WORLD PREVIEW 2014, OUTLOOK TO 2020

Transcription

1 WORLD PREVIEW 214, OUTLOOK TO 22

2 Ocber 214 Welcome EvaluateMedTech World Preview 214, Outlook 22 provides trusted sights on global medtech secr a sgle solution that can easily tegrate with your own analytical models. It allows medtech companies, fancial stitutions, consultancies, service providers and ors easily and rapidly track, benchmark and forecast secr and focus on critical decisions optimize performance. Our third annual World Preview brgs ger many of our analyses provide a p level sight expected performance of medtech dustry between now and 22. Based on s coverage of world s leadg medical device and diagnostic companies, World Preview highlights trends medtech cludg: consensus sales forecasts of leadg dustry analysts by device area 22; p 2 companies 22; R&D spend current and future; FDA approvals; M&A; venture fancg; IPOs; and enterprise value. To fd out more about this report and Evaluate s range of services for life science secr please contact us: North America: Alan Raider Tel: [email protected] Rest of World: Will Hau Tel: +44 () [email protected] Japan: Hiroshi Yamazaki Tel: + 81 () [email protected] For general questions: Christe Ldgren Tel: [email protected] Copyright 214 Evaluate Ltd. All rights reserved. Disclaimer All tellectual property rights this report rema that of Evaluate Ltd and/or its respective third party licensors. Whilst all reasonable steps have been taken ensure that data presented are accurate, Evaluate Ltd cannot accept responsibility for errors or omissions. Neir does Evaluate Ltd warrant accuracy, merchantability or fitness for a particular purpose of data. Nothg reports shall constitute vestment, fancial or legal advice and contents of reports are provided for formation purposes only. The data is not tended amount advice and should not be used as a determg facr any vestment decision. This report may not be lent, resold, hired out or orwise disposed of by way of trade any form of bdg or cover or than that which it is published, without prior written consent of Evaluate Ltd. Copyright 214 Evaluate Ltd. All rights reserved. 2

3 EvaluateMedTech Foreword The third edition of EvaluateMedTech World Preview reveals that medtech market is expected grow at 5% per year (CAGR) between 213 and 22, achievg global sales of $514bn 22 (page ). The analysis is based on -depth forecast models for p 2 global medtech companies available with EvaluateMedTech. Our sales forecast represents only current consensus view from equity analysts of medtech market. J&J leads for now Ocber 214 fds medtech dustry holdg its breath. The year date has been a fascatg one, with a remarkable 33% crease value of completed mergers H1 214 compared with same time last year (page 18) but thgs are about get a lot more terestg. The sgle biggest merger secr s hisry is set close early next year, and when Medtronic and Covidien jo forces changes will be seismic. The World Preview uses consensus data based on analyst forecasts which do not as yet take this merger account as $42.9bn deal has not yet closed. Consequently, current forecasts put Johnson & Johnson as clear market leader 22 with medtech sales of $32.8bn. But if it does engulf Covidien, Medtronic will seize p spot. The $13.4bn merger of Zimmer and Biomet will also contribute a momenus year for medtech, alterg orthopedics secr profoundly. FDA premarket approvals pick up The regulary situation is changg significantly o. After a disappotg 213 terms of first-time premarket approvals (PMAs) granted by FDA, agency has been more liberal so far 214, with 2 new PMAs end of August (page 12). This is a 43% crease compared with same pot last year, and ties with deliberate efforts FDA is makg speed devices market, such as streamlg de novo regulary process and a proposed expedited access PMA programme. A billion dollars IPOs While ultimate goal for many early-stage medtech companies is still a takeout by one of bigger groups, stayg dependent and gog public has emerged as an creasgly popular strategy. EvaluateMedTech s new IPO analysis, available this year for first time, shows that first half of 214 saw $1.3bn raised completed IPOs (page 2). This is 44% more than $9m raised whole of 213. Copyright 214 Evaluate Ltd. All rights reserved. The global medical device market is growg fast and changg faster; cardiology and orthopedic spaces alone are set alter almost beyond recognition thanks megamergers. This time next year re could be a new market leader, and an dustry forecast be worth more than half a trillion dollars 22, that is no significant achievement. Ian Strickland Product Manager, EvaluateMedTech 3

4 EvaluateMedTech World Preview 214, Outlook 22 Analysis Highlights Copyright 214 Evaluate Ltd. All rights reserved. Worldwide medtech sales forecast grow by 5.% (CAGR ), reachg $514bn more than half a trillion dollars by 22 Medtech will grow more slowly compared with prescription drug market, with a CAGR of 5.% compared with pharma s 5.3% between 213 and 22 Johnson & Johnson is currently forecast be clear market leader 22 with medtech sales of $32.8bn... but if proposed merger between Medtronic and Covidien goes ahead as expected, combed forecasts will put new Medtronic at p M&A deal value jumps by an asnishg 33% $3bn H1 214 vs. H1 213, though deal count drops 1% Total deal value of medtech venture fancg falls 1% $2.2bn H1 214 vs. H1 213; number of venture fancg deals slumped 24% 199 Significant crease medtech IPO activity 214. H1 214 saw $1.3bn raised completed IPOs, 44% more than $9m raised whole of 213 In vitro diagnostics expected be world s largest medtech segment 22, with sales of $71.bn, with Roche domate with 17.% market share 22 Medtronic remas p cardiology 22 with sales of $11.1bn, a 19.4% market share. Lead set crease followg addition of Covidien Johnson & Johnson contues lead orthopedics market with 22 market share of 24.7% and sales of $11.3bn but followg completion of its acquisition of Biomet, Zimmer is set catch up, leapfroggg Stryker take second place with a market share of 2.8% 22 Global medtech R&D spend set grow by 4.2% (CAGR) $3.5bn by 22 Johnson & Johnson and Siemens predicted be neck and neck as p medtech R&D spenders 22, with both set vest $2.1bn new programmes FDA grants 23 first-time PMAs 213, a massive decrease of 44% from 212 figure of 41; 51(k) clearances also down, by 3% 3,85 but situation reverses 214, with 2 new PMAs end of August, representg a 43% crease compared with same pot last year 4

5 Table of Contents Worldwide Medtech Sales by Device Area 22 7 Worldwide Medtech Sales 22: Top 2 Companies 8 Worldwide Medtech vs. Prescription Drug Sales (27-2) 9 Worldwide Medtech R&D Spend (27-2) 1 Medtech R&D Spend 22: Top 2 Companies 11 FDA Regulary Analysis (2-13) FDA First-Time PMAs and HDEs 13 In Vitro Diagnostics (IVD) Market Cardiology Market Diagnostic Imagg Market 22 1 Orthopedics Market Ophthalmics Market M&A Analysis: 29 H Venture Fancg Analysis: 29 H IPO Analysis: 213 and Enterprise Value & Focus Analysis: 214 Latest vs. 213 Copyright 214 Evaluate Ltd. All rights reserved. 5

6 Worldwide Medtech Sales by Device Area 22 Worldwide Medtech Sales Forecast Exceed Half a Trillion Dollars by 22; In Vitro Diagnostics Remas Number One 22 Worldwide fds that Medtech worldwide Sales Forecast medtech Exceed market is Half forecast a Trillion grow Dollars by by 5.% 22; per In year Vitro (CAGR) Diagnostics between Remas 213 and 22, achievg sales of Number $514bn One fds that worldwide medtech market is forecast grow by 5.% per year (CAGR) between As previous Worldwide years, fds that vitro diagnostics (IVD) is expected rema largest segment 22 with sales of 213 and 22, Medtech achievg Sales sales Forecast of $514bn Exceed 22. Half a Trillion Dollars by 22; In Vitro Diagnostics Remas $71.bn, representg Number As previous 14% One of years, 22 worldwide medtech market. fds that Impressively, vitro diagnostics IVD (IVD) market is expected is also set rema outpace largest medtech segment market as a whole, growg by 22.1% with per sales year of fds over $71.bn, that same representg worldwide timeframe. medtech 14% of market worldwide is forecast medtech grow market. by 5.% Impressively, per year (CAGR) IVD market between is also 213 The fastest growg set and segment outpace 22, achievg medtech sales p 15 market of $514bn is neurology, as a whole, 22. with growg a 7.1% by CAGR.1% between per year over 213 and same 22 timeframe. As and expected 22 sales of $9.8bn. The previous fastest growg years, segment p 15 fds is neurology, that vitro with diagnostics a 7.1% CAGR (IVD) between is expected 213 and rema 22 and largest expected segment 22 sales 22 of with $9.8bn. sales of $71.bn, representg 14% of worldwide medtech market. Impressively, IVD market is also set outpace medtech market as a whole, growg by.1% per year over same timeframe. The fastest growg segment p 15 is neurology, with a 7.1% CAGR between 213 and 22 and expected 22 sales of $9.8bn. Analysis on Top 1 Device Areas 22, Market Share & Sales Growth (213-2) Source: (18 SEP 214) WW Market Share % 22 WW Market Share % 22 18% Analysis on Top 1 Device Areas 22, Market Share & Sales Growth (213-2) Source: (18 SEP 214) 1% 18% In Vitro 14% 1% Diagnostics (IVD) 12% In Vitro 14% Cardiology Diagnostics (IVD) 1% 12% Diagnostic Imagg Orthopedics Cardiology 8% 1% Diagnostic Ophthalmics % Imagg Orthopedics 8% General & Plastic Drug Endoscopy Surgery Ophthalmics 4% Delivery % Diabetic General & Plastic Dental Drug Care Endoscopy 2% Surgery 4% Delivery Diabetic Dental % Care 2% +3.5% +4.% +4.5% +5.% +5.5% +.% +.5% +7.% % Note: Bubble = WW Sales 22 % Sales Growth: CAGR % +4.% +4.5% +5.% +5.5% +.% +.5% +7.% Note: Bubble = WW Sales 22 % Sales Growth: CAGR WW Medtech Sales by Device Area: Top 15 Categories & Total Market (213/2) Copyright 214 Evaluate Ltd. All rights reserved. Source: (18 SEP 214) Note: Analysis is based on p 2 medtech companies. Sales 213 based on company reported data. Sales forecasts 22 based on a consensus of leadg equity analysts estimates for segmental sales.

