healthcare & life sciences · industry update │ may 2016 ... represents one of the latest...

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HEALTHCARE & LIFE SCIENCES

0

INDUSTRY UPDATE │ MAY 2016


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WHATWE’RE READING

1

CONTENTS

PUBLIC MARKETS OVERVIEW

EQUITY MARKETS OVERVIEW

M&A OVERVIEW

DEBT MARKETS OVERVIEW

HEALTHCARE & LIFE SCIENCES PUBLIC COMPARABLES

M&A TRANSACTIONS

CONTACTS

Turner BredrupManaging [email protected]+1 (804) 915-0110

James ClarkManaging [email protected]+1 (804) 915-0119

Cheairs PorterManaging [email protected]+1 (804) 915-0130

Geoff SmithManaging [email protected]+1 (804) 915-0195

Andy [email protected]+1 (415) 217-3419

Paul [email protected]+1 (804) 932-1326

Whit [email protected]+1 (804) 932-1321

Jacques FuVice [email protected]+1 (804) 915-0185

Andy HewlettVice [email protected]+1 (415) 217-3427

Bill KayserVice [email protected]+1 (804) 915-0180

Ricky NgVice [email protected]+1 (415) 217-3437

Nick OwensVice [email protected]+1 (804) 887-6027

PUBLIC POLICY | CONVINCING YOUNG INVINCIBLES TO BUY INSURANCE

Sharply rising premiums and struggling insurers, including UnitedHealth who gavenotice it will exit most ACA marketplaces next year, characterize the ACAexchanges. An unexpected contributor to these problems are the “younginvincibles.” Millions of millennials who represent a large segment of the uninsuredpools have not signed up for Obamacare. These healthy individuals in the 18-34age represent less than 30% of exchange members, much lower than the 40%cited to create a more stable rate environment due to their significantly lowerutilization of healthcare services. The tax penalty and other measures built intoACA to encourage a healthy mix of individuals to participate haven’taccomplished their stated goals. This year, however, those who forego healthinsurance will pay the greater of $695 per adult and $347.50 per child or 2.5% ofannual household income. It remains unclear if the risk pool will rebalance asmore millennials participate as a result of the individual mandate becoming moretangible this tax season and as so-called grandmothered plans phase out in 2017(think, “if you like your plan you can keep it”). A link to the article can be foundhere.



PUBLIC MARKETS | ACTIVIST INVESTORS SEEK INFLUENCE

Institutional investors continue to push forward in their fight for “proxy access.” Thisrepresents one of the latest waves of shareholder activism and reforms in U.S.markets including publicly traded healthcare companies. Investors are seekingmore rights in nominating alternative board directors. Companies, such asCommunity Health Systems (CHS), are fighting the proposals citing the heightenedlevels of current board access which investors have today as well as fears thatqualified board members may decline to sit on the board if they faced annualelection fights. CHS shareholders will vote again on May 17th at the annualshareholder meeting. Other major topics which institutional investors havebecome increasingly vocal and successful in exerting influence over include pricegouging for pharmaceuticals, excessive executive compensation, and a lack ofdiversity on company boards. The United Auto Workers medical trust and NewYork City’s $160 billion pension fund are among the most activist institutionalinvestors. A link to the article can be found here.

SUPREME COURT | CONTRACEPTION DECISION WON’T COME FROM US

The Supreme Court this month declined to rule on the merits of claims by Christianemployers objecting to the Affordable Care Act’s mandate that they providefemale workers with medical insurance paying for contraceptives. The Christianemployers are challenging a 2013 compromise that let organizations opposed toproviding insurance covering contraception to comply with the law withoutactually paying for the coverage. One possible compromise is for thecontraceptive coverage to be supplied by private insurance without explicitauthorization by the employer. The Court sent the previous ruling, along with sixsimilar cases, back to lower courts for rulings. Many have speculated that thecurrent 4-4 split on the Court contributed directly to the Court’s decision not tohear the case. A link to the article can be found here.

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mailto:[email protected]












http://www.modernhealthcare.com/article/20160514/MAGAZINE/305149980/what-me-buy-insurance

http://www.modernhealthcare.com/article/20160514/MAGAZINE/305149981/institutional-investors-fight-for-more-sway-at-healthcare-companies

http://www.reuters.com/article/us-usa-court-contraception-idUSKCN0Y71LF

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PUBLICMARKETS OVERVIEW

2

Key Trading Statistics (detail begins on page 6)

Public Company Sector Performance

(12-month % change in stock price)



Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Clinical Laboratories 3 $39,033 14.5% 4.0% 2.1x 10.6x 2.0x 9.8x

Contract Pharma Manufacturing 2 6,660 31.8% 24.1% 3.4x 16.7x 3.2x 12.9x

Contract Research Organizations 8 34,911 8.5% 2.4% 2.5x 13.7x 2.3x 11.3x

Disease Management 2 7,756 2.0% (26.0%) 1.8x 17.4x 1.9x 10.4x

Emergency Serv ices 1 2,173 (5.0%) (19.6%) 1.9x 7.1x 1.8x 6.4x

Healthcare Staffing 5 17,638 2.3% (4.7%) 1.2x 11.3x 1.1x 9.8x

HMO - Medical 9 330,391 10.4% 8.3% 0.8x 10.6x 0.7x 9.1x

Information Serv ices 12 36,432 (2.1%) (15.3%) 4.0x 15.6x 3.6x 12.4x

Specialty Managed Care 3 8,973 4.0% 21.5% 1.7x 12.2x 4.3x 15.1x

Specialty Pharmacy 1 2,090 11.3% (14.3%) 0.6x 21.3x 0.7x 17.4x

Retail Pharmacy 3 247,377 3.3% (0.2%) 0.8x 11.3x 0.8x 10.5x

Specialty Pharmacy Management 2 62,596 (8.9%) (16.7%) 0.6x 8.9x 0.6x 8.5x

Dental Products 2 126,026 6.0% 11.8% 4.5x 19.3x 3.8x 14.0x

Durable Medical Equipment 3 13,117 (1.6%) (12.9%) 2.2x 15.2x 2.0x 14.3x

Life Sciences Tools 4 134,899 9.1% 6.3% 3.5x 15.2x 3.4x 13.3x

Medical Devices and Products 13 697,004 12.6% 11.6% 4.2x 15.1x 4.0x 13.5x

Medical / Surgical / Dental Supplies & Distribution 6 120,172 3.2% (10.0%) 0.3x 10.3x 0.3x 9.7x

Acute-Care Hospitals 4 108,494 6.3% (23.1%) 1.0x 8.7x 1.0x 7.5x

Assisted Liv ing 2 11,220 11.4% (37.5%) 2.8x 15.2x 2.5x 12.7x

Diagnostic Imaging 3 9,194 (3.9%) (41.9%) 1.5x 8.1x 1.7x 9.1x

Dialysis Serv ices 3 57,363 1.1% (3.1%) 1.8x 9.4x 1.8x 9.1x

Home Care, Hospice, and Home Infusion 7 7,373 13.5% 28.1% 1.2x 13.8x 1.1x 11.0x

Long-Term Care 3 6,633 2.1% 1.2% 0.9x 9.1x 0.7x 6.1x

Physician Practice Management 2 7,930 2.6% (1.7%) 2.7x 12.4x 2.5x 11.5x

Behavioral Health / Management 5 29,418 15.3% 0.2% 1.8x 10.3x 1.6x 9.3x

Surgicenters / Rehabilitation 6 24,231 15.3% 8.1% 2.2x 14.7x 2.0x 10.8x

Payor, Provider, & Pharmacy Support Serv ices 51 $796,030 6.7% 1.8% 1.2x 11.3x 1.1x 9.9x

Products & Devices 28 $1,091,218 7.9% 5.8% 3.6x 14.1x 3.5x 12.6x

Provider-Based Serv ices 35 $261,855 9.0% (1.6%) 1.9x 10.8x 1.7x 9.4x

HW&Co. HCLS Composite Index 114 $2,149,103 6.4% (3.8%) 2.6x 12.9x 2.5x 11.4x

S&P 500 6.4% (2.0%)

