HEALTHCARE & LIFE SCIENCES

Transcription

1 Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

2 HEALTHCARE & LIFE SCIENCES 2015 OVERVIEW PAGE 1

3 WHAT WE RE READING PROVIDERS CALIFORNIA HOSPITAL S STARK VIOLATIONS Tri-City Medical Center, an Oceanside, CA hospital, reached a $3.3 million settlement over Stark violations. The hospital self-reported the violations back in Self-reporting most frequently occurs when operators become aware of errors that may potentially violate the Stark Law and False Claims Act. Most surprising in this instance was that nearly 100% of the hospital s payment arrangements with doctors and physician groups were in violation of federal law. The reported incidents varied from above fair market value arrangements with the former chief of staff to technical violations, such as operating under expired agreements, missing signatures, etc. The executives who oversaw these contracts are no longer associated with the hospital and Tri-City noted that all of its current contracts are compliant. The Tri-City settlement marks yet another instance of hospital systems entering into large settlements with the government over alleged violations flagged through both self-reporting and whistle-blower lawsuits. A link to the article can be found here. OUTSOURCED CLINICAL SERVICES OREGON DOCTORS UNIONIZE A team of physicians in Oregon have found a unique way to combat the common trend of outsourcing hospitalists over the last decade through unionizing in the name of patient interests. As hospitals are pressured to measure quality and performance, outsourced companies are better suited to manage the data collection and management required to do so. Despite the often higher compensation associated with outsourced firms, doctors are alarmed by the incentives being rewarded by seeing more patients in the day isn t in the best interest of patients. Rather, more time with each patient means more ability to exercise their professional judgement. Doctors at Sacred Heart in Oregon, in response to being notified that the hospital s parent PeaceHealth would solicit bids to outsource their hospitalists formed a union to negotiate on behalf of the doctors. While negotiations continue to drag on, the Sacred Heart doctors continue to push for what they believe to be in the best interest of patients. A link to the article can be found here. CRO FRENCH PATIENT DIES IN CLINICAL DRUG TRIAL Portugal-based Bial-Portela & Ca. S.A. announced this month that a patient has died at the University of Rennes Central Hospital in France. The volunteer passed away during experimental Phase I clinical trials. The drug utilized in the trial is an inhibitor of fatty acid amide hydrolase which is believed to potentially reduce pain and anxiety, among other neurological conditions. Biotrial, a private research center conducting the clinical trial, has since contacted the 84 other volunteers to complete medical examinations in search of similar side-effects. So far, the brain damage incurred by the deceased patient has not been observed in any of the other participants. The first phase of clinical development is marked by the first time humans are subjected to the drugs in questions. 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) 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) PAGE 2

4 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 $37, % 12.8% 2.4x 11.8x 2.2x 10.7x Contract Pharma Manufacturing 2 5, % 65.5% 3.4x 16.7x 3.2x 13.5x Contract Research Organizations 8 35, % 24.5% 2.7x 14.3x 2.6x 13.3x Disease Management 2 7,820 (1.5%) (16.2%) 1.9x 13.3x 1.9x 12.1x Emergency Services 1 2, % (4.8%) 2.2x 8.2x 2.2x 8.1x Healthcare Staffing 5 16, % 31.3% 1.3x 12.5x 1.2x 11.6x HMO - Medical , % 20.9% 0.8x 10.0x 0.8x 9.9x Information Services 13 42, % 1.2% 4.7x 17.6x 4.4x 13.5x Specialty Managed Care 3 7, % 17.7% 1.7x 13.3x 5.6x 19.6x Specialty Pharmacy 1 2, % 25.0% 0.8x NM 0.8x NM Retail Pharmacy 3 252, % 4.3% 0.9x 11.9x 0.9x 11.3x Specialty Pharmacy Management 2 75, % 36.1% 0.7x 10.5x 0.7x 10.2x Dental Products 3 117, % 14.2% 3.5x 16.7x 3.5x 15.3x Durable Medical Equipment 3 12, % 3.8% 2.6x 16.2x 1.9x 11.8x Life Sciences Tools 4 132, % 10.1% 3.7x 16.9x 3.4x 13.4x Medical Devices and Products , % 3.1% 3.8x 14.5x 3.7x 13.2x Medical / Surgical / Dental Supplies & Distribution 6 128, % 6.5% 0.3x 11.9x 0.3x 10.0x Acute-Care Hospitals 4 103,315 (15.3%) (24.0%) 1.1x 7.8x 1.0x 7.5x Assisted Living 3 11, % (23.4%) 2.3x 12.1x 2.0x 12.2x Diagnostic Imaging 3 9, % (27.6%) 1.5x 8.8x 1.7x 9.1x Dialysis Services 2 55, % 9.6% 1.8x 10.1x 1.8x 9.8x Home Care, Hospice, and Home Infusion 6 6, % 34.9% 1.4x 12.7x 1.3x 12.0x Long-Term Care 3 6, % (1.8%) 1.0x 9.0x 0.7x 7.9x Physician Practice Management 2 8,033 (6.7%) 8.4% 3.0x 13.2x 2.9x 12.9x Behavioral Health / Management 6 26, % 5.1% 1.5x 11.1x 1.4x 10.6x Surgicenters / Rehabilitation 5 19, % 13.6% 2.2x 14.0x 2.0x 11.4x Payor, Provider, & Pharmacy Support Services 53 $807, % 13.3% 1.3x 11.7x 1.2x 10.8x Products & Devices 30 $1,056, % 2.7% 3.4x 13.8x 3.4x 12.8x Provider-Based Services 34 $245,735 (2.3%) 2.5% 1.8x 10.5x 1.8x 9.9x HW&Co. HCLS Composite Index 117 $2,109, % 9.6% 2.5x 12.7x 2.4x 11.9x S&P % (0.7%) Median TEV/ LTM Multiples Median TEV/ Forward Mulitples Public Company Sector Performance (12-month % change in stock price) Contract Pharma Manufacturing Specialty Pharmacy Management Home Care, Hospice, and Home Infusion Healthcare Staffing Specialty Pharmacy Contract Research Organizations HMO - Medical Specialty Managed Care Dental Products Surgicenters / Rehabilitation Clinical Laboratories Life Sciences Tools HW&Co. HCLS Composite Index Dialysis Services Physician Practice Management Medical / Surgical / Dental Supplies & Distribution Behavioral Health / Management Retail Pharmacy Durable Medical Equipment Medical Devices and Products Information Services S&P 500 Long-Term Care Emergency Services Disease Management Assisted Living Acute-Care Hospitals Diagnostic Imaging (60.0%) (50.0%) (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% PAGE 3