7 Worldwide Medtech Sales 22: Top 2 Companies Copyright 214 Evaluate Ltd. All rights reserved. Johnson & Johnson Predicted be Number One 22 - But This Could Change fds that Johnson & Johnson is currently forecast be largest medtech company 22, with sales of $32.8bn. However, Worldwide company s market Medtech share is expected Sales fall from 22: 7.8% Top.4% 2 between Companies 213 and 22 followg sale of its Ortho-Clical Diagnostics unit private equity. Moreover, current Johnson forecasts & Johnson do not Predicted take account be Number One proposed 22 megamerger - But This Could of Medtronic Change and Covidien. With estimated combed sales Worldwide Medtech fds that Johnson Sales & Johnson 22: is currently Top forecast 2 Companies be largest medtech company 22, with sales of of $35.9bn $32.8bn. 22, representg However, a company's 7.% market market share, share when is expected predictions fall from are 7.8% made next.4% year between it is likely 213 and that 22 this followg new behemoth sale of of medtech will take p its Johnson Ortho-Clical spot from & Johnson Johnson Diagnostics Predicted & Johnson. unit be private Number equity. One 22 - But This Could Change Moreover, The biggest fallers current forecasts rankgs fds out that do Johnson not take 22 are & Johnson account Bosn is Scientific currently proposed and forecast megamerger Novartis. be Novartis largest of Medtronic medtech and falls four company Covidien. places With 22, estimated number with 1, sales largely of due combed $32.8bn. sales However, of $35.9bn company's 22, market representg share is a expected 7.% market fall share, from when 7.8% predictions.4% between are made 213 next and 22 year it followg is likely that sale this of disposal of its new blood its Ortho-Clical behemoth diagnostic of Diagnostics medtech busess will unit take 214 private p Grifols. spot equity. from Bosn Johnson Scientific & Johnson. fallg four places number 14 reflects company failg replace sales from The Moreover, biggest its mature current fallers cardiology forecasts rankgs do busess. not out take 22 account are Bosn proposed Scientific megamerger and Novartis. of Novartis Medtronic falls and four Covidien. places With number estimated 1, largely due combed disposal sales of $35.9bn of its blood 22, diagnostic representg busess a 7.% 214 market Grifols. share, Bosn when predictions Scientific fallg are made four next places year it number is likely 14 that reflects this company new behemoth failg of medtech replace sales will take from its p mature spot from cardiology Johnson busess. & Johnson. The biggest fallers rankgs out 22 are Bosn Scientific and Novartis. Novartis falls four places number 1, largely due disposal of its blood diagnostic busess 214 Grifols. Bosn Scientific fallg four places number 14 reflects WW Medtech Sales: Top 1 Companies (22) company failg replace sales from its mature cardiology busess. Source: (18 SEP 214) WW Medtech Sales: Top 1 Companies (22) Sales ($bn) Source: (18 SEP 214) CAGR (%) 35 Rankg Change Sales ($bn) 32.8 CAGR (%) Rankg Change % % % % % % % % +5% % % % % % % +5% 1.4 (-) (-) (-) (-) (-) (-) +5% +2 +3% -1 +3% % Johnson & Siemens Medtronic Roche Covidien Abbott Stryker General Philips Essilor Johnson (-) (-) (-) (-) (-) Laboraries (-) +2 Electric -1-1 International +5 Johnson & Siemens Medtronic Roche Covidien Abbott Stryker General Philips Essilor WW Medtech Johnson Sales: Top 2 Companies & Total Market (213/2) Laboraries Electric International WW Medtech Sales: Top 2 Companies & WW Total Medtech Market Sales (213/2) ($bn) WW Market Share Rank WW Medtech Sales: Top 2 Companies & Total Market (213/2) Company Country % CAGR Chg. (+/-) Chg. (+/-) 1 Johnson & Johnson USA 28.5 WW Medtech 32.8 Sales ($bn) +2.% 7.8% WW Market.4% Share -1.4pp Rank- 2 Siemens Company Germany Country % CAGR +4.3% % % Chg. -.2pp (+/-) Chg. (+/-) - 31Medtronic Johnson & Johnson USA % +3.8% 7.8% 4.7%.4% 4.3% -1.4pp -.4pp Roche Siemens Switzerland Germany % +4.4% 4.9% 3.1% 4.7% 3.% -.2pp -.1pp Covidien Medtronic USA % +4.4% 4.7% 2.8% 4.3% 2.7% -.4pp -.1pp - - 4Abbott RocheLaboraries USA Switzerland % +4.8% 3.1% 2.7% 3.% 2.7% -.1pp -.pp Stryker Covidien USA % +5.4% 2.8% 2.5% 2.7% 2.5% -.1pp +.1pp General Abbott Laboraries Electric USA % +3.% 2.7% 2.7% 2.3% -.pp -.3pp Philips Stryker The USANerlands % +3.% 2.5% 2.% 2.5% 2.3% +.1pp -.3pp Essilor General International Electric France USA % +8.2% 2.7% 1.% 2.3% 2.% -.3pp +.4pp Danaher Philips USA The Nerlands % +4.7% 2.% 1.9% 2.3% 1.9% -.3pp -.pp Becn Essilor Dickson International USA France % +4.4% 1.% 1.9% 2.% 1.8% +.4pp -.1pp Baxter Danaher International USA USA % +7.% 1.9% 1.% 1.9% 1.8% -.pp +.2pp Bosn Becn Scientific Dickson USA USA % +3.8% 1.9% 2.% 1.8% 1.8% -.1pp -.2pp B. Baxter Braun International Melsungen Germany USA % +4.3% 1.% 1.9% 1.8% 1.8% +.2pp -.1pp Bosn Scientific USA % 2.% 1.8% -.2pp -4 1 Novartis Switzerland % 1.9% 1.8% -.2pp B. Braun Melsungen Germany % 1.9% 1.8% -.1pp Olympus Japan % 1.4% 1.% +.2pp +2 1 Novartis Switzerland % 1.9% 1.8% -.2pp St. Jude Medical USA % 1.5% 1.5% -.pp Olympus Japan % 1.4% 1.% +.2pp M USA % 1.4% 1.4% -.pp St. Jude Medical USA % 1.5% 1.5% -.pp -1 2 Smith & Nephew United Kgdom % 1.2% 1.2% +.1pp M USA % 1.4% 1.4% -.pp -1 Total Top % 52.1% 49.4% -2.7pp 2 Smith & Nephew United Kgdom % 1.2% 1.2% +.1pp +2 Or % 47.9% 5.% +2.7pp Total Top % 52.1% 49.4% -2.7pp Total % 1.% 1.% Or % 47.9% 5.% +2.7pp Source: (18 SEP 214) Total % 1.% 1.% Note: Source: Analysis is based on (18 SEP p 214) 2 medtech companies. Sales 213 based on company reported data. Sales forecasts Source: (18 SEP 214) 22 based on a consensus of leadg equity analysts' estimates for segmental sales. Note: Analysis is based on p 2 medtech companies. Sales 213 based on company reported data. Sales forecasts 22 based on a consensus of leadg equity analysts' estimates for segmental sales. WW Medtech Sales ($bn) 22 WW Medtech Sales ($bn) 22 4 Note: Analysis is based on p 2 medtech companies. Sales 213 based on company reported data. Sales forecasts 22 based on a consensus of leadg equity analysts estimates for segmental sales

8 Worldwide Medtech vs. Prescription Drug Sales (27-2) Copyright 214 Evaluate Ltd. All rights reserved. Prescription Drug Market Forecast Outstrip Medtech between 213 and 22 fds that between 213 and 22 prescription drug market is forecast grow at 5.3% per year (CAGR), greater than medtech Worldwide dustry s forecast Medtech 5.%. This vs. is Prescription stark contrast Drug period Sales 21 (27-2) 213 when medtech secr grew much more rapidly than pharma. Worldwide Medtech vs. Prescription Drug Sales (27-2) Prescription Drug Market Forecast Outstrip Medtech between 213 and 22 In last two Worldwide Prescription Drug Medtech Market fds World that Forecast between Previews, vs. 213 Outstrip Prescription and medtech 22 Medtech dustry prescription between Drug had 213 drug Sales also and market been 22 (27-2) is forecast grow outstrip at 5.3% per pharma year (CAGR), market future. With passg greater of than pharma medtech fds patent that dustry's cliff between and forecast a 213 resurgence 5.%. and 22 This is confidence prescription stark contrast drug market pharmaceutical period is forecast and grow when biotech at 5.3% per medtech dustry, year (CAGR), secr however, grew prescription drug greater much more Prescription market than rapidly has medtech than pharma. Drug moved dustry's Market ahead. forecast 5.%. This is stark contrast period when medtech secr grew Forecast Outstrip Medtech between 213 and 22 much In more last two rapidly than pharma. World Previews, medtech dustry had also been forecast outstrip pharma market fds that between 213 and 22 prescription drug market is forecast grow at 5.3% per year (CAGR), In 214 and from In future. greater 21 last With two than onwards passg medtech prescription of pharma World dustry's forecast drugs patent Previews, are cliff 5.%. forecast and a medtech resurgence This is stark grow dustry contrast faster confidence had than also period medtech. been pharmaceutical forecast 21 This 213 results outstrip and when biotech pharma medtech medtech dustry, market secr market grew fallg 49.7% of prescription much future. however, more With rapidly prescription drug passg than market pharma. of drug pharma market has 22, patent moved versus cliff 5.7% and ahead. a resurgence 213. confidence pharmaceutical and biotech dustry, In however, In 214 and last two from prescription 21 onwards drug market prescription World has Previews, moved drugs ahead. are forecast grow faster than medtech. This results medtech market fallg medtech dustry had also been forecast outstrip pharma market future. In % With and of from prescription passg 21 onwards drug of pharma prescription market 22, patent cliff drugs versus and are a resurgence forecast 5.7% grow 213. confidence faster than medtech. pharmaceutical This results and biotech medtech dustry, market fallg however, 49.7% of prescription prescription drug drug market market has moved 22, ahead. versus 5.7% 213. In 214 and from 21 WW onwards Medtech prescription vs Prescription drugs Drug are forecast Sales (27-2) grow faster than medtech. This results medtech market fallg 49.7% of prescription WW Source: Medtech drug vs market Prescription 22, and versus Drug EvaluatePharma Sales 5.7% (27-2) 213. (18 SEP 214) Source: and EvaluatePharma (18 SEP 214) 1,2 WW Medtech vs Prescription WW Prescription Drug Sales: Sales +5.3% (27-2) 1,2 CAGR ,33 Source: and EvaluatePharma (18 SEP 214) WW Prescription Sales: +5.3% CAGR , 934 1,33 1, , WW Prescription Sales: +5.3% CAGR , , WW Medtech Sales: +5.% CAGR WW Medtech Sales: +5.% CAGR WW Medtech WW & Rx Sales ($bn) WW Medtech Medtech & Rx & Sales Rx Sales ($bn) ($bn) WW Sales WW Growth % WW Sales Sales Growth Growth % % WW Medtech Sales: +5.% CAGR WW Growth Rate: Medtech vs. Prescription Drug Sales (28-2) % WW Growth Rate: Medtech vs. Prescription Drug Sales (28-2) Medtech Growth per Year 14% 12% WW Growth 29: Rate: World Medtech economy vs. Prescription 212: Euro crisis Drug Sales (28-2) contracted -2.2% impacts euro sales Prescription Medtech Growth (Rx) Growth per Year per Year 14% 12% 29: World economy 212: 1% converted Euro crisis dollars. contracted -2.2% impacts euro sales Prescription (Rx) Growth per Year Medtech Growth per Year 12% 1% 8% 29: World economy 212: converted Euro crisis dollars. contracted -2.2% impacts euro sales Prescription (Rx) Growth per Year 1% 8% % converted dollars. 8% % 4% % 4% 2% 4% 2% % -2% % % % -4% % -4% WW Medtech vs. Prescription Drug Sales (27-2) -4% WW Medtech vs. Prescription Drug Sales (27-2) WW Sales ($bn) WW Medtech vs. vs. Prescription Year 27 Drug Sales Drug 28 (27-2) Sales 29 (27-2) WW Sales ($bn) WW Medtech Sales Year Growth per Year WW Sales +1.5% ($bn) +1.% +5.7% +8.2% +2.% +2.% +4.4% +5.5% +5.4% +5.3% +5.1% +4.8% +4.8% WW Medtech Sales Medtech as % of Rx Year % % % % % % % % % % % % % % Growth per Year +1.5% +1.% +5.7% +8.2% +2.% +2.% +4.4% +5.5% +5.4% +5.3% +5.1% +4.8% +4.8% WW Medtech Prescription Sales(Rx) ,33 Medtech as % of Rx 45.5% 4.3% 45.7% 4.8% 47.8% 49.9% 5.7% 5.% 5.% 5.5% 5.3% 5.% 49.9% 49.7% Growth per per Year +1.5% +8.5% +1.% +2.2% +5.7% +3.3% +8.2% +5.9% +2.% -1.% +2.% +.5% +4.4% +4.% +5.5% +5.4% +5.4% +5.7% +5.3% +5.8% +5.1% +5.% +4.8% +5.1% +4.8% +5.2% WW Prescription (Rx) ,33 Medtech Source: as % of Rx 45.5% & EvaluatePharma 4.3% 45.7% (18 4.8% SEP 47.8% 214) 49.9% 5.7% 5.% 5.% 5.5% 5.3% 5.% 49.9% 49.7% WW Growth Prescription per Year +8.5% +2.2% +3.3% +5.9% -1.% +.5% +4.% +5.4% +5.7% +5.8% +5.% +5.1% +5.2% (Rx) ,33 Source: Growth per Year & EvaluatePharma (18 SEP 214) +8.5% +2.2% CAGR +3.3% % -1.% +.5% +4.% +5.4% +5.7% +5.8% +5.% +5.1% +5.2% Source: & EvaluatePharma (18 SEP WW 214) Medtech (18 Sales SEP 214) +5.% CAGR WW Prescription Drug Sales +5.3% WW Medtech CAGR Sales % WW Prescription Note: Prescription drug sales based on WW p Medtech Drug 5 pharmaceutical Sales Sales+5.% +5.3% and biotech CAGR companies from EvaluatePharma. Sales 213 based on company WW WW Prescription reported Medtech sales Drug Sales data. Sales Sales +5.3% forecasts 22 based +5.% on a consensus of leadg equity analysts' Note: estimates Prescription for segmental drug sales sales. based on p 5 pharmaceutical and biotech companies from EvaluatePharma. Note: Sales Prescription 213 based drug on sales company WW based reported Prescription on p 5 sales pharmaceutical data. Drug Sales forecasts and biotech 22 companies based +5.3% on from a consensus EvaluatePharma. of leadg equity analysts' Sales estimates 213 for segmental based on company sales. reported sales data. Sales forecasts 22 based on a consensus of leadg equity analysts' estimates for segmental sales. Note: Prescription drug sales based on p 5 pharmaceutical and biotech companies from EvaluatePharma. Sales 213 based 8on company reported sales data. Sales forecasts 22 based on a consensus of leadg equity analysts estimates for segmental sales

9 Worldwide Medtech R&D Spend (27-2) Global Medtech R&D Spend Set Grow by 4.2% (CAGR) $3.5bn by 22 Worldwide Medtech R&D Spend (27-2) consensus forecasts fd that worldwide medtech R&D spend is set crease by 4.2% per year (CAGR) between 213 and 22. This is lower than forecast growth rate for medtech sales and, as such, R&D vestment rate is forecast fall 5.9% 22 from.3% Global 213. Medtech R&D Spend Set Grow by 4.2% (CAGR) $3.5bn by by consensus forecasts fd that worldwide medtech R&D R&D spend spend is is set set crease crease by by 4.2% 4.2% per per year year (CAGR) (CAGR) The p 2 medtech between companies, 213 and 22. however, This is are lower spendg than slightly forecast more growth rate than rate for for medtech sales sales dustry and, and, as as such, as such, a R&D whole: R&D vestment 22 rate y rate is will is vest 7.7% of ir sales on forecast R&D. fall 5.9% 22 from.3% 213. The p 2 medtech companies, however, are spendg slightly more than medtech dustry as as a whole: a whole: y y will will vest vest 7.7% of of ir sales on R&D. WW WW Medtech Medtech R&D R&D Spend Spend ($bn) ($bn) WW Medtech R&D Spend (27-2) Source: (18 SEP 214) 12% 12% +4.2% +4.2% CAGR CAGR % 1% 1% % % 8% +5.8% % % % % % +4.2% +4.4% +4.5% +4.3% 4% % +3.9% +3.9% +4.2% +4.4% +4.5% +4.3% +4.% +3.9% +2.2% +2.5% 2% +2.2% +2.5% 2% % % -2% -1.7% -2% -1.7% -4% % R&D Spend Growth % R&D Spend Growth % Copyright 214 Evaluate Ltd. All rights reserved. WW Medtech R&D R&D Spend Spend (27-2) (27-2) WW Medtech R&D Spend (27-2) WW Medtech R&D & Medtech Sales ($bn) Year WW 27Medtech 28 R&D 29 & Medtech Sales ($bn) Medtech R&D Spend Year Medtech Growth per R&D Year Spend % % % % % % % % % % % % % 3.5 Growth WW Medtech per Year Sales % % % % % % % % % % % % % WW R&D Medtech as % of Medtech Sales Sales +.4% % % % % % % % % % % % % % R&D R&D as as % of of Medtech Sales (Top +.4% 2 22) +.4% +.2% +.2% +.3% +.3% 8.1% +.3% +.3% +.2% +.1% +.1% +.% +.% 7.7% +5.9% R&D Source: as % of Medtech Sales (18 (Top SEP ( ) SEP 22) 214) Source: (18 SEP 214) 8.1% 7.7% CAGR on Medtech R&D Spend +4.2% CAGR on Medtech R&D Spend +4.2% Cumulative 5 year R&D Spend (29-13) $1bn Cumulative CAGR 5 CAGR year R&D Spend on on Medtech (29-13) Medtech R&D Spend R&D Spend $1bn +4.2% +4.% Cumulative 5 year R&D Spend (29-13) $1bn CAGR CAGR on Medtech on R&D Medtech Spend R&D Spend +4.% +4.% Note: Analysis is based on Top 2 medtech companies. R&D spend 213 based on company reported data. Forecast medtech R&D spend based on a consensus of leadg equity analysts' estimates for company level R&D spend, Note: extrapolated Analysis is medtech based on R&D when Top 2 a company medtech has companies. non-medtech R&D R&D spend activity. 213 based on company reported data. Forecast Medtech medtech R&D is not R&D disclosed spend by based a number on a consensus of companies of leadg and this equity analysis analysts' is limited estimates those for companies company with level sufficient R&D spend, disclosure. Note: Analysis extrapolated Notable is based omissions: on medtech Baxter Top R&D and 2 when 3M. medtech a company companies. has non-medtech R&D spend R&D activity. 213 based on company reported data. Medtech R&D is not disclosed by a number of companies and this analysis is limited those companies with sufficient disclosure. Forecast medtech Notable R&D omissions: spend Baxter based and on 3M. a consensus of leadg equity analysts estimates for company level R&D spend, extrapolated medtech R&D when a company has non-medtech R&D activity. Medtech R&D is not disclosed by a number of companies and this analysis is limited those companies with sufficient disclosure. Notable omissions: Baxter and 3M

