HEALTHCARE & LIFE SCIENCES

Transcription

1 Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

2 WHAT WE RE READING LOGISTICS SUPPLYING THE BOOMING HEALTHCARE INDUSTRY Household names of UPS, FedEx, and DHL are investing to support their booming healthcare logistics businesses. While these brands are often associated with the delivery of ecommerce packages, healthcare companies across the country are utilizing logistics businesses to reduce supply-chain costs. For example, kits for highend medical devices can be replenished at UPS logistics hubs for speedier returns back to hospitals. These services are performed at specialty distribution sites equipped with high-security, specialty refrigeration systems, and other characteristics one would expect in the healthcare industry. Products range from specialty drugs, surgical devices, and even human material. While significant investment is required to participate in the healthcare logistics market, a 4% annual growth rate in a $70 billion global market justifies the significant investments made by the likes of UPS, FedEx, and DHL. A link to the article can be found here. CONTENTS PUBLIC MARKETS OVERVIEW EQUITY MARKETS OVERVIEW M&A OVERVIEW DEBT MARKETS OVERVIEW HEALTHCARE & LIFE SCIENCES PUBLIC COMPARABLES M&A TRANSACTIONS CONTACTS Turner Bredrup Managing Director [email protected] +1 (804) James Clark Managing Director [email protected] +1 (804) SURGERY CENTERS TEAMHEALTH / AMSURG COMBO NOT TO BE On October 20, TeamHealth rejected AmSurg s $7.8 billion stock-and-cash transaction proposal. The deal would have creased the largest physician ambulatory service in the country. In their rejection of the offer, TeamHealth cited both value and execution risk as core reasons why they are not interested in pursuing the transaction. This unsolicited offer follows on the heels of the Surgery Partners IPO which priced at the end of September. Surgery Partner s $915 million market value at IPO creates the third largest publicly traded surgery center platform behind AmSurg and Surgical Care Affiliates. A link to the article can be found here. HW&CO. HCLS GROUP INSIGHT Cheairs Porter Managing Director [email protected] +1 (804) Geoff Smith Managing Director [email protected] +1 (804) Andy Dixon Director [email protected] +1 (415) Paul Hepper Director [email protected] +1 (804) Whit Knier Director [email protected] +1 (804) Jacques Fu Vice President [email protected] +1 (804) Andy Hewlett Vice President [email protected] +1 (415) Bill Kayser Vice President [email protected] +1 (804) Nick Owens Vice President [email protected] +1 (804) Infection Prevention Market Overview PAGE 1

3 PUBLIC MARKETS OVERVIEW Key Trading Statistics (detail begins on page 6) Payor, Provider, & Pharmacy Support Services Products & Devices Provider-Based Services Sector Number of Companies Aggregate Enterprise Value ($ mm) Change in Stock Price 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA Clinical Laboratories 3 $34,685 (10.5%) 6.6% 2.4x 12.1x 2.0x 10.1x Contract Pharma Manufacturing 2 5,214 (8.3%) 66.7% 3.0x 13.4x 2.8x 11.9x Contract Research Organizations 9 35,872 (3.7%) 6.3% 2.6x 13.6x 2.6x 12.2x Disease Management 2 8,520 (7.9%) (3.2%) 2.0x 13.9x 1.9x 11.7x Emergency Services 1 1,982 (17.5%) (38.6%) 1.9x 7.6x 1.9x 7.3x Healthcare Staffing 5 18,536 (6.1%) 37.4% 1.4x 14.8x 1.3x 12.5x HMO - Medical ,390 (9.9%) 34.6% 0.8x 9.5x 0.7x 9.3x Information Services 13 38,341 (9.6%) (1.8%) 4.8x 17.2x 4.2x 15.5x Specialty Managed Care 3 7, % 22.9% 1.2x 9.1x 6.5x 5.4x Specialty Pharmacy 1 2,006 (35.8%) NM 0.8x NM 0.7x NM Retail Pharmacy 3 235,913 (8.0%) 25.4% 0.8x 11.0x 0.8x 11.5x Specialty Pharmacy Management 2 71,923 (11.7%) 15.6% 0.6x 9.7x 0.6x 9.3x Dental Products 3 106,538 (7.1%) 10.9% 3.0x 14.0x 3.0x 13.3x Durable Medical Equipment 3 10,654 (9.6%) 22.5% 1.8x 13.2x 1.7x 12.0x Life Sciences Tools 4 117,721 (6.1%) 0.5% 2.6x 13.5x 3.2x 13.6x Medical Devices and Products ,562 (4.2%) 12.1% 3.5x 13.2x 3.5x 12.6x Medical / Surgical / Dental Supplies & Distribution 6 117,111 (9.4%) 3.5% 0.3x 12.4x 0.2x 10.0x Acute-Care Hospitals 4 109,948 (25.3%) (9.7%) 1.1x 8.1x 1.1x 7.6x Assisted Living 3 12,104 (33.8%) (18.0%) 2.6x 13.4x 2.1x 12.5x Diagnostic Imaging 3 8,342 (17.0%) (16.2%) 1.5x 8.8x 1.7x 8.8x Dialysis Services 2 54,318 (7.5%) 12.7% 1.8x 10.0x 1.8x 9.6x Home Care, Hospice, and Home Infusion 6 5, % 54.6% 1.3x 12.6x 1.2x 11.6x Long-Term Care 3 6,526 (16.5%) 9.7% 0.9x 10.2x 0.7x 7.7x Physician Practice Management 2 9, % 45.4% 3.1x 15.3x 2.8x 14.4x Behavioral Health / Management 6 26,953 (13.8%) 19.4% 1.5x 10.3x 1.4x 9.5x Surgicenters / Rehabilitation 5 18,709 (8.9%) 23.8% 2.2x 13.3x 2.0x 10.7x Payor, Provider, & Pharmacy Support Services 54 $765,791 (8.1%) 26.8% 1.3x 11.6x 1.2x 10.8x Products & Devices 31 $948,586 (7.9%) 0.6% 3.1x 12.5x 3.0x 11.5x Provider-Based Services 34 $252,680 (11.9%) 12.8% 1.9x 10.6x 1.8x 9.8x HW&Co. HCLS Composite Index 119 $1,967,057 (10.6%) 13.7% 2.3x 12.0x 2.2x 11.1x S&P 500 (6.9%) (2.6%) Median TEV/ LTM Multiples Median TEV/ Forward Mulitples Public Company Sector Performance (12-month % change in stock price) Contract Pharma Manufacturing Home Care, Hospice, and Home Infusion Physician Practice Management Healthcare Staffing Durable Medical Equipment Retail Pharmacy Surgicenters / Rehabilitation Specialty Managed Care Durable Medical Equipment Behavioral Health / Management Specialty Pharmacy Management HW&Co. HCLS Composite Index Dialysis Services Medical Devices and Products Dental Products Long-Term Care Contract Research Organizations Clinical Laboratories Medical / Surgical / Dental Supplies & Distribution Information Services Life Sciences Tools Specialty Pharmacy S&P 500 Disease Management Acute-Care Hospitals Diagnostic Imaging Assisted Living Emergency Services (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% 70.0% 80.0% 90.0% PAGE 2