5 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance 220% 200% 180% 181.4% 160% 140% 159.1% 143.3% 120% 100% 80% 60% 40% Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-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) 12/01/15 AmSurg Corp AMSG Follow-On $ /10/15 Kite Pharma Inc KITE Follow-On /01/15 Neothetics Inc NEOT Follow-On /03/15 Portola Pharmaceuticals Inc PTLA Follow-On /15/15 Spark Therapeutics Inc ONCE Follow-On /09/15 Accelerate Diagnostics Inc AXDX Follow-On /18/15 MediciNova Inc MNOV Follow-On /04/15 Galena Biopharma Inc GALE Follow-On /02/15 Opexa Therapeutics Inc OPXA Follow-On /18/15 Collegium Pharmaceutical Inc COLL Follow-On /18/15 KemPharm Inc KMPH Follow-On /03/15 T2 Biosystems Inc TTOO Follow-On /18/15 IRadimed Corp IRMD Follow-On /24/15 Northwest Biotherapeutics Inc NWBO Follow-On /17/15 Nanosphere Inc NSPH Follow-On 10.0 PAGE 4

6 Number of Transactions HEALTHCARE & LIFE SCIENCES M&A OVERVIEW Announced Healthcare & Life Sciences M&A QUARTERLY M&A ACTIVITY HEALTHCARE TRANSACTION HIGHLIGHTS Number of Transactions Announced Target Buyer 12/31/2015 Associates, Professional Anesthesia PC MEDNAX, Inc. (NYSE:MD) 12/31/2015 Chesapeake Research Rev iew, Inc. Linden LLC 12/22/2015 Spectrum Professional Serv ices, Inc. Beecken Petty O'Keefe & Company 12/18/2015 Equian, LLC New Mountain Capital, LLC 12/11/2015 Solutions Recov ery, Inc. American Addiction Centers, Inc. 12/8/2015 Senior Care Centers of America, Inc. Audax Group, Inc. 12/8/2015 Ci Medical Technologies, Inc. Technimark LLC 12/7/2015 Meridian Behav ioral Health LLC Audax Group, Inc. 12/7/2015 Upstream Rehabilitation Inc. Rev elstoke Capital Partners LLC LTM DEAL STATISTICS Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 PE Buyer Strategic Buyer Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $ , x 14.2x Note: Transactions based on publicly available information Healthcare & Life Sciences M&A Trends ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES Aggregate Transaction Value ($ in billions) $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $576.0 $236.6 $141.4 $110.6 $108.2 $ ,400 1,200 1, Number of Transactions EV / LTM EBITDA Multiple 18.0x 15.0x 12.0x 9.0x 6.0x 3.0x 0.0x 13.6x 14.2x 12.8x 11.1x 10.9x 10.0x x 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 48 Healthcare Serv ices 47 Healthcare Equipment 19 Pharmaceuticals 16 Healthcare Technology 15 Life Sciences Tools & Serv ices 15 Healthcare Supplies 9 Healthcare Distributors 5 Biotechnology 1 Managed Healthcare PEG INVESTMENTS AND EXITS Number of Investments Number of Exits PAGE 5

7 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 $24 L Loan Volume by Quarter ($ in billions) $21 $18 $15 $12 $9 $6 $3 L L L L $0 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 L Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional CREDIT METRICS AVERAGE SECONDARY SPREAD 6.0x L EBITDA Multiple 4.0x 2.0x L L L x Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest L + 0 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 Select Healthcare & Life Sciences Debt Offerings (by deal amount) Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread 12/01/15 Trilogy Finance Merger Sub LLC Skilled nursing care facilities $300.0 Revolver/Line >= 1 Yr. NR / NR L /31/15 MainStreet Health Holdings LP Skilled nursing care facilities $200.0 Term Loan NR / NR L /16/15 Life Care Centers of America Skilled nursing care facilities $150.0 Term Loan NR / NR L /17/15 Caring Brands International Home health care services $114.2 Term Loan NR / NR L /22/15 Spectrum Professional Services LLC Skilled nursing care facilities $110.5 Term Loan B NR / NR L+ 00 PAGE 6

