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 HEALTHCARE & LIFE SCIENCES The Huffington post published an article that highlights the nine most significant healthcare-related stories from Among the stories discussed in the piece are the Ebola outbreak, the emergence of personal health data analytics, and the rapid decline of smoking rates in Americans. The article also contains links to additional information on each topic should readers want to dig deeper. The piece can be found here. According to an article published in The Wall Street Journal, UnitedHealthCare has launched a pilot program with MD Anderson Cancer Center in Houston to reimburse for the care of certain cancer patients through bundled capitated payments. The payments are designed to cover all treatment for a year and are estimated to be in the six figures (specific financial terms were not disclosed). Notably, because the payments are capped, additional treatment costs incurred by MD Anderson due to complications do not trigger additional payments. As many readers may be aware, the shift to bundled payments where providers are at risk is a key development in the current healthcare reform environment. A link to the article can be found here. (a subscription to The Wall Street Journal Online may be required) The Atlantic posted an article discussing the impact of race on the quality of healthcare received by patients. The article primarily relies on two publications in The New England Journal of Medicine: one focused on the quality of acute care received by patients of various races while the other focused on the quality of preventative care. According to the studies, the quality of acute care received by patients of different ethnicities has generally converged while a significant quality gap persists between white and black patients when it comes to preventative care. CONTENTS EQUITY TRADING OVERVIEW EQUITY MARKETS OVERVIEW M&A OVERVIEW DEBT CAPITAL MARKETS OVERVIEW HEALTHCARE & LIFE SCIENCES TRADING STATISTICS M&A DETAIL CONTACTS UNITED STATES Turner Bredrup Managing Director [email protected] +1 (804) James Clark Managing Director [email protected] +1 (804) Todd Morris Managing Director [email protected] +1 (415) Cheairs Porter Managing Director [email protected] +1 (804) Andy Dixon Director [email protected] +1 (415) Geoff Smith Director [email protected] +1 (804) Paul Hepper Vice President [email protected] +1 (804) Andy Hewlett Vice President [email protected] +1 (415) Bill Kayser Vice President [email protected] +1 (804) Whit Knier Vice President [email protected] +1 (804) PAGE 1

3 EQUITY TRADING OVERVIEW Key Trading Statistics (detail begins on page 6) Sector Number of Companies Average Enterprise Value ($ mm) Median TEV/ LTM Multiples Median TEV/ Forward Mulitples Change in Stock Price 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA Payer, Provider, & Pharmacy Support Services Products & Devices Provider-Based Services Clinical Laboratories 3 $8,438 (0.7%) 2.3% 1.8x 9.3x 1.8x 9.2x Contract Pharma Manufacturing 4 2, % 10.8% 2.4x 12.6x 2.7x 13.3x Contract Research Organizations 7 3, % 34.5% 2.2x 12.8x 2.1x 12.4x Disease Management 2 4, % 17.2% 1.8x 18.3x 1.8x 11.9x Emergency Services 1 2,394 (24.2%) (20.3%) 2.4x 9.7x 2.4x 9.4x Health Care Staffing 4 2, % 23.0% 1.0x 14.0x 1.0x 13.2x HMO - Medical 9 23, % 32.6% 0.4x 9.7x 0.3x 8.3x Information Services 11 3,591 (8.9%) (4.3%) 3.0x 13.8x 3.0x 11.6x Specialty Managed Care 3 2, % 0.0% 1.4x 9.7x 1.4x 32.2x Specialty Pharmacy Management 4 23, % 16.6% 0.7x 11.8x 0.7x 11.7x Dental Products 3 40, % 19.9% 3.4x 15.6x 3.4x 12.7x Durable Medical Equipment 3 3, % 9.3% 1.8x 12.7x 1.6x 10.0x Life Sciences Tools 5 14, % 26.5% 2.0x 13.3x 3.3x 15.6x Medical Devices and Products 13 49, % 18.3% 3.2x 12.9x 3.4x 12.3x Medical / Surgical / Dental Supplies & Distribution 7 18, % 19.9% 0.4x 13.6x 0.3x 11.3x Acute-Care Hospitals 5 23,733 (7.9%) 27.3% 1.3x 9.5x 1.2x 8.2x Assisted Living 4 3,745 (1.3%) 20.0% 2.3x 17.0x 2.1x 14.6x Diagnostic Imaging 3 3, % 15.4% 1.7x 8.0x 2.0x 10.0x Dialysis Services 2 27, % 17.3% 2.0x 10.4x 2.0x 10.4x Home Care, Hospice, and Home Infusion % 2.2% 0.8x 11.7x 0.8x 9.8x Long-Term Care 3 1, % 8.8% 0.9x 7.8x 0.7x 7.5x Physician Practice Management 3 2,542 (3.8%) (16.0%) 1.2x 11.3x 2.0x 11.7x Behavioral Health / Management 6 3, % 13.9% 1.5x 10.7x 1.4x 10.3x Surgicenters / Rehabilitation 6 2, % 13.3% 2.2x 10.6x 2.0x 10.9x Payer, Provider, & Pharmacy Support Services 48 $7, % 11.2% 1.7x 12.2x 1.7x 13.3x Products & Devices 31 $25, % 18.8% 2.1x 13.6x 2.4x 12.4x Provider-Based Services 39 $7, % 11.3% 1.5x 10.8x 1.6x 10.4x HW&Co. HCLS Composite Index 118 $11, % 12.8% 1.7x 12.0x 1.8x 12.0x S&P % 14.4% Public Company Sector Performance (12-month % change in stock price) Contract Research Organizations HMO - Medical Acute-Care Hospitals Life Sciences Tools Health Care Staffing Assisted Living Medical / Surgical / Dental Supplies & Distribution Dental Products Medical Devices and Products Dialysis Services Disease Management Specialty Pharmacy Management Diagnostic Imaging S&P 500 Behavioral Health / Management Surgicenters / Rehabilitation HW&Co. HCLS Composite Index Contract Pharma Manufacturing Durable Medical Equipment Long-Term Care Clinical Laboratories Home Care, Hospice, and Home Infusion Specialty Managed Care Information Services Physician Practice Management Emergency Services (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% PAGE 2