4 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance % 149.3% 133.3% Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index Top Equity Offerings (by proceeds) Closing Date Issuer Ticker Transaction Type Gross Proceeds ($ mm) 09/14/15 Mylan NV MYL Follow-On $3, /01/15 Baxalta Inc BXLT Follow-On 1, /10/15 Seattle Genetics Inc SGEN Follow-On /22/15 Intra-Cellular Therapies Inc ITCI Follow-On /30/15 Surgery Partners Inc SGRY IPO /16/15 Regenxbio Inc RGNX IPO /17/15 Penumbra Inc PEN IPO /09/15 La Jolla Pharmaceutical Co LJPC Follow-On /15/15 Mirati Therapeutics Inc MRTX Follow-On /30/15 Edge Therapeutics Inc EDGE IPO /30/15 Amicus Therapeutics Inc FOLD Follow-On /04/15 Raptor Pharmaceutical Corp RPTP Follow-On /11/15 Trevena Inc TRVN Follow-On /17/15 Sientra Inc SIEN Follow-On /10/15 Orexigen Therapeutics Inc OREX Follow-On /11/15 Geron Corp GERN Follow-On /04/15 MannKind Corp MNKD Follow-On /30/15 Mirna Therapeutics Inc MIRN IPO /17/15 Cytokinetics Inc CYTK Follow-On /24/15 CTI BioPharma Corp CTIC Follow-On 15.7 PAGE 3

5 Number of Transactions Aggregate Transaction Value ($ in billions) EV / LTM EBITDA Multiple HEALTHCARE & LIFE SCIENCES M&A OVERVIEW Announced Healthcare & Life Sciences M&A QUARTERLY M&A ACTIVITY HEALTHCARE TRANSACTION HIGHLIGHTS 350 Announced Target Buyer Number of Transactions /28/2015 Lazarus Effect, Inc. Medtronic plc (NYSE:MDT) 9/24/2015 DentaQuest Mid-Atlantic, Dominion Dental Serv ices, Inc. and DentaQuest Virginia, Inc. Inc. 9/23/2015 Healthcare Staffing Serv ices, LLC Thomas H. Lee Partners, L.P. 9/22/2015 Dermatology of Northern Colorado PC Adv anced Dermatology & Cosmetic Surgery Inc. 9/21/2015 Synowledge LLC BioClinica, Inc. 9/18/2015 Foundations Recov ery Network, LLC Univ ersal Health Serv ices Inc. (NYSE:UHS) 9/16/2015 Alliance Healthcare Serv ices, Inc. Fujian Thaihot Inv estment Co., Ltd. 9/15/2015 Circle City Veterinary Specialty & Emergency Hospital, LLC MedVet Associates, Inc. 9/3/2015 Tornier, Ankle and Toe Replacement Products Portfolios Integra LifeSciences Corporation 9/3/2015 AqueSys, Inc. Allergan plc (NYSE:AGN) 9/3/2015 Option 1 Nutrition Solutions, LLC Epic Health Serv ices, Inc. 9/2/2015 RestorixHealth, Inc. Leonard Green & Partners, L.P. LTM DEAL STATISTICS Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 PEG Acquirer Strategic Acquirer Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $ , x 13.4x Note: Transactions based on publicly available information Healthcare & Life Sciences M&A Trends ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $357.7 $236.6 $141.4 $110.6 $101.6 $ YTD 1,400 1,200 1, Number of Transactions 21.0x 18.0x 15.0x 12.0x 9.0x 6.0x 3.0x 0.0x 13.6x 14.1x 12.8x 11.1x 10.9x 10.0x YTD 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x EV / LTM Sales Multiple Aggregate Deal Value Number of Transactions TEV / LTM EBITDA TEV / LTM Sales Announced Private Equity M&A Activity PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) HC&LS Industry Number of Segment Companies Healthcare Facilities 41 Healthcare Serv ices 48 Healthcare Equipment 21 Pharmaceuticals 19 Healthcare Technology 16 Life Sciences Tools & Serv ices 15 Healthcare Supplies 11 Healthcare Distributors 6 Biotechnology 2 Managed Healthcare PEG INVESTMENTS AND EXITS YTD Number of Investments Number of Exits PAGE 4

6 EBITDA Multiple Average Spread Over LIBOR Average Spread Over LIBOR HEALTHCARE & LIFE SCIENCES DEBT MARKETS OVERVIEW Key Credit Statistics QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS Loan Volume by Quarter ($ in billions) $24 $21 $18 $15 $12 $9 $6 $3 L L L L L $0 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 L H15 Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional CREDIT METRICS 6.0x AVERAGE SECONDARY SPREAD L x L L x L x Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest YTD EBITDA - Capex/Cash Interest L + 0 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 Select Healthcare & Life Sciences Debt Offerings (by deal amount) Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread 09/28/15 Schumacher Group Health and allied services, nec $610.0 Term Loan B B1 / B L /28/15 Schumacher Group Health and allied services, nec Term Loan Caa1 / CCC+ L /18/15 First Choice ER LLC Health and allied services, nec Revolver/Line >= 1 Yr. NR / NR L /18/15 First Choice ER LLC Health and allied services, nec Term Loan A NR / NR L /03/15 AccentCare Inc Home health care services Term Loan B NR / NR L /03/15 AccentCare Inc Home health care services Term Loan NR / NR L /01/15 Emerus Holdings Inc General med'l/surgical hospitals Revolver/Line >= 1 Yr. NR / NR L /01/15 Emerus Holdings Inc General med'l/surgical hospitals Term Loan NR / NR L /30/15 Northwestern Memorial Hospital General med'l/surgical hospitals 80.0 Revolver/Line >= 1 Yr. NR / NR L /18/15 Circleville Health Partners LLC Skilled nursing care facilities 12.2 Other Loan NR / NR L+ 375 PAGE 5

