SCOTT-MACON HEALTHCARE REVIEW:

NOVEMBER 2018

November 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

November 1—November 30, 2018

Analysis of Selected 12

Publicly-Traded Healthcare, Medical and

Pharmaceutical Companies

Scott-Macon Professionals’ 22

Representative Closed Transactions

Scott-Macon Contact Information 23

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NT

EN

TS

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N O V E M B E R 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 November 2018. If

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

ncortright@scott-macon.com to automatically

continue receiving our publications 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 transac-

tions that either closed or were announced dur-

ing November, along with the average multiples

for the major publicly-traded healthcare, medi-

cal and pharmaceutical companies.

In the Insurance Services segment, the

big news for November was the closing of the

CVS/Aetna deal, notable not just for its sheer

size with a purchase price of $68 billion, but al-

so for the groundbreaking combination of drug

stores and health insurance. The last 20 years

have seen many healthcare verticals consoli-

date, including insurance, but we rarely see

companies in different verticals combining. In

Technology Services, the announced going-

private deal for athenahealth was the month’s

largest at $5.6 billion. What is most unusual is

the fact that institutional investors would pay

21.3X EBITDA for a company where the new

owners have no ability to extract synergies, and

in the very competitive niche of Electronic

Medical Records and Revenue Cycle Manage-

ment. ResMed continued its push into technolo-

gy with the acquisition of MatrixCare for $750

million. The giant healthcare products distribu-

tor Premier closed on Stanson Health in the

clinical decision support space for $66 million.

In the Outsourcing Services sector, November’s

largest deal by disclosed valuation was Brooks

Automation’s $450 million deal for GENEWIZ

in the contract research business.

Turning next to Providers, the Labs area

witnessed a gigantic deal with Shanghai RAAS

Blood Products’ announced takeover of Grifols

Diagnostic Solutions for $5 billion. In addition,

Quest closed one deal and announced another

during November. The Non-Acute segment was

very busy as usual, though there were no block-

buster deals. Acadia announced two more deals

in the behavioral treatment industry; health sys-

tem giant Lovelace in New Mexico closed on a

3

cardiac care operation; and publicly-traded pe-

diatric specialist MEDNAX closed on a radiol-

ogy physician group. In the Long-Term Care

area, Ventas closed on a senior living communi-

ty on Battery Park City in New York’s Manhat-

tan Island. In the Acute Care arena, two large

hospital and healthcare systems groups merged,

with RCCH acquiring LifePoint Health for $5.6

billion, or 8.5X EBITDA.

In the Products segments, the diversified

industrial machinery conglomerate Colfax an-

nounced its $3.1 billion acquisition of DJO

Global, specializing in orthopedic devices, for

11.7X EBITDA. Stryker closed on device mak-

er K2M for $1.3 billion. In addition, RTI Surgi-

cal announced its $299 million deal for Para-

digm Spine, and Merit Medical closed on

Cianna for $200 million. In Non-Clinical De-

vices, Illumina announced its $1.2 billion deal

for Pacific Biosciences, and Agilent closed on

ACEA Biosciences for $250 million. Pharma-

ceuticals companies had a busy November,

though it was devoid of any mega-deals: Cano-

py/ebbu for $407 million; GTI Core/Integral for

$275 million; Cambrex/Avista Pharma for $252

million; and Aurora Cannabis/ICC Labs for

$211 million were the largest, with three of

these four involving cannabis-related acquisi-

tions. As we have been seeing for the past year

or two, transactions involving cannabis compa-

nies are ballooning.

Following the mergers and acquisitions

analysis, we present an analysis of publicly-

traded Services, Providers, and Products com-

panies by sector. Mean EBITDA multiples for

Services companies ended November at 15.4X

(up from 15.2X in October 2018); Providers at

13.7X (up from 13.2X in October 2018); and

Products at 15.2X (up from 14.5X in October

2018). Technology services companies ended

November at 21.4X, while Outsourcing services

companies were 15.3X. The Insurance segment

EBITDA multiple came in at 14.4X (up from

13.0X in October 2018).

Finally, contact information for the

Scott-Macon Healthcare Investment Banking

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

1.9x 1.8x2.8x2.7x

0.9x

3.2x

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

3.1x 2.8x 2.8x 3.2x3.8x

NA NA NA

Clinical Devices Non-Clinical Devices Disposables Commercial

PRODUCTS: Revenue Multiple

1.8x3.1x

0.8xNA

2.1x

NA

Consumer Pharmaceuticals Distribution

Public Companies M&A Transactions

1.4x2.6x 2.1x 1.5x

2.4x1.1x

4.3x

NA NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: Revenue Multiple

2.0x 2.4x 1.8x 1.3x 1.4xNA NA NA NA

0.9x

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

PROVIDERS: Revenue Multiple

5

15.4x 13.7x 15.2x15.4x

8.5x11.7x

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

17.3x 17.9x 19.5x 17.9x

11.7x

NA NA NA

Clinical Non-Clinical Disposables Commercial

PRODUCTS: EBITDA Multiple

14.4x

21.4x

15.3x10.6x

22.9x

9.4x

21.3x

NA NA NA

Insurance Technology Outsourcing India-Based Outsourcing Information

SERVICES: EBITDA Multiple

10.0x

24.2x

12.1x15.1x

10.9x

NA NA NA NA

8.5x

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

PROVIDERS: EBITDA Multiple

18.2x

13.0x9.6x

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 NOVEMBER 1—NOVEMBER 30, 2018) ($ Millions Except Per Share Data)

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

11/28/2018 CVS Health Corporation (NYSE:CVS) /

Aetna Inc. (NYSE:AET)

$68,463.0 $61,333.0 $7,285.0 1.1x 9.4x Operates as a health care benefits company.

11/5/2018 Starmount Life Insurance Company, Inc. /

Jaimini Health, Inc.

NA NA NA NA NA Provides dental insurance.

11/30/2018 WellCare Health Plans, Inc. (NYSE:WCG) /

Medicare Part D Prescription Drug Plan Business of Aetna Inc.

NA NA NA NA NA Provides health care benefits.

MEAN (INSURANCE) 1.1x 9.4x

MEDIAN (INSURANCE) 1.1x 9.4x

11/9/2018 Dialogue Technologies Inc. /

DXA inc.

NA NA NA NA NA Operates an artificial intelligence medical

technology platform which provides medical

history of patients.

11/15/2018 Eir Partners /

DART Chart Systems, LLC

NA NA NA NA NA Operates as a health technology company,

develops software that integrates with electronic

medical records for managing payment

reimbursements and patient services.

11/30/2018 EverCommerce /

EMHware Inc.

NA NA NA NA NA Provides agency management software solutions

focused on the specific needs of adult mental

health, children's mental health, addictions, and

out-patient social services.

Announced Evergreen Coast Capital Corp.; Veritas Capital Fund Management,

LLC /

athenahealth, Inc. (NasdaqGS:ATHN)

$5,638.5 $1,311.4 $264.8 4.3x 21.3x Provides network-based medical record, revenue

cycle, patient engagement, care coordination, and

population health services for medical groups and

health systems.

Announced Gefion Canada Inc. /

Maclos Capital Inc. (OTCPK:LMSM.F)

NA NA NA NA NA Develops and commercializes software-based

products to be used as decision support tools for

obstetricians.

11/7/2018 GetWellNetwork, Inc. /

HealthLoop, Inc.

NA NA NA NA NA Offers a platform to connect patients with their

care team between visits.

11/25/2018 Intelerad Medical Systems Incorporated /

Clario Medical Imaging, Inc.

NA NA NA NA NA Develops a tool for radiologists-workflow

management software.

11/6/2018 Medici Technologies, LLC /

J&H MEDSOFT, LLC

NA NA NA NA NA Developed a mobile and Web based HIPAA-

secure messaging application for physicians.

11/6/2018 Michael J. Hennessy Associates, Inc. /

Medical Networking, Inc.

NA NA NA NA NA Develops and operates an online platform for

medical organizations.

11/12/2018 MindMaze SA /

Neuro Motor Innovations Corporation

NA NA NA NA NA Operates as a neuro-rehabilitation technology

company.

11/9/2018 Premier Healthcare Solutions, Inc. /

Stanson Health, Inc.

$66.5 NA NA NA NA Develops and markets clinical decision support

solutions for physicians and other healthcare

providers.

11/14/2018 ResMed Operations Inc. /

MatrixCare, Inc.

$750.0 NA NA NA NA Provides clinical, financial, and operations

software solutions for the skilled nursing, senior

living, and long-term care industries.

11/27/2018 Virgin Pulse, Inc. /

Viverae, Inc.

NA NA NA NA NA Offers an application that help employers to build

healthy cultures and manage healthcare costs.

11/14/2018 Waystar, Inc. /

Transaction Services Business of Ovation Revenue Cycle Services

NA NA NA NA NA Comprises transaction services technology that

monitors claims at various health systems and

hospitals.

Announced WELL Health Technologies Corp. (TSXV:WELL) /

NerdEMR Services Ltd.

NA NA NA NA NA Provides open source clinical application resource

electronic medical records solutions.

Announced Windancer Technologies, Inc. /

Cloud based workflow platform of Anju Technology, LLC

NA NA NA NA NA Diverse technology solutions for payers and

providers.

MEAN (TECHNOLOGY) 4.3x 21.3x

MEDIAN (TECHNOLOGY) 4.3x 21.3x

11/2/2018 Arthur J. Gallagher & Co. (NYSE:AJG) /

John R. Sharry, Inc.

NA NA NA NA NA Provides municipal health care consulting

services.

11/1/2018 BayMark Health Services Inc. /

SpecialCare Hospital Management Corp.

NA NA NA NA NA Provides medical stabilization and administrative

managed healthcare services at multiple affiliated

client hospitals.

Announced Bow River Capital Partners; Capital Southwest Corporation

(NasdaqGS:CSWC) /

Roseland Management, LLC

NA NA NA NA NA Provides physician practice management services.

11/15/2018 Brooks Automation, Inc. (NasdaqGS:BRKS) /

GENEWIZ, Inc.

$450.0 NA NA NA NA Operates as a contract research organization that

provides research services for pharmaceutical,

biotechnology, clinical, academic, agricultural,

and government institutions.

Announced Cobepa S.A. /

BioAgilytix Labs, LLC

NA NA NA NA NA Operates as a bioanalytical contract research

organization that develops novel therapeutic

biologics and biosimilars.

Announced Drug Discovery And Development Solutions Limited /

Inipharm Inc.

NA NA NA NA NA Provides drug discovery and development

services.

SERVICES - INSURANCE

SERVICES - TECHNOLOGY

SERVICES - OUTSOURCING

7

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

11/1/2018 HNI Healthcare, Inc. /

Martin Healthcare Group

$25.0 NA NA NA NA Provides physician staffing and practice

management services for hospitals.

11/20/2018 ProtoLytic, LLC /

Medical Pay Review, Inc.

NA NA NA NA NA Provides technologies and processes, as well as

healthcare information enabling insurers and

healthcare payers to reduce costs and make

informed decisions.

11/30/2018 Smith Seckman Reid, Inc. /

Strategic Hospital Resources, Inc.

