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 SPECIALTY PHARMACEUTICALS PRICE HIKES TURN SPOTLIGHT ON TURING In September, Martin Shkreli and Turing Pharmaceuticals ignited controversy across the medical and political communities after obtaining the manufacturing license for the drug Daraprim and increasing the price $750 per pill. This represents a more than 5,000% increase, up from $13.50 per pill. The drug is typically used for treatments of a dangerous parasitic infection. Shortly after the backlash created from its decision to dramatically increase prices, Turing announced that they had agreed to lower the price point to one which would still allow the company to make a small profit that price is yet to be announced to the market. In the interim, however, Imprimis Pharmaceuticals announced its customized version of the drug for just $1 per pill. Imprimis has made available its alternative through a compounded to order program. Increasing prices for pharmaceuticals will likely remain a much debated topic after several effective albeit extremely expensive hepatitis C drugs initially made headlines for their sticker prices. A link to the article can be found here. ACA 2016 OPEN ENROLLMENT TRENDS With 2016 open enrollment in full swing as of November 1 st, enrollees are logging in to find noticeable premium increases when buying health coverage on the exchanges. Federal officials quoted an estimated 7.5% increase on average for the second-lowest-cost midrange silver plan. The primary driver for the rate increases sought by insurance plans and approved by the states were trends in plans being more costly than expected including many resulting in losses for carriers. The Obama administration is also predicting overall enrollment levels far below those previously predicted by government officials. The most recent exchange enrollment estimates by the Health and Human Services expect just 10 million Americans by the end of This figure represents just 50% of the most recent estimates by congressional budget analysts. Links to the relevant articles can be found here and here. HW&CO. HCLS GROUP INSIGHT 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) Healthcare Staffing 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 $37,130 (7.5%) 14.3% 2.4x 11.7x 2.2x 10.6x Contract Pharma Manufacturing 2 5,835 (3.8%) 70.0% 3.4x 16.6x 3.2x 13.5x Contract Research Organizations 9 34,971 (14.4%) 13.1% 2.4x 12.2x 2.3x 11.5x Disease Management 2 8,374 (5.4%) (4.5%) 2.0x 12.9x 1.9x 12.2x Emergency Services 1 2, % (11.8%) 2.1x 7.9x 2.1x 8.2x Healthcare Staffing 5 17,670 (2.2%) 40.5% 1.4x 14.6x 1.4x 13.0x HMO - Medical ,138 (3.8%) 28.9% 0.8x 9.9x 0.8x 9.7x Information Services 13 42,042 (5.2%) 5.4% 5.1x 20.0x 4.7x 16.9x Specialty Managed Care 3 8, % 20.4% 1.3x 13.9x 7.3x 6.8x Specialty Pharmacy 1 1,967 (38.4%) 30.1% 0.7x 30.4x 0.7x NM Retail Pharmacy 3 253,384 (12.3%) 34.5% 0.9x 12.0x 0.9x 11.4x Specialty Pharmacy Management 2 74,871 (9.9%) 8.8% 0.7x 9.8x 0.7x 9.5x Dental Products 3 121, % 21.5% 3.5x 16.6x 3.5x 15.4x Durable Medical Equipment 3 11, % 10.6% 1.7x 15.1x 1.3x 10.9x Life Sciences Tools 4 124,198 (6.1%) 12.0% 2.8x 14.2x 3.1x 13.1x Medical Devices and Products ,711 (4.6%) 15.8% 3.7x 13.7x 3.7x 13.6x Medical / Surgical / Dental Supplies & Distribution 6 119,647 (3.1%) 9.8% 0.3x 12.4x 0.3x 9.4x Acute-Care Hospitals 4 103,703 (35.3%) (22.1%) 1.1x 7.7x 1.0x 7.3x Assisted Living 3 11,811 (28.1%) (19.1%) 2.4x 12.7x 2.1x 11.9x Diagnostic Imaging 3 9,034 (8.7%) (28.2%) 1.5x 9.3x 1.8x 9.3x Dialysis Services 2 59, % 20.6% 1.9x 10.7x 1.9x 