8 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Clinical Laboratories Laboratory Corp. of America Holdings $ % 14.6% $ $ $12,512 $6,681 $713 $18,496 $7,774 $1,567 $1,198 Sep-15 Dec-14 $8,488 $1,734 $1, x 11.8x 2.2x 10.7x Quest Diagnostics Inc % 6.1% ,198 3, ,907 7,527 1,489 1,180 Sep-15 Dec-14 7,496 1,512 1, x 9.3x 1.9x 9.2x VCA Inc % 12.8% , ,274 2, Sep-15 Dec-14 2, x 13.5x 2.5x 13.1x Number of Companies 3 Median: 14.0% 12.8% Total $27,146 $37,677 $17,380 $18, x 11.8x 2.2x 10.7x Market Cap. Weighted Average: 13.1% 11.1% 2.2x 11.2x 2.1x 10.5x Contract Pharma Manufacturing Cambrex Corporation. $ % 117.8% $55.60 $21.25 $1,485 $30 $60 $1,455 $406 $111 $89 Sep-15 Dec-14 $432 $123 $ x 13.1x 3.4x 11.8x West Pharmaceutical Services, Inc % 13.1% , ,387 1, Sep-15 Dec-14 1, x 20.3x 3.1x 15.2x Number of Companies 2 Median: 15.0% 65.5% Total $5,826 $5,841 $1,796 $1, x 16.7x 3.2x 13.5x Market Cap. Weighted Average: 13.2% 39.8% 3.3x 18.4x 3.2x 14.4x Contract Research Organizations Albany Molecular Research Inc. $ % 21.9% $22.48 $14.34 $705 $360 $79 $985 $363 $44 $20 Sep-15 Dec-14 $412 $75 $49 2.7x 22.2x 2.4x 13.2x Catalent, Inc % (10.2%) ,117 1, ,855 1, Sep-15 Jun-15 1, x 11.7x 2.6x 11.2x Charles River Laboratories International, Inc % 26.3% , ,540 1, Sep-15 Dec-14 1, x 14.8x 3.3x 13.9x ICON Public Limited Company % 52.4% , ,480 1, Sep-15 Dec-14 1, x 13.8x 2.8x 13.3x INC Research Holdings, Inc % 88.8% , , Sep-15 Dec x 14.8x 3.2x 13.5x PAREXEL International Corporation % 22.6% , ,952 2, Sep-15 Jun-15 2, x 13.1x 1.8x 11.5x PRA Health Sciences, Inc % 86.9% , ,609 1, Sep-15 Dec-14 1, x 16.8x 2.6x 14.5x Quintiles Transnational Holdings Inc (1.3%) 16.6% ,452 2,488 1,082 10,084 4, Sep-15 Dec-14 4, x 12.9x 2.3x 12.6x Number of Companies 8 Median: 12.0% 24.5% Total $29,417 $35,439 $13,621 $13, x 14.3x 2.6x 13.3x Market Cap. Weighted Average: 9.7% 34.2% 2.7x 13.9x 2.6x 12.9x Disease Management Alere Inc. $39.09 (18.8%) 2.9% $55.99 $36.37 $3,372 $3,602 $479 $7,105 $2,496 $552 $233 Sep-15 Dec-14 $2,494 $560 $ x 12.9x 2.8x 12.7x Healthways Inc % (35.3%) Sep-15 Dec x 13.8x 0.9x 12.0x Number of Companies 2 Median: (1.5%) (16.2%) Total $3,836 $7,820 $3,280 $3, x 13.3x 1.9x 12.3x Market Cap. Weighted Average: (14.6%) (1.7%) 2.6x 13.0x 2.6x 12.6x Emergency Services Air Methods Corp. $ % (4.8%) $54.98 $32.81 $1,648 $681 $15 $2,322 $1,062 $284 $202 Sep-15 Dec-14 $1,080 $288 $ x 8.2x 2.2x 8.1x Number of Companies 1 Median: 23.0% (4.8%) Total $1,648 $2,322 $1,062 $1, x 8.2x 2.2x 8.1x Market Cap. Weighted Average: 23.0% (4.8%) 2.2x 8.2x 2.2x 8.1x Healthcare Staffing AMN Healthcare Services Inc. $ % 58.4% $37.47 $17.92 $1,481 $217 $14 $1,684 $1,340 $135 $115 Sep-15 Dec-14 $1,448 $160 $ x 12.5x 1.2x 10.5x Cross Country Healthcare, Inc % 31.3% Sep-15 Dec x 19.0x 0.8x 15.5x Envision Healthcare Holdings, Inc (29.4%) (25.1%) ,849 2, ,988 5, Sep-15 Dec-14 5, x 12.1x 1.3x 11.6x On Assignment Inc % 35.4% , ,129 2, Sep-15 Dec-14 2, x 14.6x 1.5x 13.0x Team Health Holdings, Inc (18.8%) (23.7%) , ,926 3, Sep-15 Dec-14 3, x 11.6x 1.1x 10.2x Number of Companies 5 Median: 3.5% 31.3% Total $12,423 $16,309 $12,698 $13, x 12.5x 1.2x 11.6x Market Cap. Weighted Average: (10.8%) (0.8%) 1.2x 11.6x 1.1x 10.2x As of December 31, PAGE 7

9 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Commercial: Aetna Inc. $ (1.2%) 21.7% $ $87.25 $37,701 $7,838 $1,797 $43,807 $59,950 $5,222 $4,561 Sep-15 Dec-14 $60,279 $5,630 $4, x 8.4x 0.7x 7.8x Anthem, Inc (0.4%) 11.0% ,404 17,778 1,548 52,634 77,953 6,325 5,769 Sep-15 Dec-14 78,266 5,212 4, x 8.3x 0.7x 10.1x Cigna Corp (1) % 42.2% ,695 5,205 2,381 40,599 37,276 3,991 3,659 Sep-15 Dec-14 37,828 4,126 3, x 10.2x 1.1x 9.8x Health Net, Inc. (2) % 27.9% , ,928 15, Sep-15 Dec-14 16, x 11.5x 0.3x 8.1x Humana Inc. (3) (0.3%) 24.3% ,459 4,129 1,597 28,991 53,256 2,697 2,429 Sep-15 Dec-14 54,396 2,923 2, x 10.7x 0.5x 9.9x UnitedHealth Group Incorporated % 16.4% ,124 31,783 7, , ,941 12,486 11,318 Sep-15 Dec ,524 12,575 10, x 11.0x 0.9x 10.9x Number of Companies 6 Median: 0.6% 23.0% Total $255,674 $308,462 $391,341 $403, x 10.5x 0.7x 9.9x Market Cap. Weighted Average: 1.9% 21.3% 0.8x 10.1x 0.8x 10.0x Government: Centene Corp. $ % 26.7% $83.00 $50.93 $7,845 $1,281 $1,665 $7,619 $19,854 $853 $747 Sep-15 Dec-14 $22,600 $825 $ x 8.9x 0.3x 9.2x Molina Healthcare, Inc (12.7%) 12.3% , ,164 2,135 12, Sep-15 Dec-14 14, x 4.4x 0.2x 4.2x Universal American Corp % (24.6%) , Sep-15 Dec-14 1, NA 0.2x 23.8x 0.3x 20.7x WellCare Health Plans, Inc (9.2%) (4.7%) ,449 1,213 1,423 3,239 13, Sep-15 Dec-14 13, x 7.2x 0.2x 6.2x Number of Companies 4 Median: (3.5%) 3.8% Total $15,231 $13,427 $48,326 $52, x 8.1x 0.2x 7.7x Market Cap. Weighted Average: 6.2% 14.5% 0.3x 8.1x 0.3x 7.8x Information Services Data/Analytics: Castlight Health, Inc. $ % (63.5%) $11.99 $3.59 $404 $0 $147 $257 $68 ($79) ($81) Sep-15 Dec-14 $75 ($63) ($67) 3.8x NM 3.4x NM Inovalon Holdings, Inc (18.4%) NM , , Sep-15 Dec x 15.6x 4.8x 13.9x National Research Corp % (0.4%) Sep-15 Dec x 14.6x 4.2x 13.9x Number of Companies 3 Median: 1.7% (32.0%) Total $3,428 $428 $576 $ x 15.1x 4.2x 13.9x Market Cap. Weighted Average: (12.4%) (7.5%) 4.9x 15.5x 4.6x 13.9x ehealth: WebMD Health Corp. $ % 22.1% $49.88 $37.57 $1,781 $803 $612 $1,972 $607 $129 $111 Sep-15 Dec-14 $632 $187 $ x 15.3x 3.1x 10.6x Number of Companies 1 Median: 21.2% 22.1% Total $1,781 $1,972 $607 $ x 15.3x 3.1x 10.6x Market Cap. Weighted Average: 21.2% 22.1% 3.2x 15.3x 3.1x 10.6x Hospital/Physician: Allscripts Healthcare Solutions, Inc. $ % 20.4% $15.78 $11.33 $2,907 $655 $91 $3,482 $1,382 $98 $15 Sep-15 Dec-14 $1,399 $246 $ x NM 2.5x 14.2x Athenahealth, Inc % 10.5% , , Sep-15 Dec x NM 7.0x NM Cerner Corporation % (6.9%) , ,751 4,103 1, Oct-15 Jan-15 4,425 1,418 1, x 18.3x 4.7x 14.6x Computer Programs & Systems Inc % (18.1%) Sep-15 Dec x 14.9x 2.8x 15.9x HMS Holdings Corp % (41.6%) , , Sep-15 Dec x 13.1x 2.4x 10.1x MedAssets, Inc % 56.6% , , Sep-15 Dec x 12.1x 3.4x 11.1x Premier, Inc % 5.2% , ,534 1, Sep-15 Jun-15 1, x 4.5x 1.3x 3.5x Quality Systems Inc % 3.4% Sep-15 Mar x 15.2x 1.7x 10.6x The Advisory Board Company % 1.3% , , Sep-15 Dec x 33.9x 3.3x 15.2x Number of Companies 9 Median: 20.7% 3.4% Total $37,800 $39,924 $10,042 $10, x 14.9x 2.8x 12.6x Market Cap. Weighted Average: 10.9% 1.2% 4.7x 17.9x 4.5x 13.6x As of December 31, (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 8