NA NA NA NA NA Offers procurement and planning services for

medical equipment and furniture.

11/16/2018 TIAA Bank /

$1.5 billion Portfolio of Healthcare Equipment Leases and Loans

NA NA NA NA NA Comprises portfolio of lease and loans for

healthcare equipment.

Announced United States Pharmaceutical Group, L.L.C. /

HealthScape Advisors, LLC

NA NA NA NA NA Provides management consulting services to the

healthcare industry.

MEAN (OUTSOURCING) NA NA

MEDIAN (OUTSOURCING) NA NA

Announced Acclivity Health Solutions, Inc. /

Assets of Prepped Health LLC

NA NA NA NA NA Develops researched-based technology platforms

to educate patients and families on ways to better

define their choices and manage outcomes while

coping with serious illness.

11/30/2018 TPG Growth /

Q-Centrix LLC

NA NA NA NA NA Focuses on providing core measure and registry

abstracting services to healthcare facilities.

MEAN (INFORMATION) NA NA

MEDIAN (INFORMATION) NA NA

MEAN (SERVICES) 2.7x 15.4x

MEDIAN (SERVICES) 2.7x 15.4x

11/19/2018 Néomed-Labs Inc /

Emerald Star Holdings, LLC

NA NA NA NA NA Provides specialty reference and clinical

laboratory services primarily to the

pharmaceutical, biotechnology, and diagnostics

industries.

Announced Quest Diagnostics Incorporated (NYSE:DGX) /

Laboratory Services Business of Boyce & Bynum Pathology

Laboratories, P.C.

NA NA NA NA NA Provides laboratory services.

11/6/2018 Quest Diagnostics Incorporated (NYSE:DGX) /

U.S. Laboratory Services Business of Oxford Immunotec Global PLC

$170.0 NA NA NA NA Comprises clinical laboratory testing services for

tuberculosis and tick-borne diseases.Announced Shanghai RAAS Blood Products Co., Ltd. (SZSE:002252) /

Grifols Diagnostic Solutions Inc.

$5,000.0 NA NA NA NA Provides transfusional diagnostics and

immunology services.

MEAN (LABS) NA NA

MEDIAN (LABS) NA NA

11/2/2018 3 Rivers Capital, LLC /

Amazing Care Home Health Services, Incorporated

NA NA NA NA NA Provides skilled nursing, private duty nursing, and

CNA services to adult and pediatric patients.11/8/2018 Family Resource Home Care Inc. /

Family Home Care Corp.

NA NA NA NA NA Provides in-home health care services to

residents.

11/13/2018 Natur Holdings B.V. /

Future Healthcare of America (OTCPK:FUTU)

NA NA NA NA NA Provides home healthcare and healthcare staffing

services.

MEAN (HOME HEALTH & HOSPICE) NA NA

MEDIAN (HOME HEALTH & HOSPICE) NA NA

Announced Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) /

Mission Treatment Services, Inc.

NA NA NA NA NA Provides substance abuse treatment services.

Announced Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) /

Whittier Health Services, Inc.

NA NA NA NA NA An inpatient psychiatric hospital which provides

hospital and community services.

Announced Addus HomeCare Corporation (NasdaqGS:ADUS) /

Assets of VIP Health Care Services, Inc.

NA NA NA NA NA Comprises healthcare services.

11/9/2018 Akumin Inc. (TSX:AKU.U) /

Four Freestanding, Outpatient Diagnostic Imaging Centers in

Broward County

$12.1 NA NA NA NA Comprises diagnostic imaging centers.

11/1/2018 Akumin Inc. (TSX:AKU.U) /

One Imaging Center in Kissimmee, Florida

$1.2 NA NA NA NA Comprises diagnostic imaging center.

11/13/2018 American Physician Partners, LLC /

Progressive Medical Associates, PLLC

NA NA NA NA NA Provides emergency services to hospitals.

Announced Ascentist Physicians Group LLC /

Head & Neck Surgical Associates, PA

NA NA NA NA NA Provide otolaryngology services.

11/14/2018 BayMark Health Services Inc. /

Metamorphosis Ogden, Inc.

NA NA NA NA NA Provides evidence-based treatment for opioid

addiction.

Announced Birchwood Nursing and Rehabilitation LLC; Westwood Nursing and

Rehabilitation LLC /

Three Centers in Kentucky of Diversicare Healthcare Services, Inc.

$18.7 NA NA NA NA Comprises health care centers.

11/20/2018 Crossroads Holding, LLC /

E H C Medical Offices, PLLC

NA NA NA NA NA Provides medication assisted treatment services.

11/19/2018 Discovery Behavioral Health /

Pinelands Recovery Center of Medford

NA NA NA NA NA Provides adult treatment for drug and alcohol

addictions.

SERVICES - INFORMATION

PROVIDERS - LABS

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

8

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

11/6/2018 Eye Health America /

Updegraff Laser Vision, LLC

NA NA NA NA NA Provides ophthalmology services.

11/1/2018 Family Allergy & Asthma /

Alleviate Allergy & Asthma; Louisville Allergy & Asthma PSC

NA NA NA NA NA Operates in the allergist business and operates

clinics for treatment of allergy, asthma, and

immunology.

Announced Family Allergy & Asthma /

Kentuckiana Allergy, P.S.C.

NA NA NA NA NA Provides allergy treatment, medicines, and

immunological treatments for patients.

11/28/2018 Family Treatment Network Inc. /

ABA of North Texas, LLC

NA NA NA NA NA Provides behavioral health services for children

and young adolescents with autism and other

developmental disabilities.

Announced Florida House Experience, Inc. /

Treatment Partners of America LLC

NA NA NA NA NA Provides outpatient treatment services, including

substance use disorder.

Announced G Medical Innovations USA Inc. /

Telerhythmics, LLC.

$2.0 NA NA NA NA Provides cardiac monitoring services.

Announced Greater Pittston Regional Ambulance Association /

Exeter Community Ambulance Association

NA NA NA NA NA Provides emergency medical services.

Announced Hartford HealthCare Corporation /

Middlesex Cardiology Associates, P.C.

NA NA NA NA NA Provides diagnostic and therapeutic

cardiovascular services.

11/2/2018 Invictus MD Strategies Corp. (TSXV:GENE) /

Leaf Wise Rx

$0.8 NA NA NA NA Operates a medical cannabis clinic.

11/8/2018 Lovelace Health System, Inc. /

New Mexico Heart Institute, LLC

NA NA NA NA NA Owns and operates cardiac care facilities.

11/13/2018 Marquee Dental Partners, LLC /

Dr. Jeffrey Weissman Family and Cosmetic Dentistry; Shabo Smile

Dental Studio

NA NA NA NA NA Provides general and cosmetic dentistry services

to individuals and families.

11/13/2018 Marquee Dental Partners, LLC /

Shabo Smile Dental Studio/Weissman Family and Cosmetic

Dentistry

NA NA NA NA NA Provides general and cosmetic dentistry services

to individuals and families.

11/1/2018 MEDNAX, Inc. (NYSE:MD) /

Associates in Diagnostic Radiology, P.C.

NA NA NA NA NA Operates a radiology physician group that

provides musculoskeletal imaging and nuclear

medicine services.

Announced Novo Healthnet Limited /

Activa Clinics

$26.3 NA NA NA NA Provides healthcare services.

11/8/2018 Oak Street Health, LLC /

Four CityLife clinics in Philadelphia of Ampersand Health

NA NA NA NA NA Comprises healthcare clinics.

11/15/2018 Pivot Health Solutions /

Pivot Onsite Innovations

NA NA NA NA NA Provides occupational healthcare services for

organizations ranging from manufacturing to

professional services firms.

11/26/2018 Radiology Associates of South Florida, PA /

Bethesda Radiology Associates, Inc.

NA NA NA NA NA Provides radiology services.

Announced Rising Biosciences, Inc. (OTCPK:RBII) /

All Current Assets of PAO Group, Inc.

NA NA NA NA NA Comprises medical clinics.

Announced Shady Grove Fertility /

VAIVF & Andrology Center; Virginia Fertility Associates

NA NA NA NA NA Operates a fertility clinic and also provides

andrology and in-vitro fertility services.

11/1/2018 WELL Health Technologies Corp. (TSXV:WELL) /

Thirteen Private Clinics in British Columbia

$5.1 NA NA NA NA Com+D28:N54prises healthcare clinics.

MEAN (NON-ACUTE) NA NA

MEDIAN (NON-ACUTE) NA NA

11/1/2018 Bridgestone Living LLC /

Texas Senior Housing Communities

NA NA NA NA NA Comprises memory care facilities.

Announced Crown Healthcare Group LLC /

Wright's Healthcare & Rehabilitation Center

NA NA NA NA NA Provides nursing care services.

11/1/2018 Ensign Group, Inc. (NasdaqGS:ENSG) /

Operations of Rock Creek of Ottawa

NA NA NA NA NA Comprises a post-acute care retirement campus,

assisted living units, and independent living units.

11/1/2018 Ensign Group, Inc. (NasdaqGS:ENSG) /

Two Skilled Nursing Facilities in Idaho

NA NA NA NA NA Comprises real estate and operations of nursing

facilities.

11/1/2018 Genesis Healthcare, Inc. (NYSE:GEN) /

Eight Skilled Nursing Facilities and One Assisted Living Facility in

New Mexico and Arizona

NA NA NA NA NA Comprises nursing facilities and assisted care

facilities.

11/1/2018 Ventas, Inc. (NYSE:VTR) /

Seniors Housing Community Located in Battery Park City

$144.0 NA NA NA NA Comprises senior living community.

MEAN (LONG-TERM CARE) NA NA

MEDIAN (LONG-TERM CARE) NA NA

Announced Ascension Health Alliance /

Bay Medical Sacred Heart

NA NA NA NA NA Provides health care services.

11/1/2018 Baptist Health, Inc. /

Sparks Health System in Fort Smith; Sparks Medical Center in Van

Buren of Community Health

NA NA NA NA NA Comprises healthcare facilities.

Announced Cincinnati Children's Hospital Medical Center /

Children's Heart Specialists, PSC

NA NA NA NA NA Provides comprehensive pediatric cardiac services

to infants, children, and young adults.

11/3/2018 Dorado Health, Inc. /

Hospital Hermanos Meléndez, Inc.; Puerto Rico Children's Hospital,

Inc.

$150.0 NA NA NA NA Own and operate hospitals.

11/20/2018 INTEGRIS Health Inc.; United Surgical Partners International Inc. /

Healthcare Partners Investments, LLC

NA NA NA NA NA Owns and operates hospitals, outpatient centers,

and clinics.

PROVIDERS - LONG-TERM CARE

PROVIDERS - ACUTE

9

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

Announced Medical University Hospital Authority /

Four Hospitals at Chester, Lancaster, Florence and Mullins in South

Carolina

NA NA NA NA NA Comprises four hospital facilities.

Announced Medical University of South Carolina /

4 hospitals from Community Health Systems, Inc.

NA NA NA NA NA Comprises hospital facilities.