Pro

du

cts

&

De

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es

Pro

vid

er-

Ba

sed

Se

rvic

es

Median TEV/

Forward MulitplesSectorNumber of

Companies

Aggregate

Enterprise Value

($ mm)

Median TEV/

LTM Multiples

Pa

yo

r, P

rov

ide

r, &

Ph

arm

ac

y S

up

po

rt

Se

rvic

es

Home Care, Hospice, and Home Infusion

Contract Pharma Manufacturing

Specialty Managed Care

Dental Products

Medical Devices and Products

HMO - Medical

Surgicenters / Rehabilitation

Life Sciences Tools

Clinical Laboratories

Contract Research Organizations

Long-Term Care

Behavioral Health / Management

Retail Pharmacy

Physician Practice Management

S&P 500

Dialysis Services

HW&Co. HCLS Composite Index

Healthcare Staffing

Medical / Surgical / Dental Supplies & Distribution

Durable Medical Equipment

Specialty Pharmacy

Information Services

Specialty Pharmacy Management

Emergency Services

Acute-Care Hospitals

Disease Management

Assisted Living

Diagnostic Imaging

(60.0%) (50.0%) (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

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EQUITYMARKETS OVERVIEW

3

Healthcare & Life Sciences Industry Stock Performance

Top Equity Offerings

(by proceeds)

148.2%

130.5%

151.0%



40%

60%

80%

100%

120%

140%

160%

180%

May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16

S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index

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

04/20/16 Amer Renal Assoc Hldg Inc ARA IPO $189.8

04/06/16 Alder BioPharmaceuticals Inc ALDR Follow-On 143.8

04/22/16 Omeros Corp OMER Follow-On 100.0

04/06/16 Aeglea BioTherapeutics Inc AGLE IPO 54.8

04/28/16 Ignyta Inc RXDX Follow-On 50.0

04/11/16 SCYNEXIS Inc SCYX Follow-On 40.0

04/18/16 Anthera Pharmaceuticals Inc ANTH Follow-On 25.0

04/26/16 DURECT Corp DRRX Follow-On 17.3

04/28/16 ADMA Biologics Inc ADMA Follow-On 14.1

04/04/16 Novabay Pharmaceuticals Inc NBY Follow-On 11.8

04/04/16 Sorrento Therapeutics Inc SRNE Follow-On 10.0

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M&A OVERVIEW

4

Announced Healthcare & Life Sciences M&A

Healthcare & Life Sciences M&A Trends

Announced Private Equity M&A Activity

QUARTERLY M&A ACTIVITY

HEALTHCARE TRANSACTION HIGHLIGHTS

ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS

MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES

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

Note: Transactions based on publicly available information

LTM DEAL STATISTICS



$141.4

$101.6 $108.2

$236.6

$576.0

$104.8

0

200

400

600

800

1,000

1,200

1,400

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

2011 2012 2013 2014 2015 2016YTD

Nu

mb

er o

f Tran

sac

tion

sAg

gre

ga

te T

ran

sac

tio

n V

alu

e

($ in

billio

ns)

Volume Total Deals

HC&LS Industry Number of

Segment Companies

Healthcare Facilities 48

Healthcare Serv ices 56

Healthcare Equipment 19

Pharmaceuticals 14

Healthcare Technology 16

Life Sciences Tools & Serv ices 9

Healthcare Supplies 10

Healthcare Distributors 6

Biotechnology 2

Managed Healthcare 4

Aggregate Number Median Transaction Multiples

Value ($bn) of Deals TEV/Rev TEV/EBITDA

$589.6 1,376 2.5x 13.9x

11.1x 10.9x 10.0x

13.6x 14.2x 14.5x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2011 2012 2013 2014 2015 2016YTD

EV

/ LTM S

ale

s Mu

ltiple

EV

/ L

TM E

BIT

DA

Mu

ltip

le

EBITDA Multiple Revenue Multiple

209

304

248

304 290 279 292 303 312

369

308 306

100

12

18

15

2214

1115

1113

14

19 21

8

0

50

100

150

200

250

300

350

400

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Nu

mb

er

of Tr

an

sac

tio

ns

PE Buyer Strategic Buyer

94

113

79

42

7165 65

61 6257

29

62

95

49 50

80

120

139144 143

131

38

0

20

40

60

80

100

120

140

160

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD

Nu

mb

er

of Tr

an

sac

tio

ns

Number of Investments Number of Exits

Announced Target Buyer

4/29/2016 Amendia, Inc. Kohlberg & Company, L.L.C.

4/28/2016 Caradigm USA LLC GE Healthcare Limited

4/27/2016 Cancer Treatment Serv ices International L.P. TPG Capital, L.P.

4/26/2016 ExamWorks Group, Inc. (NYSE:EXAM) Leonard Green & Partners, L.P.

4/25/2016 Verisk Health, Inc. and MediConnect Global, Inc. Veritas Capital

4/21/2016 CareFusion Corporation Stryker Corporation (NYSE:SYK)

4/19/2016 NAPA Management Serv ices Corporation American Securities; Leonard Green & Partners, L.P.

4/19/2016 Hansen Medical, Inc. (NasdaqGM:HNSN) Auris Surgical Robotics, Inc.

4/18/2016 The Meadows of Wickenburg, Inc. Kohlberg & Company, L.L.C.

4/14/2016 Arsenal Health athenahealth, Inc. (NasdaqGS:ATHN)

4/11/2016 Alcoa Remmele Medical Operations Lisi Medical SAS

4/4/2016 Moore Physical Therapy and Fitness Professional Orthopedic and Sports Physical Therapy, P.C.

4/4/2016 Intelemage, LLC Medidata Solutions, Inc. (NasdaqGS:MDSO)

4/4/2016 Children's Emergency Serv ices, Inc. Team Health Holdings, Inc. (NYSE:TMH)

PAGE |

DEBTMARKETS OVERVIEW

5

Key Credit Statistics

QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS

Select Healthcare & Life Sciences Debt Offerings

(by deal amount)

CREDIT METRICS AVERAGE SECONDARY SPREAD



$0

$3

$6

$9

$12

$15

$18

$21

$24

1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16

Loa

n V

olu

me

by

Qu

art

er

($ in

billio

ns)

Pro Rata Institutional

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

2011 2012 2013 2014 2015 2016YTD

Av

era

ge

Sp

rea

d O

ve

r LI

BO

RRevolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 200

L + 400

L + 600

L + 800

1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16

Av

era

ge

Sp

rea

d O

ve

r LI

BO

R

0.0x

2.0x

4.0x

6.0x

Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash

Interest

EBITDA -

Capex/Cash

Interest

EB

ITD

A M

ultip

le

2011 2012 2013 2014 2015 2016YTD

Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread

04/26/16 NBTY Inc Pharmaceutical preparations $2,208.0 Term Loan B B1 / B+ L+ 525

04/27/16 PharmScript Pharmaceutical preparations $130.0 Term Loan NR / NR L+ 450

04/04/16 Jordan Reses Supply Co Medical and hospital equipment $95.0 Term Loan NR / NR L+ 325

04/29/16 Amendia Inc Surgical and medical instruments $71.0 Term Loan A NR / NR L+ 500

04/05/16 Vector Laboratories Inc Medicinals and botanicals $52.0 Term Loan NR / NR L+ 525

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PUBLIC COMPARABLES

6

Payor, Provider, & Pharmacy Support Services



Stock Price

% Change 52 Week

4/29/2016 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA

Clinical Laboratories

Laboratory Corp. of America Holdings $125.32 11.5% 3.9% $128.84 $97.79 $12,794 $6,395 $696 $18,509 $9,029 $1,739 $1,327 Mar-16 Dec-15 $9,359 $1,891 $1,444 2.1x 10.6x 2.0x 9.8x

Quest Diagnostics Inc. 75.17 14.5% 4.0% 89.00 59.66 10,633 3,898 128 14,505 7,517 1,481 1,193 Mar-16 Dec-15 7,554 1,511 1,236 1.9x 9.8x 1.9x 9.6x