7 PUBLIC COMPARABLES Payor, Provider, & Pharmacy Support Services Company Name Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 9/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Clinical Laboratories Laboratory Corp. of America Holdings $ (10.5%) 6.6% $ $95.61 $10,966 $6,787 $619 $17,151 $7,056 $1,414 $1,108 Jun-15 Dec-14 $8,481 $1,706 $1, x 12.1x 2.0x 10.1x Quest Diagnostics Inc (15.2%) 1.3% ,824 3, ,452 7,551 1,469 1,158 Jun-15 Dec-14 7,533 1,498 1, x 8.5x 1.7x 8.3x VCA Inc (3.2%) 33.9% , ,082 2, Jun-15 Dec-14 2, x 13.4x 2.4x 12.8x Number of Companies 3 Median: (10.5%) 6.6% Total $24,063 $34,685 $16,634 $18, x 12.1x 2.0x 10.1x Market Cap. Weighted Average: (11.0%) 9.5% 2.2x 11.0x 2.0x 9.9x Contract Pharma Manufacturing Cambrex Corporation. $39.68 (9.7%) 112.4% $54.60 $15.76 $1,245 $60 $63 $1,242 $395 $106 $83 Jun-15 Dec-14 $430 $122 $99 3.1x 11.8x 2.9x 10.2x West Pharmaceutical Services, Inc (6.8%) 20.9% , ,972 1, Jun-15 Dec-14 1, x 15.1x 2.8x 13.7x Number of Companies 2 Median: (8.3%) 66.7% Total $5,142 $5,214 $1,796 $1, x 13.4x 2.8x 11.9x Market Cap. Weighted Average: (7.5%) 43.1% 2.9x 14.3x 2.8x 12.8x Contract Research Organizations Albany Molecular Research Inc. $17.42 (13.8%) (21.1%) $23.95 $13.73 $618 $202 $43 $777 $320 $35 $13 Jun-15 Dec-14 $406 $77 $47 2.4x 22.3x 1.9x 10.1x Catalent, Inc (17.1%) (2.9%) ,026 1, ,768 1, Jun-15 Jun-15 1, x 11.4x 2.6x 10.8x Charles River Laboratories International, Inc (9.7%) 6.3% , ,609 1, Jun-15 Dec-14 1, x 12.4x 2.7x 11.2x ICON Public Limited Company % 24.0% , ,117 1, Jun-15 Dec-14 1, x 13.2x 2.6x 12.2x INC Research Holdings, Inc (0.3%) NM , , Jun-15 Dec x 14.5x 2.9x 13.0x PAREXEL International Corporation (3.7%) (1.9%) , ,573 2, Jun-15 Jun-15 2, x 12.0x 1.6x 10.1x PRA Health Sciences, Inc % NM , ,219 1, Jun-15 Dec-14 1, x 17.2x 2.4x 13.5x Quintiles Transnational Holdings Inc (4.2%) 24.7% ,537 2, ,225 4, Jun-15 Dec-14 4, x 13.6x 2.3x 13.0x WuXi PharmaTech (Cayman) Inc % 23.4% , , Jun-15 Dec x 22.1x 3.7x 17.4x Number of Companies 9 Median: (3.7%) 6.3% Total $30,479 $35,872 $14,179 $14, x 13.6x 2.6x 12.2x Market Cap. Weighted Average: (3.0%) 12.3% 2.6x 14.4x 2.5x 12.6x Disease Management Alere Inc. $48.15 (8.7%) 24.2% $55.99 $35.62 $4,128 $3,599 $465 $7,873 $2,544 $538 $223 Jun-15 Dec-14 $2,569 $581 $ x 14.6x 3.1x 13.6x Healthways Inc (7.2%) (30.6%) Jun-15 Dec x 13.2x 0.8x 9.9x Number of Companies 2 Median: (7.9%) (3.2%) Total $4,526 $8,520 $3,316 $3, x 13.9x 1.9x 11.7x Market Cap. Weighted Average: (8.6%) 19.3% 2.9x 14.5x 2.9x 13.2x Emergency Services Air Methods Corp. $34.09 (17.5%) (38.6%) $57.50 $33.76 $1,340 $664 $29 $1,982 $1,028 $260 $179 Jun-15 Dec-14 $1,053 $272 $ x 7.6x 1.9x 7.3x Number of Companies 1 Median: (17.5%) (38.6%) Total $1,340 $1,982 $1,028 $1, x 7.6x 1.9x 7.3x Market Cap. Weighted Average: (17.5%) (38.6%) 1.9x 7.6x 1.9x 7.3x Healthcare Staffing AMN Healthcare Services Inc. $30.01 (5.0%) 91.1% $37.47 $15.04 $1,430 $226 $14 $1,642 $1,222 $111 $93 Jun-15 Dec-14 $1,401 $144 $ x 14.8x 1.2x 11.4x Envision Healthcare Holdings, Inc (6.8%) 6.1% ,833 2, ,927 4, Jun-15 Dec-14 5, x 15.0x 1.6x 13.6x Cross Country Healthcare, Inc % 46.5% Jun-15 Dec x 20.0x 0.7x 16.4x On Assignment Inc (6.1%) 37.4% , ,731 1, Jun-15 Dec-14 2, x 14.1x 1.4x 11.7x Team Health Holdings, Inc (17.3%) (6.8%) , ,734 3, Jun-15 Dec-14 3, x 14.7x 1.3x 12.5x Number of Companies 5 Median: (6.1%) 37.4% Total $14,558 $18,536 $12,040 $13, x 14.8x 1.3x 12.5x Market Cap. Weighted Average: (8.9%) 16.4% 1.5x 14.7x 1.3x 12.5x As of September 30, PAGE 6

8 PUBLIC COMPARABLES Payor, Provider, & Pharmacy Support Services HMO - Medical Company Name Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 9/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Commercial: Aetna Inc. $ (14.2%) 35.1% $ $71.81 $38,150 $8,384 $1,126 $45,469 $59,724 $5,159 $4,511 Jun-15 Dec-14 $60,562 $5,243 $4, x 8.8x 0.8x 8.7x Anthem, Inc (14.7%) 17.0% ,622 18,352 1,553 53,421 76,608 6,587 5,794 Jun-15 Dec-14 78,139 5,390 4, x 8.1x 0.7x 9.9x Cigna Corp (1) (16.7%) 48.9% ,767 5,196 1,969 38,083 36,644 3,930 3,601 Jun-15 Dec-14 38,086 4,133 3, x 9.7x 1.0x 9.2x Health Net, Inc. (2) (6.1%) 30.6% , ,507 15, Jun-15 Dec-14 16, x 11.8x 0.3x 7.8x Humana Inc. (3) (6.4%) 37.4% ,530 4,432 2,250 28,712 52,131 2,596 2,323 Jun-15 Dec-14 54,802 2,861 2, x 11.1x 0.5x 10.0x UnitedHealth Group Incorporated (4.9%) 34.5% ,623 31,782 7, , ,941 12,486 11,318 Sep-15 Dec ,584 12,959 11, x 9.8x 0.8x 9.4x Number of Companies 6 Median: (10.3%) 34.8% Total $251,347 $292,647 $387,650 $402, x 9.7x 0.7x 9.3x Market Cap. Weighted Average: (9.5%) 34.3% 0.8x 9.6x 0.8x 9.4x Government: Centene Corp. $54.23 (32.5%) 31.1% $83.00 $37.53 $6,458 $1,149 $1,967 $5,795 $18,548 $732 $632 Jun-15 Dec-14 $22,417 $807 $ x 7.9x 0.3x 7.2x Molina Healthcare, Inc (2.1%) 62.8% , ,014 2,766 11, Jun-15 Dec-14 14, x 6.6x 0.2x 5.3x Universal American Corp 6.84 (32.4%) (14.9%) ,947 (7) (18) Jun-15 Dec-14 1, NA 0.3x NM 0.3x 15.9x WellCare Health Plans, Inc % 42.8% ,798 1,213 1,340 3,672 13, Jun-15 Dec-14 13, x 9.0x 0.3x 6.6x Number of Companies 4 Median: (17.2%) 37.0% Total $14,668 $12,743 $45,889 $52, x 7.9x 0.3x 6.9x Market Cap. Weighted Average: (15.7%) 40.7% 0.3x 7.9x 0.2x 6.9x Information Services Data/Analytics: Castlight Health, Inc. $4.20 (48.4%) (67.5%) $13.44 $4.02 $396 $0 $32 $232 $61 ($79) ($81) Jun-15 Dec-14 $76 ($64) ($66) 3.8x NM 3.1x NM Inovalon Holdings, Inc (25.3%) NM , , Jun-15 Dec x 18.6x 5.9x 16.2x National Research Corp % (11.1%) Jun-15 Dec x 11.1x 3.2x 10.8x Number of Companies 3 Median: (25.3%) (39.3%) Total $3,844 $332 $548 $ x 14.9x 3.2x 13.5x Market Cap. Weighted Average: (25.3%) (8.0%) 6.0x 17.8x 5.4x 15.6x ehealth: WebMD Health Corp. $39.84 (10.0%) (4.7%) $48.91 $34.48 $1,469 $952 $757 $1,664 $598 $122 $104 Jun-15 Dec-14 $629 $187 $ x 13.6x 2.6x 8.9x Number of Companies 1 Median: (10.0%) (4.7%) Total $1,469 $1,664 $598 $ x 13.6x 2.6x 8.9x Market Cap. Weighted Average: (10.0%) (4.7%) 2.8x 13.6x 2.6x 8.9x Hospital/Physician: Allscripts Healthcare Solutions, Inc. $12.40 (9.4%) (7.6%) $15.41 $11.00 $2,343 $663 $77 $2,938 $1,373 $80 ($6) Jun-15 Dec-14 $1,406 $244 $ x NM 2.1x 12.0x Athenahealth, Inc % 1.3% , , (0) Jun-15 Dec x NM 5.8x 31.8x Cerner Corporation (13.2%) 0.7% , ,755 3,812 1, Jul-15 Jan-15 4,535 1,455 1, x 19.4x 4.6x 14.3x Computer Programs & Systems Inc (21.1%) (26.7%) Jun-15 Dec x 10.1x 2.3x 11.2x HMS Holdings Corp (48.9%) (53.5%) Jun-15 Dec x 9.5x 1.8x 7.4x MedAssets, Inc (9.1%) (3.2%) , , Jun-15 Dec x 9.3x 2.7x 8.6x Premier, Inc (10.6%) 4.6% , , Jun-15 Jun-15 1, x 2.8x 0.8x 2.1x Quality Systems Inc (24.7%) (9.4%) Jun-15 Mar x 12.2x 1.2x 8.3x The Advisory Board Company (16.7%) (2.3%) , , Jun-15 Dec x NM 3.2x 14.4x Number of Companies 9 Median: (13.2%) (3.2%) Total $34,631 $36,345 $9,583 $10, x 9.8x 2.3x 11.2x Market Cap. Weighted Average: (9.6%) (1.8%) 4.8x 17.4x 4.1x 15.8x As of September 30, (1) To be acquired by Anthem (NYSE:ANTM) in a $54.2 billion transaction announced July 24, (2) To be acquired by Centene (NYSE:CNC) in a $6.3 billion transaction announced July 2, (3) To be acquired by Aetna (NYSE:AET) in a $37.0 billion transaction announced July 3, PAGE 7