11/5/2018 Montecito Medical Real Estate /

Chardon Surgery Center

NA NA NA NA NA Provides services in general surgery, endoscopy,

ocular-plastics, ophthalmology, orthopedics,

podiatry, and pain management.

Announced North Mississippi Health Services, Inc. /

Assets of Gilmore Memorial Hospital

$10.5 NA NA NA NA Comprises assets of a hospital.

Announced Optum, Inc. /

Polyclinic Management Services Company, LLC

NA NA NA NA NA Operates hospitals.

11/16/2018 RCCH HealthCare Partners /

LifePoint Health, Inc. (NasdaqGS:LPNT)

$5,598.1 $6,239.0 $660.7 0.9x 8.5x Owns and operates community hospitals, regional

health systems, physician practices, outpatient

centers, and post-acute facilities.

11/19/2018 RHG Consolidated /

St. Lukes Hospital, Inc.

NA NA NA NA NA Owns and operates a hospital.

11/1/2018 Wellspan Health /

Summit Health, Inc.

NA NA NA NA NA Owns and operates hospitals.

MEAN (ACUTE) 0.9x 8.5x

MEDIAN (ACUTE) 0.9x 8.5x

MEAN (PROVIDERS) 0.9x 8.5x

MEDIAN (PROVIDERS) 0.9x 8.5x

11/19/2018 Altus Capital Partners /

ChoiceSpine, LP

NA NA NA NA NA Manufactures and markets spinal products to

orthopedic and neurosurgeon specialists for the

treatment of spinal disorders and deformities in

patients.

Announced Colfax Corporation (NYSE:CFX) /

DJO Global Inc.

$3,150.0 $1,203.0 $268.8 2.6x 11.7x Engages in the development, manufacture, and

distribution of orthopedic devices to treat patients

with musculoskeletal conditions resulting from

degenerative diseases, deformities, traumatic

events, and sports-related injuries.11/5/2018 Grünenthal Pharma GmbH & Co. KG /

Additional Global Commercial Rights for Qutenza

NA NA NA NA NA Comprises Qutenza dermal pain patch business.

11/13/2018 Merit Medical Systems, Inc. (NasdaqGS:MMSI) /

Cianna Medical, Inc.

$200.0 NA NA NA NA Provides a medical device for guidance during

excisional breast procedures.

Announced RTI Surgical, Inc. (NasdaqGS:RTIX) /

Paradigm Spine, LLC

$299.1 NM NA NM NA Designs, develops, and markets solutions for the

treatment of spinal diseases.

11/9/2018 Stryker Corporation (NYSE:SYK) /

K2M Group Holdings, Inc. (NasdaqGS:KTWO)

$1,340.0 $271.9 NM 4.9x NM Offers implants, disposables, and instruments

primarily to hospitals for use by spine surgeons.

MEAN (CLINICAL DEVICES) 3.8x 11.7x

MEDIAN (CLINICAL DEVICES) 3.8x 11.7x

11/14/2018 Agilent Technologies, Inc. (NYSE:A) /

ACEA Biosciences, Inc.

$250.0 NA NA NA NA Develops and commercializes microelectronic

sensor systems for cell-based assays, drug

discovery, and diagnostics.

Announced Illumina, Inc. (NasdaqGS:ILMN) /

Pacific Biosciences of California, Inc. (NasdaqGS:PACB)

$1,167.7 NM NM NM NM Designs, develops, and manufactures sequencing

systems to resolve genetically complex problems.

MEAN (NON-CLINICAL DEVICES) NA NA

MEDIAN (NON-CLINICAL DEVICES) NA NA

MEAN (DISPOSABLES) NA NA

MEDIAN (DISPOSABLES) NA NA

11/28/2018 Carter Validus Mission Critical REIT II, Inc. /

Valdosta Healthcare Facilities Portfolio

$10.2 NA NA NA NA Comprises two medical office buildings.

11/19/2018 Ethos Biosciences, Inc. /

Exocell, Inc.

NA NA NA NA NA Provides products and assays for clinical

diagnostics, clinical investigation, laboratory

research, reagents, and reference standards.

11/26/2018 LGC Standards Ltd. /

SeraCare Life Sciences, Inc.

NA NA NA NA NA Provides products and services to facilitate the

discovery, development, and production of human

and animal diagnostics, and therapeutics.

11/1/2018 Precision BioLogic Inc. /

Affinity Biologicals Inc.

NA NA NA NA NA Manufactures research and diagnostic products in

the fields of hemostasis, thrombosis, and

coagulation.

11/6/2018 WishBone Medical, Inc. /

Red Star Contract Manufacturing Inc.

NA NA NA NA NA Manufactures sterile packaging and plastic

injection molded single use instruments.

MEAN (COMMERCIAL) NA NA

MEDIAN (COMMERCIAL) NA NA

PRODUCTS - COMMERCIAL

PRODUCTS - DISPOSABLES

PRODUCTS - CLINICAL DEVICES

PRODUCTS - NON-CLINICAL DEVICES

10

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

MEAN (CONSUMER PRODUCTS) NA NA

MEDIAN (CONSUMER PRODUCTS) NA NA

11/30/2018 Aclaris Therapeutics, Inc. (NasdaqGS:ACRS) /

Worldwide Rights to Rhofade Cream, 1%

$70.0 NA NA NA NA Comprises a license to certain intellectual

property for RHOFADE, which is approved for the

topical treatment of persistent facial erythema

associated with rosacea in adults.

11/14/2018 Acreage Holdings, Inc. (CNSX:ACRG.U) /

Applied Inventions Management Corp.

NA NA NA NA NA Owns and/or operates cannabis cultivation,

processing, and dispensary operations.

11/9/2018 AREV Brands International Ltd. (CNSX:AREV) /

Bare Topicals Assets of Alternative

$0.2 NA NA NA NA Provides a line of cannabis infused topical

products that serves as an alternative product for

pain relief and treatment of skin conditions.

11/22/2018 Aurora Cannabis Inc. (TSX:ACB) /

ICC Labs Inc. (TSXV:ICC)

$211.2 NA NA NA NA Offers recreational cannabis, medicinal cannabis,

cannabinoid extracts, and by-products for

medicinal, recreational, and industrial use, as well

as industrial hemp.

Announced Avista Capital Holdings, L.P. /

Extended Topicals and Dermatology Business Unit of G&W

Laboratories, Inc.

NA NA NA NA NA Comprises self-labeled generic topical

dermatology products manufacturing operations.

11/1/2018 Barings LLC /

Midatech Pharma US Inc.

$19.0 $9.1 NA 2.1x NA A specialty pharmaceutical company which

focuses on commercialization of oncology

treatment and supportive care pharmaceutical

products.

Announced Cambrex Corporation (NYSE:CBM) /

Avista Pharma Solutions

$252.0 NA NA NA NA Manufactures drug substance and drug products.

Announced CannaPharmaRX, Inc. (OTCPK:CPMD) /

Alternative Medical Solutions Inc.

$9.3 NA NA NA NA Cultivates and grows medical marijuana.

11/26/2018 Canopy Growth Corporation (TSX:WEED) /

All Assets of ebbu, Inc.

$407.8 NA NA NA NA Offers hemp research and development services.

11/20/2018 Choom Holdings Inc. (CNSX:CHOO) /

Clarity Cannabis Medical Centre Inc.

$0.4 NA NA NA NA Engages in cultivating and selling cannabis for

medical purposes.

Announced Coeptis Pharmaceuticals, Inc. /

Elto Pharma, Inc.

NA NA NA NA NA A pharmaceutical company.

11/12/2018 Cumberland Pharmaceuticals Inc. (NasdaqGS:CPIX) /

VIBATIV

$125.0 NA NA NA NA Comprises an anti-infective injection for the

treatment of certain serious bacterial infections.

11/1/2018 Eviana Health Corporation (CNSX:EHC) /

Eviana Inc.

NA NA NA NA NA Engages in the cultivation of industrial hemp plant

oil for pharmaceutical, nutraceutical, and

cosmeceutical industries.

11/14/2018 Flower One Holdings Inc (CNSX:FONE) /

Assets of NLV Organics, Inc.

$27.2 NA NA NA NA Comprises medical cannabis cultivation and

production assets.

Announced Generex Biotechnology Corporation (OTCPK:GNBT) /

Olaregen Therapeutix Inc.

$12.4 NA NA NA NA Manufactures and develops regenerative medicine

and drugs.

Announced Generex Biotechnology Corporation (OTCPK:GNBT) /

Regentys Corporation

NA NA NA NA NA Focuses on developing treatments for patients

with gastrointestinal disorders.

11/9/2018 Green Globe International, Inc. (OTCPK:GGII) /

Operational Assets of BestNPet, Inc.

NA NA NA NA NA Comprises cannabidiol and hemp flower

production assets.

11/9/2018 Green Growth Brands Ltd. /

Xanthic Biopharma Inc.

NA NA NA NA NA Produces and sells non-combustible medical

cannabis products.

11/14/2018 Grünenthal GmbH /

Averitas Pharma, Inc.

NA NA NA NA NA Manufactures protein based non-opiate pain

agent for specialty pharmaceuticals.

Announced GTI Core, LLC /

Integral Associates, LLC; Integral Associates CA, LLC

$275.0 NA NA NA NA Produces and retails medical cannabis.

11/12/2018 High Hampton Holdings Corp. (CNSX:HC) /

Mojave Jane, LLC

$2.7 NA NA NA NA Manufactures cannabis extracts and concentrates

for both recreational and medical cannabis users.

Announced ICC International Cannabis Corp. (CNSX:WRLD) /

Green Gene Research Inc.

$3.8 NA NA NA NA Provides cannabis research, testing, cultivation

and the optimization of proprietary seeds and

strains.

Announced InvaGen Pharmaceuticals, Inc. /

Avenue Therapeutics, Inc. (NasdaqCM:ATXI)

$162.8 $0.0 -$24.0 NM NM Acquires, licenses, develops, and commercializes

products primarily for use in the acute/intensive

care hospital setting.

11/16/2018 Invictus MD Strategies Corp. (TSXV:GENE) /

0989561 B.C. Ltd.

$9.4 NA NA NA NA Engages in the cultivation and production of

cannabis.

11/26/2018 Item 9 Labs Corp. (OTCPK:INLB) /

Assets of Arizona DP Consulting LLC

$8.3 NA NA NA NA Comprises cannabis licensing assets.

11/23/2018 Jushi Inc. /

Medicinal Excellence in Neurological Disorders, LLC

NA NA NA NA NA Develops physician-formulated cannabinoid

products.

11/15/2018 Kali, Inc. (OTCPK:KALY) /

NCM Biotech

NA NA NA NA NA Engages in research and development of

cannabis oil for the treatment of illnesses,

diseases, and chronic pain as a symptom of

various diagnoses.

11/30/2018 MJardin Group, Inc. (CNSX:MJAR) /

Growforce Holdings Inc.

$177.4 NA NA NA NA Operates cannabis facilities for healthcare

industry.

11/12/2018 National Holistic Healing Center /

Advanced Biomedics, LLC

NA NA NA NA NA Engages in cultivation, extraction, and

manufacturing of pharmaceutical-grade marijuana

products.