10 Medtech R&D Spend 22: Top 2 Companies Copyright 214 Evaluate Ltd. All rights reserved. Siemens and Medtech Johnson & R&D Johnson Spend Jot Top 22: Medtech Top R&D 2 Companies Spenders 22 consensus forecasts fd that Johnson & Johnson and Siemens will be neck and neck terms of R&D spend 22, with expenditure at Siemens Medtech both companies and Johnson R&D set Spend & Johnson reach $2.1bn. 22: Jot Top Both Top Medtech of 2 se Companies R&D companies Spenders are likely 22 be eclipsed, though, when forecasts are made next consensus forecasts fd that Johnson & Johnson and Siemens will be neck and neck terms of R&D spend year for combed Medtronic and Covidien. This company s R&D spend could add up $2.bn 22, though it is likely be a little less than this as Siemens 22, with cuts are and expenditure made. Johnson Noneless & at Johnson both companies Jot combed Top set Medtech reach company R&D $2.1bn. will Spenders Both of almost se certaly 22companies are likely be eclipsed, though, when forecasts be p spender. are next consensus year for forecasts combed fd that Medtronic Johnson and & Johnson Covidien. and This Siemens company's will be R&D neck spend and neck could add terms up of R&D $2.bn spend Of p 2, 22, Edwards 22, though with Lifesciences it expenditure is likely be is at forecast both a little companies less than vest set this as reach cuts most $2.1bn. are made. R&D Both Noneless of as se a percentage companies combed of are medtech likely company be sales, eclipsed, will with almost though, an certaly R&D when vestment be rate of 13.7% 22, forecasts p but spender. are this made represents next year a fall for of 2.1 combed percentage Medtronic pots and Covidien. from This 15.8% company's rate seen R&D spend 213. could add up $2.bn Of 22, p though 2, Edwards it is likely Lifesciences be a little less is forecast than this as vest cuts are most made. Noneless R&D as a percentage combed of company medtech will sales, almost with certaly an R&D be vestment p spender. rate of 13.7% 22, but this represents a fall of 2.1 percentage pots from 15.8% rate seen 213. Of p 2, Edwards Lifesciences is forecast vest most R&D as a percentage of medtech sales, with an R&D vestment rate of 13.7% 22, but this represents a fall of 2.1 percentage pots from 15.8% rate seen 213. WW Medtech R&D Spend: Top 1 Companies (22) Source: (18 SEP 214) 2,5 WW Medtech R&D Spend: Top 1 Companies (22) Source: (18 SEP 214) Medtech R&D Spend ($bn) 22 Medtech R&D Spend ($bn) 22 2,5 2, 2, 1,5 1,5 1, 1, 5 5 2,9 2,8 2,9 2,8 +2% Johnson +2% & Johnson Johnson & Johnson 1,844 1,844 1,285 1,27 1,255 1,285 1,27 1,255 Siemens Medtronic +3% Roche Abbott Siemens Medtronic Roche Laboraries Abbott Laboraries WW Medtech R&D Spend: Top 2 Companies & Total Market (213/2) WW Medtech R&D R&D Spend: Spend: Top 2 Top Companies 2 Companies & Total & Market Total (213/2) Market (213/2) Medtech R&D ($m) R&D As a % of Medtech Rank Company 213 Medtech 22R&D ($m) CAGR 13-2 R&D 213 As a % of Medtech 22 Chg. (+/-) Rank Chg. (+/-) 1 Johnson Company& Johnson 213 1, ,9 CAGR +2.1% % 22.3% Chg. +.pp (+/-) Chg. (+/-) - 21Siemens Johnson & Johnson 1,783 1,14 2,9 2,8 +2.1% +3.%.3% 9.%.3% 8.% +.pp -.4pp Medtronic Siemens 1,14 1,477 2,8 1, % +3.2% 9.% 8.7% 8.% 8.4% -.4pp -.3pp Roche Medtronic 1,477 1,98 1,844 1, % +2.3% 8.7% 9.7% 8.4% 8.4% -.3pp -1.3pp Abbott RocheLaboraries 1,98 1,7 1,285 1, % +3.3% 9.7% 1.1% 8.4% 9.2% -1.3pp -.9pp Philips Abbott Laboraries 1,7 1,3 1,27 1, % +2.8% 1.1% 11.% 9.2% 1.9% -.9pp -.2pp General Philips Electric 1,3 95 1,255 1, % +2.% 11.% 9.8% 1.9% 9.5% -.2pp -.3pp -1-87Bosn General Scientific Electric ,141 1,5 +2.% +2.3% 9.8% 12.% 9.5% 1.9% -.3pp -1.2pp St. Bosn Jude Scientific Medical , % +4.1% 12.% 12.% 1.9% 12.1% -1.2pp -.4pp Stryker St. Jude Medical % +5.9% 12.% 5.9% 12.1%.1% -.4pp +.2pp Danaher Stryker % +4.7% 5.9% 7.9%.1% 7.9% +.2pp +.pp Covidien Danaher % +5.% 7.9% 5.% 7.9% 5.2% +.pp +.2pp Becn Covidien Dickson % +4.3% 5.% 7.1% 5.2% 7.% +.2pp -.1pp Terumo Becn Dickson % +.% 7.1% 7.4% 7.% 7.7% -.1pp +.3pp Edwards Terumo Lifesciences % +3.9% 7.4% 15.8% 7.7% 13.7% +.3pp -2.1pp Lifesciences % 15.8% 13.7% -2.1pp -1 1 B. Braun Melsungen % 4.2% 4.2% +.pp - 1 B. Braun Melsungen % 4.2% 4.2% +.pp - 17 Essilor International % 3.% 3.7% +.pp Essilor International % 3.% 3.7% +.pp Smith & Nephew % 5.3% 5.7% +.4pp Smith & Nephew % 5.3% 5.7% +.4pp Olympus % 5.% 4.3% -1.3pp Olympus % 5.% 4.3% -1.3pp -1 2 biomérieux % 14.8% 13.1% -1.pp - 2 biomérieux % 14.8% 13.1% -1.pp - Total Top 2 14,49 18, % 8.1% 7.7% -.4pp Total Top 2 14,49 18, % 8.1% 7.7% -.4pp Or 8,431 12, % Or 8,431 12, % Total 22,927 3, %.3% 5.9% Total 22,927 3, %.3% 5.9% Source: (18 SEP 214) Source: (18 SEP (18 214) SEP 214) Note: Note: Analysis Analysis is is based based on on p p 2 2 medtech medtech companies. companies. R&D R&D spend spend based based on on company company reported reported data. data. Forecast Forecast medtech medtech R&D R&D spend spend based based on on a consensus consensus of of leadg leadg equity equity analysts' analysts' estimates estimates for for company company level level R&D R&D spend, spend, extrapolated extrapolated medtech medtech R&D R&D when a company has has non-medtech R&D R&D activity. activity. Note: Analysis Medtech Medtech is based R&D R&D on is is not not p disclosed 2 medtech by by a number companies. of companies R&D and and spend this this analysis analysis 213 is is based limited limited on those company those companies companies reported with with sufficient data. sufficient disclosure. disclosure. Forecast medtech R&D spend based on a consensus of leadg equity analysts estimates for company level R&D spend, extrapolated 1 1 medtech R&D when a company has non-medtech R&D activity. Medtech R&D is not disclosed by a number of companies and this analysis is limited those companies with sufficient disclosure. Notable omissions: Baxter and 3M. Philips 1,141 1,141 General Electric General Electric 1,5 1,5 +4% +3% +2% +3% +3% +3% +2% +4% +4% +2% +3% +3% Philips +3% +2% +4% Bosn Scientific Bosn Scientific R&D Spend ($m) CAGR (%) St. Jude Medical St. Jude Medical R&D Spend ($m) CAGR (%) % +% Stryker Stryker 1