9 PUBLIC COMPARABLES Payor, Provider, & Pharmacy Support Services Company Name Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 9/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty Managed Care Assurant Inc. $ % 22.9% $80.08 $59.73 $5,279 $1,267 $1,297 $5,248 $10,569 $629 $493 Jun-15 Dec-14 $8,254 $980 $ x 8.3x 0.6x 5.4x CorVel Corporation % (5.1%) Jun-15 Mar-15 NA NA NA 1.2x 9.9x NA NA HealthEquity, Inc (7.8%) 61.4% , , Jul-15 Jan x NM 12.4x NM Number of Companies 3 Median: 0.9% 22.9% Total $7,614 $7,407 $11,171 $8, x 9.1x 6.5x 5.4x Market Cap. Weighted Average: 10.8% 29.1% 3.6x 8.5x 3.5x 5.4x Retail Pharmacy CVS Health Corporation $96.48 (8.0%) 21.2% $ $77.40 $107,865 $13,145 $1,244 $119,612 $145,577 $10,920 $8,976 Jun-15 Dec-14 $151,246 $980 NA 0.8x 11.0x 0.8x NM Walgreens Boots Alliance, Inc (1.6%) 40.2% ,769 16,247 4, ,849 93,979 6,395 4,927 May-15 Aug ,529 7,618 6, x 16.1x 1.0x 13.5x Rite Aid Corporation 6.07 (27.3%) 25.4% ,161 7, ,452 27,853 1, Aug-15 Feb-15 30,927 1, x 10.3x 0.4x 9.5x Number of Companies 3 Median: (8.0%) 25.4% Total $204,794 $235,913 $267,409 $285, x 11.0x 0.8x 11.5x Market Cap. Weighted Average: (11.8%) 23.8% 1.0x 13.1x 1.0x 12.8x Specialty Pharmacy Diplomat Pharmacy, Inc. $28.73 (35.8%) NM $52.33 $15.45 $1,828 $191 $17 $2,006 $2,640 $44 $30 Jun-15 Dec-14 $2,796 $46 $71 0.8x NM 0.7x NM Number of Companies 1 Median: (35.8%) NM Total $1,828 $2,006 $2,640 $2, x NM 0.7x NM Market Cap. Weighted Average: (35.8%) NM 0.8x NM 0.7x NM Specialty Pharmacy Management Express Scripts Holding Company $80.96 (9.0%) 14.6% $94.61 $68.06 $54,707 $16,734 $721 $70,729 $102,445 $6,820 $4,776 Jun-15 Dec-14 $103,956 $7,043 $6, x 10.4x 0.7x 10.0x PharMerica Corporation (14.5%) 16.5% ,195 2, Jun-15 Dec-14 1, x 8.9x 0.6x 8.6x Number of Companies 2 Median: (11.7%) 15.6% Total $55,574 $71,923 $104,448 $105, x 9.7x 0.6x 9.3x Market Cap. Weighted Average: (9.1%) 14.7% 0.7x 10.3x 0.7x 10.0x As of September 30, PAGE 8