4 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance % % 165.8% Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index Top 25 Equity Offerings (by proceeds) Closing Date Issuer Ticker Transaction Type Gross Proceeds ($mm) 11/21/14 Perrigo Co PRGO Follow-On $1, /12/14 Isis Pharmaceuticals Inc ISIS Convertible /18/14 Receptos Inc RCPT Follow-On /10/14 AmSurg Corp AMSG Follow-On /17/14 Juno Therapeutics Inc JUNO IPO /19/14 Kindred Healthcare Inc KND Convertible /13/14 FibroGen Inc FGEN IPO /20/14 Lexicon Pharmaceuticals Inc LXRX Follow-On /05/14 Nevro Corp NVRO IPO /18/14 Amicus Therapeutics Inc FOLD Follow-On /18/14 Bellicum Pharmaceuticals Inc BLCM IPO /06/14 Coherus Biosciences Inc CHRS IPO /04/14 Inotek Pharmaceuticals Corp ITEK IPO /19/14 Neothetics Inc NEOT IPO /19/14 Rockwell Medical Inc RMTI Follow-On /18/14 Second Sight Med Prod Inc EYES IPO /04/14 Biolase Inc BIOL Follow-On /25/14 Medgenics Inc MDGN Follow-On /25/14 Eleven Biotherapeutics Inc EBIO Follow-On /06/14 Mast Therapeutics Inc MSTX Follow-On /21/14 Amedica Corp AMDA Follow-On /07/14 Cohbar Inc N/A IPO /12/14 Capnia Inc CAPN IPO /20/14 Immune Pharmaceuticals Inc EPCT Follow-On /26/14 Guided Therapeutics Inc GTHP Follow-On 3.8 PAGE 3

5 Transaction Volume Aggregate Transaction Value ($ in billions) EV / LTM EBITDA Multiple Number of Transactions HEALTHCARE & LIFE SCIENCES M&A OVERVIEW Announced Healthcare & Life Sciences M&A QUARTERLY M&A ACTIVITY MIDDLE MARKET HEALTHCARE TRANSACTION HIGHLIGHTS 350 Announced Target Buyer /23/2014 Encompass Home Health, Inc. HEALTHSOUTH Corp. (NYSE:HLS) 11/20/2014 Intralign Health, LLC Pamplona Capital Management LLP, Priv ate Equity 11/19/2014 Change Healthcare Corporation Emdeon Inc. 11/18/2014 PhyMed Healthcare Group Ontario Teachers' Pension Plan 11/12/2014 Cogent Healthcare Inc. Sound Inpatient Physicians, Inc. 11/11/2014 Centerre Healthcare Corporation Kindred Healthcare Inc. (NYSE:KND) 11/7/2014 Kremers Urban Pharmaceuticals Inc. Adv ent International; Av ista Capital 11/5/2014 Ximedica, LLC SV Life Sciences Adv isers, LLC 11/3/2014 Micron Technologies, Inc. Catalent, Inc. (NYSE:CTLT) 11/2/2014 Cov ance Inc. (NYSE:CVD) Laboratory Corp. of America Holdings (NYSE:LH) LTM DEAL STATISTICS Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 PEG Acquirer Strategic Acquirer Healthcare & Life Sciences M&A Trends Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $ , x 13.6x Note: Transactions based on publicly available information ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES $ x 4.0x $450 $400 $350 $300 $250 $200 $150 $100 $50 $174.6 $110.6 $141.4 $101.6 $108.2 $ Number of Transactions 18x 15x 12x 9x 6x 3x 7.7x 12.8x 11.1x 10.9x 10.0x 13.6x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x EV / LTM Revenue Multiple $ YTD Aggregate Deal Value # of deals 0 0x YTD TEV / LTM EBITDA TEV / LTM Sales 0.0x Announced Private Equity M&A Activity PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) PEG INVESTMENTS AND EXITS HC&LS Industry Number of Segment Companies Biotechnology 4 Healthcare Technology 18 Healthcare Distributors 7 Healthcare Equipment 25 Healthcare Facilities 44 Healthcare Serv ices 50 Healthcare Supplies 9 Life Sciences Tools & Serv ices 17 Managed Healthcare 4 Pharmaceuticals Number of Investments Number of Exits PAGE 4

6 EBITDA Multiple Average Spread Over LIBOR Average Spread Over LIBOR HEALTHCARE & LIFE SCIENCES DEBT CAPITAL 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 $0 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 L YTD Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional CREDIT STATISTICS AVERAGE SECONDARY SPREAD 6.0x L L x L x L L x Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest L + 0 Recent Healthcare & Life Sciences Debt Offerings (by deal amount) Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread 11/20/14 LabCorp Medical laboratories $3, Bridge Loan NR / NR N/A 11/05/14 Ascension Health Offices & clinics of medical doctors Revolver/Line >= 1 Yr. NR / NR L /05/14 Ascension Health Offices & clinics of medical doctors Revolver/Line >= 1 Yr. NR / NR L /20/14 LabCorp Medical laboratories Bridge Loan NR / NR N/A 11/19/14 CT Technologies Intermediate Holdings Inc Health and allied services Term Loan B / B2 L /26/14 PeaceHealth General medical & surgical hospitals Standby Letter of Credit NR / NR N/A 11/21/14 Carson Tahoe Hospital Health and allied services Standby Letter of Credit NR / NR N/A 11/25/14 National Eldercare Services Skilled nursing care facilities Term Loan NR / NR N/A 11/19/14 CT Technologies Intermediate Holdings Inc Health and allied services Revolver/Line >= 1 Yr. B / B2 N/A 11/25/14 National Eldercare Services Skilled nursing care facilities 7.00 Revolver/Line >= 1 Yr. NR / NR N/A PAGE 5