10 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty Managed Care Assurant Inc. $ % 17.7% $87.20 $59.73 $5,303 $1,222 $1,544 $4,981 $10,400 $374 $236 Sep-15 Dec-14 $7,970 $980 $ x 13.3x 0.6x 5.1x CorVel Corporation % 18.0% Sep-15 Mar-15 NA NA NA 1.7x 13.3x NA NA HealthEquity, Inc (15.2%) (1.5%) , , Oct-15 Jan x NM 10.5x 34.1x Number of Companies 3 Median: 1.9% 17.7% Total $7,612 $7,141 $11,012 $8, x 13.3x 5.6x 19.6x Market Cap. Weighted Average: 2.6% 14.1% 2.7x 13.3x 2.7x 11.3x Retail Pharmacy CVS Health Corporation $ % 1.5% $ $81.37 $108,525 $27,222 $2,890 $132,742 $149,199 $11,186 $9,187 Sep-15 Dec-14 $153,006 $980 NA 0.9x 11.9x 0.9x NM Walgreens Boots Alliance, Inc % 11.8% ,449 14,277 3, , ,923 7,612 5,985 Nov-15 Aug ,152 8,965 7, x 13.7x 0.9x 11.6x Rite Aid Corporation % 4.3% ,204 7, ,346 29,314 1, Nov-15 Feb-15 30,896 1, x 11.6x 0.5x 10.9x Number of Companies 3 Median: 2.5% 4.3% Total $209,178 $252,322 $291,436 $304, x 11.9x 0.9x 11.3x Market Cap. Weighted Average: 6.7% 3.2% 1.0x 12.7x 0.9x 11.6x Specialty Pharmacy Diplomat Pharmacy, Inc. $ % 25.0% $52.33 $15.45 $2,202 $140 $16 $2,331 $2,992 $65 $44 Sep-15 Dec-14 $2,796 $46 $83 0.8x NM 0.8x NM Number of Companies 1 Median: 19.1% 25.0% Total $2,202 $2,331 $2,992 $2, x NM 0.8x NM Market Cap. Weighted Average: 19.1% NM 0.8x NM 0.8x NM Specialty Pharmacy Management Express Scripts Holding Company $ % 3.2% $94.61 $68.06 $59,113 $15,687 $438 $74,370 $101,889 $6,928 $4,849 Sep-15 Dec-14 $102,229 $7,067 $6, x 10.7x 0.7x 10.5x PharMerica Corporation % 69.0% , ,363 2, Sep-15 Dec-14 2, x 10.2x 0.7x 9.9x Number of Companies 2 Median: 15.5% 36.1% Total $60,179 $75,733 $103,920 $104, x 10.5x 0.7x 10.2x Market Cap. Weighted Average: 8.2% 4.4% 0.7x 10.7x 0.7x 10.5x As of December 31, PAGE 9