10.4x Home Care, Hospice, and Home Infusion 6 6, % 51.5% 1.4x 13.0x 1.4x 12.3x Long-Term Care 3 6,379 (16.5%) 7.8% 0.9x 9.0x 0.7x 7.5x Physician Practice Management 2 9,393 (3.6%) 27.3% 2.8x 14.6x 2.7x 14.4x Behavioral Health / Management 6 26,648 (12.7%) 14.0% 1.5x 11.2x 1.4x 10.7x Surgicenters / Rehabilitation 5 17,879 (13.3%) 5.7% 2.0x 12.5x 1.9x 10.4x Payor, Provider, & Pharmacy Support Services 54 $808,608 (7.3%) 23.2% 1.3x 12.1x 1.3x 11.0x Products & Devices 31 $1,035,832 (2.4%) 4.0% 3.4x 13.6x 3.3x 12.6x Provider-Based Services 34 $250,236 (11.4%) 9.8% 1.9x 10.6x 1.8x 10.1x HW&Co. HCLS Composite Index 119 $2,094,676 (8.2%) 14.5% 2.5x 12.8x 2.4x 11.9x S&P 500 (1.4%) 4.2% 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 Healthcare Staffing Retail Pharmacy Specialty Pharmacy Specialty Managed Care Physician Practice Management Dental Products Dialysis Services Specialty Managed Care Medical Devices and Products HW&Co. HCLS Composite Index Clinical Laboratories Behavioral Health / Management Contract Research Organizations Life Sciences Tools Durable Medical Equipment Medical / Surgical / Dental Supplies & Distribution Specialty Pharmacy Management Long-Term Care Surgicenters / Rehabilitation Information Services S&P 500 Disease Management Emergency Services 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 2

4 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance 220% 200% 180% 179.9% 160% 140% 159.9% 147.2% 120% 100% 80% 60% 40% Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-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) 10/06/15 Sarepta Therapeutics Inc SRPT Follow-On $ /07/15 CytomX Therapeutics Inc CTMX IPO /21/15 Dimension Therapeutics Inc DMTX IPO /06/15 Aclaris Therapeutics Inc ACRS IPO /28/15 MyoKardia Inc MYOK IPO /01/15 Civitas Solutions Inc CIVI Follow-On /01/15 Medgenics Inc MDGN Follow-On /22/15 Vital Therapies Inc VTL Follow-On /15/15 Cerecor Inc CERC IPO /16/15 Strongbridge Biopharma plc SBBP Follow-On /05/15 Mirna Therapeutics Inc MIRN Follow-On /07/15 ContraVir Pharmaceuticals Inc CTRV Follow-On /23/15 CEL SCI Corp CVM Follow-On 11.4 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 Number of Transactions Announced Target Buyer 10/23/2015 Inc. Animal Trustees of Austin, Emancipet, Inc. 10/19/2015 Doctors Allergy Formula, LLC Bausch & Lomb Incorporated 10/15/2015 Northstar Psychological Serv ices, Inc. South Bay Mental Health Center, Inc. 10/15/2015 MedMark Serv ices, Inc. Addiction Research and Treatment, Inc. 10/13/2015 Project Rendezv ous Holding Corporation Digirad Corporation (NasdaqGM:DRAD) 10/12/2015 Team Health Holdings, Inc. (NYSE:TMH) AmSurg Corp. (NasdaqGS:AMSG) 10/9/2015 BluePearl Veterinary Partners LLC Mars Petcare US, Inc. 10/8/2015 Lone Star Dermatology Dermatology Associates of Central Texas 10/7/2015 Hospice Adv antage, Inc. Hospice Compassus, Inc. 10/5/2015 PharMEDium Healthcare Holdings, Inc. AmerisourceBergen Drug Corporation 10/4/2015 ncontact, Inc. AtriCure, Inc. (NasdaqGM:ATRC) 10/1/2015 Global Medical Imaging, LLC Jordan Industries International, LLC LTM DEAL STATISTICS Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 PEG Acquirer Series1 Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $ , x 14.0x 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 $369.6 $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 14.2x 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 46 Healthcare Equipment 21 Pharmaceuticals 18 Healthcare Technology 16 Life Sciences Tools & Serv ices 15 Healthcare Supplies 11 Healthcare Distributors 5 Biotechnology 1 