VCA Inc. 62.97 22.8% 19.4% 64.98 44.00 5,113 953 74 6,019 2,198 426 343 Mar-16 Dec-15 2,431 461 399 2.7x 14.1x 2.5x 13.1x

Number of Companies 3 Median: 14.5% 4.0% Total $28,541 $39,033 $18,743 $19,343 2.1x 10.6x 2.0x 9.8x

Market Cap. Weighted Average: 14.7% 6.7% 2.1x 10.9x 2.0x 10.3x

Contract Pharma Manufacturing

Cambrex Corporation $48.24 39.3% 19.5% $55.60 $29.50 $1,543 $0 $86 $1,457 $450 $137 $115 Mar-16 Dec-15 $482 $144 $119 3.2x 10.6x 3.0x 10.1x

West Pharmaceutical Serv ices, Inc. 71.20 24.4% 28.7% 73.40 52.73 5,177 234 178 5,203 1,426 228 138 Mar-16 Dec-15 1,503 332 230 3.6x 22.8x 3.5x 15.7x



Contract Research Organizations

Albany Molecular Research Inc. $15.05 (7.8%) (17.4%) $22.48 $13.71 $522 $388 $44 $862 $426 $45 $17 Mar-16 Dec-15 $481 $93 $70 2.0x 19.3x 1.8x 9.3x

Catalent, Inc. 29.53 25.5% (0.6%) 34.42 18.92 3,677 1,871 134 5,434 1,826 372 230 Mar-16 Jun-15 1,811 415 263 3.0x 14.6x 3.0x 13.1x

Charles River Laboratories International, Inc. 79.27 6.8% 4.0% 82.40 59.99 3,734 862 157 4,491 1,398 330 233 Mar-16 Dec-15 1,651 395 316 3.2x 13.6x 2.7x 11.4x

ICON Public Limited Company 67.58 2.3% 6.8% 84.14 63.20 3,714 348 161 3,874 1,587 350 291 Mar-16 Dec-15 1,672 378 318 2.4x 11.1x 2.3x 10.2x

INC Research Holdings, Inc. 48.13 14.2% 36.5% 57.11 29.62 2,599 472 53 3,016 952 218 162 Mar-16 Dec-15 1,017 237 215 3.2x 13.8x 3.0x 12.7x

PAREXEL International Corporation 61.10 (4.5%) (10.5%) 76.17 56.00 3,280 567 210 3,597 2,081 343 248 Mar-16 Jun-15 2,091 350 255 1.7x 10.5x 1.7x 10.3x

PRA Health Sciences, Inc. 47.45 10.1% 63.0% 51.35 28.28 2,873 882 98 3,658 1,416 256 180 Mar-16 Dec-15 1,549 285 260 2.6x 14.3x 2.4x 12.8x

Quintiles Transnational Holdings Inc.(1) 69.07 13.5% 0.9% 80.45 55.01 8,254 2,472 1,053 9,979 4,404 805 713 Mar-16 Dec-15 4,650 893 755 2.3x 12.4x 2.1x 11.2x



Disease Management

Alere Inc. $39.00 4.8% (19.0%) $55.99 $31.96 $3,375 $3,602 $479 $7,108 $2,496 $552 $233 Sep-15 Dec-14 $2,488 $555 $450 2.8x 12.9x 2.9x 12.8x

Healthways Inc. 11.65 (0.9%) (33.0%) 17.80 9.18 421 230 3 648 770 30 13 Mar-16 Dec-15 760 81 12 0.8x 21.9x 0.9x 8.0x

Number of Companies 2 Median: 2.0% (26.0%) Total $3,796 $7,756 $3,266 $3,248 1.8x 17.4x 1.9x 10.4x

Market Cap. Weighted Average: 4.2% (20.6%) 2.6x 13.9x 2.6x 12.3x

Emergency Services

Air Methods Corp. $36.98 (5.0%) (19.6%) $46.50 $32.81 $1,467 $929 $5 $2,173 $1,117 $305 $219 Mar-16 Dec-15 $1,238 $342 $251 1.9x 7.1x 1.8x 6.4x

Number of Companies 1 Median: (5.0%) (19.6%) Total $1,467 $2,173 $1,117 $1,238 1.9x 7.1x 1.8x 6.4x

Market Cap. Weighted Average: (5.0%) (19.6%) 1.9x 7.1x 1.8x 6.4x

Healthcare Staffing

AMN Healthcare Serv ices Inc. $35.51 26.1% 49.0% $37.47 $21.24 $1,704 $378 $23 $1,913 $1,604 $179 $157 Mar-16 Dec-15 $1,817 $216 $178 1.2x 10.7x 1.1x 8.8x

Cross Country Healthcare, Inc. 12.43 (13.7%) 7.2% 18.76 9.72 407 71 2 495 778 37 29 Mar-16 Dec-15 828 47 36 0.6x 13.3x 0.6x 10.6x

Envision Healthcare Holdings, Inc. 22.63 2.4% (41.6%) 45.95 18.31 4,234 2,979 192 7,144 5,801 630 419 Mar-16 Dec-15 6,579 732 492 1.2x 11.3x 1.1x 9.8x

On Assignment Inc. 36.06 (6.7%) (4.7%) 51.00 29.34 1,924 723 28 2,618 2,217 239 180 Mar-16 Dec-15 2,424 301 208 1.2x 11.0x 1.1x 8.7x

Team Health Holdings, Inc. 41.83 2.3% (32.0%) 70.21 33.15 3,087 2,375 23 5,467 3,892 369 255 Mar-16 Dec-15 4,737 507 348 1.4x 14.8x 1.2x 10.8x



TEV/ Fwd MultiplesForward Twelve Month

EstimateCompany NameLTM

Period

Latest

FYE Date

TEV/ LTM MultiplesEquity

Mkt.

Value

Total DebtCash and

Equiv.

Total Ent.

Value

(TEV)

Latest Twelve Months

(LTM)

As of April 29, 2016.

(1) To be combined with IMS Health Holdings, Inc. (NYSE:IMS) in a $23.1 billion merger of equals announced May 3, 2016.

PAGE |

PUBLIC COMPARABLES

7




(1) To be acquired by Anthem (NYSE:ANTM) in a $54.2 billion transaction announced July 24, 2015.

(2) To be acquired by Aetna (NYSE:AET) in a $37.0 billion transaction announced July 3, 2015.


Stock Price

% Change 52 Week


HMO - Medical

Commercial:

Aetna Inc. $112.27 10.2% 3.9% $134.40 $92.42 $39,362 $7,781 $3,766 $43,442 $60,826 $5,403 $4,726 Mar-16 Dec-15 $63,199 $5,918 $5,267 0.7x 8.0x 0.7x 7.3x

Anthem, Inc. 140.77 7.9% (6.8%) 173.59 115.63 37,016 17,259 1,676 52,599 80,394 5,599 5,047 Mar-16 Dec-15 81,924 5,573 5,076 0.7x 9.4x 0.6x 9.4x

Cigna Corp(1) 138.54 3.7% 9.4% 170.68 123.54 35,434 5,190 2,401 38,713 38,293 3,993 3,707 Mar-16 Dec-15 39,887 4,474 3,838 1.0x 9.7x 1.0x 8.7x

Humana Inc.(2) 177.07 8.8% 5.4% 219.79 155.24 26,387 4,350 2,801 28,237 54,256 2,366 2,138 Mar-16 Dec-15 54,888 3,090 2,737 0.5x 11.9x 0.5x 9.1x

UnitedHealth Group Incorporated 131.68 14.3% 15.9% 135.11 95.00 125,124 33,722 10,596 150,074 165,878 12,728 11,341 Mar-16 Dec-15 182,170 15,074 13,020 0.9x 11.8x 0.8x 10.0x



Government:

Centene Corp. $61.96 (0.2%) (3.1%) $83.00 $47.36 $10,563 $4,290 $3,436 $11,573 $22,948 $957 $839 Mar-16 Dec-15 $39,770 $1,702 $1,498 0.5x 12.1x 0.3x 6.8x

Molina Healthcare, Inc. 51.76 (5.7%) (13.3%) 82.37 48.00 2,929 1,618 2,156 2,391 14,939 482 397 Mar-16 Dec-15 17,474 605 449 0.2x 5.0x 0.1x 4.0x

Universal American Corp 7.44 17.7% (27.7%) 11.16 5.55 610 40 0 577 1,532 35 29 Mar-16 Dec-15 1,616 25 20 0.4x 16.6x 0.4x 23.0x

WellCare Health Plans, Inc. 89.99 18.4% 13.8% 98.79 69.16 3,982 1,097 2,392 2,787 13,961 493 460 Mar-16 Dec-15 14,089 598 511 0.2x 5.7x 0.2x 4.7x



Information Services

Data/Analytics:

Castlight Health, Inc. $3.60 8.8% (53.2%) $10.36 $2.54 $349 $0 $35 $314 $82 ($77) ($79) Mar-16 Dec-15 $101 ($46) ($49) 3.8x NM 3.1x NM

Inovalon Holdings, Inc. 17.10 1.3% (33.4%) 29.00 15.12 2,606 278 127 2,160 446 125 100 Mar-16 Dec-15 515 180 142 4.8x 17.3x 4.2x 12.0x

National Research Corp. 36.51 8.6% 2.8% 38.22 27.54 429 5 25 393 104 33 29 Mar-16 Dec-15 112 35 30 3.8x 12.0x 3.5x 11.1x

Number of Companies 3 Median: 8.6% (33.4%) Total $3,384 $393 $632 $728 3.8x 14.7x 3.5x 11.6x


eHealth:

WebMD Health Corp. $62.74 22.8% 35.6% $63.98 $37.57 $2,256 $691 $593 $2,418 $652 $153 $137 Mar-16 Dec-15 $697 $224 $155 3.7x 15.8x 3.5x 10.8x

Number of Companies 1 Median: 22.8% 35.6% Total $2,256 $2,418 $652 $697 3.7x 15.8x 3.5x 10.8x


Hospital/Physician:

Allscripts Healthcare Solutions, Inc. $13.40 (2.8%) 0.4% $15.78 $11.47 $2,505 $600 $100 $3,025 $1,397 $125 $50 Mar-16 Dec-15 $1,450 $277 $186 2.2x 24.3x 2.1x 10.9x

Athenahealth, Inc. 133.30 (6.0%) 4.9% 170.42 110.68 5,234 298 101 5,431 974 76 8 Mar-16 Dec-15 1,112 236 125 5.6x NM 4.9x 23.1x

Cerner Corporation 56.14 (3.2%) (23.1%) 75.00 49.59 18,969 595 296 19,061 4,494 1,253 905 Apr-16 Jan-16 4,975 1,686 1,219 4.2x 15.2x 3.8x 11.3x

Computer Programs & Systems Inc. 51.33 (2.3%) (3.9%) 59.16 36.04 693 146 12 658 206 28 23 Mar-16 Dec-15 313 87 64 3.2x 23.1x 2.1x 7.6x

HMS Holdings Corp. 16.89 40.2% (3.8%) 18.60 8.11 1,419 198 143 1,471 484 91 50 Mar-16 Dec-15 488 120 57 3.0x 16.2x 3.0x 12.2x

Premier, Inc. 33.81 5.9% (10.8%) 39.81 29.68 1,530 69 238 1,448 1,128 363 287 Mar-16 Jun-15 1,172 446 327 1.3x 4.0x 1.2x 3.2x

Quality Systems Inc. 14.08 7.4% (11.8%) 17.95 12.00 857 0 93 752 493 57 44 Dec-15 Mar-15 492 84 44 1.5x 13.2x 1.5x 8.9x

The Advisory Board Company 31.64 (30.9%) (40.2%) 60.38 18.87 1,294 554 52 1,775 790 113 68 Mar-16 Dec-15 821 191 78 2.2x 15.7x 2.2x 9.3x



Forward Twelve Month

EstimateTEV/ LTM Multiples TEV/ Fwd Multiples

Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE DateCompany Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

PAGE |

PUBLIC COMPARABLES

8





(1) To be acquired by Walgreens (WBA) in a $17.2 billion transaction announced October 27, 2015.

Stock Price

% Change 52 Week


Specialty Managed Care

Assurant, Inc. $84.57 4.0% 36.0% $87.20 $61.20 $5,371 $1,415 $2,061 $6,786 $9,845 $620 $482 Mar-16 Dec-15 $6,932 $980 $854 0.7x 10.9x 1.0x 6.9x

CorVel Corporation 45.20 (0.9%) 21.5% 46.92 29.27 885 0 27 858 497 64 44 Dec-15 Mar-15 NA NA NA 1.7x 13.4x NA NA

HealthEquity, Inc. 25.15 16.7% (7.5%) 35.78 15.80 1,453 0 84 1,329 127 35 26 Jan-16 Jan-16 173 57 38 10.5x NM 7.7x 23.2x



Retail Pharmacy

CVS Health Corporation $100.50 4.0% (0.2%) $113.65 $81.37 $110,651 $27,469 $1,779 $135,614 $160,173 $12,088 $9,869 Mar-16 Dec-15 $180,664 $980 NA 0.8x 11.2x 0.8x NA

Walgreens Boots Alliance, Inc. 79.28 (0.6%) (6.3%) 97.30 71.50 85,642 14,026 3,586 96,460 116,534 7,991 6,429 Feb-16 Aug-15 118,483 8,769 7,233 0.8x 12.1x 0.8x 11.0x

Rite Aid Corporation(1) 8.05 3.3% 1.8% 9.47 5.88 8,434 6,994 124 15,304 30,737 1,350 840 Feb-16 Feb-16 33,649 1,529 962 0.5x 11.3x 0.5x 10.0x



Specialty Pharmacy

Diplomat Pharmacy, Inc. $30.29 11.3% (14.3%) $52.33 $15.45 $1,997 $111 $15 $2,090 $3,738 $98 $65 Mar-16 Dec-15 $2,796 $120 $110 0.6x 21.3x 0.7x 17.4x


Market Cap. Weighted Average: 11.3% NM 0.6x 21.3x 0.7x 17.4x

Specialty Pharmacy Management

Express Scripts Holding Company $73.73 2.6% (13.0%) $94.61 $65.55 $46,637 $16,591 $1,771 $61,465 $101,644 $6,793 $4,875 Mar-16 Dec-15 $102,330 $7,321 $6,920 0.6x 9.0x 0.6x 8.4x

PharMerica Corporation 23.64 (20.4%) (20.3%) 36.96 19.79 727 378 26 1,131 2,041 131 78 Mar-16 Dec-15 2,131 132 106 0.6x 8.7x 0.5x 8.5x



Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


EstimateCompany Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

TEV/ LTM Multiples TEV/ Fwd Multiples

PAGE |

PUBLIC COMPARABLES

9

Products & Devices




Stock Price

% Change 52 Week


Dental Products

3M Company $167.38 10.8% 6.6% $170.77 $134.00 $101,518 $11,140 $1,337 $111,144 $30,105 $8,570 $7,118 Mar-16 Dec-15 $30,488 $8,840 $7,430 3.7x 13.0x 3.6x 12.6x

DENTSPLY SIRONA Inc. 59.60 1.2% 16.9% 63.68 49.48 14,025 1,182 323 14,882 2,791 581 443 Mar-16 Dec-15 3,798 965 838 5.3x 25.6x 3.9x 15.4x



Durable Medical Equipment

Hill-Rom Holdings, Inc. $48.35 (1.1%) (4.5%) $58.73 $42.99 $3,161 $2,178 $158 $5,191 $2,342 $406 $250 Mar-16 Sep-15 $2,660 $527 $398 2.2x 12.8x 2.0x 9.9x