10 PUBLIC COMPARABLES Products & Devices Company Name Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 9/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $ (8.1%) 0.1% $ $ $88,570 $8,517 $2,983 $93,639 $31,120 $8,516 $7,133 Jun-15 Dec-14 $30,811 $8,573 $7, x 11.0x 3.0x 10.9x DENTSPLY International Inc (1.9%) 10.9% ,070 1, ,021 2, Jun-15 Dec-14 2, x 14.0x 3.0x 13.3x Sirona Dental Systems Inc. (1) (7.1%) 21.7% , ,878 1, Jun-15 Sep-14 1, x 17.4x 4.2x 14.3x Number of Companies 3 Median: (7.1%) 10.9% Total $100,858 $106,538 $35,048 $34, x 14.0x 3.0x 13.3x Market Cap. Weighted Average: (7.6%) 1.9% 3.1x 11.5x 3.1x 11.3x Durable Medical Equipment Hill-Rom Holdings, Inc. $51.99 (4.3%) 25.5% $58.73 $39.58 $2,949 $578 $123 $3,414 $1,894 $274 $175 Jun-15 Sep-14 $1,965 $316 $ x 12.4x 1.7x 10.8x Invacare Corporation (33.1%) 22.5% ,214 1 (23) Jun-15 Dec-14 1, (15) 0.4x NM 0.4x NM ResMed Inc (9.6%) 3.4% , ,744 1, Jun-15 Jun-15 1, x 14.0x 3.8x 13.1x Number of Companies 3 Median: (9.6%) 22.5% Total $10,580 $10,654 $4,787 $4, x 13.2x 1.7x 12.0x Market Cap. Weighted Average: (9.2%) 10.4% 3.2x 13.5x 3.1x 12.5x Life Sciences Tools Agilent Technologies Inc. $34.33 (11.0%) (39.8%) $57.16 $33.25 $11,377 $1,655 $2,075 $10,960 $6,979 $1,198 $912 Jul-15 Oct-14 $4,041 $866 $ x 9.1x 2.7x 12.7x Becton, Dickinson and Company (6.3%) 16.6% ,892 13,171 1,559 39,466 9,410 2,417 1,733 Jun-15 Sep-14 10,290 2,695 2, x 16.3x 3.8x 14.6x Thermo Fisher Scientific, Inc (5.8%) 0.5% ,727 14, ,984 16,854 4,026 2,308 Jun-15 Dec-14 16,810 4,253 3, x 15.4x 3.7x 14.6x VWR Corporation (3.9%) NM ,375 2, ,311 4, Jun-15 Dec-14 4, x 11.7x 1.2x 11.4x Number of Companies 4 Median: (6.1%) 0.5% Total $91,371 $117,721 $37,570 $35, x 13.5x 3.2x 13.6x Market Cap. Weighted Average: (6.5%) 0.4% 3.5x 14.8x 3.5x 14.2x Medical Devices and Products Abbott Laboratories $40.22 (18.1%) (3.3%) $51.74 $39.00 $59,946 $8,778 $4,048 $57,665 $20,502 $4,638 $3,229 Jun-15 Dec-14 $20,659 $4,993 $4, x 12.4x 2.8x 11.5x Baxter International Inc (53.0%) (54.2%) ,921 14,230 6,680 25,504 16,326 4,049 3,036 Jun-15 Dec-14 9,873 1, x 6.3x 2.6x 16.3x Boston Scientific Corporation (7.3%) 39.0% ,054 5, ,263 7,272 1,741 1,009 Jun-15 Dec-14 7,436 2,049 1, x 15.1x 3.5x 12.8x ConforMIS, Inc % NM (45) (47) Jun-15 Dec (52) (55) 12.3x NM 11.3x NM CR Bard Inc % 30.6% ,824 1,400 1,098 14,121 3,377 1, Jun-15 Dec-14 3,415 1, x 13.5x 4.1x 13.8x Danaher Corp (0.4%) 12.1% ,240 3,163 3,342 58,132 20,288 4,604 3,630 Jul-15 Dec-14 20,922 4,808 3, x 12.6x 2.8x 12.1x Hanger, Inc (41.8%) (33.5%) ,003 1, Jun-14 Dec-13 1, x 6.3x 0.9x 6.1x Hologic Inc % 60.8% ,027 3, ,083 2, Jun-15 Sep-14 2,694 1, x 14.6x 5.2x 13.9x Johnson & Johnson (4.2%) (12.4%) ,496 19, ,849 70,517 22,508 18,850 Sep-15 Dec-14 70,677 23,410 19, x 10.8x 3.5x 10.4x K2M Group Holdings, Inc (22.6%) 28.9% (14) (40) Jun-15 Dec (33) 3.7x NM 3.4x NM Medtronic plc (9.7%) 8.1% ,627 35,600 2, ,240 23,127 7,024 5,232 Jul-15 Apr-15 28,954 10,067 8, x 16.0x 3.9x 11.1x Penumbra, Inc % NM , , Jun-15 Dec-14 NA NA NA 8.5x NM NA NA Stryker Corporation (1.5%) 16.5% ,434 3,469 3,626 34,623 9,818 2,623 2,242 Jun-15 Dec-14 9,968 2,642 2, x 13.2x 3.5x 13.1x Teleflex Incorporated (8.3%) 18.3% ,167 1, ,956 1, Jun-15 Dec-14 1, x 14.5x 3.3x 12.6x Zemach Hammerman Ltd % 3.2% Jun-15 Dec-14 NA NA NA 2.0x NM NA NA Number of Companies 15 Median: (4.2%) 12.1% Total $580,086 $596,562 $177,329 $177, x 13.2x 3.5x 12.6x Market Cap. Weighted Average: (7.2%) (0.5%) 3.6x 12.4x 3.4x 11.4x Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $94.99 (10.7%) 22.9% $ $74.32 $20,537 $3,750 $2,555 $21,732 $132,080 $1,544 $1,319 Jun-15 Sep-14 $135,022 $2,063 $1, x 14.1x 0.2x 10.5x Cardinal Health, Inc (8.2%) 2.5% ,262 5,493 4,616 26, ,531 2,694 2,243 Jun-15 Jun ,783 3,156 2, x 9.7x 0.2x 8.3x Henry Schein, Inc (6.6%) 14.0% , ,327 10, Jun-15 Dec-14 10, x 13.8x 1.2x 13.3x McKesson Corporation (17.7%) (5.0%) ,002 9,796 5,635 48, ,115 4,237 3,311 Jun-15 Mar ,361 5,184 4, x 11.5x 0.3x 9.4x Owens & Minor Inc (6.1%) (2.4%) , ,386 9, Jun-15 Dec-14 9, x 9.3x 0.2x 8.6x Patterson Companies, Inc (11.1%) 4.4% ,358 1, ,848 4, Aug-15 Apr-15 5, x 13.3x 1.1x 12.4x Number of Companies 6 Median: (9.4%) 3.5% Total $106,239 $117,111 $442,415 $470, x 12.4x 0.2x 10.0x Market Cap. Weighted Average: (12.4%) 4.6% 0.4x 11.8x 0.4x 9.9x As of September 30, (1) To be acquired by DENTSPLY International (NYSE:XRAY) in a $5.5 billion transaction announced September 15, PAGE 9

11 PUBLIC COMPARABLES Provider-Based Services Company Name Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 9/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $42.77 (32.1%) (21.9%) $65.00 $40.52 $5,054 $16,937 $365 $22,233 $19,491 $2,917 $1,786 Jun-15 Dec-14 $19,846 $3,066 $1, x 7.6x 1.1x 7.3x HCA Holdings, Inc (14.7%) 9.7% ,119 29, ,724 38,429 7,699 5,838 Jun-15 Dec-14 39,649 7,832 5, x 8.1x 1.6x 8.0x LifePoint Health, Inc (18.5%) 2.5% ,149 2, ,054 4, Jun-15 Dec-14 5, x 8.1x 1.0x 7.2x Tenet Healthcare Corp (36.2%) (37.8%) ,676 14, ,937 17,568 2,187 1,336 Jun-15 Dec-14 18,423 2,297 1, x 9.1x 1.1x 8.7x Number of Companies 4 Median: (25.3%) (9.7%) Total $43,997 $109,948 $80,451 $83, x 8.1x 1.1x 7.6x Market Cap. Weighted Average: (18.8%) 1.6% 1.5x 8.2x 1.4x 7.9x Assisted Living Brookdale Senior Living Inc. $22.96 (33.8%) (28.7%) $39.89 $22.00 $4,237 $6,476 $78 $10,634 $4,151 $792 ($43) Jun-15 Dec-14 $4,996 $849 $72 2.6x 13.4x 2.1x 12.5x Capital Senior Living Corp (18.2%) (5.6%) , Jun-15 Dec x 18.3x 3.1x 15.6x Five Star Quality Care Inc (35.6%) (18.0%) , (17) Jun-15 Dec-14 1, x 11.3x 0.1x 6.1x Number of Companies 3 Median: (33.8%) (18.0%) Total $4,980 $12,104 $5,664 $6, x 13.4x 2.1x 12.5x Market Cap. Weighted Average: (32.0%) (25.7%) 2.6x 13.9x 2.2x 12.7x Long-Term Care Kindred Healthcare Inc. $15.75 (22.4%) (18.8%) $24.66 $15.61 $1,321 $3,260 $120 $4,550 $6,003 $444 $289 Jun-15 Dec-14 $7,197 $625 $ x 10.2x 0.6x 7.3x National Healthcare Corp (6.3%) 9.7% Jun-15 Dec-14 NA NA NA 1.0x 8.4x NA NA The Ensign Group, Inc (16.5%) 22.5% , ,083 1, Jun-15 Dec-14 1, x 11.3x 0.8x 8.0x Number of Companies 3 Median: (16.5%) 9.7% Total $3,278 $6,526 $8,050 $8, x 10.2x 0.7x 7.7x Market Cap. Weighted Average: (16.2%) 2.5% 0.9x 10.1x 0.7x 7.6x Diagnostic Imaging Alliance Healthcare Services, Inc. $9.76 (47.8%) (56.8%) $25.83 $9.00 $103 $543 $43 $683 $448 $115 $57 Jun-15 Dec-14 NA NA NA 1.5x 6.0x NA NA RadNet, Inc (17.0%) (16.2%) Jun-15 Dec x 8.8x 1.2x 7.1x Varian Medical Systems, Inc (12.5%) (7.9%) , ,769 3, Jul-15 Sep-14 3, x 10.3x 2.2x 10.4x Number of Companies 3 Median: (17.0%) (16.2%) Total $7,633 $8,342 $4,296 $3, x 8.8x 1.7x 8.8x Market Cap. Weighted Average: (13.1%) (8.8%) 2.1x 10.2x 2.1x 10.3x Dialysis Services DaVita HealthCare Partners Inc. $72.33 (9.0%) (1.1%) $85.17 $70.12 $15,587 $9,211 $934 $23,985 $13,290 $2,415 $1,800 Jun-15 Dec-14 $13,701 $2,518 $1, x 9.9x 1.8x 9.5x Fresenius Medical Care AG & Co. KGAA (5.9%) 26.6% ,211 9, ,332 16,982 3,005 2,285 Jun-15 Dec-14 16,895 3,117 2, x 10.1x 1.8x 9.7x Number of Companies 2 Median: (7.5%) 12.7% Total $36,798 $54,318 $30,272 $30, x 10.0x 1.8x 9.6x Market Cap. Weighted Average: (7.2%) 14.8% 1.8x 10.0x 1.8x 9.6x Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $ % 58.9% $35.83 $17.06 $344 $4 $42 $305 $332 $25 $20 Jun-15 Dec-14 $344 $27 $22 0.9x 12.4x 0.9x 11.1x Almost Family Inc % 47.4% Jul-15 Dec x 12.0x 0.8x 10.9x Amedisys Inc (4.4%) 88.2% , ,341 1, Jun-15 Dec-14 1, x 15.0x 1.1x 12.1x Chemed Corp % 29.7% , ,386 1, Jun-15 Dec-14 1, x 11.6x 1.6x 10.6x LHC Group, Inc % 93.0% Jun-15 Dec x 11.7x 1.1x 11.7x Number of Companies 5 Median: 1.8% 58.9% Total $5,077 $5,311 $4,294 $4, x 12.0x 1.1x 11.1x Market Cap. Weighted Average: 3.2% 57.8% 1.3x 12.6x 1.3x 11.2x Home Infusion: BioScrip, Inc. $1.87 (48.5%) (72.9%) $7.01 $1.30 $129 $419 $1 $604 $1,022 ($52) ($73) Jun-15 Dec-14 $983 $20 ($265) 0.6x NM 0.6x 29.5x Number of Companies 1 Median: (48.5%) (72.9%) Total $129 $604 $1,022 $ x NM 0.6x 29.5x Market Cap. Weighted Average: (48.5%) (72.9%) 0.6x NM 0.6x 29.5x As of September 30, PAGE 10