11 Copyright 214 Evaluate Ltd. All rights reserved. FDA Regulary Analysis (2-13) FDA Regulary Analysis (2-13) FDA Regulary Analysis (2-13) Number of First-Time PMAs Almost Halves ; 51(k) Clearances Down 3% 3,85 Number of First-Time found PMAs that Almost FDA Halves granted new PMAs/HDEs/PDPs 23; 51(k) Clearances (first-time Down approvals) 3% 3,85 213, a massive decrease of 44% from 212 figure found of that (k) FDA clearances granted 23 also new decled PMAs/HDEs/PDPs 213, but (first-time much less approvals) steeply, fallg 213, 3% a massive 3,85. decrease of 44% In 213 from Medtronic 212 had figure of most (k) overall approvals/clearances, also decled with , but much less steeply, fallg 3% 3,85. FDA In 213 Regulary Medtronic had Analysis most overall (2-13) approvals/clearances, with 784. Number of First-Time PMAs Almost Halves ; 51(k) Clearances Down 3% 3,85 Number found of First-Time that Count PMAs FDA of 1st granted Almost PMA/HDE/PDPs, Halves 23 new PMAs/HDEs/PDPs (k)s 23; & Clearances (first-time Supplementary Down approvals) 3% PMA/PDPs 3,85 213, a massive Per Year decrease (2-13) of 44% from 212 figure of (k) Source: found that Count clearances of FDA granted 23 new 1st PMA/HDE/PDPs, also decled (18 PMAs/HDEs/PDPs 213, 51(k)s SEP but 214) (first-time approvals) 213, a massive decrease of much & Supplementary less steeply, fallg PMA/PDPs 3% 3,85. Per Year (2-13) 44% from 212 figure of (k) clearances also decled 213, but much less steeply, fallg 3% 3,85. In 213 Medtronic had most Source: overall (18 with SEP ) 3,5 In 213 Medtronic had most overall approvals/clearances, with ,5 3,258 3, 5 Count of 1st PMA/HDE/PDPs, 51(k)s 3,258 3,37 3,13 & Supplementary PMA/PDPs Per Year (2-13) 3,15 3,185 3,44 3,85 3, 5 Source: (18 SEP 214) 3,37 3,13 3,15 3,185 3,44 2,85 3,5 3,85 2,5 4 2,85 2,5 3,258 3, 54 2,382 3,37 3,13 3,15 3,185 3,44 3,85 2,32 2,195 2, 2,85 2,382 2,5 2,32 3 2,195 2, 4 3 1,841 2,382 2,32 1,5 2,195 2, 1, ,5 2 1,488 1,498 1, ,488 1,498 1,5 1, 1,2 1, ,488 1,498 1, 1 1,2 1,117 1, 1,2 1, st Time 1st PMA/ Time HDE/ PMA/ PDP HDE/ 51(k) PDP Supplementary 51(k) PMA/ Supplementary PDP PMA/ PDP 1st Time PMA/ HDE/ PDP 51(k) Supplementary PMA/ PDP Count of 1st of 1st PMA/HDE/PDPs, 51(k)s & 51(k)s Supplementary & PMA/PDPs (2-13) Count of 1st PMA/HDE/PDPs, 51(k)s & Supplementary PMA/PDPs PMA/PDPs (2-13) (2-13) Year Count of 1st PMA/HDE/PDPs, 2 51(k)s & Supplementary PMA/PDPs 213 (2-13) 1st Year Time PMA/ HDE/ PDP Year 1st % Chg. Time PMA/ HDE/ PDP -27% % % +22% % % % Supplementary 1st % Time Chg. PMA/ PDP 1,2 1,117 1,488 PMA/ HDE/ PDP 44-27% 1,498 1, % 2, % 2, % 2,32 +95% 43-5% 41-44% 23 % Chg. +5% +33% +1% +23% +19% +9% -2% Supplementary % Chg. PMA/ PDP 1,2 1,117-27% 1,488 -% 1,498-4% 1, % 2, % 2,382-5% 2,32 51(k) 3,258 3,37 3,13 3,44 2,85 3,15 3,185 3,85-44% Supplementary %% Chg. Chg. PMA/ PDP -7% 1,2+2% 1,117 +5% -2% +33% -% 1,488+11% 1,498 +1% +1% +23% 1,841-3% +19% 2,195 +9% 2,382 2,32-2% Total 51(k) % Chg. 4,34 4,18 3,2584,213,37 +5% 4,5 4,713 3,13 +33% 5,388 3,44 +1% 5,82,85 +23% 5,434 3,15 +19% 3,185 +9% 3,85-2% % 51(k) % Chg. Chg. -4% +1% 3,258 3,37-7%-1% +3% 3,13 +2% +14% 3,44-2% +4% 2,85 -%-3% +11% 3,15 +1% 3,185 3,85-3% Count Totalof PMA/HDE/PDPs, 51(k)s & Medtech % Chg. 4,34R&D 4,18 Spend (213) -7% 4,21 +2% 4,5-2% 4,713 -% 5, % 5,8 +1% 5,434-3% Total % Chg. PMA/ HDEs - PMA/ 4,34 4,18-4% PDPs - +1% 51(k) 4,21 4,5-1% Total 4,713 +3% +14% R&D Spend 5,388 +4% 5,8 5,434-3% Company First Approval Suppl. Clearance Approvals ($m) Count 1 % Medtronic Chg. of PMA/HDE/PDPs, 51(k)s 2 & Medtech 722-4% R&D +1% Spend -1% (213) % +14% 1,477+4% -3% Count 2 Bosn of Scientific of PMA/HDE/PDPs, 51(k)s 51(k)s & PMA/ Medtech 35 & Medtech HDEs R&D - R&D PMA/ Spend 2Spend PDPs (213) (213) 51(k) Total R&D Spend 3 Johnson & Johnson ,783 4 Abbott Company Laboraries 2 First PMA/ Approval HDEs PMA/ Suppl. 11 PDPs - 14 Clearance 51(k) 1,7Approvals Total R&D ($m) Spend 5 1Edwards Medtronic Company Lifesciences First Approval 2 98 Suppl Clearance 323 Approvals 784 1,477 ($m) 12 Roche Bosn Medtronic Scientific , , St. Jude Medical Johnson Bosn Scientific & Johnson ,783 8 Siemens 54 1, Stryker Abbott Johnson Laboraries & Johnson ,7 1, BIOTRONIK Edwards Abbott Laboraries Lifesciences , Total Roche 23 Edwards Lifesciences 12,32 3, , , Source: 7 St. Roche Jude Medical (18 SEP 214) ,98 91 Note: 7 8 Siemens St. Based Jude on data ,14 91 PMA 8 9 Stryker (Premarket Approval): a class III device which Siemens is a life-sustag 2 or life-supportg 57 implantable device'; usually require 1,14 53 trials. 51(k): 1 9 BIOTRONIK Stryker "substantially equivalent a legally marketed Class I, II, III device 54 2 (where PMA 57 3 not required) HDE 1 BIOTRONIK Total (Humanitarian Device Exemption): a device for 23 treatg or diagnosg 2,32 54 a disease/condition 3,85 3 that affects 5, <4, dividuals 123 US per year. 11 Source: Total (18 SEP 214) 23 2,32 3,85 5,434 Source: Note: Based (18 (18 SEP SEP 214) data. 214) Note: PMA (Premarket Based Approval): a class data. III device which is a life-sustag or life-supportg implantable device'; usually require PMA trials. (Premarket Approval): a class III device which is a life-sustag or life-supportg implantable device'; usually require Note: Based on trials. "substantially data. equivalent a legally marketed Class I, II, III device (where PMA not required). PMA (Premarket HDE (Humanitarian Device Exemption): a device for treatg or diagnosg a disease/condition that affects <4, dividuals 51(k): Approval): "substantially a class III device equivalent which is a a life-sustag legally marketed life-supportg Class I, II, III implantable device (where device ; PMA usually not required). trials. HDE (Humanitarian US per year. 51(k): substantially equivalent a Device legally marketed Exemption): Class a I, device II, III device for treatg (where PMA or diagnosg not required). a disease/condition that affects <4, dividuals 11 HDE (Humanitarian Device US per Exemption): year. a device for treatg or diagnosg a disease/condition that affects <4, dividuals 11 US per year. 11 No. of 1st PMA/ HDE/ PDP No. No. of 1st of 1st PMA/ PMA/ HDE/ HDE/ PDP PDP No. of Sup PMAs/ 51(k)s No. No. of Sup of Sup PMAs/ PMAs/ 51(k)s 51(k)s

12 214 FDA First-Time PMAs and HDEs Copyright 214 Evaluate Ltd. All rights reserved. FDA Approves 2 New PMAs 214 end of August, Representg a 43% Uptick Compared with Same Pot Last Year found that FDA has so far approved 2 new PMAs and two HDEs st August. This represents a 43% crease compared 214 with FDA First-Time 14 new PMAs PMAs that and had HDEs been granted at this pot last year. As 213, one of most predomant areas was that of molecular diagnostics. This fast-growg area saw four approvals, representg FDA Approves 2 New PMAs 214 end of August, Representg a 43% Uptick Compared with Same Pot Last Year 2% of PMAs date this found year. that Also well FDA represented has so far approved were 2 heart new PMAs valves and with two HDEs three PMAs st date August This represents a 43% 214 FDA First-Time PMAs and HDEs crease compared with 14 new PMAs that had been granted at this pot last year. As 213, one of most predomant areas was that of molecular diagnostics. This fast-growg area saw four approvals, representg 2% FDA of Approves PMAs date 2 New this year. PMAs Also 214 well represented end of August, were heart Representg valves with a three 43% PMAs Uptick Compared date 214. with Same Pot Last Year 214 FDA First-Time found that PMAs FDA ( has 31st so far August approved 214) new PMAs and two HDEs st August. This represents a 43% crease 214 FDA compared First-Time with PMAs 14 ( new 31st PMAs August that 214) had been granted at this pot last year. As 213, one of Device most Classification predomant areas was that Decision of molecular diagnostics. This fast-growg area saw four approvals, representg 2% of Level 1 PMAs date Level this 2 year. Also Level well represented 3 were Date heart valves Company with three Product PMAs Code date Name 214. Device Name (Approval Code) Anessia & Anessia & Or Anessia & 3 Apr 14 Inspire Medical Stimular, Hypoglossal INSPIRE II UPPER AIRWAY STIMULATOR 214 FDA First-Time PMAs ( 31st August 214) Respirary Respirary Respirary Therapeutic Systems Nerve, Implanted, Apnea (P138) Therapeutic Device Classification Decision Level 1 Level 2 Level 3 Date Company Product Code Name Device Name (Approval Code) Anessia Cardiology & Anessia Cardiac Prostic & Or Tissue Anessia Heart Valves & 3 24 Apr Jun 14 Inspire Sor Medical Stimular, Heart-Valve, Hypoglossal Non-Allograft INSPIRE FREEDOM II UPPER SOLO STENTLESS AIRWAY STIMULATOR HEART VALVE Respirary Respirary Respirary Therapeutic Systems Nerve, Tissue Implanted, Apnea (P138) (P1311) Cardiology Therapeutic Cardiac Prostic Transcater Heart 1 Jun 14 Edwards Aortic Valve, Prossis, EDWARDS SAPIEN XT TRANSCATHETER Valves Lifesciences Percutaneously Delivered HEART VALVE AND ACCESSORIES (P139) Cardiology Cardiac Prostic Tissue Heart Valves 24 Jun 14 Sor Heart-Valve, Non-Allograft FREEDOM SOLO STENTLESS HEART VALVE Cardiology Cardiac Prostic Transcater Heart 17 Jan 14 Medtronic Aortic Valve, Prossis, MEDTRONIC COREVALVE SYSTEM (P1321) Tissue (P1311) Valves Percutaneously Delivered Cardiology Cardiac Prostic Transcater Heart 1 Jun 14 Edwards Aortic Valve, Prossis, EDWARDS SAPIEN XT TRANSCATHETER Cardiology Cardiac Prostic Graft Prossis 17 Jun 14 C. R. Bard System, Endovascular Graft, FLUENCY PLUS ENDOVASCULAR STENT Valves Lifesciences Percutaneously Delivered HEART VALVE AND ACCESSORIES (P139) Arteriovenous (Av) Dialysis GRAFT (P1329) Cardiology Cardiac Prostic Transcater Heart 17 Jan 14 Medtronic Access Aortic Valve, Circuit Prossis, Stenosis MEDTRONIC COREVALVE SYSTEM (P1321) Valves Percutaneously Treatment Delivered Cardiology Cardiovascular Cardiac Prostic Graft ECG Monirg Prossis May Jun 14 St. C. R. Jude Bard System, Hemodynamic, Endovascular Graft, CARDIOMEMS FLUENCY PLUS HF ENDOVASCULAR PRESSURE MEASUREMENT STENT Monirg & Medical Implantable Arteriovenous (Av) Dialysis SYSTEM GRAFT (P1329) (P145) Diagnostic Access Circuit Stenosis Cardiology Interventional Non-Drug-Elutg 27 Jun 14 Bosn Treatment Stent, Coronary REBEL PLATINUM CHROMIUM CORONARY Cardiology Cardiology Cardiovascular Coronary ECG Monirg Stents 28 May 14 Scientific St. Jude System, Hemodynamic, STENT CARDIOMEMS SYSTEM HF MONORAIL PRESSURE AND MEASUREMENT OVER THE Monirg & Medical Implantable WIRE SYSTEM (P133) (P145) Cardiology Diagnostic Interventional Peripheral Vascular 28 Mar 14 Abbott Stent, Superficial Femoral SUPERA PERIPHERAL STENT SYSTEM Cardiology Cardiology Interventional Non-Drug-Elutg 27 Jun 14 Bosn Laboraries Stent, Artery Coronary REBEL (P122) PLATINUM CHROMIUM CORONARY Diagnostic Imagg Cardiology Computed Coronary Or Computed Stents 2 Aug 14 Scientific General Digital Breast Tomosynsis STENT SENOCLAIRE SYSTEM (P132) MONORAIL AND OVER THE Tomography (CT) Tomography (CT) Electric WIRE (P133) Ear, Cardiology Nose & Throat Ear Interventional Peripheral Hearg Implants Vascular 28 2 Mar 14 Abbott Cochlear Stent, Hybrid Superficial Cochlear Implant Femoral SUPERA NUCLEUS PERIPHERAL HYBRID L24 STENT IMPLANT SYSTEM (ENT) Cardiology Laboraries Artery (P131) (P122) In Diagnostic Vitro Diagnostics Imagg Immunoassays Computed Or Viral Immunoassays Computed 1 2 May Aug 14 General Siemens Digital Test, Hepatitis Breast Tomosynsis B (B Core, Be SENOCLAIRE ADVIA CENTAUR (P132) HBSAGII (P1141) (IVD) Tomography (CT) Tomography (CT) Electric Antigen, Be Antibody, B Core Ear, Nose & Throat Ear Hearg Implants 2 Mar 14 Cochlear Igm) Hybrid Cochlear Implant NUCLEUS HYBRID L24 IMPLANT SYSTEM (ENT) In Vitro Diagnostics Immunoassays Viral Immunoassays 14 Mar 14 Roche Test, Hepatitis B (B Core, Be (P131) ELECSYS HBEAG IMMUNOASSAY AND In (IVD) Vitro Diagnostics Immunoassays Viral Immunoassays 1 May 14 Siemens Antigen, Test, Hepatitis Be Antibody, B (B Core, B Core Be ADVIA ELECSYS CENTAUR PRECICONTROL HBSAGII (P1141) HBEAG (P1315) (IVD) Antigen, Igm) Be Antibody, B Core In Vitro Diagnostics Molecular Hemalogy Molecular 21 May 14 Immucor Igm) Molecular Erythrocyte Typg IMMUCOR PRECISETYPE (BP132) In (IVD) Vitro Diagnostics Immunoassays Diagnostics Viral Diagnostics Immunoassays 14 Mar 14 Roche Test, Hepatitis B (B Core, Be ELECSYS HBEAG IMMUNOASSAY AND (IVD) In Vitro Diagnostics Molecular Infectious Disease 2 Jun 14 QIAGEN Antigen, Cymegalovirus Be Antibody, (Cmv) B Core Dna ARTUS ELECSYS CMV PRECICONTROL RGQ MDX KIT (P1327) HBEAG (P1315) (IVD) Diagnostics Molecular Diagnostics Quantitative Igm) Assay In Vitro Diagnostics Molecular Oncology Hemalogy Molecular May Aug 14 EXACT Immucor System, Molecular Colorectal Erythrocyte Neoplasia, Typg COLOGUARD IMMUCOR PRECISETYPE (P1317) (BP132) (IVD) Diagnostics Diagnostics Sciences Dna TestMethylation And In Vitro Diagnostics Molecular Infectious Disease 2 Jun 14 QIAGEN Hemoglob Cymegalovirus Detection (Cmv) Dna ARTUS CMV RGQ MDX KIT (P1327) In (IVD) Vitro Diagnostics Molecular Diagnostics Oncology Molecular Molecular Diagnostics 23 May 14 QIAGEN Quantitative Somatic Gene Assay Mutation THERASCREEN KRAS RGQ PCR KIT (P1127) (IVD) In Vitro Diagnostics Diagnostics Molecular Diagnostics Oncology Molecular 11 Aug 14 EXACT Detection System, Colorectal System Neoplasia, COLOGUARD (P1317) Ophthalmics (IVD) Ophthalmic Diagnostics Surgical Or Diagnostics Ophthalmic 8 Jan 14 Sciences Ocular Ophthalmic Dna Methylation Sealant And RESURE SEALANT (P134) Surgical Therapeutix Hemoglob Detection Orthopedics In Vitro Diagnostics Molecular Orthobiologics Oncology Viscosupplementation Molecular 23 9 May 14 QIAGEN IBSA Institut Acid, Somatic Hyaluronic, Gene Mutation Intraarticular THERASCREEN SINOVIAL (SODIUM KRAS HYALURONATE RGQ PCR KIT.8%) (P1127) (IVD) Diagnostics Diagnostics Biochimique Detection System (P115) Ophthalmics Orthopedics Ophthalmic Orthobiologics Surgical Or Viscosupplementation Ophthalmic 25 8 Feb Jan 14 Ocular Anika Ophthalmic Acid, Hyaluronic, Sealant Intraarticular RESURE MONOVISC SEALANT (P931) (P134) Surgical Therapeutix Therapeutics Orthopedics Spal Orthobiologics Viscosupplementation Artificial Discs 9 24 May Jul 14 Medtronic IBSA Institut Prossis, Acid, Hyaluronic, Intervertebral Intraarticular Disc SINOVIAL PRESTIGE (SODIUM LP CERVICAL HYALURONATE DISC (P929).8%) Biochimique (P115) Orthopedics 214 FDA Humanitarian Orthobiologics Device Exemptions Viscosupplementation (HDEs) 25 ( Feb 31st 14 August Anika 214) Acid, Hyaluronic, Intraarticular MONOVISC (P931) Device Classification Decision Therapeutics Orthopedics Level 1 Spal Level 2 Artificial Level 3Discs 24 Date Jul 14 Medtronic Company Prossis, Product Code Intervertebral Name Disc PRESTIGE Device Name LP CERVICAL (Approval DISC Code) (P929) 214 Anessia FDA & Humanitarian Respirary Device Or Respirary Exemptions 12 Aug (HDEs) 14 Xvivo Perfusion ( 31st Normormic August Preservation 214) XVIVO PERFUSION SYSTEM (XPS ) WITH 214 FDA Humanitarian Device Exemptions (HDEs) ( 31st August 214) Respirary Therapeutic Therapeutic System For Transplantation STEEN SOLUTION PERFUSATE (H123) Classification Decision Of Initially Unacceptable Level 1 Level 2 Level 3 Date Company Donor Product Lungs Code Name Device Name (Approval Code) Anessia Neurology & Respirary Neurology Or Neurovascular Respirary Aug Jul 14 Xvivo Terumo Perfusion Normormic Device, Neurovascular Preservation XVIVO LOW-PROFILE PERFUSION VISUALIZED SYSTEM INTRALUMINAL (XPS ) WITH Respirary Therapeutic Therapeutic System Embolization For Transplantation STEEN SUPPORT SOLUTION DEVICE (LVIS PERFUSATE AND LVIS (H123) JR.) Source: (18 SEP 214) Of Initially Unacceptable (H135) Donor Lungs Note: Neurology Based Neurology data Neurovascular 31st August Jul 14 Terumo Device, Neurovascular LOW-PROFILE VISUALIZED INTRALUMINAL PMA (Premarket Approval): Therapeutic a class III device which is a life-sustag or life-supportg Embolizationimplantable device'; SUPPORT usually DEVICE require (LVIS AND LVIS JR.) trials. (H135) HDE Source: (Humanitarian Device (18 Exemption): SEP 214) a device for treatg or diagnosg a disease/condition that affects <4, dividuals US per year. Note: Source: Based data (18 SEP 31st 214) August 214. PMA (Premarket Approval): a class III device which is a life-sustag or life-supportg implantable device'; usually require trials. HDE (Humanitarian Device Exemption): a device for treatg or diagnosg a disease/condition that affects <4, dividuals US per year. 12 Note: Based data 31st August 214. PMA (Premarket Approval): a class III device which is a life-sustag or life-supportg implantable device ; usually require trials. 12 HDE (Humanitarian Device Exemption): a device for treatg or diagnosg a disease/condition that affects <4, dividuals US per year. 12