7 HEALTHCARE & LIFE SCIENCES TRADING STATISTICS Payer, Provider, & Pharmacy Support Services Company Name Stock Price Lastest Twelve Months Equity Total Ent. Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Cash and (LTM) LTM Lastest Mkt. Total Debt Value Equiv. Period FYE Date 11/28/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Clinical Laboratories Bio-Reference Laboratories Inc. $28.30 (4.4%) (4.2%) $34.00 $24.13 $785 $60 $20 $825 $797 $97 $73 Jul-14 Oct-13 $837 $109 $84 1.0x 8.5x 1.0x 7.6x Laboratory Corp. of America Holdings (0.7%) 2.3% ,842 3, ,299 5,936 1, Sep-14 Dec-13 5,993 1, x 9.8x 1.9x 9.5x Quest Diagnostics Inc % 6.3% ,440 3, ,191 7,308 1,397 1,090 Sep-14 Dec-13 7,401 1,439 1, x 9.3x 1.8x 9.2x Number of Companies 3 Median: (0.7%) 2.3% Total $19,066 $8,438 $14,041 $14, x 9.3x 1.8x 9.2x Mean: 0.1% 1.5% $8, x 9.2x 1.6x 8.8x Contract Pharma Manufacturing Akorn, Inc. $ % 56.5% $45.25 $20.52 $4,321 $1,157 $131 $5,336 $459 $140 $99 Sep-14 Dec-13 $630 $262 $ x 38.1x 8.5x 20.3x Cambrex Corporation % 17.8% Sep-14 Dec x 11.1x 2.0x 9.5x Integrated Biopharma Inc (54.2%) (28.1%) Sep-14 Jun-14 NA NA NA 0.5x 10.7x NA NA West Pharmaceutical Services, Inc % 3.9% , ,796 1, Sep-14 Dec-13 1, x 14.0x 2.7x 13.3x Number of Companies 4 Median: 4.9% 10.8% Total $8,717 $2,470 $2,255 $2, x 12.6x 2.7x 13.3x Mean: (6.2%) 12.5% $2, x 18.5x 4.4x 14.4x Contract Research Organizations Albany Molecular Research Inc. $16.27 (17.9%) 36.5% $23.95 $9.71 $531 $124 $18 $636 $257 $35 $18 Sep-14 Dec-13 $279 $50 $34 2.5x 18.0x 2.3x 12.7x Charles River Laboratories International, Inc % 24.4% , ,708 1, Sep-14 Dec-13 1, x 12.8x 2.9x 12.6x Covance Inc % 21.2% , ,352 2, Sep-14 Dec-13 2, x 12.8x 2.1x 12.5x ICON Public Limited Company % 45.4% , ,171 1, Sep-14 Dec-13 1, x 13.2x 2.1x 12.2x PAREXEL International Corporation % 41.5% , ,305 1, Sep-14 Jun-14 2, x 11.2x 1.6x 10.4x Quintiles Transnational Holdings Inc % 34.5% ,144 2, ,559 4, Sep-14 Dec-13 4, x 12.8x 2.0x 12.2x WuXi PharmaTech (Cayman) Inc (7.0%) 3.9% , , Sep-14 Dec x 13.8x 3.2x 12.4x Number of Companies 7 Median: 2.7% 34.5% Total $25,560 $3,841 $12,211 $12, x 12.8x 2.1x 12.4x Mean: 2.8% 29.6% $3, x 13.5x 2.3x 12.1x Disease Management Alere Inc. $ % 21.5% $43.00 $31.94 $3,333 $3,789 $445 $7,288 $2,964 $547 $142 Sep-14 Dec-13 $2,899 $543 $ x 12.9x 2.5x 13.4x Healthways Inc (10.7%) 13.0% Sep-14 Dec x 23.6x 1.1x 10.3x Number of Companies 2 Median: 1.0% 17.2% Total $3,884 $4,048 $3,676 $3, x 18.3x 1.8x 11.9x Mean: 1.0% 17.2% $4, x 18.3x 1.8x 11.9x Emergency Services Air Methods Corp. $44.38 (24.2%) (20.3%) $60.74 $42.16 $1,740 $664 $17 $2,394 $983 $246 $165 Sep-14 Dec-13 $1,006 $255 $ x 9.7x 2.4x 9.4x Number of Companies 1 Median: (24.2%) (20.3%) Total $1,740 $2,394 $983 $1, x 9.7x 2.4x 9.4x Mean: (24.2%) (20.3%) $2, x 9.7x 2.4x 9.4x Health Care Staffing AMN Healthcare Services Inc. $ % 23.2% $17.98 $10.35 $798 $146 $10 $935 $1,005 $84 $68 Sep-14 Dec-13 $1,024 $84 $65 0.9x 11.1x 0.9x 11.1x Cross Country Healthcare, Inc % 45.0% Sep-14 Dec x 34.7x 0.6x 22.8x On Assignment Inc % (9.7%) , ,982 1, Sep-14 Dec-13 1, x 11.1x 1.1x 10.0x Team Health Holdings, Inc % 22.8% , ,769 2, Sep-14 Dec-13 2, x 16.9x 1.7x 15.2x Number of Companies 4 Median: 8.3% 23.0% Total $6,805 $2,020 $6,004 $6, x 14.0x 1.0x 13.2x Mean: 12.6% 20.3% $2, x 18.5x 1.1x 14.8x As of November 28, PAGE 6

8 HEALTHCARE & LIFE SCIENCES TRADING STATISTICS Payer, Provider, & Pharmacy Support Services Company Name Stock Price Lastest Twelve Months Equity Total Ent. Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Cash and (LTM) LTM Lastest Mkt. Total Debt Value Equiv. Period FYE Date 11/28/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA HMO - Medical Commercial: Aetna Inc. $ % 26.7% $88.11 $64.68 $30,682 $8,784 $1,707 $37,820 $56,415 $4,858 $4,227 Sep-14 Dec-13 $57,650 $4,597 $4, x 7.8x 0.7x 8.2x Cigna Corp % 16.9% ,914 5,147 1,621 30,551 34,098 3,053 2,710 Sep-14 Dec-13 34,632 3,685 3, x 10.0x 0.9x 8.3x Health Net, Inc % 70.2% , ,115 3,388 12, Sep-14 Dec-13 14, x 9.2x 0.2x 7.9x Humana Inc % 32.9% ,156 4,605 2,705 23,056 46,359 2,244 1,977 Sep-14 Dec-13 48,501 2,615 2, x 10.3x 0.5x 8.8x UnitedHealth Group Incorporated % 32.6% ,664 17,579 7, , ,158 10,997 9,961 Sep-14 Dec ,074 11,502 10, x 9.7x 0.8x 9.3x Anthem, Inc % 0.0% ,962 1, ,792 5,162 4,595 Sep-14 Dec-13 73,174 4,984 4, x 0.0x 0.0x 0.0x Number of Companies 6 Median: 8.5% 29.7% Total $177,419 $33,535 $350,815 $358, x 9.4x 0.6x 8.3x Mean: 7.9% 29.9% $33, x 7.8x 0.5x 7.1x Government: Centene Corp. $ % 65.3% $ $54.12 $5,795 $956 $1,524 $5,376 $14,132 $459 $376 Sep-14 Dec-13 $16,429 $559 $ x 11.7x 0.3x 9.6x Molina Healthcare, Inc % 52.8% , ,599 1,784 8, Sep-14 Dec-13 9, x 9.7x 0.2x 6.5x WellCare Health Plans, Inc % (1.1%) , ,551 2,587 11, Sep-14 Dec-13 12, x 9.6x 0.2x 8.5x Number of Companies 3 Median: 13.1% 52.8% Total $11,506 $3,249 $34,440 $39, x 9.7x 0.2x 8.5x Mean: 16.6% 39.0% $3, x 10.3x 0.2x 8.2x Information Services Data/Analytics: National Research Corp. $0.00 (10.4%) (0.8%) $44.95 $30.20 $414 $9 $39 $384 $97 $32 $28 Sep-14 Dec-13 $99 $33 $29 4.0x 12.1x 3.9x 11.6x Castlight Health, Inc % 0.0% , (85) (86) Sep-14 Dec (79) (76) 25.9x NM 21.3x (11.9x) Number of Companies 2 Median: (2.4%) (0.4%) Total $768 $662 $66 $ x 12.1x 12.6x (0.1x) Mean: (2.4%) (0.4%) $ x 12.1x 12.6x (0.1x) ehealth: WebMD Health Corp. $36.54 (23.9%) (4.3%) $53.30 $34.48 $1,321 $952 $700 $1,573 $564 $108 $90 Sep-14 Dec-13 $577 $156 $93 2.8x 14.6x NA NA Number of Companies 1 Median: (23.9%) (4.3%) Total $1,321 $1,573 $564 $ x 14.6x NA NA Mean: (23.9%) (4.3%) $1, x 14.6x NA NA Hospital/Physician: Allscripts Healthcare Solutions, Inc. $12.02 (17.9%) (19.5%) $19.68 $11.00 $2,167 $587 $37 $2,717 $1,388 $46 ($56) Sep-14 Dec-13 $1,399 $203 $ x NM 1.9x 13.4x athenahealth, Inc (18.6%) (9.8%) , , (2) Sep-14 Dec x NM 6.1x 33.0x Cerner Corporation % 11.7% , ,806 3, Sep-14 Dec-13 3,381 1, x 24.7x 6.2x 18.3x Computer Programs & Systems Inc (4.1%) (3.9%) Sep-14 Dec x 10.5x 3.0x 10.7x HMS Holdings Corp (8.9%) (9.6%) , , Sep-14 Dec x 18.4x 4.3x 17.1x MedAssets, Inc (15.5%) (10.9%) , , Sep-14 Dec x 9.9x 2.9x 8.7x Merge Healthcare Incorporated % 33.1% Sep-14 Dec x 13.0x 2.3x 10.4x Quality Systems Inc (3.3%) (36.7%) Sep-14 Mar x 18.4x 1.6x 10.8x Number of Companies 8 Median: (6.5%) (9.7%) Total $1,498 $4,245 $577 $ x 15.7x 2.9x 12.1x Mean: (4.2%) (5.7%) $1, x 15.8x 3.5x 15.3x As of November 28, PAGE 7