Invacare Corporation 11.24 (27.1%) (45.1%) 23.59 10.81 362 157 145 374 1,111 14 (4) Mar-16 Dec-15 1,105 17 (1) 0.3x 26.9x 0.3x 21.9x

ResMed Inc. 55.80 (1.6%) (12.9%) 66.62 48.99 7,835 436 718 7,552 1,773 498 420 Mar-16 Jun-15 1,823 527 442 4.3x 15.2x 4.1x 14.3x



Life Sciences Tools

Agilent Technologies, Inc. $40.92 8.7% (2.5%) $42.93 $33.12 $13,412 $1,733 $1,931 $13,217 $4,040 $823 $572 Jan-16 Oct-15 $4,128 $932 $827 3.3x 16.1x 3.2x 14.2x

Becton, Dickinson and Company 161.26 10.9% 13.4% 162.98 128.87 34,158 12,518 1,696 45,361 12,234 3,176 2,058 Mar-16 Sep-15 12,480 3,647 2,696 3.7x 14.3x 3.6x 12.4x

Thermo Fisher Scientific, Inc. 144.25 9.2% 13.5% 147.94 117.10 56,758 15,045 827 70,968 17,341 4,228 2,555 Apr-16 Dec-15 17,957 4,552 4,145 4.1x 16.8x 4.0x 15.6x

VWR Corporation 26.64 8.9% (0.9%) 28.83 20.60 3,501 2,108 130 5,354 4,388 457 332 Mar-16 Dec-15 4,522 478 391 1.2x 11.7x 1.2x 11.2x



Medical Devices and Products

Abbott Laboratories $38.90 2.8% (17.5%) $51.74 $36.00 $57,164 $8,590 $3,334 $60,155 $20,393 $4,361 $2,958 Mar-16 Dec-15 $20,916 $5,048 $4,160 2.9x 13.8x 2.9x 11.9x

Baxter International Inc. 44.22 20.8% (36.6%) 72.84 32.18 24,329 3,357 2,211 23,507 9,940 1,583 822 Mar-16 Dec-15 10,084 1,810 1,170 2.4x 14.8x 2.3x 13.0x

Boston Scientific Corporation 21.92 25.0% 24.6% 22.42 14.18 29,684 5,677 338 35,023 7,595 1,939 1,151 Mar-16 Dec-15 8,159 2,271 1,424 4.6x 18.1x 4.3x 15.4x

ConforMIS, Inc. 12.39 12.6% NM 26.93 7.56 517 0 117 401 66 (53) (56) Dec-15 Dec-15 86 (49) (56) 6.1x NM 4.7x NM

CR Bard Inc. 212.17 15.8% 27.9% 217.49 166.29 15,556 1,693 765 16,484 3,449 1,043 855 Mar-16 Dec-15 3,657 1,169 1,073 4.8x 15.8x 4.5x 14.1x

Danaher Corp. 96.75 11.7% 16.8% 97.62 81.25 66,631 12,392 664 78,431 21,256 4,911 3,785 Apr-16 Dec-15 22,939 5,392 4,103 3.7x 16.0x 3.4x 14.5x

Hologic Inc. 33.59 (1.0%) 2.8% 43.00 31.84 9,366 3,406 316 12,454 2,762 1,001 528 Mar-16 Sep-15 2,822 1,083 957 4.5x 12.4x 4.4x 11.5x

Johnson & Johnson 112.08 7.3% 11.6% 114.19 81.79 309,155 23,559 13,861 290,640 70,182 22,235 18,493 Apr-16 Jan-16 71,809 25,160 21,365 4.1x 13.1x 4.0x 11.6x

K2M Group Holdings, Inc. 16.26 14.4% (24.6%) 26.29 11.15 675 40 21 674 222 (11) (36) Mar-16 Dec-15 247 5 (31) 3.0x NM 2.7x NM

Medtronic plc 79.15 4.3% 4.6% 80.74 55.54 110,893 35,880 2,721 129,486 28,435 8,574 5,785 Jan-16 Apr-15 28,726 9,437 8,198 4.6x 15.1x 4.5x 13.7x

Penumbra, Inc. 54.50 27.3% NM 59.36 38.59 1,673 0 18 1,524 205 4 2 Mar-16 Dec-15 233 1 (10) 7.4x NM 6.5x NM

Stryker Corporation 109.01 9.9% 15.6% 113.85 86.68 40,768 7,476 6,976 40,761 10,062 2,717 2,312 Mar-16 Dec-15 11,195 3,052 2,826 4.1x 15.0x 3.6x 13.4x

Teleflex Incorporated 155.78 14.8% 27.8% 160.71 121.37 6,791 1,063 393 7,464 1,798 426 339 Mar-16 Dec-15 1,878 547 449 4.2x 17.5x 4.0x 13.6x



Medical / Surgical / Dental Supplies & Distribution

AmerisourceBergen Corporation $85.10 (5.0%) (24.3%) $116.28 $80.50 $19,416 $4,488 $2,525 $22,940 $142,111 $1,748 $1,428 Mar-16 Sep-15 $148,029 $2,350 $2,111 0.2x 13.1x 0.2x 9.8x

Cardinal Health, Inc. 78.46 (3.6%) (11.7%) 91.23 74.73 25,839 5,546 2,598 28,921 117,710 3,062 2,482 Mar-16 Jun-15 121,194 3,209 2,904 0.2x 9.4x 0.2x 9.0x

Henry Schein, Inc. 168.70 11.4% 21.2% 174.75 126.17 13,858 1,108 72 15,141 10,879 944 781 Mar-16 Dec-15 11,393 1,012 846 1.4x 16.0x 1.3x 15.0x

McKesson Corporation 167.82 4.2% (25.5%) 243.61 148.29 38,361 8,162 4,048 45,135 190,884 4,622 3,774 Mar-16 Mar-16 200,394 5,359 4,747 0.2x 9.8x 0.2x 8.4x

Owens & Minor Inc. 36.39 5.0% 6.2% 41.48 31.89 2,287 673 190 2,699 9,838 277 233 Mar-16 Dec-15 9,956 282 226 0.3x 9.7x 0.3x 9.6x

Patterson Companies, Inc. 43.35 2.1% (8.2%) 53.07 38.51 4,188 1,246 98 5,336 5,432 493 414 Jan-16 Apr-15 5,443 458 404 1.0x 10.8x 1.0x 11.6x



TEV/ LTM Multiples TEV/ Fwd MultiplesCash and

Equiv.Company Name

Equity

Mkt.

Value

Total Debt

Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


Estimate

PAGE |

PUBLIC COMPARABLES

10

Provider-Based Services




Stock Price

% Change 52 Week


Acute-Care Hospitals

Community Health Systems, Inc. $19.08 (11.2%) (64.9%) $65.00 $12.86 $2,152 $17,019 $181 $19,752 $19,525 $2,287 $1,327 Mar-16 Dec-15 $19,925 $2,846 $1,628 1.0x 8.6x 1.0x 6.9x

HCA Holdings, Inc. 80.62 15.9% 6.0% 95.49 43.91 31,907 30,674 852 63,267 40,262 7,918 6,008 Mar-16 Dec-15 41,978 8,341 6,382 1.6x 8.0x 1.5x 7.6x

LifePoint Health, Inc. 67.56 (3.2%) (11.1%) 88.18 58.20 2,933 2,741 187 5,643 5,531 633 359 Mar-16 Dec-15 6,483 768 435 1.0x 8.9x 0.9x 7.3x

Tenet Healthcare Corp. 31.69 16.9% (35.2%) 60.93 21.39 3,145 14,522 728 19,832 19,254 2,241 1,439 Mar-16 Dec-15 19,124 2,461 1,631 1.0x 8.8x 1.0x 8.1x



Assisted Living

Brookdale Senior Liv ing Inc. $18.46 13.4% (50.4%) $38.60 $11.28 $3,522 $6,432 $71 $9,867 $4,248 $798 $165 Mar-16 Dec-15 $5,039 $893 $398 2.3x 12.4x 2.0x 11.1x

