

Patterson Companies, Inc. (NasdaqNM:PDCO) 20.92 1,933.86 3,002.09 5,510.11 358.34 2.58 0.5x 8.4x 8.1x

PRODUCTS - DISTRIBUTION

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Stock


LTM4

Revenue

LTM4

EBITDA5

LTM4

Diluted EPS

Before Extra

TEV3/

Revenue

TEV3/

EBITDA5

P/ Diluted

EPS Before

Extra

PetMed Express, Inc. (NasdaqGS:PETS) 35.97 734.08 656.15 273.80 54.26 1.82 2.4x 12.1x 19.8x

Premier, Inc. (NasdaqGS:PINC) 32.62 1,715.41 1,773.22 1,630.40 666.11 (6.65) 1.1x 2.7x NM

Prestige Brands Holdings, Inc. (NYSE:PBH) 33.43 1,774.25 3,734.65 1,041.18 356.12 6.34 3.6x 10.5x 5.3x

Rite Aid Corporation (NYSE:RAD) 1.60 1,688.17 4,632.47 21,528.97 514.90 (0.33) 0.2x 9.0x NM

Vitamin Shoppe, Inc. (NYSE:VSI) 5.10 123.58 244.24 1,168.89 57.73 (10.86) 0.2x 4.2x NM

MEAN (DISTRIBUTION) 0.8x 9.7x 14.6x

MEDIAN (DISTRIBUTION) 0.5x 8.9x 12.9x

MEAN (PRODUCTS) 2.7x 15.5x 18.5x

MEDIAN (PRODUCTS) 2.8x 14.8x 20.5x

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

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]

Leslie S. Lau

Senior Vice President

[email protected]

Joshua H. Keats

Vice President

[email protected]

Merritt Piro

Analyst

[email protected]

Nathan D. Cortright

Group Head

[email protected]

Jeffrey M. Tepper

Managing Director

[email protected]

Spencer R Berg

Vice President

[email protected]

George B. James

Senior Associate

[email protected]

CONTACT INFORMATION

Telephone: 212-755-8200

Facsimile: 212-755-8255

www.scott-macon.com

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