11/5/2018 PhyeinMed Inc. /

Cannacure Corporation

$29.3 NA NA NA NA Produces cannabis for medical purposes.

11/21/2018 Santé Veritas Holdings Inc. (CNSX:SV) /

Sea Hunter Holdings, LLC

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

medical cannabis.

PRODUCTS - CONSUMER

PRODUCTS - PHARMACEUTICALS

11

Date Acquirer / Target Price

Target

Revenue

Target

EBITDA2

Price/

Revenue

Price/

EBITDA2

Target Description

11/15/2018 Synteract, Inc. /

Kinderpharm LLC

NA NA NA NA NA Develops pediatric drugs.

Announced Terra Tech Corp. (OTCPK:TRTC) /

Golden Leaf Holdings Ltd. (CNSX:GLH)

$118.0 NM NM NM NM Produces, distributes, and sells cannabis oil and

flower products.

Announced Tetra Bio-Pharma Inc. (TSXV:TBP) /

Panag Pharma Inc.

$20.6 NA NA NA NA Develops bio pharmaceuticals and natural health

products containing cannabis and other medicinal

plant based elements.

Announced Trulieve Cannabis Corp. (CNSX:TRUL) /

Life Essence, Inc.

$3.1 NA NA NA NA Cultivates and develops medical marijuana.

Announced Weekend Unlimited Inc. (CNSX:YOLO) /

R&D Pharma Corp.

$7.6 NA NA NA NA Engages in cultivation of medicinal cannabis.

MEAN (PHARMACEUTICALS) 2.1x NA

MEDIAN (PHARMACEUTICALS) 2.1x NA

11/13/2018 AEA Investors LP /

Numotion

NA NA NA NA NA Provides mobility solutions for individuals with

complex medical mobility limitations.

11/20/2018 Aeroflow, Inc. /

Positive Airway Pressure Line of Business of Integrity Medical, Inc.

NA NA NA NA NA Comprises positive airway pressure and bilevel

positive airway pressure supplies.

Announced Cresco Labs Inc. (CNSX:CL) /

MedMar, Inc.

$27.0 NA NA NA NA Operates a medical cannabis dispensary.

11/27/2018 Democrasales, Inc. /

T-Plex Industries Inc.

NA NA NA NA NA Wholesale distributor of medical supplies to

physician offices and ambulatory surgery centers.

Announced Harvest Health & Recreation Inc. (CNSX:HARV) /

CBx Sciences LLC

$49.5 NA NA NA NA Operates as a botanical technology company.

Announced MedMen Enterprises Inc. (CNSX:MMEN) /

A Dispensary in Santa Ana, California of Captor Capital Corp.

$16.3 NA NA NA NA Comprises medical marijuana dispensary.

11/1/2018 NuGenerex Life Science Holdings, Inc. /

Certain Assets of Veneto Holdings, L.L.C

$35.0 NA NA NA NA Comprises specialty pharmacy services and

products.

11/21/2018 Santé Veritas Holdings Inc. (CNSX:SV) /

Briteside Holdings, LLC

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

Announced Sunniva Inc. (CNSX:SNN) /

LTYR Logistics, LLC

$6.2 NA NA NA NA Provides cannabis distribution services to

healthcare and biotechnology industries.

MEAN (DISTRIBUTION) NA NA

MEDIAN (DISTRIBUTION) NA NA

MEAN (PRODUCTS) 3.2x 11.7x

MEDIAN (PRODUCTS) 2.6x 11.7x

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

12

ANALYSIS OF SELECTED PUBLICLY-TRADED

HEALTHCARE, MEDICAL AND PHARMACEUTICAL

SERVICES AND PRODUCTS COMPANIES1

(As of November 30, 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

Amerisafe, Inc. (NasdaqGS:AMSF) 64.59 1,244.06 1,210.74 378.02 83.58 2.77 3.2x 14.5x 23.3x

Anthem, Inc. (NYSE:ANTM) 290.07 75,024.31 90,924.31 91,393.60 6,294.20 17.25 1.0x 14.4x 16.8x

Centene Corporation (NYSE:CNC) 142.25 29,211.80 29,002.80 52,615.00 2,373.00 4.66 0.6x 12.2x NM

Cigna Corporation (NYSE:CI) 223.38 54,400.68 55,448.68 44,542.00 5,151.00 11.18 1.2x 10.8x 20.0x

CNO Financial Group, Inc. (NYSE:CNO) 18.30 3,013.08 6,453.78 4,625.40 253.50 (2.50) 1.4x 25.5x NM

Humana Inc. (NYSE:HUM) 329.47 45,198.96 46,427.96 55,933.00 3,549.00 10.83 0.8x 13.1x NM

Independence Holding Company (NYSE:IHC) 38.49 569.46 548.52 345.79 42.85 2.74 1.6x 12.8x 14.1x

Molina Healthcare, Inc. (NYSE:MOH) 139.71 8,716.37 7,415.37 18,500.00 971.00 3.78 0.4x 7.6x NM

ProAssurance Corporation (NYSE:PRA) 43.73 2,345.51 2,545.96 915.67 141.82 1.65 2.8x 18.0x 26.5x

Triple-S Management Corporation (NYSE:GTS) 19.08 443.92 365.84 3,000.13 (20.77) (1.22) 0.1x NM NM

Trupanion, Inc. (NasdaqGM:TRUP) 29.93 1,000.26 974.19 287.86 2.04 (0.05) 3.4x NM NM

UnitedHealth Group Incorporated (NYSE:UNH) 281.36 270,677.94 298,322.94 219,891.00 18,643.00 12.75 1.4x 16.0x 22.1x

WellCare Health Plans, Inc. (NYSE:WCG) 254.88 12,741.93 10,560.73 18,688.40 807.50 9.66 0.6x 13.1x 26.4x

MEAN (INSURANCE) 1.4x 14.4x 21.3x

MEDIAN (INSURANCE) 1.2x 13.1x 22.1x

Allscripts Healthcare Solutions, Inc. (NasdaqNM:MDRX) 10.21 1,783.83 3,997.33 2,079.12 90.48 (0.09) 1.9x NM NM

Castlight Health, Inc. (NYSE:CSLT) 2.61 364.69 301.86 150.91 (34.00) (0.34) 2.0x NM NM

Cerner Corporation (NasdaqNM:CERN) 57.91 19,080.67 18,708.22 5,212.98 1,256.46 2.49 3.6x 14.9x 23.2x

CompuGroup Medical Societas Europaea (DB:COP) 41.72 2,067.48 2,359.43 706.63 151.27 1.28 3.3x 15.6x NM

Computer Programs and Systems, Inc. (NasdaqNM:CPSI) 26.68 362.95 495.30 286.15 34.54 (0.84) 1.7x 14.3x NM

Craneware plc (AIM:CRW) 29.30 782.28 742.24 67.07 19.50 0.58 NM NM NM

Evolent Health, Inc. (NYSE:EVH) 25.70 2,013.38 1,923.63 547.69 (10.16) (0.64) 3.5x NM NM

HealthEquity, Inc. (NasdaqGS:HQY) 88.69 5,521.95 5,219.03 271.90 87.83 1.06 NM NM NM

Inovalon Holdings, Inc. (NasdaqGS:INOV) 13.30 2,027.12 2,880.73 505.98 101.95 (0.08) NM 28.3x NM

Medidata Solutions, Inc. (NasdaqGS:MDSO) 77.21 4,724.79 4,620.62 611.43 89.36 0.85 NM NM NM

Model N, Inc. (NYSE:MODN) 13.73 431.77 428.77 154.63 (12.48) (0.93) 2.8x NM NM

NextGen Healthcare, Inc. (NasdaqGS:NXGN) 17.55 1,134.93 1,145.84 531.01 37.47 0.09 2.2x NM NM

RaySearch Laboratories AB (publ) (OM:RAY B) 106.00 3,633.97 3,703.08 612.74 137.94 3.45 NM 26.8x NM

Simulations Plus, Inc. (NasdaqCM:SLP) 19.82 345.27 335.87 29.67 11.72 0.50 NM 28.7x NM

Veeva Systems Inc. (NYSE:VEEV) 96.16 13,896.02 12,844.10 810.88 205.37 1.22 NM NM NM

MEAN (TECHNOLOGY) 2.6x 21.4x 23.2x

MEDIAN (TECHNOLOGY) 2.5x 21.2x 23.2x

AMN Healthcare Services, Inc. (NYSE:AMN) 63.70 2,985.48 3,437.29 2,116.52 254.92 3.00 1.6x 13.5x 21.2x

athenahealth, Inc. (NasdaqGS:ATHN) 133.10 5,404.97 5,359.67 1,311.40 264.80 3.06 4.1x 20.2x NM

SERVICES - TECHNOLOGY

SERVICES - INSURANCE

SERVICES - OUTSOURCING

13

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

BioScrip, Inc. (NasdaqNM:BIOS) 3.95 505.76 1,076.02 707.92 46.78 (0.38) 1.5x 23.0x NM

Cegedim SA (ENXTPA:CGM) 23.70 330.08 490.91 461.01 53.09 0.89 1.1x 9.2x 26.5x

CorVel Corporation (NasdaqNM:CRVL) 69.70 1,306.76 1,216.62 582.88 75.99 2.26 2.1x 16.0x NM

Cross Country Healthcare, Inc. (NasdaqNM:CCRN) 9.07 328.79 391.96 835.25 33.99 0.86 0.5x 11.5x 10.6x

eHealth, Inc. (NasdaqGS:EHTH) 38.52 747.54 727.19 181.25 (25.51) (2.57) 4.0x NM NM

EPS Holdings, Inc. (TSE:4282) 2,185.00 98,896.67 84,476.67 65,769.00 9,173.00 95.66 1.3x 9.2x 22.8x

Express Scripts Holding Company (NasdaqNM:ESRX) 101.47 57,188.49 68,485.19 101,353.20 7,318.30 8.64 0.7x 9.4x 11.7x

Healthcare Services Group, Inc. (NasdaqNM:HCSG) 47.20 3,483.27 3,403.32 2,011.82 103.77 0.97 1.7x NM NM

HMS Holdings Corp. (NasdaqNM:HMSY) 35.74 2,998.84 3,114.54 590.96 122.63 0.55 NM 25.4x NM

ICON Public Limited Company (NasdaqGS:ICLR) 144.72 7,877.97 7,735.65 2,371.89 444.49 5.56 3.3x 17.4x 26.0x

Syneos Health, Inc. (NasdaqGS:SYNH) 51.72 5,338.84 8,081.68 3,995.12 489.07 (0.35) 2.0x 16.5x NM

Magellan Health, Inc. (NasdaqNM:MGLN) 54.52 1,322.39 1,888.90 7,163.92 232.75 4.22 0.3x 8.1x 12.9x

ASGN Incorporated (NYSE:ASGN) 69.25 3,634.03 4,747.30 3,149.17 345.18 3.39 1.5x 13.8x 20.5x

PRA Health Sciences, Inc. (NasdaqGS:PRAH) 116.74 7,585.20 8,655.73 2,487.16 410.28 0.99 3.5x 21.1x NM