12 PUBLIC COMPARABLES Provider-Based Services Company Name Physician Practice Management Stock Price Equity Total Ent. Latest Twelve Months Forward Twelve Month Cash and LTM Latest TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Mkt. Total Debt Value (LTM) Estimate Equiv. Period FYE Date 9/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Multispecialty / Primary Care: IPC Healthcare, Inc. (1) $ % 73.5% $80.09 $36.12 $1,353 $90 $12 $1,431 $714 $70 $65 Jun-15 Dec-14 $752 $72 $63 2.0x 20.3x 1.9x 19.9x Number of Companies 1 Median: 40.3% 73.5% Total $1,353 $1,431 $714 $ x 20.3x 1.9x 19.9x Market Cap. Weighted Average: 40.3% 73.5% 2.0x 20.3x 1.9x 19.9x Specialty: MEDNAX, Inc. $ % 40.1% $86.09 $49.82 $7,207 $1,297 $65 $8,435 $2,593 $589 $535 Jun-15 Dec-14 $2,800 $630 $ x 14.3x 3.0x 13.4x Number of Companies 1 Median: 3.6% 40.1% Total $7,207 $8,435 $2,593 $2, x 14.3x 3.0x 13.4x Market Cap. Weighted Average: 3.6% 40.1% 3.3x 14.3x 3.0x 13.4x Behavioral Health / Management AAC Holdings, Inc. $22.25 (48.9%) NM $46.60 $15.09 $499 $76 $45 $527 $158 $31 $25 Jun-15 Dec-14 $190 $42 $26 3.3x 17.1x 2.8x 12.5x Acadia Healthcare Company, Inc (15.4%) 36.6% ,747 1, ,666 1, Jun-15 Dec-14 1, x 22.2x 3.8x 16.7x Civitas Solutions, Inc % 46.7% ,483 1, Jun-15 Sep-14 1, x 10.4x 1.1x 9.7x Magellan Health, Inc (20.9%) 1.3% , ,494 4, Jun-15 Dec-14 4, x 6.4x 0.3x 5.3x Providence Service Corp (1.6%) (9.9%) ,120 1, Jun-15 Dec-14 2, x 10.1x 0.5x 9.3x Universal Health Services Inc (12.2%) 19.4% ,360 3, ,663 8,576 1,585 1,198 Jun-15 Dec-14 9,589 1,682 1, x 9.9x 1.6x 9.3x Number of Companies 6 Median: (13.8%) 19.4% Total $20,646 $26,953 $17,391 $19, x 10.3x 1.4x 9.5x Market Cap. Weighted Average: (13.3%) 21.7% 2.4x 12.7x 2.0x 10.8x Surgicenters / Rehabilitation Surgery Centers (2) : AmSurg Corp. $ % 55.3% $87.42 $47.68 $3,765 $2,249 $126 $6,054 $2,297 $340 $294 Jun-15 Dec-14 $2,512 $497 NA 2.6x 17.8x 2.4x 12.2x Surgical Care Affiliates, Inc (14.8%) 22.3% , , Jun-15 Dec-14 1, NA 2.2x 13.8x 2.0x 11.7x Number of Companies 2 Median: (1.9%) 38.8% Total $5,055 $8,071 $3,231 $3, x 15.8x 2.2x 11.9x Market Cap. Weighted Average: 4.5% 46.8% 2.5x 16.8x 2.3x 12.1x Rehabilitation: HEALTHSOUTH Corp. $38.37 (16.7%) 4.0% $48.37 $36.10 $3,509 $2,126 $46 $5,839 $2,678 $622 $502 Jun-15 Dec-14 $3,036 $678 $ x 9.4x 1.9x 8.6x Select Medical Holdings Corporation (33.4%) (10.3%) ,418 2, ,174 3, Jun-15 Dec-14 3, x 11.4x 1.1x 10.2x US Physical Therapy Inc (18.0%) 26.8% Jun-15 Dec x 11.9x 1.9x 12.7x Number of Companies 3 Median: (18.0%) 4.0% Total $5,484 $10,638 $6,156 $7, x 11.4x 1.9x 10.2x Market Cap. Weighted Average: (21.1%) 2.6% 1.9x 10.2x 1.7x 9.4x As of September 30, (1) To be acquired by TeamHealth (NYSE:TMH) in a $1.6 billion transaction announced August 4, (2) Figures are adjusted for minority interest. PAGE 11