13 Copyright 214 Evaluate Ltd. All rights reserved. In Vitro Diagnostics (IVD) Market 22 In In Vitro Vitro Diagnostics Diagnostics (IVD) (IVD) Market Market Roche Matas Roche Leadg Matas Position Leadg with Position In Vitro with Diagnostics In Vitro Market Diagnostics Market Roche Matas Leadg Position with In Vitro Diagnostics Market consensus forecast consensus fds that forecast Roche is fds expected that Roche rema is expected domant rema force domant vitro force diagnostic space consensus forecast fds that Roche is expected rema domant force 22. The company is vitro forecast diagnostic command space a massive 22. The 17.% company market is share forecast 22, command with sales a expected massive 17.% reach market $12.2bn. share 22, vitro diagnostic space 22. The company is forecast command a massive 17.% market share 22, with sales expected reach $12.2bn. The Japanese company with sales The Japanese Sysmex expected company is predicted reach Sysmex $12.2bn. be is predicted fastest growg be company fastest growg this field company with sales this expected field with grow sales by 11% per year (CAGR) between The expected 213 Japanese and 22. company grow by This 11% results Sysmex per year is predicted (CAGR) company between jumpg be fastest 213 three and places growg 22. company This rankgs results this sixth field company with 22. sales jumpg expected grow by 11% per year (CAGR) between 213 and 22. This results company jumpg three places rankgs sixth 22. three places rankgs sixth 22. WW Market WW Share Market % Share 22 % WW Market WW Share Market % Share 22 % 14% 25% 14% 25% 12% 12% 2% 2% 1% 1% 15% 15% 8% 8% % % 1% 1% 4% 4% 5% 5% 2% 2% WW In Vitro Diagnostics Sales, Market Share & Sales Growth (213-2) WW In Vitro Diagnostics Sales, Market Share & Sales Growth (213-2) Source: (18 SEP 214) Source: (18 SEP 214) Takeda: Acs generic Takeda: competition Acs expected generic 212. competition expected 212. Siemens Siemens Thermo Fisher Thermo Scientific Fisher Scientific Novo: Solid growth its core sul Novo: franchise, Solid cludg growth Tresiba its core (sul franchise, degludec), cludg and GLP-1 Tresiba Vicza (sul degludec), and GLP-1 Vicza Roche Roche Danaher Danaher Abbott Laboraries Abbott Laboraries Merck: Strong growth Merck: DPP-IV Strong hibir growth franchise DPP-IV hibir franchise % % +3%.2 +4%.4. +5%.8 1 +% % %.2 +4%.4. +5%.8 1 +% % 1.4 Note: Bubble = WW Sales % Sales % Sales Growth: Growth: CAGR CAGR Note: Bubble = WW Sales % Sales % Sales Growth: Growth: CAGR CAGR WW In Vitro Diagnostics Sales: Top 1 Companies & Total Market (213/2) WW WW In In Vitro Diagnostics Sales: Sales: Top Top 1 1 Companies Companies && Total Total Market Market (213/2) WW Sales ($m) CAGR WW Market Share Rank Chg. WW Sales ($m) CAGR WW Market Share Rank Chg. Rank Company Rank Company Roche 8,54 12,25 +5% 18.3% 17.% - 1 Roche 8,54 12,25 +5% 18.3% 17.% - 2 Siemens 5,173,889 +4% 1.9% 9.% - 2 Siemens 5,173,889 +4% 1.9% 9.% - 3 Danaher 4,882,821 +5% 1.3% 9.5% - 3 Danaher 4,882,821 +5% 1.3% 9.5% - 4 Abbott Laboraries 4,545,799 +% 9.% 9.5% - 4 Abbott Laboraries 4,545,799 +% 9.% 9.5% - 5 Thermo Fisher Scientific 2,993 4,4 +4%.3% 5.% - 5 Thermo Fisher Scientific 2,993 4,4 +4%.3% 5.% - Sysmex 1,79 3, % 3.8% 5.3% +3 Sysmex 1,79 3, % 3.8% 5.3% +3 7 Becn Dickson 2,4 3,399 +4% 5.% 4.7% -1 7 Becn Dickson 2,4 3,399 +4% 5.% 4.7% -1 8 Alere 2,243 2,832 +3% 4.7% 4.% -1 8 Alere 2,243 2,832 +3% 4.7% 4.% -1 9 biomérieux 1,2 2,519 +% 3.5% 3.5% +1 9 biomérieux 1,2 2,519 +% 3.5% 3.5% +1 1 Werfen Group 1,472 2,278 +% 3.1% 3.2% +1 1 Werfen Group 1,472 2,278 +% 3.1% 3.2% +1 Top 1 3, 51,57 +5% 7.1% 72.% Top 1 3, 51,57 +5% 7.1% 72.% Or 11,329 2,71 +9% 23.9% 28.% Or 11,329 2,71 +9% 23.9% 28.% Total Industry 47,394 71,4 +.1% 1.% 1.% Total Industry 47,394 71,4 +.1% 1.% 1.% Source: (18 SEP 214); Consensus sales from equity analysts' reports Source: (18 (18 SEP SEP 214); 214); Consensus Consensus sales from sales equity from analysts equity analysts' reports reports Note: Excludes Glucose Test Systems which are cluded Diabetic Care classification. Note: Excludes Glucose Test Systems which are cluded Diabetic Care classification. Note: Excludes Glucose Test Systems which are cluded Diabetic Care classification

14 Cardiology Market 22 Medtronic Set Solidify Number One Position Cardiology through Acquisition of Covidien consensus forecast fds that Medtronic will rema world s number one cardiology company with global sales of $11.1bn 22. This domance is set be furr entrenched followg completion of proposed $42.9bn acquisition of Covidien. With sales of $1.5bn forecast 22, Covidien sits just outside p 1 cardiology companies at number 11. Toger companies are forecast achieve sales of $12.bn 22, representg 22.% market share. WW Cardiology Sales: Top 1 Companies & Total Market (213/2) Copyright 214 Evaluate Ltd. All rights reserved. Source: (18 SEP 214); Consensus sales from equity analysts reports Note: General Electric & Philips do not disclose cardiology sales. Medtronic does not clude revenues from proposed acquisition of Covidien. 14

15 Diagnostic Imagg Market 22 Diagnostic Imagg Market 22 Siemens Extends Leadg Position Diagnostic Imagg 22 consensus forecast fds that Siemens is forecast extend its position as world s leadg diagnostic imagg company 22. The company is expected generate $14.2bn of sales 22 representg a market share of 3.1%, an crease from 29.7% Siemens Siemens 213. Extends Extends Leadg Leadg Position Position Diagnostic Diagnostic Imagg Imagg consensus consensus forecast forecast fds fds that that Siemens Siemens is is forecast forecast extend extend its its position position as as world's world's leadg leadg Overall, diagnostic diagnostic imagg imagg company company market is set grow The The company company at 4.1% per is is expected expected year (CAGR) generate generate $47.bn $14.2bn $14.2bn 22. of of sales sales representg representg a market market share share of of 3.1%, 3.1%, an an crease crease from from 29.7% 29.7% Overall, Overall, diagnostic diagnostic imagg imagg market market is is set set grow grow at at 4.1% 4.1% per per year year (CAGR) (CAGR) $47.bn $47.bn WW Market Share % 22 4% 4% 35% 35% 3% 3% 25% 25% 2% 2% WW WW Diagnostic Diagnostic Imagg Imagg Sales, Sales, Market Market Share Share & Sales Sales Growth Growth (213-2) (213-2) Source: Source: (18 (18 SEP SEP 214) 214) Siemens Siemens General General Electric Electric 15% 15% 1% 1% Philips Philips Toshiba Toshiba 5% 5% Carestream Carestream Health Health % % +2% +3% +4% +5% +% +2% +3% +4% +5% +% Note: Note: Bubble Bubble = WW WW Sales Sales % Sales Sales Growth: Growth: CAGR CAGR WW Diagnostic Imagg Sales: Top Top 1 1 Companies & Total Total Market Market (213/2) (213/2) WW Diagnostic Imagg Sales: Top 1 Companies & Total Market (213/2) Copyright 214 Evaluate Ltd. All rights reserved. WW WW Sales Sales ($m) ($m) CAGR CAGR WW WW Market Market Share Share Rank Rank Chg. Chg. Rank Rank Company Company Siemens 1,539 14,14 +4% 29.7% 3.1% 1 Siemens 1,539 14,14 +4% 29.7% 3.1% - General Electric 8,372 1,294 +3% 23.% 21.9% 2 General Electric 8,372 1,294 +3% 23.% 21.9% - Philips 4,7 5,779 +3% 13.3% 12.3% 3 Philips 4,7 5,779 +3% 13.3% 12.3% - Toshiba 4,12 5,717 +5% 11.% 12.2% 4 Toshiba 4,12 5,717 +5% 11.% 12.2% - Carestream Health 1,539 2,54 +4% 4.3% 4.4% 5 Carestream Health 1,539 2,54 +4% 4.3% 4.4% - Hitachi Medical 1,179 1,359 +2% 3.3% 2.9% Hitachi Medical 1,179 1,359 +2% 3.3% 2.9% - Konica Molta 823 1,43 +3% 2.3% 2.2% +1 7 Konica Molta 823 1,43 +3% 2.3% 2.2% +1 Agfa-Gevaert 99 1,33 +2% 2.% 2.2% -1 8 Agfa-Gevaert 99 1,33 +2% 2.% 2.2% -1 Varian Medical Systems % 1.5% 2.1% +1 9 Varian Medical Systems % 1.5% 2.1% +1 1 Hologic % 1.2% 1.7% +1 1 Hologic % 1.2% 1.7% +1 Top 1 33,137 43,21 +4% 93.4% 92.% Top 1 33,137 43,21 +4% 93.4% 92.% Or 2,335 3,77 +7%.% 8.% Or 2,335 3,77 +7%.% 8.% Total Industry 35,472 4, % 1.% 1.% Total Industry 35,472 4, % 1.% 1.% Source: (18 SEP 214); Consensus sales from equity analysts' reports Source: Source: (18 (18 SEP SEP 214); 214); Consensus Consensus sales sales from from equity equity analysts analysts' reports reports Note: Note: Segment Segment sales sales clude clude servicg servicg of of equipment. equipment. FUJIFILM's FUJIFILM's Diagnostic Diagnostic Imagg Imagg sales sales are are not not available. available. Note: Segment sales clude servicg of equipment. FUJIFILM s Diagnostic Imagg sales are not available