IQVIA Holdings Inc. (NYSE: IQV ) 125.07 25,019.78 35,010.78 8,603.00 1,817.00 5.93 4.1x 19.3x 21.1x

Stericycle, Inc. (NasdaqGS:SRCL) 48.07 4,354.89 7,151.99 3,521.00 609.80 1.72 2.0x 11.7x 27.9x

Teladoc Health, Inc. (NYSE:TDOC) 62.45 4,378.15 4,314.28 372.31 (36.16) (1.85) NM NM NM

MEAN (OUTSOURCING) 2.1x 15.3x 20.1x

MEDIAN (OUTSOURCING) 1.7x 14.9x 21.2x

Firstsource Solutions Limited (BSE:532809) 52.20 36,050.05 40,055.98 36,583.85 4,778.02 5.39 1.1x 8.4x 9.7x

HCL Technologies Limited (NSEI:HCLTECH) 1,015.00 1,376,605.19 1,351,946.92 8,178.67 1,899.51 1.00 NM NM NM

Hexaware Technologies Limited (BSE:532129) 323.20 1,172.00 1,115.00 44,001.67 6,877.97 19.23 0.0x 0.2x 16.8x

Infosys Limited (NSEI:INFY) 667.45 2,901,855.57 2,647,367.71 11,313.00 3,002.00 0.56 NM NM NM

KPIT Technologies Limited (BSE:532400) 207.95 39,591.19 36,036.66 39,719.07 4,121.45 14.89 0.9x 8.7x 14.0x

Mphasis Limited (BSE:526299) 999.40 193,301.06 173,006.96 71,402.43 12,365.45 51.15 2.4x 14.0x 19.5x

NIIT Technologies Limited (BSE:532541) 1,091.50 67,148.43 58,964.43 32,776.00 5,297.00 57.84 1.8x 11.1x 18.9x

Tata Consultancy Services Limited (NSEI:TCS) 1,968.25 7,385,631.20 7,056,831.20 1,340,940.00 362,970.00 74.92 NM 19.4x 26.3x

Tech Mahindra Limited (NSEI:TECHM) 705.95 624,584.94 550,695.94 327,365.50 55,674.80 46.26 1.7x 9.9x 15.3x

Wipro Limited (BSE:507685) 324.85 1,462,432.69 1,248,980.69 559,563.00 97,278.00 16.89 2.2x 12.8x 19.2x

MEAN (INDIA-BASED OUTSOURCING) 1.5x 10.6x 17.5x

MEDIAN (INDIA-BASED OUTSOURCING) 1.7x 10.5x 17.8x

HealthStream, Inc. (NasdaqNM:HSTM) 24.64 796.50 622.19 259.82 30.96 0.45 2.4x 20.1x NM

National Research Corporation (NasdaqGS:NRC) 39.87 987.27 1,018.93 118.95 39.75 0.98 NM 25.6x NM

MEAN (INFORMATION) 2.4x 22.9x NM

MEDIAN (INFORMATION) 2.4x 22.9x NM

MEAN (SERVICES) 1.9x 15.4x 19.7x

MEDIAN (SERVICES) 1.7x 14.3x 20.2x

Charles River Laboratories International, Inc. (NYSE:CRL) 134.85 6,485.80 8,047.02 2,143.04 495.02 2.75 3.8x 16.3x NM

Global Cord Blood Corporation (NYSE:CO) 6.44 782.79 112.55 958.90 372.80 1.93 0.1x 0.3x 3.3x

SERVICES - INDIA-BASED OUTSOURCING

SERVICES - INFORMATION

PROVIDERS - LABS

14

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

Genomic Health, Inc. (NasdaqGS:GHDX) 79.05 2,855.55 2,672.28 376.97 37.84 0.51 NM NM NM

Invitae Corporation (NYSE:NVTA) 13.93 1,039.42 972.51 127.74 (113.07) (2.30) NM NM NM

Laboratory Corporation of America Holdings (NYSE:LH) 145.64 14,695.08 20,285.78 11,188.50 2,069.00 14.09 1.8x 9.8x 10.3x

NeoGenomics, Inc. (NasdaqCM:NEO) 16.40 1,525.47 1,517.35 280.05 34.21 0.08 NM NM NM

Quest Diagnostics Incorporated (NYSE:DGX) 88.57 12,051.91 15,742.91 7,864.00 1,574.00 6.19 2.0x 10.0x 14.3x

Sonic Healthcare Limited (ASX:SHL) 22.80 9,715.88 12,304.53 5,541.37 902.48 1.12 2.2x 13.6x 20.3x

MEAN (LABS) 2.0x 10.0x 12.1x

MEDIAN (LABS) 2.0x 10.0x 12.3x

Addus HomeCare Corporation (NasdaqGS:ADUS) 74.22 937.37 891.10 488.01 37.45 1.33 1.8x 23.8x NM

Amedisys, Inc. (NasdaqNM:AMED) 136.25 4,344.82 4,388.23 1,623.51 164.26 2.58 2.7x 26.7x NM

Chemed Corporation (NYSE:CHE) 316.78 5,072.39 5,134.93 1,753.50 265.94 12.25 2.9x 19.3x 25.9x

LHC Group, Inc. (NasdaqNM:LHCG) 104.87 3,290.19 3,606.22 1,591.26 133.42 2.50 2.3x 27.0x NM

MEAN (HOME HEALTH) 2.4x 24.2x 25.9x

MEDIAN (HOME HEALTH) 2.5x 25.3x 25.9x

AAC Holdings, Inc. (NYSE:AAC) 1.97 48.47 352.90 317.33 31.24 (1.40) 1.1x 11.3x NM

Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) 33.97 2,998.06 6,193.06 2,993.41 589.45 2.58 2.1x 10.5x 13.2x

Civitas Solutions, Inc. (NYSE:CIVI) 13.88 502.86 1,218.17 1,573.09 157.59 0.16 0.8x 7.7x NM

Concord Medical Services Holdings Limited (NYSE:CCM) 3.72 161.31 514.01 229.85 (138.97) (7.18) 2.2x NM NM

CoreCivic, Inc. (NYSE:CXW) 21.95 2,605.06 4,276.41 1,794.15 408.76 1.34 2.4x 10.5x 16.4x

DaVita Inc. (NYSE:DVA) 66.06 10,964.93 22,005.75 11,377.59 2,186.45 3.49 1.9x 10.1x 19.0x

The GEO Group, Inc. (NYSE: GEO) 23.24 2,827.98 5,500.62 2,300.93 395.14 1.22 2.4x 13.9x 19.0x

Hanger, Inc. (NYSE:HNGR) 20.03 738.07 1,189.03 1,049.64 92.70 (2.45) 1.1x 12.8x NM

Encompass Health Corporation (NYSE:EHC) 75.21 7,440.39 10,426.19 4,195.20 881.10 3.26 2.5x 11.8x 23.1x

MEDNAX, Inc. (NYSE:MD) 40.20 3,552.85 5,510.92 3,625.25 575.78 3.72 1.5x 9.6x 10.8x

The Providence Service Corporation (NasdaqGS:PRSC) 70.81 907.14 972.83 1,646.05 71.28 2.32 0.6x 13.6x NM

RadNet, Inc. (NasdaqNM:RDNT) 12.89 629.89 1,210.03 953.49 117.80 (0.10) 1.3x 10.3x NM

Select Medical Holdings Corporation (NYSE:SEM) 19.38 2,622.73 6,707.87 4,909.69 600.45 1.59 1.4x 11.2x 12.2x

U.S. Physical Therapy, Inc. (NYSE:USPH) 118.99 1,509.36 1,666.67 441.71 69.83 1.45 3.8x 23.9x NM

MEAN (NON-ACUTE) 1.8x 12.1x 16.2x

MEDIAN (NON-ACUTE) 1.7x 11.2x 16.4x

Brookdale Senior Living Inc. (NYSE:BKD) 8.55 1,605.20 6,103.97 3,622.32 570.06 (3.45) 1.7x 10.7x NM

Capital Senior Living Corporation (NYSE:CSU) 9.00 281.36 1,265.99 460.14 74.00 (1.14) 2.8x 17.1x NM

Ensign Group, Inc. (NasdaqNM:ENSG) 45.37 2,370.49 2,581.31 1,990.59 168.67 1.43 1.3x 15.3x NM

Five Star Senior Living Inc. (NasdaqCM:FVE) 0.41 20.73 0.39 1,112.30 (29.71) (1.04) 0.0x NM NM

Genesis Healthcare, Inc. (NYSE:GEN) 1.59 162.15 4,359.50 5,022.17 381.58 (2.57) 0.9x 11.4x NM

Sabra Health Care REIT, Inc. (NasdaqGS:SBRA) 19.29 3,439.12 6,737.59 647.05 556.62 2.19 NM 12.1x 8.8x

Ventas, Inc. (NYSE:VTR) 63.49 22,632.14 33,227.96 3,667.75 1,832.43 2.06 NM 18.1x NM

Welltower Inc. (NYSE:WELL) 72.33 27,170.36 42,564.10 4,498.00 2,010.61 1.47 NM 21.2x NM

MEAN (LONG-TERM CARE) 1.3x 15.1x 8.8x

MEDIAN (LONG-TERM CARE) 1.3x 15.3x 8.8x

PROVIDERS - LONG-TERM CARE

PROVIDERS - HOME HEALTH & HOSPICE

PROVIDERS - NON-ACUTE

15

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

Community Health Systems, Inc. (NYSE:CYH) 4.75 536.28 14,341.28 13,760.00 846.00 (21.97) 1.0x 17.0x NM

HCA Healthcare, Inc. (NYSE:HCA) 143.99 49,555.67 83,913.67 45,965.00 8,767.00 8.93 1.8x 9.6x 16.1x

Tenet Healthcare Corporation (NYSE:THC) 26.07 2,672.13 19,232.13 18,672.00 2,629.00 (1.15) 1.0x 7.3x NM

Universal Health Services, Inc. (NYSE:UHS) 137.99 12,765.39 16,783.79 10,660.57 1,702.94 8.92 1.6x 9.9x 15.5x

MEAN (ACUTE) 1.4x 10.9x 15.8x

MEDIAN (ACUTE) 1.3x 9.7x 15.8x

MEAN (PROVIDERS) 1.8x 13.7x 15.2x

MEDIAN (PROVIDERS) 1.8x 11.8x 15.5x

ABIOMED, Inc. (NasdaqNM:ABMD) 332.68 14,983.75 14,573.30 690.25 202.09 4.13 NM NM NM

Accelerate Diagnostics, Inc. (NasdaqCM:AXDX) 14.77 800.52 737.67 5.97 (74.40) (1.50) NM NM NM

Accuray Incorporated (NasdaqNM:ARAY) 4.10 355.31 415.69 409.78 2.91 (0.28) 1.0x NM NM

Agilent Technologies, Inc. (NYSE:A) 72.35 23,062.98 22,618.98 4,914.00 1,138.00 0.97 4.6x 19.9x NM

Align Technology, Inc. (NasdaqNM:ALGN) 229.89 18,387.61 17,782.45 1,853.80 504.91 3.83 NM NM NM