9 HEALTHCARE & LIFE SCIENCES TRADING STATISTICS Payer, Provider, & Pharmacy Support Services Company Name Stock Price Lastest Twelve Months Equity Total Ent. Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Cash and (LTM) LTM Lastest Mkt. Total Debt Value Equiv. Period FYE Date 11/28/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty Managed Care HealthEquity, Inc. $ % 0.0% $25.28 $16.11 $1,359 $0 $108 $1,389 $80 $22 $16 Oct-14 Jan-14 $85 $23 $ x 67.9x 16.4x 59.7x Assurant Inc. $ % 4.3% $69.71 $59.17 $4,749 $1,267 $1,411 $4,604 $10,160 $1,023 $897 Sep-14 Dec-13 $10,331 $980 $ x 4.5x 0.4x 4.7x CorVel Corporation (15.0%) (23.9%) Sep-14 Mar NA NA 1.4x 9.7x 1.4x NA Number of Companies 3 Median: 1.5% 0.0% Total $1,359 $2,227 $489 $ x 9.7x 1.4x 32.2x Mean: 4.8% (6.5%) $2, x 27.4x 6.1x 32.2x Specialty Pharmacy Management Express Scripts Holding Company $ % 23.2% $83.37 $64.64 $61,025 $14,687 $835 $74,888 $100,356 $6,496 $4,420 Sep-14 Dec-13 $100,268 $6,814 $6, x 11.5x 0.7x 11.0x Catamaran Corporation % 10.9% ,505 1, ,032 20, Sep-14 Dec-13 21, x 14.0x 0.5x 14.0x Omnicare Inc % 22.2% ,883 2, ,812 6, Sep-14 Dec-13 6, x 12.1x 1.4x 12.3x PharMerica Corporation (11.2%) 0.2% ,068 1, Sep-14 Dec-13 1, x 9.3x 0.6x 8.3x Number of Companies 4 Median: 9.0% 16.6% Total $79,126 $23,950 $128,874 $129, x 11.8x 0.7x 11.7x Mean: 4.9% 14.1% $23, x 11.7x 0.8x 11.4x As of November 28, PAGE 8