11 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $ % (8.3%) $ $ $92,751 $11,253 $1,605 $102,284 $30,695 $8,496 $7,108 Sep-15 Dec-14 $30,208 $8,328 $6, x 12.0x 3.4x 12.3x DENTSPLY International Inc % 14.2% ,521 1, ,443 2, Sep-15 Dec-14 2, x 16.7x 3.5x 15.3x Sirona Dental Systems Inc. (1) % 25.4% , ,694 1, Sep-15 Sep-15 1, x 18.2x 4.6x 15.7x Number of Companies 3 Median: 17.4% 14.2% Total $107,401 $117,421 $34,579 $34, x 16.7x 3.5x 15.3x Market Cap. Weighted Average: 8.0% (4.6%) 3.4x 12.8x 3.5x 12.7x Durable Medical Equipment Hill-Rom Holdings, Inc. $48.06 (7.6%) 5.3% $58.73 $44.69 $3,132 $2,233 $193 $5,182 $1,988 $295 $187 Sep-15 Sep-15 $2,681 $523 $ x 17.6x 1.9x 9.9x Invacare Corporation % 3.8% , (10) Sep-15 Dec-14 1, (12) 0.5x NM 0.5x NM ResMed Inc % (4.2%) , ,176 1, Sep-15 Jun-15 1, x 14.8x 4.0x 13.7x Number of Companies 3 Median: 5.4% 3.8% Total $11,215 $12,958 $4,876 $5, x 16.2x 1.9x 11.8x Market Cap. Weighted Average: 2.5% (1.1%) 3.6x 15.6x 3.3x 12.6x Life Sciences Tools Agilent Technologies Inc. $ % 2.1% $43.59 $33.12 $13,888 $1,655 $2,003 $13,543 $4,038 $781 $528 Oct-15 Oct-15 $4,165 $946 $ x 17.3x 3.3x 14.3x Becton, Dickinson and Company % 10.7% ,693 12,822 1,424 44,052 10,282 2,631 1,805 Sep-15 Sep-15 12,651 3,550 2, x 16.7x 3.5x 12.4x Thermo Fisher Scientific, Inc % 13.2% ,612 13, ,430 16,806 4,061 2,384 Sep-15 Dec-14 16,868 4,179 3, x 17.1x 4.1x 16.6x VWR Corporation % 9.4% ,719 2, ,649 4, Sep-15 Dec-14 4, x 12.6x 1.3x 12.5x Number of Companies 4 Median: 16.1% 10.1% Total $106,911 $132,673 $35,434 $37, x 16.9x 3.4x 13.4x Market Cap. Weighted Average: 16.6% 10.9% 4.0x 16.9x 3.7x 14.9x Medical Devices and Products Abbott Laboratories $ % (0.2%) $51.74 $39.00 $66,993 $8,355 $3,132 $69,317 $20,573 $4,716 $3,288 Sep-15 Dec-14 $20,542 $4,905 $4, x 14.7x 3.4x 14.1x Baxter International Inc % (47.9%) ,869 6,729 1,970 21,493 16,106 4,144 3,138 Sep-15 Dec-14 9,914 1, x 5.2x 2.2x 14.3x Boston Scientific Corporation % 39.2% ,805 5, ,314 7,314 1,799 1,047 Sep-15 Dec-14 7,492 2,024 1, x 16.9x 4.0x 15.0x ConforMIS, Inc (4.3%) NM (51) (53) Sep-15 Dec (54) (57) 9.2x NM 8.7x NM CR Bard Inc % 13.7% ,997 1,410 1,002 14,403 3,412 1, Sep-15 Dec-14 3,416 1, x 13.9x 4.2x 13.4x Danaher Corp % 8.4% ,649 15,012 1,834 76,899 20,662 4,665 3,655 Oct-15 Dec-14 20,804 4,691 3, x 16.5x 3.7x 16.4x Hanger, Inc % (24.9%) ,100 1, Jun-14 Dec-13 1, x 6.9x 1.0x 6.7x Hologic Inc (1.1%) 44.7% ,946 3, ,127 2, Sep-15 Sep-15 2,841 1, x 14.5x 5.0x 13.1x Johnson & Johnson % (1.8%) ,220 19,935 13, ,849 70,517 22,554 18,850 Sep-15 Dec-14 70,186 23,296 19, x 11.8x 3.8x 11.5x K2M Group Holdings, Inc % (5.4%) (13) (37) Sep-15 Dec (1) (37) 3.7x NM 3.5x NM Medtronic plc % 6.5% ,161 35,920 2, ,850 25,819 7,713 5,433 Oct-15 Apr-15 28,704 9,895 8, x 16.4x 4.4x 12.8x Penumbra, Inc % NM , , Sep-15 Dec (1) 8.7x NM 8.1x NM Stryker Corporation (1.2%) (1.5%) ,945 3,490 3,163 35,061 9,849 2,644 2,259 Sep-15 Dec-14 9,943 2,662 2, x 13.3x 3.5x 13.2x Teleflex Incorporated % 14.5% ,469 1, ,257 1, Sep-15 Dec-14 1, x 15.5x 3.5x 13.1x Number of Companies 14 Median: 9.5% 3.1% Total $637,746 $665,457 $180,220 $177, x 14.5x 3.7x 13.2x Market Cap. Weighted Average: 10.2% 2.2% 3.9x 13.6x 3.8x 12.9x Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $ % 15.0% $ $89.52 $21,326 $3,493 $2,167 $22,601 $135,962 $1,547 $1,302 Sep-15 Sep-15 $148,115 $2,427 $2, x 14.6x 0.2x 9.3x Cardinal Health, Inc % 10.6% ,368 5,550 2,974 32, ,516 2,842 2,362 Sep-15 Jun ,609 3,149 2, x 11.3x 0.3x 10.2x Henry Schein, Inc % 16.2% , ,443 10, Sep-15 Dec-14 10, x 15.7x 1.4x 15.6x McKesson Corporation % (5.0%) ,384 9,388 5,359 50, ,716 4,213 3,323 Sep-15 Mar ,716 5,151 4, x 12.1x 0.3x 9.9x Owens & Minor Inc % 2.5% , ,711 9, Sep-15 Dec-14 9, x 10.0x 0.3x 9.7x Patterson Companies, Inc % (6.0%) ,380 1, ,417 4, Oct-15 Apr-15 5, x 11.7x 1.0x 11.8x Number of Companies 6 Median: 10.9% 6.5% Total $115,840 $128,166 $455,441 $484, x 11.9x 0.3x 10.0x Market Cap. Weighted Average: 11.0% 5.1% 0.4x 12.7x 0.4x 10.6x As of December 31, (1) To be acquired by DENTSPLY International (NYSE:XRAY) in a $5.5 billion transaction announced September 15, PAGE 10