Alliqua BioMedical, Inc. (NasdaqCM:ALQA) 2.76 13.81 2.72 19.97 (12.37) (5.96) 0.1x NM NM

Alphatec Holdings, Inc. (NasdaqNM:ATEC) 2.71 117.11 146.07 92.63 (14.25) (0.82) 1.6x NM NM

AngioDynamics, Inc. (NasdaqNM:ANGO) 21.49 797.74 862.08 344.21 50.74 0.43 2.5x 17.0x NM

Anika Therapeutics, Inc. (NasdaqGS:ANIK) 34.45 489.58 340.57 107.99 33.41 1.27 3.2x 10.2x 27.0x

AtriCure, Inc. (NasdaqNM:ATRC) 33.49 1,290.26 1,302.49 194.80 (18.63) (0.61) NM NM NM

Avinger, Inc. (NasdaqCM:AVGR) 0.31 7.27 5.41 7.80 (21.67) (7.45) 0.7x NM NM

Baxter International Inc. (NYSE:BAX) 68.55 36,478.27 37,089.27 11,060.00 2,487.00 2.20 3.4x 14.9x NM

Bio-Techne Corporation (NasdaqGS:TECH) 161.42 6,096.15 6,493.90 661.35 199.68 3.33 NM NM NM

BioTelemetry, Inc. (NasdaqGS:BEAT) 70.94 2,362.50 2,500.64 366.39 98.45 0.48 NM 25.4x NM

Boston Scientific Corporation (NYSE:BSX) 37.67 52,127.78 58,585.78 9,670.00 2,600.00 0.48 NM 22.5x NM

Bruker Corporation (NasdaqNM:BRKR) 33.14 5,186.81 5,165.61 1,872.50 328.10 0.63 2.8x 15.7x NM

Cardiovascular Systems, Inc. (NasdaqGS:CSII) 30.87 1,071.23 978.40 223.63 4.76 0.02 4.4x NM NM

Catalent, Inc. (NYSE:CTLT) 39.65 5,764.00 7,777.00 2,471.30 505.60 0.48 3.1x 15.4x NM

Conformis, Inc. (NasdaqGS:CFMS) 0.54 34.21 27.02 88.49 (29.05) (0.83) 0.3x NM NM

CONMED Corporation (NasdaqNM:CNMD) 67.96 1,911.62 2,342.88 839.75 137.52 2.50 2.8x 17.0x 27.2x

Corindus Vascular Robotics, Inc. (AMEX:CVRS) 1.22 233.41 237.78 10.30 (33.96) (0.22) NM NM NM

CryoLife, Inc. (NYSE:CRY) 30.32 1,120.85 1,304.14 247.87 25.74 (0.14) NM NM NM

Cutera, Inc. (NasdaqGS:CUTR) 20.50 285.03 258.14 164.88 (2.24) 1.32 1.6x NM 15.5x

Cytosorbents Corporation (NasdaqCM:CTSO) 10.44 330.45 315.45 21.07 (13.49) (0.50) NM NM NM

DexCom, Inc. (NasdaqNM:DXCM) 129.59 11,513.34 11,190.74 914.60 15.00 0.48 NM NM NM

Edwards Lifesciences Corporation (NYSE:EW) 162.01 33,868.07 33,465.87 3,633.60 1,100.60 3.32 NM NM NM

Ekso Bionics Holdings, Inc. (OTCBB:EKSO) - 116.51 109.11 10.49 (26.60) (0.53) NM NM NM

Endologix, Inc. (NasdaqNM:ELGX) 0.85 88.06 266.91 165.78 (40.93) (0.81) 1.6x NM NM

Enzo Biochem, Inc. (NYSE:ENZ) 3.08 145.35 85.86 104.71 (9.03) (0.22) 0.8x NM NM

EyePoint Pharmaceuticals, Inc. (NasdaqGM:EYPT) 2.36 224.15 185.85 3.06 (32.24) (1.46) NM NM NM

Fresenius SE & Co. KGaA (DB:FRE) 50.40 28,026.65 53,713.65 33,390.00 5,602.00 3.63 1.6x 9.6x 13.9x

GenMark Diagnostics, Inc. (NasdaqGM:GNMK) 5.21 291.53 277.60 67.40 (44.34) (0.97) 4.1x NM NM

PROVIDERS - ACUTE

PRODUCTS - CLINICAL DEVICES

16

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

Genomic Health, Inc. (NasdaqGS:GHDX) 79.05 2,855.55 2,672.28 376.97 37.84 0.51 NM NM NM

Glaukos Corporation (NYSE:GKOS) 65.88 2,373.54 2,235.71 168.85 (7.76) (0.39) NM NM NM

Globus Medical, Inc. (NYSE:GMED) 48.29 4,755.65 4,382.89 693.07 214.44 1.43 NM 20.4x NM

Hologic, Inc. (NasdaqNM:HOLX) 44.41 12,843.94 15,533.64 3,217.90 1,018.30 (0.40) 4.8x 15.3x NM

Illumina, Inc. (NasdaqNM:ILMN) 337.50 49,612.50 48,499.50 3,243.00 1,083.00 4.62 NM NM NM

Inogen, Inc. (NasdaqGS:INGN) 147.36 3,171.57 2,947.71 335.37 50.94 1.84 NM NM NM

Integer Holdings Corporation (NYSE:ITGR) 88.58 2,868.46 3,799.77 1,540.08 292.74 1.93 2.5x 13.0x NM

Integra LifeSciences Holdings Corporation

(NasdaqNM:IART) 53.63 4,568.18 5,787.76 1,457.73 359.68 0.97 4.0x 16.1x NM

Intersect ENT, Inc. (NasdaqGM:XENT) 30.01 916.96 812.94 105.22 (21.19) (0.70) NM NM NM

Intuitive Surgical, Inc. (NasdaqNM:ISRG) 530.87 60,625.49 57,497.49 3,560.40 1,342.50 6.69 NM NM NM

IRadimed Corporation (NasdaqCM:IRMD) 28.78 314.69 283.50 28.80 6.39 0.39 NM NM NM

LeMaitre Vascular, Inc. (NasdaqGM:LMAT) 27.89 546.14 500.52 103.33 25.66 1.05 4.8x 19.5x 26.6x

LivaNova PLC (NasdaqGS:LIVN) 101.19 4,926.44 5,004.08 1,088.33 166.16 (0.01) 4.6x NM NM

Masimo Corporation (NasdaqNM:MASI) 110.42 5,851.79 5,358.31 850.96 232.17 2.59 NM 23.1x NM

Medtronic plc (NYSE:MDT) 97.53 130,987.22 145,994.22 30,378.00 9,680.00 1.59 4.8x 15.1x NM

Meridian Bioscience, Inc. (NasdaqNM:VIVO) 18.94 803.11 793.53 213.57 52.56 0.56 3.7x 15.1x NM

NanoString Technologies, Inc. (NasdaqGM:NSTG) 17.27 531.39 486.59 111.93 (55.26) (2.45) 4.3x NM NM

Natus Medical Incorporated (NasdaqNM:BABY) 35.38 1,182.31 1,242.30 521.34 42.49 (0.56) 2.4x 29.2x NM

Nevro Corp. (NYSE:NVRO) 41.51 1,251.78 1,144.30 377.31 (13.93) (1.47) 3.0x NM NM

NuVasive, Inc. (NasdaqNM:NUVA) 63.69 3,275.10 3,802.50 1,087.44 228.82 0.49 3.5x 16.6x NM

Nxstage Medical, Inc. (NasdaqNM:NXTM) 28.24 1,883.18 1,814.96 425.99 21.68 (0.08) 4.3x NM NM

Orthofix Medical Inc. (NasdaqNM:OFIX) 60.25 1,139.98 1,066.95 448.86 55.37 0.34 2.4x 19.3x NM

Quidel Corporation (NasdaqNM:QDEL) 60.82 2,392.48 2,490.86 504.59 150.71 1.00 4.9x 16.5x NM

ResMed Inc. (NYSE:RMD) 111.79 15,930.05 16,229.47 2,404.82 712.65 2.32 NM 22.8x NM

REVA Medical, Inc. (ASX:RVA) 0.20 83.01 164.68 NM (20.73) (0.04) NM NM NM

ReWalk Robotics Ltd. (NasdaqCM:RWLK) 0.23 12.39 19.58 6.48 (20.38) (0.74) 3.0x NM NM

SeaSpine Holdings Corporation (NasdaqGS:SPNE) 19.66 364.35 359.83 139.40 (23.17) (2.21) 2.6x NM NM

Second Sight Medical Products, Inc. (NasdaqCM:EYES) 1.08 78.60 73.63 8.24 (33.30) (0.54) NM NM NM

Sientra, Inc. (NasdaqGS:SIEN) 17.00 486.19 417.90 60.17 (66.53) (3.29) NM NM NM

Smith & Nephew plc (LSE:SN.) 14.25 12,439.15 13,505.46 4,869.00 1,249.00 0.82 2.8x 10.8x 17.4x

Sonova Holding AG (SWX:SOON) 161.35 10,534.87 10,840.74 2,696.22 609.44 6.38 4.0x 17.8x 25.3x

STAAR Surgical Company (NasdaqNM:STAA) 38.01 1,677.44 1,581.43 117.62 6.77 0.09 NM NM NM

Stryker Corporation (NYSE:SYK) 175.46 65,654.90 70,647.90 13,276.00 3,575.00 3.24 NM 19.8x NM

T2 Biosystems, Inc. (NasdaqGM:TTOO) 4.44 195.53 179.64 10.37 (43.25) (1.41) NM NM NM

Tandem Diabetes Care, Inc. (NasdaqGM:TNDM) 36.82 2,112.34 1,998.76 147.96 (48.29) (3.82) NM NM NM

TransEnterix, Inc. (AMEX:TRXC) 3.11 672.13 609.82 19.98 (49.02) (0.65) NM NM NM

Utah Medical Products, Inc. (NasdaqNM:UTMD) 94.89 354.34 304.99 42.44 21.99 3.37 NM 13.9x 28.2x

Varian Medical Systems, Inc. (NYSE:VAR) 123.39 11,242.86 10,702.96 2,919.10 573.10 1.62 3.7x 18.7x NM

Wright Medical Group N.V. (NasdaqNM:WMGI) 27.96 3,497.28 3,903.89 815.65 98.07 (1.11) 4.8x NM NM

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) 117.02 23,869.31 32,552.31 7,951.00 2,626.40 8.57 4.1x 12.4x 13.7x

MEAN (CLINICAL) 3.1x 17.3x 21.6x

MEDIAN (CLINICAL) 3.1x 16.6x 25.3x

17

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

Cerus Corporation (NasdaqNM:CERS) 5.25 712.37 623.22 60.62 (48.82) (0.42) NM NM NM

Getinge AB (OM:GETI B) 94.00 25,602.74 35,848.74 23,653.00 919.00 (2.67) 1.5x NM NM

Haemonetics Corporation (NYSE:HAE) 107.28 5,544.69 5,688.28 938.52 170.97 0.40 NM NM NM

Harvard Bioscience, Inc. (NasdaqGM:HBIO) 3.95 147.31 201.70 133.04 10.33 (0.18) 1.5x 19.5x NM