10 HEALTHCARE & LIFE SCIENCES TRADING STATISTICS Products & Devices Company Name Stock Price Lastest Twelve Months Equity Total Ent. Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Cash and (LTM) LTM Lastest Mkt. Total Debt Value Equiv. Period FYE Date 11/28/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $ % 19.9% $ $ $102,589 $7,355 $1,929 $107,281 $31,671 $8,467 $7,052 Sep-14 Dec-13 $31,873 $8,506 $7, x 12.7x 3.4x 12.6x DENTSPLY International Inc % 15.3% ,781 1, ,063 2, Sep-14 Dec-13 2, x 15.6x 3.1x 14.7x Sirona Dental Systems Inc % 26.4% , ,483 1, Sep-14 Sep-14 1, x 16.6x 3.7x 12.7x Number of Companies 3 Median: 11.2% 19.9% Total $115,154 $40,276 $35,799 $36, x 15.6x 3.4x 12.7x Mean: 11.3% 20.5% $40, x 15.0x 3.4x 13.4x Durable Medical Equipment Hill-Rom Holdings, Inc. $ % 9.9% $46.29 $34.94 $2,632 $492 $99 $3,025 $1,686 $271 $176 Sep-14 Sep-14 $1,892 $302 $ x 11.2x 1.6x 10.0x Invacare Corporation % (31.8%) ,301 1 (34) Sep-14 Dec-13 1,281 (5) (41) 0.4x NM 0.4x (99.3x) ResMed Inc % 9.3% , ,912 1, Sep-14 Jun-14 1, x 14.3x 4.2x 13.5x Number of Companies 3 Median: 1.1% 9.3% Total $10,536 $3,473 $4,564 $4, x 12.7x 1.6x 10.0x Mean: 2.0% (4.2%) $3, x 12.7x 2.1x (25.2x) Life Sciences Tools Agilent Technologies Inc. $42.74 (25.2%) (20.6%) $61.22 $39.49 $14,254 $2,762 $3,028 $13,991 $6,981 $1,214 $831 Oct-14 Oct-14 $4,149 $894 $ x 11.5x 3.4x 15.6x Thermo Fisher Scientific, Inc % 28.0% ,719 14, ,658 15,864 3,641 2,141 Sep-14 Dec-13 16,793 4,052 3, x 18.0x 3.9x 16.2x VWR Corporation % 0.0% ,522 2, ,126 4, Sep-14 Dec-13 4, x 13.3x 1.4x 13.8x Becton, Dickinson and Company % 28.8% ,940 3,971 1,861 28,163 8,432 2,164 1,643 Sep-14 Sep-14 8,631 2,370 1, x 13.0x 3.3x 11.9x LifeWatch AG % 26.5% (2) Jun-14 Dec x 51.5x 1.5x 35.6x Number of Companies 5 Median: 6.8% 26.5% Total $41,335 $14,098 $6,981 $4, x 13.3x 3.3x 15.6x Mean: 1.9% 12.5% $22, x 21.5x 2.7x 18.6x Medical Devices and Products Abbott Laboratories $ % 16.2% $44.77 $35.65 $67,023 $8,301 $3,613 $70,552 $22,162 $4,795 $3,216 Sep-14 Dec-13 $20,730 $5,160 $3, x 14.7x 3.4x 13.7x Baxter International Inc (2.5%) 7.0% ,564 9,275 2,078 46,783 16,813 4,187 3,190 Sep-14 Dec-13 16,562 4,425 3, x 11.1x 2.8x 10.6x Boston Scientific Corporation % 9.9% ,072 4, ,071 7,331 1, Sep-14 Dec-13 7,405 1,713 1, x 12.9x 2.8x 12.3x CR Bard Inc % 20.2% ,534 1, ,965 3, Sep-14 Dec-13 3, x 14.1x 3.9x 13.2x Danaher Corp % 10.9% ,717 3,036 4,025 57,797 19,763 4,366 3,432 Sep-14 Dec-13 19,910 4,446 3, x 13.2x 2.9x 13.0x Hanger, Inc (3.2%) (44.8%) ,273 1, Jun-14 Dec-13 1, x 8.1x 1.2x 7.8x Hologic Inc % 18.3% ,468 4, ,034 2, Sep-14 Sep-14 2, x 12.4x 4.3x 11.1x Hospira Inc % 51.3% ,091 1, ,312 4, Sep-14 Dec-13 4, x 15.6x 2.5x 13.5x Johnson & Johnson % 14.0% ,004 15,271 13, ,270 74,432 25,171 21,165 Sep-14 Dec-13 74,731 25,811 21, x 11.3x 3.8x 11.1x Medtronic, Inc % 28.6% ,711 13,708 1,287 71,935 17,255 5,622 4,770 Oct-14 Apr-14 17,565 6,255 5, x 12.8x 4.1x 11.5x Stryker Corporation % 24.6% ,150 3,962 1,356 34,435 9,525 1,748 1,384 Sep-14 Dec-13 9,680 2,645 2, x 19.7x 3.6x 13.0x Teleflex Incorporated % 20.8% ,934 1, ,716 1, Sep-14 Dec-13 1, x 14.1x 3.1x 12.8x Zimmer Holdings, Inc % 23.9% ,017 1, ,948 4,691 1,760 1,393 Sep-14 Dec-13 4,697 1,792 1, x 10.8x 4.0x 10.6x Number of Companies 13 Median: 9.5% 18.3% Total $648,024 $49,930 $184,984 $184, x 12.9x 3.4x 12.3x Mean: 7.8% 15.4% $49, x 13.1x 3.3x 11.9x Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $ % 29.1% $91.59 $62.55 $19,912 $1,996 $1,809 $20,099 $119,569 $1,374 $1,185 Sep-14 Sep-14 $128,489 $1,877 $1, x 14.6x 0.2x 10.7x Cardinal Health, Inc % 27.5% ,202 4,007 2,469 28,740 90,631 2,390 1,940 Sep-14 Jun-14 94,884 2,685 2, x 12.0x 0.3x 10.7x Henry Schein, Inc % 19.9% , ,855 10, Sep-14 Dec-13 10, x 15.0x 1.2x 14.9x McKesson Corporation % 27.3% ,871 10,572 3,804 57, ,201 3,557 2,692 Sep-14 Mar ,587 4,807 4, x 16.1x 0.3x 11.9x Owens & Minor Inc (0.2%) (10.5%) , ,314 9, Sep-14 Dec-13 9, x 9.8x 0.2x 9.2x Patterson Companies, Inc % 16.5% , ,269 4, Oct-14 Apr-14 4, x 12.6x 1.2x 12.2x K2M Group Holdings, Inc % 0.0% (15) (52) Sep-14 Dec (10) (52) 3.8x NM 3.7x (68.3x) Number of Companies 7 Median: 14.9% 19.9% Total $115,287 $18,170 $395,389 $425, x 13.6x 0.3x 11.3x Mean: 15.4% 15.7% $18, x 13.4x 0.6x 11.6x As of November 28, PAGE 9

11 HEALTHCARE & LIFE SCIENCES TRADING STATISTICS Provider-Based Services Company Name Stock Price Lastest Twelve Months Equity Total Ent. Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Cash and (LTM) LTM Lastest Mkt. Total Debt Value Equiv. Period FYE Date 11/28/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $47.08 (11.9%) 14.8% $57.72 $34.55 $5,475 $17,069 $221 $23,106 $17,129 $2,241 $1,394 Sep-14 Dec-13 $18,989 $2,820 $1, x 10.1x 1.2x 8.2x HCA Holdings, Inc % 49.8% ,215 28, ,687 36,118 7,141 5,319 Sep-14 Dec-13 37,061 7,293 5, x 8.3x 1.6x 8.2x Lifepoint Hospitals Inc (6.7%) 35.1% ,132 2, ,202 4, Sep-14 Dec-13 4, x 9.5x 1.2x 8.2x Tenet Healthcare Corp (19.9%) 12.2% ,722 11, ,602 16,032 1, Sep-14 Dec-13 17,215 1,930 1, x 9.5x 1.0x 8.6x Universal Health Services Inc (7.9%) 27.3% ,354 3, ,066 7,759 1,386 1,020 Sep-14 Dec-13 8,641 1,464 1, x 10.1x 1.6x 9.6x Number of Companies 5 Median: (7.9%) 27.3% Total $53,899 $23,733 $81,210 $86, x 9.5x 1.2x 8.2x Mean: (9.1%) 27.8% $23, x 9.5x 1.3x 8.6x Assisted Living Brookdale Senior Living Inc. $ % 23.8% $36.18 $26.11 $6,496 $6,415 $238 $12,674 $2,931 $522 $134 Sep-14 Dec-13 $3,806 $597 $17 4.3x 24.2x 3.3x 21.2x Capital Senior Living Corp % 16.2% , Sep-14 Dec x 24.2x 3.6x 20.8x Five Star Quality Care Inc (3.9%) (10.0%) , (12) Sep-14 Dec-13 1, x 6.4x 0.2x 5.9x Skilled Healthcare Group, Inc (5.2%) 36.9% Sep-14 Dec x 9.9x 0.8x 8.4x Number of Companies 4 Median: (1.3%) 20.0% Total $7,731 $3,745 $5,240 $6, x 17.0x 2.1x 14.6x Mean: 1.0% 16.7% $3, x 16.2x 2.0x 14.1x Diagnostic Imaging Alliance Healthcare Services, Inc. $22.52 (17.2%) (21.4%) $35.40 $20.06 $238 $505 $39 $749 $437 $127 $60 Sep-14 Dec-13 NA NA NA 1.7x 5.7x NA NA RadNet, Inc % 329.6% Sep-14 Dec x 8.0x 1.4x 7.8x Varian Medical Systems, Inc % 15.4% , ,371 3, Sep-14 Sep-14 3, x 12.7x 2.6x 12.2x Number of Companies 3 Median: 4.4% 15.4% Total $9,447 $3,365 $4,198 $3, x 8.0x 2.0x 10.0x Mean: 4.8% 107.9% $3, x 8.8x 2.0x 10.0x Dialysis Services DaVita HealthCare Partners Inc. $ % 27.8% $78.52 $56.85 $16,446 $8,504 $1,527 $24,217 $12,519 $2,413 $1,837 Sep-14 Dec-13 $12,737 $2,419 $1, x 9.9x 1.9x 10.0x Fresenius Medical Care AG & Co. KGAA % 6.7% ,336 9, ,718 15,666 2,902 2,220 Sep-14 Dec-13 15,717 2,938 2, x 11.0x 2.0x 10.8x Number of Companies 2 Median: 3.8% 17.3% Total $38,783 $27,967 $28,185 $28, x 10.4x 2.0x 10.4x Mean: 3.8% 17.3% $27, x 10.4x 2.0x 10.4x Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $ % (21.4%) $29.80 $17.02 $251 $4 $14 $241 $300 $20 $17 Sep-14 Dec-13 $313 $23 $19 0.8x 12.0x 0.8x 10.4x Almost Family Inc (0.8%) (2.7%) Sep-14 Dec x 14.4x 0.6x 8.7x Amedisys Inc % 54.1% , Sep-14 Dec-13 1, x 17.6x 0.8x 13.0x Gentiva Health Services Inc % 55.2% , ,764 1, Sep-14 Dec-13 1, x 11.5x 0.9x 9.3x LHC Group, Inc (7.8%) 2.2% Sep-14 Dec x 8.8x 0.7x 8.8x Chemed Corp % 41.7% , ,028 1, Sep-14 Dec-13 1, x 11.0x 1.4x 9.8x Number of Companies 6 Median: 5.7% 22.0% Total $4,370 $966 $6,042 $6, x 11.7x 0.8x 9.5x Mean: 5.8% 21.5% $ x 12.6x 0.9x 10.0x Home Infusion: BioScrip Inc. $6.48 (23.3%) (6.4%) $9.05 $5.44 $445 $423 $0 $868 $1,029 ($3) ($25) Sep-14 Dec-13 $986 $46 $31 0.8x NM 0.9x 18.8x Number of Companies 1 Median: (23.3%) (6.4%) Total $445 $868 $1,029 $ x NM 0.9x 18.8x Mean: (23.3%) (6.4%) $ x NM 0.9x 18.8x As of November 28, PAGE 10