13 M&A TRANSACTIONS Announced U.S. Healthcare & Life Sciences M&A Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 9/30/ Senior Communities at nd Ave. W, Aegis Senior Communities LLC Welltower Inc. (NYSE:HCN) hoh18.75 N.E. 185th St. and th Ave. N.E. 9/30/2015 Hema Diagnostic Systems LLC - Generex Biotechnology Corp. $ No (OTCPK:GNBT) 9/30/2015 HomeFirst Healthcare Services, LLC - Epic Health Services, Inc. 9/30/2015 Ohio State University, APP-111 Ohio State University, Endowment Arm Aspen Park Pharmaceuticals, Inc. 9/30/2015 Attica Family Medicine, PLLC - United Memorial Medical Center 9/30/2015 Rare Insights LLC - Spherix Global Insights GmbH 9/29/2015 Global Cancer Diagnostics Inc. - QuantRx Biomedical Corporation (OTCPK:QTXB) 9/29/2015 Bayonne Visiting Nurse Association Inc., Assets of Home Health Agency in Hudson County Bayonne Visiting Nurse Association Inc. Almost Family Inc. (NasdaqGS:AFAM) 9/29/2015 Questhouse, Inc. - JourneyPure LLC 9/28/2015 New Jersey Anesthesia Associates, P.C. - MEDNAX, Inc. (NYSE:MD) 9/28/2015 Lazarus Effect, Inc. - Medtronic plc (NYSE:MDT) $ No 9/28/2015 Teva Women's Health, Inc., MILPROSA Teva Women's Health, Inc. Ferring Holding SA 9/25/2015 Transgenomic Inc., Genetic Assays and Platforms Transgenomic Inc. (NasdaqCM:TBIO) ADSTEC Corporation business Segment And Facilities 9/25/2015 Titusville Area Hospital - Meadville Medical Center 9/25/2015 WPC Healthcare, Inc. Washington Publishing Company - 9/25/2015 Gecko Health Innovations, Inc. - Teva Pharmaceutical Industries Limited (NYSE:TEVA) 9/24/2015 Phoundry Pharmaceuticals, Inc. Pappas Ventures Intarcia Therapeutics, Inc. 9/24/2015 Century Ambulance Service, Inc. - Protransport-1, LLC 9/24/2015 Four Skilled Nursing Facilities in Texas - Shady Shores Communities LLC 9/24/2015 DentaQuest Mid-Atlantic, Inc. and DentaQuest DentaQuest Management, Inc. Dominion Dental Services, Inc. Virginia, Inc. 9/24/2015 Clarke Engineering Services, Inc. - Harbert Mezzanine Partners; Red Oak Yes Growth Partners; Tenth Street Capital, LLC 9/23/2015 Sagacious Consultants, LLC - Accenture plc (NYSE:ACN) 9/23/2015 Ashit K. Vijapura Psychiatry Practice - IPC Healthcare, Inc. (NasdaqGS:IPCM) 9/23/2015 Radiology Services Corp And Diagnostic - Wichita Radiological Group, P.A. Ultrasound Services 9/23/ Unit Stafford Village Complex - National Church Residences, Inc. 9/23/2015 Healthcare Staffing Services, LLC Altaris Capital Partners, LLC Thomas H. Lee Partners, L.P Yes 9/22/2015 Dermatology of Northern Colorado PC - Advanced Dermatology & Cosmetic Surgery Inc. 9/22/2015 A 55 Bed Nursing Facility in Tampa Bay Area, Florida 9/22/2015 Performance Rehab Institute & Sports Medicine Inc. - AdCare Health Systems, Inc. $ No (AMEX:ADK) - PT Solutions Holdings, LLC 9/22/2015 Livonia Woods Nursing and Rehabilitation Center NexCare Health Systems, L.L.C. Lutheran Homes of Michigan Inc., Endowment Arm 9/21/2015 Synowledge LLC - BioClinica, Inc. 9/21/2015 Lehigh HMA, LLC Community Health Systems, Inc. Prime Healthcare Services, Inc. (NYSE:CYH) 9/21/2015 The Everett Clinic, Inc. - DaVita HealthCare Partners Inc. (NYSE:DVA) 9/21/2015 ER Centers of America, Inc. - ER Holdings 9/21/2015 Enterprise Consulting Solutions Inc. - HealthPort Incorporated 9/21/2015 Trinity Community at Fairwood - United Church Homes, Inc. 9/18/2015 Alegis Revenue Solutions, LLC - MedData, Inc. 9/18/2015 Phoenix Health LLC - Constellation Healthcare Technologies, $ x 6.4x - No Inc. (AIM:CHT) 9/18/2015 Foundations Recovery Network, LLC - Universal Health Services Inc. $ No (NYSE:UHS) 9/17/2015 IGeneX, Inc. - 4C Capital, LLC Yes 9/17/2015 HCR ManorCare, Inc., Heartland of Preston HCR ManorCare, Inc. Stonerise Healthcare LLC County 9/16/2015 GruenePointe Holdings, LLC, Nine Texas Skilled GruenePointe Holdings, LLC MedEquities Realty Trust, Inc. $ No Nursing Facilities 9/16/2015 PetCure Oncology at the Veterinary Radiosurgery - PetCure Oncology LLC and Imaging Center PAGE 12

14 M&A TRANSACTIONS Announced U.S. Healthcare & Life Sciences M&A cont. Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 9/16/2015 Sage Care Therapy Services Inc. - ChanceLight Behavioral Health and Education 9/16/2015 Alliance Healthcare Services, Inc. (NasdaqGM:AIQ) 9/15/2015 Nexus Pharmaceuticals, Inc., Three Ophthalmic ANDAs Oaktree Capital Management, L.P.; MTS Health Investors, LLC; Alliance-MTS Co-Investors I, LLC; Alliance-Oaktree Co-Investors, LLC; Alliance-MTS Co- Investors II, LLC Fujian Thaihot Investment Co., Ltd. $ x 6.5x 12.4x Yes Nexus Pharmaceuticals, Inc. Rising Pharmaceuticals, Inc. 9/15/2015 IHM Services Company, Inc - Persivia 9/15/2015 PRO MED Medical Care Centers - U.S. Healthworks, Inc. 9/15/2015 Sirona Dental Systems Inc. (NasdaqGS:SIRO) - DENTSPLY International Inc. $5, x 18.2x 20.9x No (NasdaqGS:XRAY) 9/15/2015 The First String Healthcare, Inc. - AMN Healthcare Services Inc. (NYSE:AHS) 9/15/2015 Circle City Veterinary Specialty & Emergency - MedVet Associates, Inc. Hospital, LLC 9/14/2015 Four Hospitals in Tennessee Community Health Systems, Inc. Tennova Healthcare (NYSE:CYH) 9/14/2015 The Therapy Center, Inc. - BenchMark Rehabilitation Partners, LLC 9/11/2015 Trilogy Investors LLC - NorthStar Healthcare Income, Inc.; $1, No Griffin-American Healthcare REIT III, Inc.; Northstar Asset Management Group Inc. (NYSE:NSAM) 9/11/2015 PacificGMP, Inc. - Abzena Inc. $ x - - No 9/11/2015 Vandalia Research, Inc. West Virginia Jobs Investment Trust Board; Mountaineer Capital, LP Applied DNA Sciences Inc. (NasdaqCM:APDN) $ No 9/10/2015 NYSportsMed - Orthology, Inc. 9/10/2015 Diplomat Pharmacy, Inc., Compounding Diplomat Pharmacy, Inc. (NYSE:DPLO) Restore Health Pharmacy, LLC Pharmacy Assets 9/10/2015 Jackson Adept Research - Jackson Associates, Inc. 9/10/2015 Trapollo LLC - Cox Communications, Inc. 9/10/2015 Knoxville Gastroenterology Anesthesia Associates - CRH Medical Corporation (TSX:CRH) LLC 9/10/2015 Altus Imaging Center - Riceland HealthCare, L.P. 9/10/2015 Physician's Link Home Care, PLLC - Riceland HealthCare, L.P. 9/10/2015 Infraredx, Inc. - Nipro Corporation (TSE:8086) 9/10/2015 Central Medical Laboratories, LLC Health Diagnostic Laboratory, Inc. Oncimmune USA, LLC $ No 9/9/2015 SleepIQ Labs Inc. - Select Comfort Corporation $ No (NasdaqGS:SCSS) 9/9/2015 Atlantic Health Partners, LLC Longmeadow Capital Partners, LLC Managed Health Care Associates, Inc Yes 9/9/2015 NeuroFix Therapeutics, LLC - Medgenics, Inc. (AMEX:MDGN) $ No 9/9/2015 Seahorse Bioscience, Inc. HLM Venture Partners; Flagship Agilent Technologies Inc. (NYSE:A) $ No Ventures; GlaxoSmithKline plc (LSE:GSK); FLIR Systems, Inc. (NasdaqGS:FLIR) 9/9/2015 Amgen Inc., Biological Medicines Manufacturing Amgen Inc. (NasdaqGS:AMGN) MedImmune, LLC $ No Facility In Boulder, Colorado 9/8/2015 Transgenomic Inc., Ion Chromatography Product Transgenomic Inc. (NasdaqCM:TBIO) Edge Biosystems, Inc. $ No Line 9/8/2015 NeoForce Group, Inc. - Capnia, Inc. (NasdaqCM:CAPN) $ No 9/8/2015 Particle Sciences, Inc. - Lubrizol Advanced Materials, Inc. - - NM - No 9/8/2015 VM Pharma LLC, VM-902A VM Pharma LLC Purdue Pharma L.P.; Mundipharma International Limited 9/8/2015 Optical Affairs Company - Dita, Inc. 9/8/2015 Greenfield Counseling, Inc. - Pinnacle Treatment Centers, Inc. 9/4/2015 Town & Country Pediatrics, S.C. - Ann & Robert H. Lurie Children's Hospital of Chicago 9/4/2015 Health Diagnostic Laboratory, Inc. - True Health Diagnostics LLC $ No 9/4/2015 Advanced Laser Center of Oklahoma, LLC - Vision Group Holdings, LLC 9/3/2015 Exelan Pharmaceuticals, Inc. - Cipla (EU) Limited $ x - - No 9/3/2015 Tornier, Ankle and Toe Replacement Products Tornier SAS; Tornier, Inc. Integra LifeSciences Corporation Portfolios 9/3/2015 Halcyon Home Health, LLC Triangle Capital Corporation (NYSE:TCAP); Health Evolution Partners LHC Group, Inc. (NasdaqGS:LHCG) $ x - - Yes 9/3/2015 Providence Human Services, LLC and Providence Community Services, LLC Providence Service Corp. (NasdaqGS:PRSC); Ross Innovative Employment Solutions Corp. Molina Healthcare, Inc. (NYSE:MOH) $ No PAGE 13