16 Orthopedics Market 22 Orthopedics Market 22 Johnson & Johnson Contues Lead Orthopedics Market consensus forecast fds that Johnson & Johnson contues lead pack orthopedics, with sales expected reach $11.3bn - representg Johnson a 24.7% Johnson market Contues share Lead Orthopedics Market Johnson & Johnson Contues Lead Orthopedics Market However, followg completion consensus of its pendg forecast $13.4bn fds acquisition that Johnson of Biomet, Johnson Zimmer contues will close lead on pack leader orthopedics, and is forecast consensus forecast fds that Johnson & Johnson contues lead pack orthopedics, leapfrog Stryker with sales take second expected place reach $11.3bn rankgs representg with combed 24.7% revenue market forecast share reach 22. with sales expected reach $11.3bn - representg a 24.7% market share $9.5bn 22, givg it a 2.8% market share. However, followg completion of its pendg $13.4bn acquisition of Biomet, Zimmer will close on leader However, followg completion of its pendg $13.4bn acquisition of Biomet, Zimmer will close on leader and is forecast leapfrog Stryker take second place rankgs with combed revenue forecast reach Of p 2 and companies, is forecast $9.5bn 22, Medtronic leapfrog givg it is forecast Stryker 2.8% market take have second share. lowest place growth rankgs rate, with with sales combed expected revenue grow forecast by just 1% reach per year (CAGR) between 213 $9.5bn Of and 22 22, p 2 owg givg companies, its it strugglg a 2.8% market Medtronic BMP is forecast busess. share. have lowest growth rate, with sales expected grow by just Of p 2 companies, Medtronic is forecast have lowest growth rate, with sales expected grow by just 1% per year (CAGR) between 213 and 22 owg its strugglg BMP busess. 1% per year (CAGR) between 213 and 22 owg its strugglg BMP busess. WW Orthopedics Sales, Market Share Sales Growth (213-2) WW Orthopedics Sales, Market Share & Sales Growth (213-2) Source: (18 SEP 214) Source: (18 SEP 214) WW WW Market Share % 22 35% 35% 3% 3% 25% 25% 2% 2% Johnson Johnson & Johnson Johnson 15% 15% 1% 1% 5% 5% Medtronic: Slow growth due Medtronic: decle revenues Slow growth from due BMP decle revenues from BMP busess busess Medtronic Medtronic Zimmer Zimmer Biomet Biomet Stryker Stryker Copyright 214 Evaluate Ltd. All rights reserved. % % +% +1% +2% +3% +4% +5% +% +7% +% +1% +2% +3% +4% +5% +% +7% WW Sales 218 Sales Growth: CAGR WW Sales 22 Note: Bubble = = WW WW Sales Sales % Sales Growth: CAGR WW Orthopedics Sales: Top 1 Companies Total Market (213/2) WW Orthopedics Sales: Top 1 Companies & Total Market (213/2) WW Sales ($m) CAGR WW Market Share Rank Chg. WW Sales ($m) CAGR WW Market Share Rank Chg. Rank Company Rank Company Johnson Johnson 8,948 11,345 +3% 2.5% 24.7% - 1 Johnson & Johnson 8,948 11,345 +3% 2.5% 24.7% - Stryker 5,228 7,43 +5% 15.5% 1.2% - 2 Stryker 5,228 7,43 +5% 15.5% 1.2% - Zimmer 4,384 5,599 +4% 13.% 12.2% - 3 Zimmer 4,384 5,599 +4% 13.% 12.2% - Biomet 2,94 3,941 +4% 8.8% 8.% +1 4 Biomet 2,94 3,941 +4% 8.8% 8.% +1 Medtronic 3,41 3,224 +1% 9.% 7.% -1 5 Medtronic 3,41 3,224 +1% 9.% 7.% -1 Arthrex 1,55 2,912 +9% 4.%.3% +1 Arthrex 1,55 2,912 +9% 4.%.3% +1 Smith Nephew 2,4 2,582 +4% 5.9% 5.% -1 7 Smith & Nephew 2,4 2,582 +4% 5.9% 5.% -1 NuVasive 4 1,19 +7% 1.9% 2.2% - 8 NuVasive 4 1,19 +7% 1.9% 2.2% - Globus Medical % 1.3% 1.7% +2 9 Globus Medical % 1.3% 1.7% +2 1 Wright Medical Group % 1.4% 1.3% - 1 Wright Medical Group % 1.4% 1.3% - Top 1 29,74 39,434 +4% 87.7% 85.9% Top 1 29,74 39,434 +4% 87.7% 85.9% Or 4,14,487 +7% 12.3% 14.1% Or 4,14,487 +7% 12.3% 14.1% Total Industry 33,82 45, % 1.% 1.% Total Industry 33,82 45, % 1.% 1.% Source: (18 SEP 214); Consensus sales from equity analysts' reports Source: (18 (18 SEP SEP 214); 214); Consensus Consensus sales sales from equity equity analysts analysts' reports reports Note: Zimmer does not clude revenues from proposed acquisition of Biomet. Note: Zimmer does not clude revenues from proposed acquisition of Biomet. Note: Zimmer does not clude revenues from proposed acquisition of Biomet

17 Ophthalmics Market 22 Ophthalmics Ophthalmics Market Market Essilor Replace Novartis as Top Ophthalmics Company by 22 Essilor consensus Replace forecast Novartis fds as that Top Essilor, Ophthalmics French Company maker of by optical 22lenses, is expected become leadg ophthalmics company 22. Essilor Sales are Replace forecast Novartis consensus reach as $1.4bn forecast Top Ophthalmics on fds that back Essilor, Company of strong annual French by 22growth maker of of optical 8% (CAGR) lenses, between is expected 213 and 22. become leadg consensus ophthalmics forecast company fds 22. that Essilor, Sales are French forecast maker reach of optical $1.4bn lenses, on is back expected of strong Valeant Pharmaceuticals become annual growth moves leadg of 8% ophthalmics (CAGR) p 5 between followg company 213 its acquisition 22. and 22. Sales of are Bausch forecast + Lomb reach August $1.4bn 213, on with back sales of forecast strong reach almost $3bn 22. annual Valeant growth Pharmaceuticals of 8% (CAGR) moves between 213 p and 5 followg 22. its acquisition of Bausch + Lomb August 213, with Valeant sales forecast Pharmaceuticals reach almost moves $3bn 22. p 5 followg its acquisition of Bausch + Lomb August 213, with sales forecast reach almost $3bn 22. WW WW Market WW Market WW Share Market Share Market % Share % Share % % 14% 35% 14% 35% 12% 3% 12% 3% 1% 25% 1% 25% 2% 8% 2% 8% 15% % 15% % WW Ophthalmics Sales, Market Share & Sales Growth (213-2) WW Source: Ophthalmics Sales, Market (18 SEP Share 214) & Sales Growth (213-2) Source: (18 SEP 214) Novo: Solid growth its core sul Novo: franchise, Solid cludg growth Tresiba its core (sul franchise, degludec), cludg and GLP-1 Tresiba Vicza (sul degludec), and GLP-1 Vicza Essilor Essilor Novartis Novartis Takeda: Acs generic Takeda: competition Acs expected generic 212. competition expected 212. Valeant: Entered Valeant: Ophthalmics Entered space 213 Ophthalmics followg acquisition space of 213 Bausch followg + Lomb acquisition of Bausch + Lomb Copyright 214 Evaluate Ltd. All rights reserved. 1% 4% & 1% 4% Johnson Johnson& Johnson HOYA Valeant HOYA Valeant 2% 5% 2% 5% Merck: Strong growth Merck: DPP-IV Strong hibir growth franchise DPP-IV hibir franchise % % +%.2 +5%.4 +1% % 1 +2% % 1.4 +%.2 +5%.4 +1% % 1 +2% % 1.4 Note: Bubble = = WW Sales Sales % Sales % Growth: Sales Growth: CAGR CAGR Note: Bubble = = WW Sales Sales % Sales % Growth: Sales Growth: CAGR CAGR WW Ophthalmics Sales: Top 1 Companies & Total Market (213/2) WW Ophthalmics Sales: Top 1 Companies & Total Market (213/2) WW Sales ($m) CAGR WW Market Share Rank Chg. WW Sales ($m) CAGR WW Market Share Rank Chg. Rank Company Rank Company Essilor International 5,985 1,38 +8% 24.4% 27.5% +1 1 Essilor International 5,985 1,38 +8% 24.4% 27.5% +1 2 Novartis,388 9,15 +5% 2.1% 23.9% -1 2 Novartis,388 9,15 +5% 2.1% 23.9% -1 3 Johnson & Johnson 2,937 3,2 +3% 12.% 9.% - 3 Johnson & Johnson 2,937 3,2 +3% 12.% 9.% - 4 HOYA 2,32 3,18 +% 8.3% 8.3% - 4 HOYA 2,32 3,18 +% 8.3% 8.3% - 5 Valeant Pharmaceuticals 812 2,987 +2% 3.3% 7.9% +4 5 Valeant Pharmaceuticals 812 2,987 +2% 3.3% 7.9% +4 The Cooper Companies 1,28 2, % 5.2% 7.3% - The Cooper Companies 1,28 2, % 5.2% 7.3% - 7 Carl Zeiss 1,77 2,29 +4% 7.2%.1% -2 7 Carl Zeiss 1,77 2,29 +4% 7.2%.1% -2 8 Abbott Laboraries 1,142 1,81 +7% 4.7% 4.8% -1 8 Abbott Laboraries 1,142 1,81 +7% 4.7% 4.8% -1 9 TOPCON % 1.% 1.7% +1 9 TOPCON % 1.% 1.7% +1 1 NIDEK % 1.4% 1.3% +1 1 NIDEK % 1.4% 1.3% +1 Top 1 23, 37,7 +7% 94.1% 98.4% Top 1 23, 37,7 +7% 94.1% 98.4% Or 1, % 1.% Or 1, % 1.% Total Industry 24,497 37,2 +.3% 1.% 1.% Total Industry 24,497 37,2 +.3% 1.% 1.% Source: (18 SEP 214); Consensus sales from equity analysts' reports Source: (18 (18 SEP SEP 214); 214); Consensus Consensus sales sales from equity from analysts analysts' reports reports Note: Valeant's 213 ophthalmic revenues only clude Bausch + Lomb busess from date of Note: closg Valeant's of acquisition 213 ophthalmic ( AUG revenues 213). Proforma only clude CAGR for Bausch combed + Lomb company busess is from forecast date be of 7% closg between of 213 acquisition and 22. ( AUG 213). Proforma CAGR for combed company is forecast be 7% between 213 and 22. Note: Valeant s 213 ophthalmic revenues only clude Bausch + Lomb busess from date of closg of acquisition ( AUG 213). Proforma CAGR for combed company is forecast be 7% between 213 and