12 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $26.53 (38.0%) (50.8%) $65.00 $24.49 $3,136 $16,989 $186 $20,543 $19,557 $2,806 $1,668 Sep-15 Dec-14 $19,631 $2,923 $1, x 7.3x 1.0x 7.0x HCA Holdings, Inc (12.6%) (7.8%) ,571 29, ,319 39,065 7,691 5,808 Sep-15 Dec-14 39,560 7,761 5, x 7.6x 1.5x 7.5x LifePoint Health, Inc % 2.1% ,195 2, ,232 5, Sep-15 Dec-14 5, x 8.1x 1.0x 7.4x Tenet Healthcare Corp (17.9%) (40.2%) ,020 14, ,222 18,085 2,270 1,441 Sep-15 Dec-14 19,894 2,268 1, x 8.5x 1.0x 8.5x Number of Companies 4 Median: (15.3%) (24.0%) Total $36,921 $103,315 $81,814 $84, x 7.8x 1.0x 7.5x Market Cap. Weighted Average: (13.8%) (13.3%) 1.4x 7.7x 1.4x 7.5x Assisted Living Brookdale Senior Living Inc. $18.46 (19.6%) (49.7%) $39.89 $16.58 $3,411 $6,485 $70 $9,826 $4,240 $809 ($7) Sep-15 Dec-14 $4,975 $807 $37 2.3x 12.1x 2.0x 12.2x Capital Senior Living Corp % (16.3%) , Sep-15 Dec x 18.7x 3.2x 16.1x Five Star Quality Care Inc % (23.4%) , (15) Sep-15 Dec-14 1, x 10.3x 0.1x 5.7x Number of Companies 3 Median: 2.9% (23.4%) Total $4,183 $11,360 $5,762 $6, x 12.1x 2.0x 12.2x Market Cap. Weighted Average: (15.3%) (43.8%) 2.4x 13.0x 2.1x 12.5x Long-Term Care Kindred Healthcare Inc. $11.91 (24.4%) (34.5%) $24.66 $11.12 $998 $3,165 $121 $4,132 $6,539 $504 $349 Sep-15 Dec-14 $7,090 $597 $ x 8.2x 0.6x 6.9x National HealthCare Corporation % (1.8%) Sep-15 Dec-14 NA NA NA 1.1x 9.0x NA NA The Ensign Group, Inc % 2.0% , ,185 1, Sep-15 Dec-14 1, x 11.3x 0.9x 8.8x Number of Companies 3 Median: 1.3% (1.8%) Total $3,079 $6,269 $8,683 $8, x 9.0x 0.7x 7.9x Market Cap. Weighted Average: (5.2%) (11.0%) 0.9x 9.6x 0.7x 7.9x Diagnostic Imaging Alliance Healthcare Services, Inc. $9.18 (5.9%) (56.3%) $25.33 $6.73 $97 $552 $45 $695 $458 $116 $59 Sep-15 Dec-14 NA NA NA 1.5x 6.0x NA NA RadNet, Inc % (27.6%) Sep-15 Dec x 8.8x 1.1x 7.1x Varian Medical Systems, Inc % (6.6%) , ,422 3, Oct-15 Oct-15 3, x 11.7x 2.3x 11.2x Number of Companies 3 Median: 9.5% (27.6%) Total $8,138 $9,015 $4,337 $4, x 8.8x 1.7x 9.1x Market Cap. Weighted Average: 9.4% (7.9%) 2.3x 11.5x 2.3x 11.0x Dialysis Services DaVita HealthCare Partners Inc. $69.71 (3.6%) (8.0%) $85.17 $67.34 $14,709 $9,198 $1,047 $23,036 $13,565 $2,486 $1,858 Sep-15 Dec-14 $13,756 $2,537 $1, x 9.3x 1.7x 9.1x Fresenius Medical Care AG & Co. KGAA % 27.2% ,778 9, ,782 17,125 3,025 2,303 Sep-15 Dec-14 16,861 3,128 2, x 10.8x 1.9x 10.5x Number of Companies 2 Median: 4.2% 9.6% Total $38,487 $55,818 $30,690 $30, x 10.1x 1.8x 9.8x Market Cap. Weighted Average: 6.0% 13.7% 1.8x 10.2x 1.8x 9.9x Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $23.28 (25.3%) (4.1%) $38.08 $18.75 $257 $3 $15 $245 $335 $24 $19 Sep-15 Dec-14 $337 $25 $20 0.7x 10.2x 0.7x 9.8x Almost Family Inc (4.5%) 32.1% Oct-15 Dec x 12.7x 0.9x 11.4x Amedisys Inc % 34.0% , ,369 1, Sep-15 Dec-14 1, x 15.4x 1.1x 12.4x Chemed Corp % 41.8% , ,628 1, Sep-15 Dec-14 1, x 12.1x 1.7x 11.4x LHC Group, Inc % 45.3% Sep-15 Dec x 11.1x 1.1x 11.5x Number of Companies 5 Median: 1.2% 34.0% Total $5,299 $5,566 $4,373 $4, x 12.1x 1.1x 11.4x Market Cap. Weighted Average: 5.4% 37.4% 1.4x 12.7x 1.3x 11.6x Home Infusion: BioScrip, Inc. $1.75 (6.4%) (75.0%) $7.01 $1.30 $120 $449 $29 $601 $1,040 ($30) ($50) Sep-15 Dec-14 $1,013 $19 ($280) 0.6x NM 0.6x 31.4x Number of Companies 1 Median: (6.4%) (75.0%) Total $120 $601 $1,040 $1, x NM 0.6x 31.4x Market Cap. Weighted Average: (6.4%) (75.0%) 0.6x NM 0.6x 31.4x As of December 31, PAGE 11

13 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty: MEDNAX, Inc. $71.66 (6.7%) 8.4% $86.09 $64.12 $6,739 $1,362 $61 $8,033 $2,689 $608 $548 Sep-15 Dec-14 $2,786 $625 $ x 13.2x 2.9x 12.9x Number of Companies 1 Median: (6.7%) 8.4% Total $6,739 $8,033 $2,689 $2, x 13.2x 2.9x 12.9x Market Cap. Weighted Average: (6.7%) 8.4% 3.0x 13.2x 2.9x 12.9x Behavioral Health / Management AAC Holdings, Inc. $19.06 (14.3%) (38.4%) $46.60 $15.09 $427 $122 $11 $534 $175 $32 $26 Sep-15 Dec-14 $211 $43 $23 3.0x 16.5x 2.5x 12.3x Acadia Healthcare Company, Inc (5.7%) 2.0% ,478 2, ,570 1, Sep-15 Dec-14 1, x 19.2x 3.7x 16.4x Civitas Solutions, Inc % 69.1% , ,676 1, Sep-15 Sep-15 1, x 11.8x 1.2x 10.4x Magellan Health, Inc % 2.7% , ,590 4, Sep-15 Dec-14 4, x 7.6x 0.3x 6.5x Providence Service Corp % 28.8% ,175 1, Sep-15 Dec-14 1, x 10.5x 0.6x 10.8x Universal Health Services Inc (4.3%) 7.4% ,767 3, ,136 8,765 1,654 1,260 Sep-15 Dec-14 9,678 1,644 1, x 9.2x 1.6x 9.2x Number of Companies 6 Median: 1.7% 5.1% Total $19,979 $26,682 $18,196 $19, x 11.1x 1.4x 10.6x Market Cap. Weighted Average: (1.6%) 8.9% 2.1x 11.6x 1.9x 10.8x Surgicenters / Rehabilitation Surgery Centers (1) : AmSurg Corp. $76.00 (2.2%) 38.9% $87.42 $52.42 $4,126 $2,250 $187 $6,356 $2,444 $340 $294 Sep-15 Dec-14 $2,540 $490 NA 2.6x 18.7x 2.5x 13.0x Surgical Care Affiliates, Inc % 18.3% , , Sep-15 Dec-14 1, NA 2.3x 15.7x 2.2x 13.2x Number of Companies 2 Median: 9.8% 28.6% Total $5,702 $8,646 $3,420 $3, x 17.2x 2.4x 13.1x Market Cap. Weighted Average: 4.4% 33.2% 2.5x 17.8x 2.4x 13.0x Rehabilitation: HEALTHSOUTH Corp. $34.81 (9.3%) (9.5%) $48.37 $32.55 $3,183 $2,824 $802 $5,480 $2,857 $653 $527 Sep-15 Dec-14 $3,140 $682 $ x 8.4x 1.7x 8.0x Select Medical Holdings Corporation % (17.3%) ,562 2, ,220 3, Sep-15 Dec-14 3, x 11.6x 1.1x 10.5x US Physical Therapy Inc % 27.9% Sep-15 Dec x 13.6x 2.2x 14.7x Number of Companies 3 Median: 10.4% (9.5%) Total $5,412 $10,431 $6,597 $7, x 11.6x 1.7x 10.5x Market Cap. Weighted Average: (0.0%) (7.1%) 1.8x 10.0x 1.6x 9.6x As of December 31, (1) Figures are adjusted for minority interest. PAGE 12