12 HEALTHCARE & LIFE SCIENCES TRADING STATISTICS Provider-Based Services Company Name Stock Price Lastest Twelve Months Equity Total Ent. Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples % Change 52 Week Cash and (LTM) LTM Lastest Mkt. Total Debt Value Equiv. Period FYE Date 11/28/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Long-Term Care The Ensign Group, Inc. $ % (12.3%) $47.78 $26.02 $886 $3 $39 $844 $988 $110 $80 Sep-14 Dec-13 $1,013 $111 $85 0.9x 7.7x 0.8x 7.6x Kindred Healthcare Inc (2.9%) 15.7% ,385 1, ,747 5, Sep-14 Dec-13 5, x 9.5x 0.5x 7.5x National Healthcare Corp % 8.8% Sep-14 Dec-13 NA NA NA 1.0x 7.8x NA NA Number of Companies 3 Median: 6.0% 8.8% Total $3,120 $1,491 $6,923 $6, x 7.8x 0.7x 7.5x Mean: 5.6% 4.1% $1, x 8.3x 0.7x 7.5x Physician Practice Management Multispecialty / Primary Care: IPC The Hospitalist Company, Inc. $44.08 (7.4%) (29.0%) $63.70 $36.12 $759 $70 $25 $804 $676 $71 $66 Sep-14 Dec-13 $694 $72 $66 1.2x 11.3x 1.2x 11.2x Number of Companies 1 Median: (7.4%) (29.0%) Total $759 $804 $676 $ x 11.3x 1.2x 11.2x Mean: (7.4%) (29.0%) $ x 11.3x 1.2x 11.2x Specialty: MEDNAX, Inc. $ % 18.4% $66.05 $49.82 $6,573 $289 $72 $6,784 $2,356 $538 $496 Sep-14 Dec-13 $2,425 $553 $ x 12.6x 2.8x 12.3x Number of Companies 1 Median: 15.6% 18.4% Total $6,573 $6,784 $2,356 $2, x 12.6x 2.8x 12.3x Mean: 15.6% 18.4% $6, x 12.6x 2.8x 12.3x Dental: Birner Dental Management Services Inc. $16.36 (3.8%) (16.0%) $22.40 $14.50 $29 $10 $0 $39 $65 $4 ($1) Sep-14 Dec-13 NA NA NA 0.6x 10.8x NA NA Number of Companies 1 Median: (3.8%) (16.0%) Total $29 $39 $65 $0 0.6x 10.8x NA NA Mean: (3.8%) (16.0%) $39 0.6x 10.8x NA NA Behavioral Health / Management Magellan Health, Inc. $ % 0.6% $63.81 $52.37 $1,670 $274 $368 $1,560 $3,786 $196 $143 Sep-14 Dec-13 $3,758 $247 $ x 8.0x 0.4x 6.3x Providence Service Corp (13.2%) 41.8% , Sep-14 Dec-13 1, x 10.8x 0.5x 8.7x AAC Holdings, Inc % 0.0% Sep-14 Dec x 72.1x 5.0x 32.4x Acadia Healthcare Company, Inc % 31.9% ,716 1, , Sep-14 Dec-13 1, x 26.2x 4.7x 22.2x Civitas Solutions, Inc % 0.0% ,397 1, Jun-14 Sep-13 1, x 10.7x 1.1x 10.9x Universal Health Services Inc (7.9%) 27.3% ,354 3, ,066 7,759 1,386 1,020 Sep-14 Dec-13 8,641 1,464 1, x 10.1x 1.6x 9.6x Number of Companies 6 Median: 0.0% 13.9% Total $17,601 $3,843 $1,274 $1, x 10.7x 1.4x 10.3x Mean: 1.6% 16.9% $3, x 23.0x 2.2x 15.0x Surgicenters / Rehabilitation Surgery Centers 1 : AmSurg Corp. $51.57 (2.6%) 8.0% $54.48 $40.00 $2,482 $2,249 $194 $4,703 $1,342 $234 $188 Sep-14 Dec-13 $1,612 $247 NA 3.9x 20.1x 2.9x 19.1x Surgical Care Affiliates, Inc % NA , , Sep-14 Dec NA NA 2.6x 18.2x 2.0x NA Number of Companies 2 Median: 2.8% 8.0% Total $3,684 $3,240 $2,174 $2, x 19.1x 2.5x 19.1x Mean: 2.8% 8.0% $3, x 19.1x 2.5x 19.1x Rehabilitation / Long Term Acute Care: HEALTHSOUTH Corp. $ % 15.2% $42.41 $29.82 $3,609 $1,650 $272 $5,235 $2,336 $584 $479 Sep-14 Dec-13 $2,400 $583 $ x 8.8x 2.2x 9.0x Civitas Solutions, Inc % 0.0% ,397 1, Jun-14 Sep-13 1, x 10.7x 1.1x 10.9x Select Medical Holdings Corporation % 68.4% ,889 1, ,483 2, Sep-14 Dec-13 3, x 9.5x 1.1x 9.4x US Physical Therapy Inc % 13.3% Sep-14 Dec NA 1.9x 10.6x 1.8x 12.3x Number of Companies 4 Median: 3.8% 14.3% Total $6,608 $2,663 $1,790 $1, x 10.0x 1.5x 10.2x Mean: 4.2% 24.2% $2, x 9.9x 1.6x 10.4x As of November 28, (1) EBITDA, EBIT, and Enterprise Value figures are adjusted for minority interest. PAGE 11