Capital Senior Liv ing Corp. 20.06 9.4% (24.6%) 26.45 14.58 601 850 32 1,353 422 75 21 Mar-16 Dec-15 454 94 26 3.2x 18.0x 3.0x 14.3x



Long-Term Care

Kindred Healthcare Inc. $14.76 52.8% (37.5%) $24.57 $7.96 $1,257 $3,394 $105 $4,420 $7,217 $574 $415 Mar-16 Dec-15 $7,269 $971 $427 0.6x 7.7x 0.6x 4.6x

National HealthCare Corporation 64.45 2.1% 1.2% 69.40 57.16 984 153 49 983 914 108 70 Mar-16 Dec-15 NA NA NA 1.1x 9.1x NA NA

The Ensign Group, Inc. 22.56 0.5% 4.6% 27.04 17.60 1,174 146 51 1,230 1,419 122 92 Mar-16 Dec-15 1,580 163 129 0.9x 10.1x 0.8x 7.6x



Diagnostic Imaging

Alliance Healthcare Serv ices, Inc. $7.19 (3.9%) (67.7%) $22.27 $6.23 $76 $551 $43 $711 $487 $117 $57 Mar-16 Dec-15 NA NA NA 1.5x 6.1x NA NA

RadNet, Inc. 5.05 (15.6%) (41.9%) 8.87 4.66 239 648 0 883 845 109 46 Mar-16 Dec-15 874 131 54 1.0x 8.1x 1.0x 6.7x

Varian Medical Systems, Inc. 81.18 5.3% (14.4%) 90.78 71.07 7,753 794 961 7,600 3,118 605 532 Apr-16 Oct-15 3,183 665 571 2.4x 12.6x 2.4x 11.4x



Dialysis Services

American Renal Associates Holdings, Inc. $28.12 0.0% 0.0% $28.95 $0.00 $836 $689 $96 $1,609 $676 $190 $158 Mar-16 Dec-15 726 207 170 2.4x 8.5x 2.2x 7.8x

DaVita HealthCare Partners Inc. 73.90 10.1% (10.6%) 84.40 61.36 15,501 9,118 1,041 23,801 14,065 2,522 1,870 Mar-16 Dec-15 14,597 2,581 1,915 1.7x 9.4x 1.6x 9.2x

Fresenius Medical Care AG & Co. KGAA 75.91 (6.9%) 1.4% 83.26 63.53 23,253 8,942 518 31,952 17,396 3,042 2,319 Mar-16 Dec-15 18,071 3,499 2,686 1.8x 10.5x 1.8x 9.1x



Home Care, Hospice, and Home Infusion

Home Care / Hospice:

Addus HomeCare Corporation $18.50 (12.8%) (33.8%) $38.08 $15.33 $210 $33 $9 $209 $348 $24 $18 Mar-16 Dec-15 $398 $29 $24 0.6x 8.7x 0.5x 7.1x

Almost Family Inc. 42.01 9.9% (6.4%) 50.48 33.69 432 146 7 548 558 43 38 Apr-16 Jan-16 623 53 49 1.0x 12.8x 0.9x 10.3x

Amedisys Inc. 51.49 44.0% 84.8% 54.29 26.05 1,721 111 8 1,795 1,313 80 62 Mar-16 Dec-15 1,402 124 98 1.4x 22.4x 1.3x 14.4x

Chemed Corp. 129.78 (7.5%) 10.2% 160.12 115.29 2,159 145 15 2,288 1,557 223 193 Mar-16 Dec-15 1,590 239 198 1.5x 10.3x 1.4x 9.6x

LHC Group, Inc. 40.34 6.4% 21.0% 51.83 29.69 725 97 6 833 827 82 70 Mar-16 Dec-15 881 80 71 1.0x 10.1x 0.9x 10.4x

Prov idence Serv ice Corp. 49.84 12.3% 11.5% 56.92 39.00 741 308 95 1,037 1,708 103 49 Mar-16 Dec-15 1,762 121 67 0.6x 10.0x 0.6x 8.5x



Home Infusion:

BioScrip, Inc. $2.64 47.5% (47.6%) $4.97 $1.19 $182 $424 $8 $663 $976 $11 ($7) Mar-16 Dec-15 $887 $51 $17 0.7x NM 0.7x 13.1x

Number of Companies 1 Median: 47.5% (47.6%) Total $182 $663 $976 $887 0.7x NM 0.7x 13.1x

Market Cap. Weighted Average: 47.5% (47.6%) 0.7x NM 0.7x 13.1x

TEV/ Fwd MultiplesTEV/ LTM MultiplesCompany Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


Estimate

PAGE |

PUBLIC COMPARABLES

11



Provider-Based Services


(1) Figures are adjusted for minority interest.

Stock Price

% Change 52 Week


Physician Practice Management

Specialty:

MEDNAX, Inc. $71.29 2.6% (1.7%) $86.09 $61.40 $6,551 $1,443 $55 $7,930 $2,893 $637 $567 Mar-16 Dec-15 $3,136 $689 $607 2.7x 12.4x 2.5x 11.5x



Behavioral Health / Management

AAC Holdings, Inc. $20.59 15.3% (34.2%) $46.60 $14.36 $473 $144 $13 $595 $215 $27 $17 Mar-16 Dec-15 $269 $53 $28 2.8x 21.6x 2.2x 11.1x

Acadia Healthcare Company, Inc. 63.19 3.5% (8.3%) 85.62 49.77 5,525 3,567 37 9,062 2,046 434 355 Mar-16 Dec-15 2,906 654 491 4.4x 20.9x 3.1x 13.9x

Civ itas Solutions, Inc. 20.04 (16.7%) 2.9% 30.23 15.19 744 652 7 1,358 1,389 132 60 Mar-16 Sep-15 1,418 159 75 1.0x 10.3x 1.0x 8.5x

Magellan Health, Inc. 70.46 23.6% 0.2% 73.00 45.40 1,745 255 87 1,848 4,733 206 147 Mar-16 Dec-15 4,501 275 128 0.4x 9.0x 0.4x 6.7x

Universal Health Serv ices Inc. 133.68 18.7% 11.7% 148.57 100.82 13,005 3,289 55 16,555 9,268 1,692 1,289 Mar-16 Dec-15 10,561 1,774 1,372 1.8x 9.8x 1.6x 9.3x



Surgicenters / Rehabilitation

Surgery Centers(1):

AmSurg Corp. $80.98 10.6% 26.9% $87.42 $54.11 $4,377 $2,357 $86 $6,865 $2,721 $340 $294 Mar-16 Dec-15 $3,098 $593 NA 2.5x 20.2x 2.2x 11.6x

Surgery Partners, Inc. 16.29 1.1% NM 22.32 11.76 784 1,356 135 2,470 981 216 181 Mar-16 Dec-15 1,120 188 NA 2.5x 11.4x 2.2x 13.1x

Surgical Care Affiliates, Inc. 48.35 13.3% 25.4% 49.90 27.88 1,933 909 46 2,672 1,080 146 96 Mar-16 Dec-15 1,210 201 NA 2.5x 18.3x 2.2x 13.3x



Rehabilitation:

HEALTHSOUTH Corp. $41.46 15.8% (13.2%) $48.37 $30.26 $3,732 $3,116 $73 $7,046 $3,280 $745 $595 Mar-16 Dec-15 $3,669 $788 $626 2.1x 9.5x 1.9x 8.9x

Select Medical Holdings Corporation 13.38 40.4% (11.5%) 17.20 7.33 1,757 2,782 85 4,482 3,973 413 290 Mar-16 Dec-15 4,287 507 348 1.1x 10.9x 1.0x 8.8x

US Physical Therapy Inc. 49.86 (2.5%) 4.8% 56.37 42.59 623 58 19 696 337 58 50 Mar-16 Dec-15 355 58 52 2.1x 12.0x 2.0x 11.9x