15 M&A TRANSACTIONS Announced U.S. Healthcare & Life Sciences M&A cont. Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 9/3/2015 AqueSys, Inc. Rho Capital Partners, Inc.; The Carlyle Allergan plc (NYSE:AGN) $ Yes Group LP (NasdaqGS:CG); The Innovation Factory, LLC; SV Life Sciences Advisers, LLC; Accuitive Medical Ventures, LLC; Longitude Capital Management Co., LLC 9/3/2015 Clinical Pharmacy Services, Inc. - Webster Capital 9/3/2015 InvaGen Pharmaceuticals, Inc. - Cipla (EU) Limited $ x - - No 9/3/2015 Option 1 Nutrition Solutions, LLC Thompson Street Capital Partners Epic Health Services, Inc Yes 9/2/2015 Advanced Family Eyecare - Family Eye Center 9/2/2015 Dermatology & Laser Institute of SW Florida - Advanced Dermatology & Cosmetic Surgery Inc. 9/2/2015 Optimus EMR, Inc. Breakwater Investment Management, Yardi Systems, Inc Yes LLC 9/2/2015 PWNHealth, LLC Medivo Inc. EDG Partners, LLC Yes 9/2/2015 Patient-Aids, Inc. - Patient Home Monitoring Corp. $ x 5.6x - No (TSXV:PHM) 9/2/2015 The Lutheran Care Network, Kenwood Manor and The Lutheran Care Network - $ No Bethlehem Commons at Good Samaritan Village 9/2/2015 Kremers Urban Pharmaceuticals Inc. Celltech Manufacturing, Inc. Lannett Company, Inc. (NYSE:LCI) $1, x 9.3x - No 9/2/2015 Sunshine Infusion Services, Inc. - BiologicTx, Inc. 9/2/2015 Connected Health Solutions, Inc. - MedTrak Services LLC 9/2/2015 Gwinnett Health System, Inc. - Northside Hospital, Inc. 9/2/2015 RestorixHealth, Inc. Sverica International Leonard Green & Partners, L.P Yes 9/1/2015 Five Senior Housing Facilities In Illinois - Sabra Health Care REIT, Inc. $ No (NasdaqGS:SBRA) 9/1/2015 Skylight Healthcare Systems, Inc. Pelion Venture Partners; Versant GetWellNetwork, Inc. Ventures, Inc.; Duchossois Capital Management LLC; MemorialCare Innovation Fund 9/1/2015 Synergetics USA, Inc. (NasdaqCM:SURG) AWM Investment Company Inc.; Nantahala Capital Management, LLC Valeant Pharmaceuticals International $ x 18.4x 25.1x No 9/1/2015 MedeAnalytics, Inc. Emergence Capital Partners; Bain Thoma Bravo, LLC Yes Capital Integral Investors LLC 9/1/2015 Institute for Athletic Medicine, Woodbury and Institute for Athletic Medicine OSI Physical Therapy, LLC Maplewood Clinics 9/1/2015 Mid-Atlantic ElderCare, PLLC - IPC Healthcare, Inc. (NasdaqGS:IPCM) 9/1/2015 Healthcare Performance Improvement, LLC - Press Ganey Holdings, Inc. (NYSE:PGND) 9/1/2015 Nine Property Portfolio - Care Capital Properties, Inc. (NYSE:CCP) $ No 9/1/2015 Bi-County Physical Therapy & Rehabilitation And Flynn Physical Therapy And S.M.A.R.T. Physical - Professional Orthopedic and Sports Physical Therapy, P.C. 9/1/2015 CFHS Holdings, Inc. Westridge Capital Cedars-Sinai Medical Center Yes 9/1/2015 Pediatric Associates of Orlando, P.A. - Orlando Health Physician Associates 9/1/2015 inventiv Patient Access Solutions, LLC inventiv Health Inc. TMS Health, LLC 9/1/2015 PKPD Bioscience, Inc. - Kinderpharm LLC 9/1/2015 The White Stone Group, Inc. - National Electronic Attachment, Inc.; Medical Electronic Attachment, Inc. 9/1/2015 Belvedere Medical Center Tsunami LLC - $ No 9/1/ Skilled Nursing and Assisted Living Facilities in - Senior Care Centers, LLC Texas, And MBS Pharmacy 9/1/2015 Southeast Veterinary Specialists, LLC - MedVet Associates, Inc. PAGE 14

16 INDUSTRY UPDATE OCTOBER 2015 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom Transportation & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California Phone: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt, Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 15

17 HARRIS WILLIAMS & CO. HEALTHCARE & LIFE SCIENCES SOURCES Company Filings. Capital IQ. Thomson Financial. S&P. Reuters. Bloomberg. DISCLOSURES Harris Williams & Co. ( is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sellside and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. The information and views contained in this report were prepared by Harris Williams & Co. ( Harris Williams ). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written consent. Copyright 2015 Harris Williams & Co., all rights reserved. PAGE 16