13 M&A DETAIL Announced U.S. Healthcare & Life Sciences M&A Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 11/28/2014 hoh18.75 Mölnlycke Health Care AB, Dry Tips Mölnlycke Health Care AB Microbrush International Limited No 11/26/2014 FutureCare Courtland LLC LifeBridge Health, Inc. FutureCare Health and Management No Corporation 11/26/2014 LAXmed, LAX Clinic - 8K Miles Software Services Ltd No (BSE:512161) 11/25/2014 Grace Home Health Care, Inc. - Accelera Innovations, Inc No 11/25/2014 Watson Health Care, Inc. and Affordable Nursing, - Accelera Innovations, Inc No Inc. 11/25/2014 Alpha Systems - DataBank IMX, LLC No 11/25/2014 PPM Information Solutions, Inc. - Bolder Healthcare Solutions LLC No 11/25/2014 RFS Pharma, LLC - Cocrystal Pharma, Inc. (OTCBB:COCP) No 11/25/2014 Five companies in United States - CVS Holdings I LLC No 11/25/2014 EMS Flight Crew LLC - Voyageur Publishing & Events Ltd No 11/24/2014 Millennium Practice Management Associates, Inc. - MediGain, LLC No 11/24/2014 Probility Physical Therapy, LLC - Saint Joseph Mercy Health System No 11/24/2014 Newfane Rehab & Health Care Center, Inc. Eastern Niagara Hospital, Inc. Maximus Healthcare LLC No 11/24/2014 Sears Methodist Centers, Inc. and Sears Permian Retirement Corporation and Sears Panhandle Retiremen Sears Methodist Retirement System, Inc. The Ensign Group, Inc. (NasdaqGS:ENSG) No 11/23/2014 Encompass Home Health, Inc. Cressey & Company, LP; Thoma Bravo, HEALTHSOUTH Corp. (NYSE:HLS) x - - Yes LLC 11/21/2014 EXP Pharmaceutical Services Corp. - Inmar, Inc No 11/21/2014 Cardinal Health, Inc., Physician-Office Business Burrill Venture Capital; Versant Henry Schein, Inc. (NasdaqGS:HSIC) No Ventures, Inc.; De Novo Ventures; Gund Investment Corporation; Accuitive Medical Ventures, LLC 11/20/2014 Potentia Pharmaceuticals, Inc. - Apellis Pharmaceuticals, Inc No 11/20/2014 Intralign Health, LLC - Pamplona Capital Management LLP, Yes Private Equity 11/20/2014 Hospital Practice Associates, Inc. - IPC The Hospitalist Company, Inc No (NasdaqGS:IPCM) 11/20/2014 BRIT Systems, Inc. - Imaging Advantage LLC No 11/19/2014 Med-Ally LLC SCRA Technology Ventures Kelyniam Global, Inc. (OTCPK:KLYG) No 11/19/2014 Change Healthcare Corporation HLM Venture Partners; Noro-Moseley Partners; Mitsui & Co. Global Investment, Inc.; Solidus Company; Sandbox Industries Inc.; Blue Cross and Blue Shield Association, Endowment Arm; The West Health Investment Fund Emdeon Inc No 11/19/2014 Oasis Health Products, Inc. - Migranade, Inc No 11/19/2014 Plaza Bayamon Medical, Inc., Hermanos New Heritage Capital, LLC; The PRN Ambulance, Inc Yes Melendez Realty, Inc., Allied Realty Investments Stephens Group, LLC; Dillon Joyce Ltd. 11/19/2014 QualityHealth Lazard Technology Partners; Hudson Sharecare, Inc No Ventures; New York City Investment Fund Manager, Inc. 11/18/2014 PhyMed Healthcare Group Excellere Partners Ontario Teachers' Pension Plan Yes 11/18/2014 One of the Three Additional Injectable Products From Valeant Valeant Pharmaceuticals North America LLC; Valeant Pharmaceuticals Luxembourg S.a.r.l. IGI, Laboratories, Inc. (AMEX:IG) No 11/18/2014 Southlake TX Hospital Southlake Texas Medical Griffin-American Healthcare REIT III, Inc Yes Development, LP 11/18/ ,000 Rentable Square Foot Trios Health Medical Office Building in Kennewick, Washington - Physicians Realty L.P No 11/18/2014 Lone Star HMA, L.P. Health Management Associates Inc. Prime Healthcare Services, Inc No 11/18/2014 ONFocus Healthcare, Inc. Clayton Associates, LLC; Solidus Company; Nashville Capital Network, Investment Arm; TriStar Technology Ventures; Mountain Group Capital LLC MedeAnalytics, Inc Yes 11/18/2014 University of Miami Tissue Bank, Certain Assets University of Miami Tissue Bank Vivex Biomedical, Inc No 11/18/2014 The Shappley Clinic, PLLC - The Urology Group, PLLC No 11/17/2014 NicOx Inc. Nicox SA (ENXTPA:COX) Valeant Pharmaceuticals International, No Inc. (TSX:VRX) 11/17/2014 Abbott Animal Health, Animal Health Assets Abbott Animal Health, Inc. Zoetis Inc. (NYSE:ZTS) No 11/17/2014 Post-Hypothermia Corporation Philips Electronics North America ZOLL Medical Corporation No Corporation 11/17/2014 Taconic Health Information Network and - Southern Tier HealthLink NY No Community, Inc. 11/17/2014 GeigerBevolo, Inc. - Revive Public Relations LLC No PAGE 12