IDEXX Laboratories, Inc. (NasdaqNM:IDXX) 203.76 17,570.97 18,441.25 2,169.98 557.89 3.72 NM NM NM

Invacare Corporation (NYSE:IVC) 5.50 182.61 316.33 978.12 (4.18) (1.83) 0.3x NM NM

Omnicell, Inc. (NasdaqGS:OMCL) 77.23 3,060.33 3,201.00 775.38 77.03 1.08 4.1x NM NM

Pacific Biosciences of California, Inc. (NasdaqGS:PACB) 7.82 1,164.41 1,063.05 84.04 (83.65) (0.73) NM NM NM

PerkinElmer, Inc. (NYSE:PKI) 87.06 9,684.49 11,437.55 2,663.28 533.29 1.15 4.3x 21.4x NM

STERIS plc (NYSE:STE) 73.64 6,474.90 7,143.30 2,695.59 618.91 3.68 2.6x 11.5x 20.0x

Surmodics, Inc. (NasdaqGS:SRDX) 60.59 811.79 747.12 81.34 7.20 (0.34) NM NM NM

Thermo Fisher Scientific Inc. (NYSE:TMO) 249.55 100,462.94 118,318.94 23,898.00 5,939.00 6.34 5.0x 19.9x NM

Waters Corporation (NYSE:WAT) 198.58 15,041.59 14,105.67 2,392.19 835.48 0.70 NM 16.9x NM

MEAN (NON-CLINICAL) 2.8x 17.9x 20.0x

MEDIAN (NON-CLINICAL) 2.6x 19.5x 20.0x

Atrion Corporation (NasdaqNM:ATRI) 773.22 1,432.59 1,367.09 151.55 50.60 18.92 NM 27.0x NM

Avanos Medical, Inc. (NYSE:AVNS) 47.71 2,262.81 2,098.61 648.70 61.60 (0.03) 3.2x NM NM

Becton, Dickinson and Company (NYSE:BDX) 252.75 67,802.19 88,142.19 15,983.00 4,755.00 0.60 NM 18.5x NM

ICU Medical, Inc. (NasdaqNM:ICUI) 240.49 4,927.44 4,573.00 1,429.79 334.34 3.97 3.2x 13.7x NM

Merit Medical Systems, Inc. (NasdaqNM:MMSI) 63.05 3,457.26 3,614.17 840.40 132.27 0.75 4.3x 27.3x NM

Nipro Corporation (TSE:8086) 1,543.00 253,728.38 664,304.38 415,819.00 64,511.00 60.90 1.6x 10.3x 25.3x

Retractable Technologies, Inc. (AMEX:RVP) 0.67 21.72 12.01 34.52 (2.29) (0.09) 0.3x NM NM

Teleflex Incorporated (NYSE:TFX) 275.42 12,664.40 14,461.20 2,401.87 664.24 1.42 NM 21.8x NM

Terumo Corporation (TSE:4543) 6,685.00 2,477,392.95 2,575,166.95 588,162.00 143,536.00 245.64 4.4x 17.9x 27.2x

MEAN (DISPOSABLES) 2.8x 19.5x 26.3x

MEDIAN (DISPOSABLES) 3.2x 18.5x 26.3x

Bio-Rad Laboratories, Inc. (NYSE:BIO) 274.46 8,221.59 7,801.59 2,293.86 346.60 42.26 3.4x 22.5x 6.5x

Cambrex Corporation (NYSE:CBM) 47.83 1,605.18 1,833.04 579.01 176.62 3.93 3.2x 10.4x 12.2x

Cantel Medical Corp. (NYSE:CMD) 85.88 3,583.03 3,713.94 884.75 164.43 2.09 4.2x 22.6x NM

ChromaDex Corporation (NasdaqCM:CDXC) 3.55 194.78 166.92 30.02 (31.58) (0.63) NM NM NM

DENTSPLY SIRONA Inc. (NasdaqNM:XRAY) 37.78 8,407.85 9,916.65 4,017.60 756.90 (7.36) 2.5x 13.1x NM

Exact Sciences Corporation (NasdaqCM:EXAS) 77.98 9,583.78 9,079.88 398.89 (112.55) (1.18) NM NM NM

Fluidigm Corporation (NasdaqGS:FLDM) 8.20 322.45 455.96 108.38 (39.83) (1.40) 4.2x NM NM

Hill-Rom Holdings, Inc. (NYSE:HRC) 96.96 6,523.80 8,314.90 2,848.00 569.40 3.73 2.9x 14.6x 26.0x

Ion Beam Applications SA (ENXTBR:IBAB) 16.50 483.73 522.82 250.48 (12.16) (1.42) 2.1x NM NM

Luminex Corporation (NasdaqNM:LMNX) 29.37 1,309.31 1,162.42 312.88 59.51 0.40 3.7x 19.5x NM

Mettler-Toledo International Inc. (NYSE:MTD) 636.66 15,945.17 16,852.37 2,895.69 717.43 15.72 NM 23.5x NM

Natera, Inc. (NasdaqGS:NTRA) 17.32 1,070.79 1,028.78 244.05 (122.58) (2.57) 4.2x NM NM

PRODUCTS - NON-CLINICAL DEVICES

PRODUCTS - DISPOSABLES

PRODUCTS - COMMERCIAL

18

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

Neogen Corporation (NasdaqGS:NEOG) 64.86 3,372.42 3,146.00 407.67 87.59 1.27 NM NM NM

OraSure Technologies, Inc. (NasdaqNM:OSUR) 12.70 777.87 627.53 177.37 37.28 0.28 3.5x 16.8x NM

Oxford Immunotec Global PLC (NasdaqGM:OXFD) 15.06 397.00 357.14 105.34 (16.82) (0.44) 3.4x NM NM

QIAGEN N.V. (NYSE:QGEN) 35.44 8,018.02 8,890.61 1,495.54 491.93 0.38 NM 18.1x NM

Quotient Limited (NasdaqGM:QTNT) 7.89 428.68 502.62 26.13 (62.88) (1.99) NM NM NM

Rockwell Medical, Inc. (NasdaqGM:RMTI) 3.31 188.60 170.89 61.37 (30.61) (0.62) 2.8x NM NM

Trinity Biotech plc (NasdaqGS:TRIB) 2.94 61.53 107.90 97.06 8.03 (1.88) 1.1x 13.4x NM

TrovaGene, Inc. (NasdaqCM:TROV) 0.70 16.05 0.98 0.49 (14.57) (1.96) 2.0x NM NM

Veracyte, Inc. (NasdaqGM:VCYT) 12.24 496.19 443.62 85.85 (22.34) (0.80) NM NM NM

West Pharmaceutical Services, Inc. (NYSE:WST) 109.56 8,116.17 8,015.07 1,710.50 350.90 2.05 4.7x 22.8x NM

MEAN (COMMERCIAL) 3.2x 17.9x 14.9x

MEDIAN (COMMERCIAL) 3.4x 18.1x 12.2x

Cooper Companies Inc. (NYSE:COO) 278.83 13,701.62 15,840.32 2,532.80 775.80 2.81 NM 20.4x NM

EssilorLuxottica Société anonyme (ENXTPA:EL) 112.15 39,813.50 42,193.50 7,357.00 1,524.00 3.38 NM 27.7x NM

Insulet Corporation (NasdaqNM:PODD) 83.93 4,958.35 5,252.99 529.44 25.00 (0.23) NM NM NM

Nutrisystem, Inc. (NasdaqGS:NTRI) 37.19 1,085.46 992.91 692.73 88.35 1.86 1.4x 11.2x 20.0x

USANA Health Sciences, Inc. (NYSE:USNA) 122.38 2,934.25 2,612.83 1,163.34 195.46 3.58 2.2x 13.4x NM

MEAN (CONSUMER) 1.8x 18.2x 20.0x

MEDIAN (CONSUMER) 1.8x 16.9x 20.0x

Abbott Laboratories (NYSE:ABT) 74.05 130,056.46 146,529.46 30,402.00 7,123.00 0.46 4.8x 20.6x NM

AbbVie Inc. (NYSE:ABBV) 94.27 141,802.47 174,232.47 32,187.00 13,497.00 4.79 NM 12.9x 19.7x

AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) 3.37 257.45 207.76 2.28 (31.77) (0.84) NM NM NM

Achillion Pharmaceuticals, Inc. (NasdaqGS:ACHN) 2.89 400.60 118.70 - (79.05) (0.56) NM NM NM

Acorda Therapeutics, Inc. (NasdaqNM:ACOR) 20.43 971.62 852.13 590.68 196.09 (3.15) 1.4x 4.3x NM

Adamas Pharmaceuticals, Inc. (NasdaqGM:ADMS) 10.24 279.92 183.80 21.30 (117.23) (5.10) NM NM NM

Akorn, Inc. (NasdaqGS:AKRX) 6.86 860.88 1,404.64 726.69 13.95 (2.02) 1.9x NM NM

Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) 123.15 27,474.35 29,122.35 3,912.10 1,886.20 0.69 NM 15.4x NM

Alimera Sciences, Inc. (NasdaqGM:ALIM) 1.02 71.48 127.50 41.00 (12.87) 0.16 3.1x NM 6.6x

Allergan plc (NYSE:AGN) 156.60 52,818.98 75,205.58 16,033.80 7,441.80 7.71 4.7x 10.1x 20.3x

Amphastar Pharmaceuticals, Inc. (NasdaqGS:AMPH) 21.72 1,001.26 1,002.75 265.38 4.23 (0.13) 3.8x NM NM

Ampio Pharmaceuticals, Inc. (AMEX:AMPE) 0.64 67.89 59.22 - (12.08) (0.12) NM NM NM

ANI Pharmaceuticals, Inc. (NasdaqGM:ANIP) 55.59 658.56 820.19 191.74 72.77 0.03 4.3x 11.3x NM

Antares Pharma, Inc. (NasdaqCM:ATRS) 3.61 568.72 565.62 58.77 (12.52) (0.10) NM NM NM

Aradigm Corporation (NasdaqCM:ARDM) 0.74 11.22 32.58 4.38 (12.12) (1.09) NM NM NM

Array BioPharma Inc. (NasdaqNM:ARRY) 15.93 3,394.24 3,110.94 126.28 (115.95) (0.65) NM NM NM

Arrowhead Pharmaceuticals, Inc. (NasdaqGS:ARWR) 14.52 1,278.10 1,219.44 13.60 (50.39) (0.68) NM NM NM

Assertio Therapeutics, Inc. (NasdaqGS:ASRT) 4.99 318.74 782.36 363.58 183.45 0.44 2.2x 4.3x 11.3x

Astellas Pharma Inc. (TSE:4503) 1,744.50 3,357,024.00 3,054,029.00 1,307,658.00 366,826.00 94.09 2.3x 8.3x 18.5x

AstraZeneca PLC (LSE:AZN) 61.17 77,490.04 91,533.82 21,450.00 3,772.00 1.91 4.3x 24.3x NM

PRODUCTS - PHARMACEUTICALS

PRODUCTS - CONSUMER

19

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

Bausch Health Companies Inc. (NYSE:BHC) 24.35 27,899.20 57,468.90 8,422.00 3,343.00 (9.38) NM 17.2x NM