14 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 12/31/2015 Big Horse Holdings, Inc. - RedHawk Medical Products & Services, $ No hoh18.75 LLC 12/31/2015 Professional Anesthesia Associates, PC - MEDNAX, Inc. (NYSE:MD) No 12/31/2015 Chesapeake Research Review, Inc. Audax Group, Inc. Linden LLC Yes 12/30/2015 CanX, Inc. - CannaVEST Corp. (OTCPK:CANV) $ No 12/29/ % in Indiana University Health La Porte Hospital Inc and Indiana University Health Starke Hospital Indiana University Health, Inc. Community Health Systems, Inc. (NYSE:CYH) No 12/24/ % Stakes in Four Companies Summit Healthcare Operating Best Years, LLC $ No Partnership, L.P. 12/24/2015 Compressus, Inc. - Versata Enterprises, Inc No 12/23/2015 Selah Genomics Inc. EKF Diagnostics Holdings plc (AIM:EKF) No 12/23/2015 Community Portable X-Ray, Inc. and MetroStat Clinical Laboratory, Inc. - Schryver Medical Sales And Marketing, Inc No 12/23/2015 PhosImmune Inc. University Of Virginia Patent Agenus Inc. (NasdaqCM:AGEN) $ No Foundation; CIT GAP Funds; The Center for Innovative Technology, Endowment arm; Fanelli Haag PLLC 12/22/2015 Gray Harbor Imaging LLC South Sound Radiologists Inc., P.S. Grays Harbor Public Hospital District 2 $ No 12/22/2015 Medivet Biologics LLC Medical Australia Limited (ASX:MLA) - $ No 12/22/2015 Adult Day Center - NewCourtland Elder Services No 12/22/2015 ImageVision.net, Inc. - Invoice Cloud, Inc No 12/22/2015 Qforma Inc. BelHealth Investment Partners, LLC QPharma, Inc Yes 12/22/2015 Tampa Bay Emergency Physicians, PL - US Acute Care Solutions, LLC No 12/22/2015 Spectrum Professional Services, Inc. SV Life Sciences Advisers, LLC; EDG Partners, LLC Beecken Petty O'Keefe & Company Yes 12/21/2015 National Research Corporation, OCS HomeCare and Hospice Analytics Division National Research Corp. (NasdaqGS:NRCI.B) ABILITY Network Inc No 12/21/2015 Beckman Coulter Genomics Inc. Beckman Coulter, Inc. GENEWIZ, Inc No 12/21/2015 Banner Life Sciences, LLC, Portfolio of 25 Products Banner Life Sciences, LLC Bionpharma Inc No 12/21/2015 Magnolia Management, Inc., Four Nursing Homes Magnolia Management, Inc. Mid-Atlantic Health Care, LLC No 12/21/2015 Moorestown Foot Specialists LLC - Foot Health Centers, P.A No 12/21/2015 Seabrook House, Inc., Seabrook West Facility Seabrook House, Inc. Summit Behavioral Healthcare, LLC No Located in Tioga County Pennsylvania 12/21/2015 Northampton Manor, Devlin Manor, Julia Manor - Mid-Atlantic Health Care, LLC No Health Care Centers, and Moran Manor Health Care Center 12/21/2015 Convaid, Inc. - Etac AB No 12/19/2015 Zoetis Inc., Ceratin Products And Related Zoetis Inc. (NYSE:ZTS) Huvepharma AD $ No Manufacturing Sites 12/18/2015 USGP, LLC and U.S. Lithotripsy, L.P. USMD, Inc. US Lithotripsy Holdings, LLC $ No 12/18/2015 Bristol-Myers Squibb, Late-Stage HIV R&D and Preclinical and Discovery Stage HIV Research Assets Bristol-Myers Squibb Company (NYSE:BMY) ViiV Healthcare Company $2, No 12/18/2015 The Medicines Company, Global Portfolio of 3- Hemostasis Drugs The Medicines Company (NasdaqGS:MDCO) Mallinckrodt Public Limited Company (NYSE:MNK) $ No 12/18/2015 Immediate Medical Care Inc. - U.S. Healthworks, Inc No 12/18/2015 Managed Healthcare Solutions, Inc. - Arthur J Gallagher & Co. (NYSE:AJG) No 12/18/2015 Texan Urgent Care PLLC - FastMed Urgent Care No 12/18/2015 Gemini Health LLC - Havas SA (ENXTPA:HAV) No 12/18/2015 Havas Gemini - Havas Health, Inc No 12/18/2015 Equian, LLC Great Point Partners, LLC New Mountain Capital, LLC $ Yes 12/17/2015 LuvBuds, LLC - CannaSys, Inc. (OTCPK:MJTK) $ No 12/17/2015 Galena Biopharma, Inc., Certain Assets Galena Biopharma, Inc. Midatech Pharma Plc (AIM:MTPH) $ No (NasdaqCM:GALE) 12/17/2015 Visiometrics, S.L. and Visual Performance Diagnostics, Inc. Atlas Capital Group, LLC Halma plc (LSE:HLMA) $ Yes 12/17/2015 Matawan Pharmaceuticals, LLC, Generic Retin- A Portfolio 12/17/2015 Everest Inpatient Physicians and Geriatric Essentials Matawan Pharmaceuticals, LLC Perrigo Company Public Limited No Company (NYSE:PRGO) - Team Health Holdings, Inc. (NYSE:TMH) No 12/17/2015 Open Monoclonal Technology, Inc. Essex Woodlands Health Ventures Ligand Pharmaceuticals Incorporated $ No (NasdaqGM:LGND) 12/17/2015 Central Maryland Rehabilitation Services, Inc. - Pivot Physical Therapy No 12/16/2015 Zenergy Sports Rehabilitation Clinic - Zenergy at Thunder Spring LLC No 12/16/2015 WCA Hospital - University of Pittsburgh Medical Center No 12/16/2015 RightCare Solutions, Inc. Domain Associates, L.L.C.; NewSpring Capital; Commerce Health Capital, LLC Navihealth, Inc Yes 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 12/16/2015 The National Reference Laboratory for Breast Health, Inc. Atossa Genetics, Inc. (NasdaqCM:ATOS) NRL Investment Group, LLC $ No 12/16/2015 Northside Anesthesiology Consultants, LLC - Sheridan Healthcare, Inc No 12/15/2015 Eco Science Solutions, Inc. (OTCPK:ESSI) No 12/15/2015 Kreisers, Inc. - Seneca Medical, Inc No 12/15/2015 Restorgenex Corporation (OTCPK:RESX) Fortress Investment Group LLC Diffusion Pharmaceuticals LLC No (NYSE:FIG); Seaside 88 Advisors, LLC; Ernest W. Moody Revocable Trust; Ally Bridge Group 12/15/2015 Orthopaedic and Sports Medicine Consultants - Premier Health Specialists, Inc No and Associates 12/15/2015 Midwest Medical Supply Company, Inc. - Seneca Medical, Inc No 12/14/2015 Newtown Physical Therapy, Inc. - ATI Holdings LLC No 12/14/2015 Sun Pharmaceutical Industries Ltd, US Factory in Bryan, Ohio Sun Pharmaceutical Industries Limited (NSEI:SUNPHARMA) Nostrum Laboratories, Inc No 12/14/2015 Kaenon, Inc. - OluKai Inc No 12/14/ % in Xcelience, LLC and Remaining Stake in - Capsugel Inc No PowderSize, Inc. 12/14/2015 Legacy Medical Imaging, L.P. - BC Technical, Inc No 12/13/2015 Capernaum Pediatric Therapy, Inc. - Fairview Health Services, Endowment No Arm 12/11/2015 Dynamic Care And Greco Physical Therapy and - MOTION PT Holdings, Inc No Sports Performance And ProActive Physical & Hand Therapy 12/11/2015 Criticare Systems, Inc. - Opto Cardiac Care Limited $ No 12/11/2015 Solutions Recovery, Inc. - American Addiction Centers, Inc. $ No 12/11/2015 Macon Gastroenterology Anesthesia Associates, - CRH Medical Corporation (TSX:CRH) No LLC 12/11/2015 MDRX Medical Billing, LLC - Constellation Healthcare Technologies, $ x 6.3x - No Inc. (AIM:CHT) 12/11/2015 MedVet Chicago - MedVet Associates, Inc No 12/10/2015 Wetsman Forensic Medicine, L.L.C. Enhanced Capital Partners, LLC American Addiction Centers, Inc. $ Yes 12/10/2015 Crealta Pharmaceuticals LLC GTCR, LLC Horizon Pharma USA, Inc.; HZNP Limited $ Yes 12/10/2015 Pathology, Inc. ABS Capital Partners, Inc.; CNF Investments LLC; England Capital Partners, LLC Laboratory Corp. of America Holdings (NYSE:LH) Yes 12/10/2015 Advanced Answers On Demand, Inc. Primus Capital MDI Achieve, Inc Yes 12/9/2015 Swiss Caps USA Inc. Aenova Group GmbH Marine Nutriceutical Corporation No 12/9/2015 BioSense Medical Devices, LLC Commerce, Inc. (OTCPK:ETHG) No 12/9/2015 Spring Creek Rehabilitation and Healthcare - TL Management No Center 12/9/ Unit Assisted Living and Alzheimer's Care - Greystone & Co. Inc. $ No Facility in Virginia Beach, Virginia 12/8/2015 Senior Care Centers of America, Inc. Clearview Capital, LLC Audax Group, Inc. - - NM - Yes 12/8/2015 Bohle Family Dentistry, PSC - Marquee Dental Partners, LLC No 12/8/2015 Ci Medical Technologies, Inc. Altaris Capital Partners, LLC Technimark LLC Yes 12/8/2015 Forest Laboratories, LLC, Pharmaceutical Facilities Forest Laboratories, LLC Ropack Pharma Solutions No in Long Island, NY 12/8/2015 Precision Extrusion, Inc. - Pexco LLC No 12/8/2015 Halco Life Safety Systems Inc. - Lone Star Communications, Inc No 12/8/2015 Central Piedmont Surgery Center in Asheboro Asheboro Medical Properties, LLC Flagship Capital Partners, LLC; Broyhill Asset Management $ Yes PAGE 14