18 M&A Analysis: 29 H1 214 Copyright 214 Evaluate Ltd. All rights reserved. M&A Deal Value Jumps by a Massive 33% H1 214, though Deal Count Falls by 1% M&A Analysis: 29 H1 214 found that tal medtech M&A deal values came $3bn H1 214, an crease of 33% on $7bn H M&A Analysis: 29 H1 214 Despite growth M&A Deal deal Value value, Jumps number by a Massive of overall 33% deals actually H1 214, fell though by 1% Deal 95 Count H1 Falls 214. by 1% found that tal medtech M&A deal values came $3bn H1 214, an crease of 33% on This massive hike M&A $7bn Deal H1 214 Analysis: Value H1 vs 213. H1 Jumps 213 Despite by 29 was a Massive largely due H1 growth 33% 214 deal value, H1 major 214, acquisitions number though of Deal of overall Life Count Technologies deals Falls actually by by 1% fell Thermo-Fisher by 1% 95 for $13.bn, H1 and J&J s Ortho-Clical 214. Diagnostics unit found by The that Carlyle tal medtech Group for M&A $4.2bn. deal values came $3bn H1 214, an crease of 33% on The ongog Medtronic/Covidien This M&A $7bn Deal massive Value H1 hike 213. Jumps and H1 Despite by a Zimmer/Biomet 214 Massive vs H1 growth 33% 213 megamergers, was deal largely value, H1 214, due though, number though will major of Deal overall Count dwarf acquisitions deals Falls actually by 1% se earlier of Life acquisitions. Technologies fell by 1% Worth by 95 H1 $42.9bn and Thermo-Fisher 214. found that tal medtech M&A deal values came $3bn H1 214, an crease of 33% on for $13.bn, and J&J's Ortho-Clical Diagnostics unit by The Carlyle Group for $4.2bn. $13.4bn, respectively, The This $7bn ongog massive se H1 Medtronic/Covidien hike deals 213. will H1 Despite change 214 vs H1 growth and face 213 of Zimmer/Biomet was deal largely medtech value, megamergers, due dustry. number major of overall though, acquisitions deals actually will dwarf of Life se Technologies fell by 1% earlier acquisitions. by 95 H1 Worth Thermo-Fisher 214. $42.9bn and for $13.bn, $13.4bn, and respectively, J&J's Ortho-Clical se deals Diagnostics will change unit by face The of Carlyle medtech Group dustry. for $4.2bn. The This ongog massive Medtronic/Covidien hike H1 214 vs H1 and 213 Zimmer/Biomet was largely megamergers, due major though, acquisitions will dwarf of Life se Technologies earlier acquisitions. by Worth Thermo-Fisher $42.9bn and for $13.bn, $13.4bn, and respectively, J&J's Ortho-Clical se deals Diagnostics will change unit by face The of Carlyle medtech Group dustry. for $4.2bn. The Count ongog of Medtech Medtronic/Covidien M&A Deals vs. and Total Zimmer/Biomet Medtech M&A megamergers, Value (29 though, - H1 214) will dwarf se earlier acquisitions. Worth $42.9bn and $13.4bn, respectively, se deals will change face of medtech Source: (18 SEP 214) Target [Acquiror] dustry. (Deal Value) Count of Medtech M&A Deals vs. Total Medtech M&A Value (29 - H1 214) 8 3 Source: 27(18 SEP 214) Target [Acquiror] (Deal Value) Count of Medtech M&A Deals vs. Total 23Medtech M&A Value (29 - H1 214) 8 Target [Acquiror] Deal Value 3 Source: 7 27(18 SEP 214) Target [Acquiror] (Deal Value) Target [Acquiror] Deal Value H Life Tech. [Thermo-Fisher] $13.bn AM Optics [ABT] $2.8bn Target [Acquiror] 27 Ortho-Clical H1 [P. 214 Deal Value 29 Equity] $4.2bn 25 7 Life Transitions Tech. [Thermo-Fisher] Optical [Essilor] $13.bn AM Optics [ABT] $2.8bn 241 $1.9bn 27 NVS Ortho-Clical Blood Diag. H1 [P. 214 [Grifols] Equity] $4.2bn 29 $1.7bn Life Transitions Tech. 5 ArthroCare [Thermo-Fisher] Optical [S&N] [Essilor] $1.5bn $13.bn $1.9bn AM Optics [ABT] $2.8bn NVS Ortho-Clical Blood Diag. [P.[Grifols] Equity] $4.2bn $1.7bn 2 Transitions 5 ArthroCare Optical 21 H1 [S&N] 214 [Essilor] $1.5bn vs. $1.9bn NVS Blood Diag. 4 Alcon* [NVS] $28bn 212 H1 [Grifols] 213 $1.7bn ev3 [COV] 21 ArthroCare H1 [S&N] 214 $1.5bn vs. $2.bn Syns [JNJ] $19.7bn 4 Alcon* [NVS] $28bn Gen-Probe 212 H1 213 [HOL] $3.7bn 1 15 ev3 [COV] 21$2.bn H1 214 vs. Syns [JNJ] $19.7bn Alcon* [NVS] $28bn Gen-Probe 212 H1 213 [HOL] $3.7bn ev3 [COV] $2.bn 211 Syns [JNJ] $19.7bn Genzyme* [SAN]: Gen-Probe $2.1bn [HOL] $3.7bn B&L [Valeant] $8.7bn Alcon* [NVS] 211 $9.bn Gambro [Baxter] 213 $3.9bn 95 Genzyme* Beckman C [SAN]: [DHR] $2.1bn $.8bn MAKO B&L [Valeant] [Stryker] $8.7bn 2 $1.7bn 5 1 Ketic Alcon* C [P. [NVS] 211 Equity] $9.bn $.1bn Conceptus Gambro [Baxter] 213 [Bayer] $3.9bn $1.1bn 1 Genzyme* Beckman C [SAN]: [DHR] $2.1bn $.8bn MAKO B&L [Valeant] [Stryker] $8.7bn $1.7bn 2 5 Ketic Alcon* C [P. [NVS] Equity] $9.bn $.1bn Conceptus Gambro [Baxter] [Bayer] $3.9bn $1.1bn 1 $13bn $51bn Beckman $78bn C [DHR] $.8bn $4bn MAKO $28bn [Stryker] $1.7bn $7bn $3bn 5 Ketic C [P. Equity] $.1bn Conceptus [Bayer] $1.1bn 1 $13bn $51bn $78bn $4bn $28bn $7bn $3bn H1 213 H1 214 $13bn 29 $51bn 21 $78bn Deal 211 $4bn Value ($bn) 212 $28bn Deal 213 Count H1 $7bn 213 H1 $3bn Deal 211 Value ($bn) 212 Deal 213 Count H1 213 H1 214 Count of Medtech Closed M&A Deals vs. Total Medtech M&A Value (29 - H1 214) Deal Value ($bn) Deal Count Count of Medtech Closed M&A Deals vs. vs. Total Medtech M&A M&A Value Value (29 (29 - H1 - H1 214) 214) Period H1 213 H1 214 Count of Medtech Closed M&A Deals vs. Total Medtech M&A Value (29 - H1 214) Deal Period Count H H Deal % Chg. Count % 27-3% 23-8% % % 95 Deal Period % Chg. Value ($bn) H1 213 H % 51-3% 78-8% 4-14% % 3 Deal Deal % Chg. Count 178 Value ($bn) % % % % % 95 3 % Chg. 52% -3% -8% -14% -1% Top Chg. 1 Medtech M&A Deals Closed: 285% Ranked 53% on Deal -41% Value (H1-38% 214) 33% Deal Value ($bn) Top % Chg. 1 Medtech M&A Deals Closed: 285% Ranked 53% on Deal -41% Value (H1-38% 214) 33% Completion Deal Top Target 1 Medtech M&A Deals Closed: Ranked Country on (Status) Deal Value Acquiror (H1 (H1 214) Completion Date Value Deal ($m) 1 Target Life Technologies USA Country (Listed) (Status) Thermo Acquiror Fisher Scientific 3 Date Feb 14 Value 13, ($m) 21 Ortho-Clical Life Technologies Diagnostics USA (Unit) (Listed) Thermo Carlyle Fisher Group Completion Scientific 3 3 Feb Jun 14 13, 4,15 Deal 3 Target 2 Transitions Ortho-Clical Optical Diagnostics Country USA (Private) (Status) (Unit) Essilor Acquiror The Carlyle International Group 3 1 Date Jun Apr Value 14 1,855 ($m) 4, Novartis Life Technologies Transitions Blood Optical Transfusion Diagnostics USA USA (Unit) (Listed) (Private) Grifols Thermo Fisher Scientific 3 Essilor International 9 Feb 1 Jan Apr , 1,855 1, Ortho-Clical Novartis ArthroCare Diagnostics USA Blood Transfusion Diagnostics USA (Unit) (Unit) (Listed) The Grifols Smith Carlyle & Nephew Group May Jun 14 Jan ,15 1,5 1,75 3 Transitions 5 Given ArthroCare Imagg Optical USA Israel (Private) USA (Listed) (Listed) Covidien Essilor International Smith & Nephew May Feb Apr 14 1, , Novartis Given BarrierSafe Blood Imagg Solutions Transfusion International Diagnostics USA USA (Unit) Israel (Private) Grifols (Listed) Ansell 9 Covidien 27 3 Jan Feb Jan 14 1, ArthroCare BarrierSafe BioFire Diagnostics USA Solutions International USA (Listed) (Private) Smith Ansell biomérieux & Nephew 29 1 May 3 Jan 14 1, Given 8 BioFire IQuum Imagg Israel Diagnostics USA (Listed) Covidien (Private) Roche 27 biomérieux 1 Feb 1 Jun Jan BarrierSafe 9 Coastal IQuum Contacts Solutions International USA Canada (Private) USA (Private) (Listed) Ansell Essilor Roche International Jan Jun Apr BioFire 1 Coastal Or Diagnostics USA (Private) biomérieux 1 Jan 14 Contacts Canada (Listed) Essilor International 28 Apr 14 4, Total IQuum USA (Private) Roche 1 Jun 14 Or 3, ,72 Source: 1 Coastal Total Contacts (18 SEP 214) Canada (Listed) Essilor International 28 Apr ,28 Or 4,72 Note: Source: Analysis based on closg (18 date SEP of 214) deal. Total 3,28 *Alcon Note: Analysis & Genzyme based cluded on closg analysis date of as deal. >25% of company sales are derived from medtech. Source: (18 (18 SEP SEP 214) 214) *Alcon & Genzyme cluded analysis as >25% of company sales are derived from medtech. Note: Analysis based on closg date of deal. *Alcon & Genzyme cluded analysis as >25% of company sales are derived from medtech. Deal Deal Value Deal Value ($bn) Value ($bn) ($bn) Note: Analysis based on closg date of deal. *Alcon & Genzyme cluded analysis as >25% of company sales are derived from medtech. Deal Deal Count Deal Count Count

19 Venture Fancg Analysis: 29 H1 214 Copyright 214 Evaluate Ltd. All rights reserved. Venture Fancg Analysis: 29 H1 214 Venture Fancg Analysis: 29 H1 214 Value of Venture Fancg Falls 1% H1 214; Deal Count Decreases 24% Venture Value found of Venture significant Fancg decreases Falls Analysis: 1% both H1 value 214; 29 and Deal number Count H1 Decreases of 214 venture fancg 24% deals H1 214 vs H The tal deal value of medtech Value of venture Venture fancg Fancg found significant fell Falls by 1% decreases $2.2bn, H1 214; both whilst Deal Count value number and Decreases number of venture 24% of venture fancg fancg deals slumped deals H1 24% Proteus Digital Value vs H Health of secured Venture The tal Fancg found deal significant value largest fancg Falls of 1% medtech decreases round H1 venture 214; both H1 214, Deal fancg raisg Count value fell and $12m Decreases by 1% number $2.2bn, a Series 24% of venture whilst fancg number deals of venture H1 214 G offerg June help fund development of its digital health fancg vs H deals The slumped tal feedback system. found deal 24% significant value 199. of medtech decreases venture both fancg value fell and by 1% number $2.2bn, of venture whilst fancg number deals of venture H1 214 Proteus fancg vs H Digital deals The Health slumped tal secured deal 24% value 199. of largest medtech fancg venture round fancg H1 fell 214, by 1% raisg $2.2bn, $12m whilst a Series number G offerg of venture June Proteus fancg help fund Digital deals development Health slumped secured 24% of its digital 199. largest health fancg feedback round system. H1 214, raisg $12m a Series G offerg June Proteus help fund Digital development Health secured of its digital largest health fancg feedback round system. H1 214, raisg $12m a Series G offerg June help fund Count development of Fancg of its Deals digital health vs. Total feedback Fancg system. Value (29 - H1 214) Source: Count of Fancg Deals vs. (18 Total SEP Fancg 214) Value (29 - H1 214) 5 Source: 7 Count of Fancg Deals vs. (18 Total SEP Fancg 214) Value (29 - H1 214) 5 7 Source: (18 $4,85m SEP 214) 5 $4,7m $4,85m $4,58m 7 $4,7m 4 $4,58m $4,85m $4,12m $4,7m 4 $3,938m 524 $4,12m $4,58m H1 214 vs. 5 4 $3,938m 524 $4,12m H1 H vs. 5 $3,938m H H1 214 vs H $2,3m 47 4 $2,3m 3 2 $2,2m $2,3m $2,2m $2,2m H1 213 H Deal Value Deal Count H1 213 H Deal Value 212 Deal Count 213 H1 213 H1 214 Count of Medtech Fancg Deals vs. Total Deal Fancg Value Value Deal (29 Count - H1 214) Count of Medtech Fancg Deals vs. vs. Total Fancg Value Value (29 (29 - H1-214) H1 214) H1 H1 Count of Medtech Fancg Deals Period 29 vs. Total 21 Fancg 211 Value 212 ( H1 214) 213 H1 214 H1 Period Deal Count H H1 Period Deal % Chg. Count % % % % % 199 Deal % Chg. Value Count ($m) 3, ,7 1% 449 4,85 17% 524 4,12-18% 429 4, % 2,3 22 2,2-24% 199 Deal % Chg. Value ($m) 3,938 4,7 19% 1% 4,85 17% 3% 4,12-18% -13% 4,58 1% 7% 2,3 2,2-1% -24% Deal % Chg. Value ($m) 3,938 4,7 19% 4,85 3% 4,12-13% 4,58 1% 2,3 2,2-1% Top 1 Medtech Venture Fancg Deals: Ranked on Deal Value (H1 214) % Chg. 19% 3% -13% 1% -1% Top 1 Medtech Venture Fancg Deals: Ranked on Deal Value (H1 214) Fancg Deal Top Companty 1 Medtech Venture Fancg Deals: Primary Ranked on Focus on Deal Deal Value Value (H1 Country (H1 214) Round Fancg 214) Date Value Deal ($m) 1 Proteus Companty Digital Health Primary Patient Monirg Focus USA Country Round Fancg Series G 2 Date Jun 14 Value Deal 12($m) 21 Adaptive Proteus Companty Digital Biotechnologies Health Primary In Patient Vitro Monirg Diagnostics Focus USA Country Round Series DG 2 7 Date Jun Apr 14 Value 12 1($m) 32 1 Halt Adaptive Proteus Medical Digital Biotechnologies Health Obs. In Patient Vitro & Gyne. Monirg Diagnostics USA Series ED G Jun Apr GC Halt Adaptive Aestics Medical Biotechnologies General Obs. In Vitro & Gyne. Diagnostics & Plastic Surgery Ireland USA Series AE D Feb Apr Advanced GC Halt Aestics Medical Accelerar Applications Diagnostic General Obs. & Gyne. & Plastic ImaggSurgery France Ireland USA Undisclosed Series AE Feb Apr InSightec Advanced GC Aestics Accelerar Applications Diagnostic General & Plastic Imagg Surgery France Ireland Israel Undisclosed Series AD Feb Jun AqueSys InSightec Advanced Accelerar Applications Diagnostic Ophthalmology Imagg France Israel USA Undisclosed Series D Feb Jun Jan Holaira AqueSys InSightec Anesth. Ophthalmology Diagnostic & Resp. Imagg Israel USA Series D Jun Jan Apr Inspire Holaira AqueSys Medical Systems Anesth. Ophthalmology & Resp. USA Series E D May Jan Apr Benvenue Inspire Holaira Medical Medical Systems General Anesth. & Resp. Plastic Surgery USA Series ED May Jun Apr Benvenue Inspire Or Medical Medical Systems General Anesth. & Resp. Plastic Surgery USA Series E May Jun 14 1, Benvenue Total Or Medical General & Plastic Surgery USA Series E 18 Jun 14 2,2 1,52 4 Source: Total Or (18 SEP 214) 2,2 1,52 Note: Source: Total Includes vestments (18 medtech SEP 214) companies only. Does not clude pharmaceutical or biotech companies. 2,2 Includes Note: Source: Includes Private vestments Investment (18 medtech Public SEP Equity 214) companies (PIPE). Source: (18 SEP 214) only. Does not clude pharmaceutical or biotech companies. Includes Note: Includes Private vestments Investment medtech Public Equity companies (PIPE). only. Does not clude pharmaceutical or biotech companies. Includes Private Investment Public Equity (PIPE). Deal Deal Value Deal Value ($m) Value ($m) ($m) Note: Includes vestments medtech companies only. Does not clude pharmaceutical or biotech companies. Includes Private Investment Public Equity (PIPE). Deal Deal Count Deal Count Count