14 M&A DETAIL 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 11/16/2014 Allergan Inc. (NYSE:AGN) BlackRock, Inc. (NYSE:BLK); HBM Actavis plc (NYSE:ACT) 65, x 28.0x 30.5x Yes Healthcare Investments AG (SWX:HBMN); Paulson & Co. Inc.; HBM Partners Ltd.; Pershing Square Capital Management, L.P.; Pentwater Capital Management LP 11/14/2014 Ricerca Biosciences, LLC SV Life Sciences Advisers, LLC Main Market Partners, LLC Yes 11/14/2014 Carolina Quick Care, PA - FastMed Urgent Care No 11/14/2014 John N. Campbell M.D. P.C. - IPC The Hospitalist Company, Inc No (NasdaqGS:IPCM) 11/14/2014 Lacerta Bio Inc. - Ventac Partners A/S Yes 11/13/2014 AxioMed, LLC Blue Chip Venture Company, Ltd.; CID KICVentures No Capital, Inc., Venture Capital; Primus Capital; Charter Oak Private Equity, L.P.; Investor Growth Capital; Thomas, McNerney & Partners; Aisling Capital LLC 11/13/2014 Health Market Science, Inc. Edison Partners; Cross Atlantic Capital LexisNexis Risk Solutions Inc Yes Partners LLC 11/13/2014 Browns Botanicals LLC - Zappy, Inc No 11/12/2014 Glenwood Park, Inc. - Stonerise Healthcare LLC No 11/12/2014 Cogent Healthcare Inc. AEA Investors LP; Waud Capital Partners, L.L.C. Sound Inpatient Physicians, Inc Yes 11/11/2014 Hospice Compassus, Inc. Cressey & Company, LP; Thoma Bravo, LLC 11/11/2014 Centerre Healthcare Corporation River Cities Capital Funds; Sterling Partners; Three Arch Partners; RiverVest Venture Partners, LLC 11/11/2014 NARxCHECK National Association Of Boards Of Pharmacy Foundation Audax Group, Inc.; Health Care REIT, Inc. (NYSE:HCN); Formation Capital, L.L.C.; SAFANAD Limited; National Hospice Holdings, LLC Yes Kindred Healthcare Inc. (NYSE:KND) x 11.7x - Yes Appriss Inc No 11/11/2014 Wake Cancer Facilities - Duke University Health System, Inc No 11/11/2014 North Vista Hospital, Inc. IASIS Healthcare LLC Prime Healthcare Services, Inc No 11/11/2014 Family Practice Associates, Ltd. - Springfield Clinic No 11/10/2014 StemCells Inc., Stem Cell Research Product StemCells Inc. (NasdaqCM:STEM) Takara Bio Inc. (TSE:4974) No Related Assets 11/10/2014 DoctorDirectory.com, Inc. - Everyday Health, Inc. (NYSE:EVDY) No 11/10/2014 Health Services Integration, Inc. - Syncordia Technologies and Healthcare No Solutions, Inc. 11/7/2014 Kremers Urban Pharmaceuticals Inc. UCB S.A. (ENXTBR:UCB) Advent International Corporation; 1, Yes Avista Capital Holdings, L.P. 11/7/2014 Riverview Regional Medical Center, LLC Southeast HMA Holdings, LLC Prime Healthcare Services, Inc No 11/7/2014 Extendicare Holdings, Inc. Extendicare International Inc. Formation Capital, L.L.C.; Safanad Inc x 10.4x 6.7x Yes 11/7/2014 Medikmark, Inc. - Stradis Healthcare, LLC No 11/7/2014 Breast Care of Western New York and Soniwala - Roswell Park Cancer Institute No Hematology Oncology Associates 11/7/2014 St. Mary's Medical Center Home Health Services, Pallottine Health Services, Inc Cabell Huntington Hospital, Inc No LLC 11/7/2014 Superior Global Solutions, Inc. and Medwrite Inc. - imedx, Inc No 11/6/2014 Vanta Bioscience LC - GVK Biosciences Private Limited No 11/6/2014 Accelerated Rehabilitation Centers, Ltd. OMERS Private Equity AthletiCo Ltd Yes 11/6/2014 eclinical Insights, Inc. - eresearchtechnology, Inc No 11/6/2014 erad Image Medical, Inc. RadNet, Inc. (NasdaqGM:RDNT) The Jackson Clinic No 11/6/2014 RAWCAR Group LLC - TIDI Products, LLC No 11/6/2014 Carroll Hospital Center, Inc. - LifeBridge Health, Inc No 11/6/2014 Homestead Long Term Care Management LLC - Trinity Healthcare, LLC No 11/5/2014 Ximedica, LLC - SV Life Sciences Advisers, LLC Yes 11/5/2014 CorQuest Medical Inc. - Cardio3 BioSciences SA (ENXTBR:CARD) No 11/5/2014 Teplick Custom Vision - NVISION Laser Eye Centers Inc No 11/5/2014 Neogenix LLC - CornerWorld Corporation No (OTCPK:CWRL) 11/5/2014 Central Jersey Blood Center, Inc. - Miller-Keystone Blood Center Inc No 11/4/2014 CyVek, Inc. Connecticut Innovations, Inc. Research And Diagnostic Systems, Inc No 11/4/2014 Shelby Elastics Of North Carolina, LLC - BeoCare Group, Inc No 11/4/2014 Supna Technologies Corporation - HealthPort Incorporated No 11/4/2014 O&P Enterprises, Inc. - Curbell Plastics, Inc No 11/4/2014 Hudson Seating & Mobility - National Seating & Mobility, Inc No 11/3/2014 Desert Neonatology Associates, P.C. - AmSurg Corp. (NasdaqGS:AMSG) No 11/3/ Unit Assisted Living Community in Greater Portland - National Health Investors Inc. (NYSE:NHI) No Insert Footnote Here PAGE 13

15 M&A DETAIL 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 11/3/ US Generic Drug Products - IDT Australia Limited (ASX:IDT) No 11/3/ Unit Assisted Living and Memory Care - National Health Investors Inc No Community in Middleton, Ohio (NYSE:NHI); Bickford Senior Living, L.L.C. 11/3/2014 LDM Group, LLC - PDR Network, LLC No 11/3/2014 Mountain Home Medical, Inc. - American Medical Alert Corp No 11/3/2014 Oral-B Laboratories, Minute-Foam, Centrays, Oral-B Laboratories Young Dental Manufacturing, LLC No Centwins Trays and SUPA Disposable Prophy Angles 11/3/2014 Micron Technologies, Inc. Arlington Capital Partners Catalent, Inc. (NYSE:CTLT) Yes 11/3/2014 OrthoCarolina Mooresville - OrthoCarolina, P.A No 11/2/2014 Covance Inc. (NYSE:CVD) - Laboratory Corp. of America Holdings 5, x 13.6x 20.0x No (NYSE:LH) 11/1/2014 Advance Medical Staffing, Inc. - Advantage Home Care, Inc No Insert Footnote Here PAGE 14

16 OUR GROUP Harris Williams & Co. has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form 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 Industrials Energy & Power Healthcare & Lifesciences Specialty Distribution Technology, Media & Telecom Transportation & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Fax: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Fax: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) Fax: +1 (612) UNITED STATES Philadelphia 1600 Market Street 21st Floor Philadelphia, Pennsylvania Phone: +1 (267) Fax: +1 (267) Richmond (U.S. Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) Fax: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California 94105, USA Phone: +1 (415) Fax: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: Fax: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Fax: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES Shanghai New Delhi PAGE 15

17 HARRIS WILLIAMS & CO. HEALTHCARE & LIFE SCIENCES SOURCES Capital IQ. Thomson Financial. S&P. Reuters. Bloomberg. Irving Levin Associates. 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 sell-side 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 2014 Harris Williams & Co., all rights reserved. PAGE 16