Company Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


EstimateTEV/ LTM Multiples TEV/ Fwd Multiples

PAGE |

M&A TRANSACTIONS

12

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



Enterprise Enterprise Value / LTM Private Equity

Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement

hoh18.75

4/29/2016 Guthrie Joint Venture NM, LLC, Three Operating

Franchises in Albuquerque, New Mexico

Guthrie Joint Venture NM, LLC The Joint Corp. (NasdaqCM:JYNT) $0.4 - - - No

4/29/2016 Amendia, Inc. - Kohlberg & Company, L.L.C. - - - - Yes

4/29/2016 UNC REX Cancer Care - UNC Health Care System - - - - No

4/28/2016 Exclusive worldwide license to therapeutic

products

PSMA Development Company L.L.C. Bayer AS (Norway) $53.0 - - - No

4/28/2016 Caradigm USA LLC Microsoft Corporation

(NasdaqGS:MSFT)

GE Healthcare Limited - - - - No

4/28/2016 Wentworth-Douglass Hospital - The General Hospital Corporation - - - - No

4/27/2016 St. Jude Medical Inc. (NYSE:STJ) Massachusetts Financial Serv ices

Company; HBM Partners Ltd.; Capital

World Investors

Abbott Laboratories (NYSE:ABT) $29,840.8 5.3x 18.7x 24.1x No

4/27/2016 Cancer Treatment Serv ices International L.P. - TPG Capital, L.P. - - - - Yes

4/27/2016 Gyrus Labs, Inc. - CloudMedx Inc. - - - - No

4/27/2016 Benchmark Biolabs, Inc. - AgriLabs, LLC - - - - No

4/27/2016 Arizona Counseling & Treatment Serv ices, LLC - Assurance Health and Wellness Center,

Inc.

- - - - No

4/26/2016 ExamWorks Group, Inc. (NYSE:EXAM) BlackRock Fund Advisors; Pivot Point

Capital; Federated Equity

Management Company of

Pennsylvania

Leonard Green & Partners, L.P. $1,932.8 2.4x 16.7x 32.2x Yes

4/26/2016 Lifeguard Medical Solutions, LLC - Allied 100, LLC - - - - No

4/26/2016 Healthsouth Rehabilitation Hospital Of Beaumont

LLC

- Post Acute Medical, LLC - - - - No

4/26/2016 MIGSLLC - DNA2.0, Inc. - - - - No

4/26/2016 ECA Medical Instruments, Inc. American Capital, Ltd.

(NasdaqGS:ACAS)

LongueVue Capital, LLC - - - - Yes

4/25/2016 Stemcentrx, Inc. Sequoia Capital; Fidelity Investments;

Artis Capital Management, L.P.; The

Founders Fund; ARTIS Ventures

AbbVie Inc. (NYSE:ABBV) $9,324.6 - - - Yes

4/25/2016 PerkinElmer Labs, Inc. PerkinElmer Inc. (NYSE:PKI) Eurofins Scientific SE (ENXTPA:ERF) - - - - No

4/25/2016 Cayenne Medical, Inc. Western Technology Investment;

Investor Growth Capital; Fletcher

Spaght Ventures, LP; MB Venture

Partners; Split Rock Partners, LLC; NXT

Capital Venture Finance

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) - - - - No

4/25/2016 Verisk Health, Inc. and MediConnect Global, Inc. Argus Information & Advisory Serv ices,

LLC

Veritas Capital $820.0 - - - Yes

4/25/2016 Three Medical Corner Urgent Care Centers in

Kailua, Kapolei and Honolulu

- Urgent Care Hawaii, LLC - - - - No

4/24/2016 Seven Nursing Homes in Tennessee and One

Nursing Home in Kentucky

- Strawberry Fields REIT Ltd. $74.0 - - - No

4/22/2016 Forest Park Medical Center at Southlake, LLC - Methodist Health System, Inc. $17.6 - - - No

4/21/2016 NeuroTek Medical Inc., A Portfolio of

Neuromodulation Patents

NeuroTek Medical Inc. Nexeon MedSystems, Inc. - - - - No

4/21/2016 CareFusion Corporation, CareFusion Vertebral

Compression Fracture Portfolio of Products

CareFusion Corporation Stryker Corporation (NYSE:SYK) - - - - No

4/21/2016 Stat Read, LLC - Teleradiology Specialists, PLLC - - - - No

4/21/2016 Topokine Therapeutics, Inc. Schooner Capital LLC Allergan plc (NYSE:AGN) $85.0 - - - Yes

4/21/2016 Two Senior Liv ing Communities in East Texas Abby Development LLC Civ itas Senior Healthcare, LLC - - - - No

4/21/2016 Mazzitti & Sullivan Counseling Serv ices, Inc. - Pyramid Healthcare, Inc. - - - - No

4/20/2016 SteriPack Ltd, Packaging Operations SteriPack Ltd Bemis Company, Inc. (NYSE:BMS) - - - - No

4/20/2016 Colusa Regional Medical Center, Inc., Three Rural

Health Clinics

Colusa Regional Medical Center, Inc. Adventist Health System/West Inc. - - - - No

4/20/2016 Forest Park Medical Center of Fort Worth FPMC Fort Worth Realty Partners, LP - - - - - No

4/19/2016 NAPA Management Serv ices Corporation Moelis Capital Partners LLC American Securities; Leonard Green &

Partners, L.P.

- - - - Yes

4/19/2016 Medical Office Building and Eye Surgery Center in

Wyomissing, PA

Paper Mill Partners, L.P.; Ridgewood

Surgery Center, L.P.

Global Medical REIT, Inc. (OTCPK:GMRE) $9.2 - - - No

4/19/2016 Hansen Medical, Inc. (NasdaqGM:HNSN) Oracle Investment Management, Inc.;

The Vanguard Group, Inc.; BlackRock

Advisors, LLC; Schuler Family

Foundation, Endowment Arm; Intuitive

Surgical Operations, Inc.

Auris Surgical Robotics, Inc. $93.3 5.8x - - No

4/19/2016 Prospective Payment Specialists, Inc. - Receivables Outsourcing, Inc. - - - - No

4/19/2016 Two Opioid Treatment Programs in Spartanburg

and Aiken, South Carolina

- Behavioral Health Group, Inc. - - - - No

4/19/2016 Today's Options of New York, Inc. Universal American Corp (NYSE:UAM) Molina Healthcare, Inc. (NYSE:MOH) $41.3 - - - No

4/19/2016 Geissler Companies, LLC, Worldwide Rights For

Whisper Veterinary Stethoscope System

Geissler Companies, LLC Intervet Inc. - - - - No

4/18/2016 Iosoft Inc. - RJD Green, Inc. (OTCPK:RJDG) - - - - No

4/18/2016 Cirrus Pharmaceuticals, Inc. Kemfin Holdings Private Limited Recipharm AB (publ) (OM:RECI B) - - - - No

4/18/2016 The Meadows of Wickenburg, Inc. American Capital, Ltd.

(NasdaqGS:ACAS)

Kohlberg & Company, L.L.C. $180.0 - - - Yes

4/15/2016 Medivation, Inc. (NasdaqGS:MDVN) Adage Capital Management, L.P.;

Franklin Advisers, Inc.; Fidelity

Management & Research Company

Sanofi (ENXTPA:SAN) $8,322.3 8.4x 18.4x 18.8x Yes

PAGE |

M&A TRANSACTIONS

13

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





4/15/2016 Gideon Pharmaceuticals, Inc. - Elorac, Inc. - - - - No

4/15/2016 InfusAID, LLC - InfuSystem, Inc. - - - - No

4/14/2016 Genesee BioMedical, Inc., PhotoFix Bovine

Pericardium Patch

Genesee BioMedical, Inc. CryoLife Inc. (NYSE:CRY) $2.3 1.6x - - No

4/14/2016 Arsenal Health Healthbox, LLC; More Disruption

Please Accelerator

athenahealth, Inc. (NasdaqGS:ATHN) - - - - No

4/14/2016 Prototypes, Centers for Innovation in Health,

Mental Health and Social Serv ices

- HealthRight 360 - - - - No

4/14/2016 Curaspan Health Group, Inc. - Navihealth, Inc. - - - - No

4/13/2016 Synta Pharmaceuticals Corp. (NasdaqGM:SNTA) - Madrigal Pharmaceuticals, Inc. - - - - No