16 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 12/7/2015 Alliance Home Health Inc. - Sutter Care at Home No 12/7/2015 American HomePatient, Inc. Highland Capital Management, L.P. Lincare Holdings Inc Yes 12/7/2015 InQuicker, LLC - Stericycle, Inc. (NasdaqGS:SRCL) No 12/7/2015 Meridian Behavioral Health LLC Triton Pacific Capital Partners, LLC Audax Group, Inc Yes 12/7/2015 Medical Direct Club, LLC Fulcrum Equity Partners, Inc.; Nashville Capital Network, Investment Arm Comfort Medical, LLC Yes 12/7/2015 G2N, Inc. - imedx, Inc No 12/7/2015 The IFH Group West LLC - The IFH Group, Inc No 12/7/2015 Upstream Rehabilitation Inc. Charterhouse Equity Partners LLC Revelstoke Capital Partners LLC Yes 12/4/2015 Farm Design, Inc. - Flextronics International Ltd No (NasdaqGS:FLEX) 12/4/2015 PMG Research, Inc. Frontier Capital, LLC ICON Public Limited Company Yes (NasdaqGS:ICLR) 12/4/2015 Chandler Emergency Medical Group PLC - Sheridan Healthcare, Inc No 12/4/2015 Osmotica Pharmaceutical Corp. - Vertical / Trigen Holdings LLC No 12/4/2015 Salinas Valley PrimeCare Medical Group Incorporated - Salinas Valley Memorial Health Care System, Inc No 12/4/2015 Group Health Cooperative - Kaiser Permanente Inc No 12/4/2015 Rittenhouse Senior Living of Hoover LLC Windsor Healthcare Equities, LLC Kayne Anderson Capital Advisors, L.P. $ Yes PAGE 15

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