20 IPO Analysis: 213 and 214 Copyright 214 Evaluate Ltd. All rights reserved. Medtech IPO Activity Picks Up from Q4 213; $1.3bn Raised H1 214 IPO found Analysis: a significant 213 crease and IPO 214 activity medtech space 214, terms of both value and number of closed deals. By end of H1 214 $1.3bn had been raised completed IPOs, which is 44% more than $9m raised whole of 213. Medtech IPO Activity Picks Up from Q4 213; $1.3bn Raised H1 214 The largest IPO H1 214 was Castlight found Health, a significant a healthcare crease IT IPO company, activity which medtech raised $24m space 214, March. terms This of was both almost value double that raised IPO and Analysis: number of closed 213 deals. and By end 214 of H1 214 $1.3bn had been raised completed IPOs, which is 44% more by second ranked than company, $9m spal raised device whole maker of 213. K2M, which raised $12m May. The largest IPO H1 214 was Castlight Health, a healthcare IT company, which raised $24m March. This was IPO Medtech almost Analysis: IPO Activity double that raised 213 Picks by and Up from second 214 Q4 213; $1.3bn Raised H1 214 found a significant crease ranked company, IPO activity spal device medtech maker space K2M, which 214, raised terms $12m of both May. value and number of closed deals. By end of H1 214 $1.3bn had been raised completed IPOs, which is 44% more than Medtech $9m IPO Activity raised Picks whole Up from of 213. Q4 213; $1.3bn Raised H1 214 The largest Quarterly IPO H1 Count found 214 a of was significant IPO Castlight Deals crease vs. Health, Total a IPO healthcare Value activity (Q1 IT company, 213 medtech - Q2 which 214) space raised 214, $24m terms March. of both This value was almost and number double Source: of that closed raised deals. by By second end (18 ranked of SEP H1 214) company, $1.3bn spal had been device raised maker K2M, completed which IPOs, raised which $12m is 44% May. more than 8 $9m raised whole of The largest IPO H1 214 was Castlight Health, a healthcare IT company, which raised $24m March. This was almost double Quarterly that raised Count by of IPO second Deals ranked vs. Total company, IPO Value spal (Q1 device 213 -maker Q2 214) K2M, which raised $12m May. 7 Source: (18 SEP 214) Quarterly Count of IPO Deals vs. Total IPO Value (Q Q2 214) 14 Source: (18 SEP 214) $2m 5 $123m $182m $395m $597m $94m Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q $2m $123m Deal $182m Value Deal $395m Count $597m $94m 1 2 Count of Medtech Q1 213 IPO Deals vs. Q2 Total 213IPO Value Q3 (Q Q2 214) Q4 213 Q1 214 Q2 214 $2m $123m $182m $395m $597m $94m Q1 Q2Deal Value Q3 Deal Q4 Count Q1 Q2 Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q2 214 Quarter Count Deal Count of Medtech IPO IPO Deals Deals vs. Total vs. 5 Total IPO Value IPO 7 Deal Value (Q1 Value 213 (Q1 4 - Q ) Deal - Q2 Count 214) 1 12 % Chg. from previous quarter 4% -43% 5% 7% 2% Q1 Q2 Q3 Q4 Q1 Q2 Deal Count Value of Medtech ($m) IPO Deals vs. Total 2 IPO Value 123 (Q Q2 214) Quarter % Chg. from previous quarter -39% 48% 118% 51% 1% Deal Count Q1 5 Q2 7 Q3 4 Q4 Q1 1 Q2 12 Quarter Top % Chg. 1 Medtech from previous IPO quarter Deals: Ranked 213on Deal 213 4% Value (H % 214) 213 5% 214 7% 214 2% Deal Count Value ($m) % Chg. from previous quarter -39% 4% -43% 48% 118% 5% 7% 51% 2% 1% Deal Deal Company Value ($m) 2 Primary 123 Focus 182 Country 395 Sck 597Exchange94 Date Value ($m) Top 1 Castlight 1 Medtech HealthIPO Deals: Ranked on Deal Healthcare Value IT(H1 214) % Chg. from previous quarter -39% 48% USA118% NYSE 51% 1% 14 Mar K2M Orthopedics USA Nasdaq 13 May Top Deal 3 Horizon 1 Medtech Discovery IPO IPO Deals: Ranked Ranked on Deal on In Vitro Deal Value Diagnostics Value (H1 214) (H1 UK 214) LSE AIM 27 Mar Company Primary Focus Country Sck Exchange Date Value ($m) 4 Materialise Group 3D Prtg Belgium Nasdaq 25 Jun Castlight Health Healthcare IT USA NYSE 14 Mar 14 Deal 24 5 TriVascular Technologies Cardiology USA Nasdaq 1 Apr Company K2M Orthopedics Primary Focus USA Country Sck NasdaqExchange 13 Date May 14 Value 12($m) CYBERDYNE Rehabilitation Japan Tokyo Sck Exchange 2 Mar Horizon Castlight Discovery Health In Healthcare Vitro Diagnostics IT UK USA LSE NYSEAIM Mar Inogen Respirary USA Nasdaq 14 Feb K2M Materialise Group Orthopedics 3D Prtg USA Belgium Nasdaq May Jun Supersonic Image Diagnostic Imagg France NYSE Euronext 1 Jun Horizon TriVascular Discovery Technologies In Cardiology Vitro Diagnostics USA UK Nasdaq LSE AIM 27 1 Mar Apr Lombard Medical Technologies Cardiology UK Nasdaq 25 Apr CYBERDYNE Materialise Group Rehabilitation 3D Prtg Japan Belgium Nasdaq Tokyo Sck Exchange 2 25 Mar Jun Vital Therapies Liver Disorders USA Nasdaq 17 Apr TriVascular Inogen Technologies Cardiology Respirary USA Nasdaq 14 1 Feb Apr Or Supersonic CYBERDYNE Image Diagnostic Rehabilitation Imagg France Japan NYSE Tokyo Euronext Sck Exchange 2 1 Mar Jun Total 1, Lombard Inogen Medical Technologies Cardiology Respirary UK USA Nasdaq Feb Apr Source: (18 SEP 214) 1 8 Supersonic Vital Therapies Image Diagnostic Liver Disorders Imagg USA France Nasdaq NYSE Euronext 1 17 Jun Apr Note: 9 Lombard Or Does Medical not clude Technologies pharmaceutical or biotech Cardiology companies. UK Nasdaq 25 Apr Total Vital Therapies Liver Disorders USA Nasdaq 17 Apr 14 1,288 2 Source: Or (18 SEP 214) 285 Note: Total Does not clude pharmaceutical or biotech companies. 1,288 2 Source: (18 SEP 214) Source: (18 SEP 214) Note: Does not clude pharmaceutical or biotech companies. Deal Value Deal Value ($m) Deal ($m) Value ($m) Note: Does not clude pharmaceutical or biotech companies. Deal Count Deal Count Deal Count 2 2 2

21 Enterprise Value & Focus Analysis: 214 Latest vs. 213 General Electric Number 1 Latest Enterprise Value Rankgs found US giant General Electric be largest company, judged by enterprise value, operatg medtech space. With a figure of Enterprise $59bn as at 17 Value SEP 214, GE Focus is a long way Analysis: ahead of 214 second ranked Latest company, vs. 213 Johnson & Johnson, which has an Enterprise Value & Focus Analysis: 214 Latest vs. 213 enterprise value of $285bn. General Electric Number 1 Latest Enterprise Value Rankgs The analysis cludes General only Electric medtech Number found companies 1 US giant Latest that General Enterprise are forecast Electric Value have be Rankgs sales largest excess company, of $1bn judged 22. by enterprise value, operatg The highest rankg medtech space. pure-play medtech found With US a figure companies giant General of $59bn are Medtronic Electric as at 17 and be SEP 214, Covidien largest GE at company, is a long way positions judged ahead 11 and by 12, enterprise of second with enterprise value, ranked operatg values of $3bn and company, medtech Johnson space. & Johnson, With a figure which of has $59bn an enterprise as at 17 SEP value 214, of $285bn. GE is a long way ahead of second ranked $1bn, respectively. company, The analysis Upon Johnson completion cludes & Johnson, only of medtech ir which proposed companies has merger, enterprise that are value forecast new of entity s $285bn. have combed sales excess enterprise of $1bn value of 22. $124bn would move up number 8 The rankgs. analysis highest rankg cludes pure-play only medtech medtech companies companies that are Medtronic forecast and have Covidien sales at excess positions of $1bn 11 and , with enterprise The values highest of $3bn rankg and pure-play $1bn, respectively. medtech companies Upon completion are Medtronic of ir and proposed Covidien merger, at positions new 11 entity's and 12, combed with enterprise values enterprise of $3bn value and of $124bn $1bn, would respectively. move up Upon number completion 8 of rankgs. ir proposed merger, new entity's combed enterprise value of $124bn would move up number 8 rankgs. WW Rankg on Enterprise Value 214 (Latest) WW Source: Rankg on Enterprise (18 Value SEP 214) (Latest) Source: (18 SEP 214) +2% +2% +18% 5 +15% +1% +18% 5 +15% +1% +13% +12% +1% 4 S&P 214 YTD +11% +13% +12% +1% +9% Return: +8% 4 S&P 214 YTD +11% +9% Return: +8% +5% 3 +5% 3 +4% +% +4% +% 2 2-5% -3% -5% 1 -% -% -3% -1% 1 -% -% -1% $59bn $285bn $279bn $23bn $171bn $13bn $132bn $98bn $4bn $bn $59bn $285bn $279bn $23bn $171bn $13bn $132bn $98bn $4bn $bn -15% -15% Enterprise Value Value ($bn) ($bn) General Electric General Electric Johnson & Johnson Johnson & Johnson Roche Roche Novartis Novartis Sanofi Sanofi Siemens Siemens Bayer Bayer 3M 3M Thermo Fisher Scientific Thermo Fisher Scientific Abbott Laboraries Abbott Laboraries Share Share Price Price Performance YTD YTD (%) (%) Copyright 214 Evaluate Ltd. All rights reserved. Enterprise Value: Top 2 Medtech Companies 214 (22 Sales: >$1bn) Enterprise Value: Top Top 2 2 Medtech Companies Companies (22 (22 Sales: Sales: >$1bn) >$1bn) % '14 Sales Enterprise Value ($bn) Share Price ($ ADR) Company Country % Medtech '14 Sales 213 Enterprise Latest Value %($bn) Growth 213 Share Latest Price ($% ADR) Growth 1 Company General Electric Country USA Medtech 8% Latest 59 % Growth -4% Latest 2.27 % Growth -% 12 General Johnson Electric & Johnson USA 4% 8% % -4% % -% 23 Johnson Roche & Johnson USA Switzerland 4% 22% % +13% % +12% 34 Roche Novartis Switzerland 22% 12% % % +18% 45 Novartis Sanofi Switzerland France 12% % +15% % +9% 5 Sanofi Siemens France Germany 18% 2% % +7% % -% 7 Siemens Bayer Germany 18% 4% % +% % -3% 78 Bayer 3M Germany USA 17% 4% % +3% % +4% 89 3M Thermo Fisher Scientific USA 17% 24% % +3% % +4% 1 9 Thermo Abbott Laboraries Fisher Scientific USA 24% 4% % +13% % +13% 1 11 Abbott Medtronic Laboraries USA 1% 4% % +1% % +15% Medtronic Covidien USA 1% % +84% % +87% Covidien Valeant Pharmaceuticals USA Canada 1% 19% % +2% % +4% Valeant DanaherPharmaceuticals Canada USA 19% 47% % % +2% Danaher Baxter International USA 47% 38% % +5% % +4% 15 1 Baxter Kimberly-Clark International USA 38% % +1% % +2% 1 17 Kimberly-Clark Allergan USA 14% 8% % +1% % +2% Allergan Toshiba USA Japan 14% % % +17% % +8% Toshiba Philips Japan The Nerlands 3% % % -5% % -15% 19 2 Philips Stryker The USANerlands 1% 3% % -5% % +12% 2 Stryker Total Top 2 USA 1% 2, , % +9% avg. +12% Source: Total Top 2 (18 SEP 214) 2,238 2,445 +9% avg. +12% Source: Source: Note: Includes companies with (18 (18 SEP >$1bn SEP 214) 214) medtech sales 22. Note: Valuation Includes based companies on share price with >$1bn close and medtech valuation sales on SEP 214. Valuation based on share price close and valuation on 17 SEP Note: Includes companies with >$1bn medtech sales 22. Valuation based on share price close and valuation on 17 SEP

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