4/12/2016 NuSep, Inc. and Gels Business NuSep Holdings Ltd (ASX:NSP) Dycent Biotech (Shanghai) Co. Ltd. - - - - No

4/12/2016 Denver Nephrologists, P.C. - Colorado Kidney Care P.C. - - - - No

4/11/2016 Gardendale Surgical Associates, LLC Brookwood Health Serv ices, Inc. Physicians Realty Trust (NYSE:DOC) $7.5 - - - No

4/11/2016 LAT Pharma LLC - NanoAntibiotics Inc. (OTCPK:NNAB) $2.4 - - - No

4/11/2016 Alcoa Remmele Medical Operations Alcoa Titanium & Engineered Products Lisi Medical SAS $102.0 1.5x - - No

4/11/2016 Wunderlich, M.D., S.C. - DuPage Medical Group, Ltd. - - - - No

4/8/2016 Southern Winds Hospital Westchester General Hospital, Inc. Millennium Management LLC - - - - No

4/8/2016 Clay Center Family Physicians - Clay County Medical Center - - - - No

4/8/2016 Advanced Medical Group, LLC - Wilmington Medical Supply, Inc. - - - - No

4/8/2016 Mainspring Healthcare Solutions, Inc. - Accruent, LLC - - - - No

4/8/2016 Mountain View Medical Group, P.C. - DaVita HealthCare Partners Inc.

(NYSE:DVA)

- - - - No

4/8/2016 Autoclave Testing Supplies, Inc. and Autoclave

Testing Serv ices, Inc.

- Mesa Laboratories Inc.

(NasdaqGS:MLAB)

- - - - No

4/8/2016 Caligor Rx, Inc. - Diversis Capital, LLC - - - - Yes

4/8/2016 Aging Family Serv ices, Inc. - LifeLinks,LLC - - - - No

4/8/2016 Youth and Families First - Devereux Advanced Behavioral Health

Arizona

- - - - No

4/6/2016 Genome Compiler Corporation LionBird (Ventures) Ltd.; NFX Guild Twist Bioscience Corporation - - - - No

4/6/2016 Shionogi Inc., Keflex Product Line Shionogi Inc. Pragma Pharmaceuticals, LLC - - - - No

4/6/2016 Evergreen Rehabilitation, LLC - Encore Rehabilitation Serv ices, LLC - - - - No

4/6/2016 2 Nursing Facilities totaling 245 beds in Texas National Health Investors Inc.

(NYSE:NHI)

The Ensign Group, Inc.

(NasdaqGS:ENSG)

$24.6 - - - No

4/6/2016 8 Skilled Nursing Facilities In Texas Legend Healthcare, LLC National Health Investors Inc. (NYSE:NHI) $118.5 - - - No

4/6/2016 Legend Healthcare, LLC, 4 Skilled Nursing Facilities

in Texas

Legend Healthcare, LLC National Health Investors Inc. (NYSE:NHI) $56.0 - - - No

4/6/2016 Legend Healthcare, LLC - The Ensign Group, Inc.

(NasdaqGS:ENSG)

- - - - No

4/6/2016 Douglas Scientific LLC Douglas Machine Inc. LGC Limited - - - - No

4/5/2016 Medsystems Holdings, Inc. MedSystems Holdings LLC Halyard Health, Inc. (NYSE:HYH) $174.0 - NM - No

4/5/2016 Aspen Park Pharmaceuticals, Inc. - The Female Health Company

(NasdaqCM:FHCO)

$13.7 - - - No

4/5/2016 Southern Cord, Inc. - California Cryobank Stem Cell Serv ices

LLC

- - - - No

4/5/2016 Symbiosis Health Inc. Blueprint Health; Oxeon Investments

LLC

SwervePay, LLC - - - - No

4/5/2016 Computer Technology Corporation - Vendor Credentialing Serv ice LLC - - - - No

4/5/2016 Anthone Eye Center - Atwal Eye Care - - - - No

4/5/2016 Forty seven Medical Office Facilities Catholic Health Initiatives Physicians Realty L.P. $611.1 - - - No

4/4/2016 vMEDEX - Transaction Data Systems, Inc. - - - - No

4/4/2016 Moore Physical Therapy and Fitness - Professional Orthopedic and Sports

Physical Therapy, P.C.

- - - - No

4/4/2016 Victory Park Nursing Home and Victoria

Retirement Community

- CareTrust REIT, Inc. (NasdaqGS:CTRE) - - - - No

4/4/2016 Cedar Falls Health Care Center - CareTrust REIT, Inc. (NasdaqGS:CTRE) $5.0 - - - No

4/4/2016 Nimbus Apollo, Inc. Nimbus Therapeutics, Inc. Gilead Sciences Inc. (NasdaqGS:GILD) $1,200.0 - - - No

4/4/2016 Intelemage, LLC - Medidata Solutions, Inc.

(NasdaqGS:MDSO)

- - - - No

4/4/2016 Northern Arizona Healthcare, Home Health

Agencies in Flagstaff and Cottonwood and One

Hospice Agency

Northern Arizona Healthcare

Corporation

LHC Group, Inc. (NasdaqGS:LHCG) - - - - No

4/4/2016 Children's Emergency Serv ices, Inc. - Team Health Holdings, Inc. (NYSE:TMH) - - - - No

4/4/2016 North Florida Anesthesia Consultants, Inc. - Sheridan Healthcare, Inc. - - - - No

4/4/2016 Genesis Genetics Institute, LLC - CooperSurgical Inc. $60.0 2.5x - - No

4/4/2016 Senior Housing Facility in Pennsylvania & Six

Medical Office buildings

- Griffin-American Healthcare REIT I I I , Inc. $69.6 - - - No

4/4/2016 Nelson Laboratories, Inc. - Sterigenics International, Inc. - - - - No

4/4/2016 eHealth Data Solutions LLC - ABILITY Network Inc. - - - - No

PAGE |

M&A TRANSACTIONS

14

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





4/4/2016 SHR Associates, Inc. - Rosen, Sapperstein & Friedlander - - - - No

4/4/2016 Oleen Pinnacle Healthcare Consulting LLC - Cumberland Consulting Group, LLC - - - - No

4/4/2016 Upper Valley ENT - Premier Health Specialists, Inc. - - - - No

4/3/2016 Kindred Healthcare, Inc., 12 Long Term Acute

Care Hospitals

Kindred Healthcare Inc. (NYSE:KND) Curahealth, LLC $27.5 - - - No

4/3/2016 GeneInsight LLC Partners HealthCare System, Inc. Sunquest Information Systems, Inc. - - - - No

4/1/2016 ACSH Urgent Care of Virginia, LLC and ACSH

Primary Care of Virginia, LLC

American Caresource Holdings, Inc.

(NasdaqCM:ANCI)

UrgeMedical Group, Inc. $0.6 - - - No

4/1/2016 Prairie View Healthcare Community - Welcov Healthcare, LLC - - - - No

4/1/2016 Integrity Compounding Pharmacy, LLC - True Nature Holding, Inc. (OTCPK:TNTY) $1.0 - - - No

4/1/2016 Physicians' Specialty Hospital, LLC - Community Health Systems, Inc.

(NYSE:CYH)

- - - - No

4/1/2016 CryoGen Management - Signet Interactive LLC - - - - No

4/1/2016 Pacific Pathology Associates, Inc. - Aurora Diagnostics, LLC - - - - No

4/1/2016 Kilgore AL Management LLC Abby Development LLC Civ itas Senior Healthcare, LLC - - - - No

4/1/2016 Florida Hospital New Smyrna - Florida Hospital System, Inc. $40.0 - - - No

4/1/2016 Sojourner Recovery Serv ices, Inc. - Transitional Liv ing Inc - - - - No

4/1/2016 BSA Health System - Hospice Care of the Southwest - - - - No

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Specialty Distribution

Consumer

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