BioDelivery Sciences International, Inc. (NasdaqCM:BDSI) 3.65 258.02 259.06 50.12 (27.39) (0.94) NM NM NM

Bristol-Myers Squibb Company (NYSE:BMY) 53.46 87,257.35 87,844.35 22,037.00 6,342.00 0.87 4.0x 13.9x NM

Clovis Oncology, Inc. (NasdaqGS:CLVS) 17.21 907.17 877.62 82.08 (296.96) (6.24) NM NM NM

Compugen Ltd. (NasdaqGM:CGEN) 3.46 197.90 163.00 17.80 (21.26) (0.42) NM NM NM

Corcept Therapeutics Incorporated (NasdaqCM:CORT) 13.93 1,608.52 1,413.33 237.70 86.51 1.19 NM 16.3x 11.7x

Curis, Inc. (NasdaqGM:CRIS) 0.86 28.40 34.71 10.94 (31.12) (1.05) 3.2x NM NM

DURECT Corporation (NasdaqGM:DRRX) 0.89 144.04 122.62 34.48 (7.89) (0.07) 3.6x NM NM

Egalet Corporation (OTCPK:EGLT.Q) 0.01 0.55 80.93 29.66 (38.16) (1.49) 2.7x NM NM

Eli Lilly and Company (NYSE:LLY) 118.64 116,603.27 121,373.87 24,277.80 7,789.00 0.43 5.0x 15.6x NM

Elite Pharmaceuticals, Inc. (OTCPK:ELTP) 0.08 68.84 81.84 7.66 (8.09) (0.01) NM NM NM

Endo International plc (NasdaqNM:ENDP) 12.03 2,698.87 9,842.74 2,929.33 23.45 (4.33) 3.4x NM NM

Foamix Pharmaceuticals Ltd. (NasdaqGM:FOMX) 3.99 216.59 107.57 3.78 (76.41) (1.97) NM NM NM

GlaxoSmithKline plc (LSE:GSK) 16.22 79,688.07 102,772.07 30,263.00 7,719.00 0.38 3.4x 13.3x NM

Heska Corporation (NasdaqCM:HSKA) 103.98 789.13 785.91 129.42 12.21 0.16 NM NM NM

ImmunoGen, Inc. (NasdaqGS:IMGN) 5.51 821.49 520.35 79.48 (119.33) (1.04) NM NM NM

Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) 1.33 75.63 33.46 22.00 (11.26) (0.20) 1.5x NM NM

Innoviva, Inc. (NasdaqGS:INVA) 18.26 1,844.99 2,173.59 250.67 227.52 1.70 NM 9.6x 10.7x

INSYS Therapeutics, Inc. (NasdaqGM:INSY) 6.01 446.36 345.80 97.21 (84.96) (1.71) 3.6x NM NM

Ironwood Pharmaceuticals, Inc. (NasdaqGS:IRWD) 13.82 2,129.10 2,377.01 310.16 (107.27) (1.68) NM NM NM

Jazz Pharmaceuticals PLC (NasdaqGS:JAZZ) 151.20 9,120.62 9,648.43 1,850.86 902.70 8.47 NM 10.7x 17.9x

Johnson & Johnson (NYSE:JNJ) 146.90 393,982.56 405,877.56 81,382.00 27,975.00 0.57 5.0x 14.5x NM

Karyopharm Therapeutics Inc. (NasdaqGS:KPTI) 10.40 631.36 424.59 31.66 (161.17) (2.96) NM NM NM

Lannett Company, Inc. (NYSE:LCI) 5.90 229.82 906.47 684.66 226.07 (7.30) 1.3x 4.0x NM

Mallinckrodt Public Limited Company (NYSE:MNK) 23.79 1,982.02 7,882.02 3,305.20 1,457.20 20.42 2.4x 5.4x 1.2x

Merck & Co., Inc. (NYSE:MRK) 79.34 206,313.87 219,994.87 41,729.00 13,971.00 1.24 NM 15.7x NM

Mylan N.V. (NasdaqGS:MYL) 33.86 17,459.28 31,386.68 11,594.10 3,776.60 1.05 2.7x 8.3x NM

Neos Therapeutics, Inc. (NasdaqGM:NEOS) 1.96 96.07 139.42 41.70 (45.17) (1.94) 3.3x NM NM

Novartis AG (SWX:NOVN) 90.96 210,115.11 227,023.12 52,588.00 16,211.00 5.71 4.3x 14.0x 15.9x

Novo Nordisk A/S (CPSE:NOVO B) 306.00 733,804.63 717,740.63 110,091.00 49,461.00 15.75 NM 14.5x 19.4x

OPKO Health, Inc. (NasdaqGS:OPK) 3.74 2,093.75 2,258.79 1,030.89 (135.94) (0.53) 2.2x NM NM

Osiris Therapeutics, Inc. (NasdaqGM:OSIR) 12.05 416.04 375.68 134.58 5.06 0.16 2.8x NM NM

Pacira Pharmaceuticals, Inc. (NasdaqGS:PCRX) 48.33 1,987.05 1,887.87 321.24 26.43 (0.10) NM NM NM

Pernix Therapeutics Holdings, Inc. (NasdaqGM:PTX) 0.40 5.86 336.32 127.92 11.93 (6.26) 2.6x 28.2x NM

Perrigo Company plc (NYSE:PRGO) 62.28 8,461.15 11,275.35 4,819.60 991.80 0.88 2.3x 11.4x NM

Pfizer Inc. (NYSE:PFE) 46.23 267,231.34 291,969.34 53,373.00 21,388.00 3.96 NM 13.7x 11.7x

Phibro Animal Health Corporation (NasdaqGM:PAHC) 33.90 1,368.73 1,617.20 826.72 125.85 1.62 2.0x 12.9x 20.9x

Progenics Pharmaceuticals, Inc. (NasdaqGS:PGNX) 5.19 438.78 336.47 16.27 (47.30) (0.75) NM NM NM

Recro Pharma, Inc. (NasdaqCM:REPH) 6.57 141.11 158.75 78.61 (33.78) (3.15) 2.0x NM NM

Rigel Pharmaceuticals, Inc. (NasdaqNM:RIGL) 2.83 471.59 355.96 6.65 (100.89) (0.64) NM NM NM

Roche Holding AG (SWX:ROG) 259.10 221,009.56 235,551.56 57,725.00 22,157.00 12.17 4.1x 10.6x 21.3x

20

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

Sanofi (ENXTPA:SAN) 79.81 98,687.90 120,299.90 35,316.00 9,729.50 3.21 3.4x 12.4x 24.9x

Sarepta Therapeutics, Inc. (NasdaqGS:SRPT) 129.47 9,128.97 8,751.56 273.90 (217.76) (3.77) NM NM NM

Supernus Pharmaceuticals, Inc. (NasdaqGM:SUPN) 47.42 2,478.03 2,523.47 381.40 145.97 1.83 NM 17.3x 26.0x

Takeda Pharmaceutical Company Limited (TSE:4502) 4,255.00 3,337,090.54 4,024,347.54 1,769,725.00 407,985.00 178.72 2.3x 9.9x 23.8x

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) 107.92 4,210.97 2,794.01 644.27 293.87 5.92 4.3x 9.5x 18.2x

Teligent, Inc. (NasdaqGS:TLGT) 2.06 110.29 226.09 65.19 (9.26) (0.52) 3.5x NM NM

Teva Pharmaceutical Industries Limited (NYSE:TEVA) 21.54 21,943.50 54,786.50 19,693.00 5,201.00 (10.87) 2.8x 10.5x NM

TherapeuticsMD, Inc. (NasdaqGS:TXMD) 5.03 1,196.54 1,079.80 15.13 (113.53) (0.52) NM NM NM

Zoetis Inc. (NYSE:ZTS) 93.87 45,099.92 50,146.92 5,721.00 2,231.00 2.38 NM 22.5x NM

Zogenix, Inc. (NasdaqGM:ZGNX) 41.09 1,724.47 1,185.34 - (130.74) (3.93) NM NM NM

MEAN (PHARMACEUTICALS) 3.1x 13.0x 16.7x

MEDIAN (PHARMACEUTICALS) 3.2x 12.9x 18.4x

AmerisourceBergen Corporation (NYSE:ABC) 88.90 18,840.89 21,127.99 167,939.64 2,153.36 7.53 0.1x 9.8x 11.8x

Aceto Corporation (NasdaqGS:ACET) 1.62 49.90 312.78 690.51 (0.68) (9.55) 0.5x NM NM

Cardinal Health, Inc. (NYSE:CAH) 54.83 16,336.12 23,292.12 139,381.00 2,947.00 2.35 0.2x 7.9x 23.3x

CVS Health Corporation (NYSE:CVS) 80.20 103,714.57 124,912.57 188,055.00 12,662.00 3.04 0.7x 9.9x 26.4x

Diplomat Pharmacy, Inc. (NYSE:DPLO) 15.48 1,152.08 1,774.17 5,286.97 106.61 0.03 0.3x 16.6x NM

Henry Schein, Inc. (NasdaqNM:HSIC) 89.20 13,597.44 16,361.46 13,144.85 1,106.16 2.56 1.2x 14.8x NM

McKesson Corporation (NYSE:MCK) 124.50 24,324.34 33,044.34 210,927.00 4,053.00 0.56 0.2x 8.2x NM

Medicines Company (NasdaqGS:MDCO) 22.13 1,628.52 2,166.45 14.73 (244.53) (4.76) NM NM NM

Owens & Minor, Inc. (NYSE:OMI) 7.63 475.11 1,990.68 9,685.56 240.35 (2.54) 0.2x 8.3x NM

Patterson Companies, Inc. (NasdaqNM:PDCO) 25.37 2,368.80 3,136.88 5,516.90 220.94 1.66 0.6x 14.2x 15.3x

PetMed Express, Inc. (NasdaqGS:PETS) 24.09 493.29 406.17 286.22 56.61 2.08 1.4x 7.2x 11.6x

Premier, Inc. (NasdaqGS:PINC) 39.66 2,527.72 2,492.52 1,672.24 721.79 (15.43) 1.5x 3.5x NM

Prestige Consumer Healthcare Inc. (NYSE:PBH) 38.82 2,008.47 3,867.39 1,019.92 342.89 6.42 3.8x 11.3x 6.1x

Rite Aid Corporation (NYSE:RAD) 1.11 1,169.08 4,563.56 21,557.29 522.94 (0.85) 0.2x 8.7x NM

Vitamin Shoppe, Inc. (NYSE:VSI) 7.80 183.31 243.74 1,159.80 55.52 (0.66) 0.2x 4.4x NM

MEAN (DISTRIBUTION) 0.8x 9.6x 15.7x

MEDIAN (DISTRIBUTION) 0.4x 8.7x 13.5x

MEAN (PRODUCTS) 2.8x 15.2x 18.2x

MEDIAN (PRODUCTS) 2.9x 14.9x 19.0x

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

PRODUCTS - DISTRIBUTION

21

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Copyright 2018 © Scott-Macon, Ltd.

22

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