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 $24 L Loan Volume by Quarter ($ in billions) $21 $18 $15 $12 $9 $6 $3 L L L L $0 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 L YTD Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional CREDIT METRICS AVERAGE SECONDARY SPREAD 6.0x L x L L x L x Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest YTD EBITDA - Capex/Cash Interest L + 0 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 Select Healthcare & Life Sciences Debt Offerings (by deal amount) Date Effective Borrower Name Description Amount ($ 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 10/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Clinical Laboratories Laboratory Corp. of America Holdings $ (2.3%) 14.3% $ $98.54 $12,421 $6,681 $713 $18,405 $7,774 $1,567 $1,198 Sep-15 Dec-14 $8,488 $1,734 $1, x 11.7x 2.2x 10.6x Quest Diagnostics Inc (7.5%) 7.0% ,741 3, ,450 7,527 1,489 1,180 Sep-15 Dec-14 7,495 1,510 1, x 9.0x 1.8x 8.9x VCA Inc (10.6%) 21.1% , ,275 2, Sep-15 Dec-14 2, x 13.5x 2.5x 13.1x Number of Companies 3 Median: (7.5%) 14.3% Total $26,607 $37,130 $17,380 $18, x 11.7x 2.2x 10.6x Market Cap. Weighted Average: (5.6%) 12.8% 2.2x 11.0x 2.1x 10.4x Contract Pharma Manufacturing Cambrex Corporation. $45.97 (7.9%) 120.4% $54.60 $20.96 $1,442 $30 $60 $1,440 $406 $111 $89 Sep-15 Dec-14 $430 $122 $99 3.5x 13.0x 3.4x 11.8x West Pharmaceutical Services, Inc % 19.6% , ,396 1, Sep-15 Dec-14 1, x 20.3x 3.1x 15.2x Number of Companies 2 Median: (3.8%) 70.0% Total $5,763 $5,835 $1,796 $1, x 16.6x 3.2x 13.5x Market Cap. Weighted Average: (1.7%) 44.8% 3.3x 18.5x 3.2x 14.3x Contract Research Organizations Albany Molecular Research Inc. $18.04 (14.4%) (20.6%) $23.95 $13.73 $640 $360 $79 $800 $363 $44 $20 Sep-15 Dec-14 $408 $73 $50 2.2x 18.1x 2.0x 10.9x Catalent, Inc (20.1%) 3.7% ,310 1, ,052 1, Sep-15 Jun-15 1, x 12.2x 2.7x 11.4x Charles River Laboratories International, Inc (12.4%) 3.9% , ,690 1, Sep-15 Dec-14 1, x 12.1x 2.7x 11.5x ICON Public Limited Company (21.0%) 21.2% , ,692 1, Sep-15 Dec-14 1, x 11.4x 2.3x 11.0x INC Research Holdings, Inc (12.4%) NM , , Sep-15 Dec x 13.6x 3.0x 12.4x PAREXEL International Corporation (8.1%) 18.8% , ,521 2, Sep-15 Jun-15 2, x 11.7x 1.6x 10.1x PRA Health Sciences, Inc (16.8%) NM , ,991 1, Sep-15 Dec-14 1, x 13.9x 2.2x 12.5x Quintiles Transnational Holdings Inc (19.2%) 13.1% ,835 2,488 1,082 9,467 4, Sep-15 Dec-14 4, x 12.1x 2.2x 11.8x WuXi PharmaTech (Cayman) Inc % 18.4% , , Sep-15 Dec x 23.2x 3.8x 17.4x Number of Companies 9 Median: (14.4%) 13.1% Total $29,670 $34,971 $14,400 $14, x 12.2x 2.3x 11.5x Market Cap. Weighted Average: (13.9%) 10.6% 2.5x 13.5x 2.5x 12.1x Disease Management Alere Inc. $46.12 (5.1%) 15.2% $55.99 $35.81 $3,954 $3,602 $479 $7,699 $2,496 $601 $282 Sep-15 Dec-14 $2,569 $581 $ x 12.8x 3.0x 13.3x Healthways Inc (5.7%) (24.2%) Sep-15 Dec x 13.0x 0.9x 11.1x Number of Companies 2 Median: (5.4%) (4.5%) Total $4,378 $8,374 $3,280 $3, x 12.9x 1.9x 12.2x Market Cap. Weighted Average: (5.1%) 11.4% 2.9x 12.8x 2.8x 13.0x Emergency Services Air Methods Corp. $ % (11.8%) $54.98 $32.81 $1,608 $681 $15 $2,251 $1,062 $284 $202 Sep-15 Dec-14 $1,056 $274 $ x 7.9x 2.1x 8.2x Number of Companies 1 Median: 4.3% (11.8%) Total $1,608 $2,251 $1,062 $1, x 7.9x 2.1x 8.2x Market Cap. Weighted Average: 4.3% (11.8%) 2.1x 7.9x 2.1x 8.2x Healthcare Staffing AMN Healthcare Services Inc. $28.37 (2.2%) 65.2% $37.47 $15.62 $1,352 $217 $14 $1,564 $1,340 $135 $115 Sep-15 Dec-14 $1,401 $145 $ x 11.6x 1.1x 10.8x Envision Healthcare Holdings, Inc (30.6%) (18.6%) ,238 2, ,334 5, Sep-15 Dec-14 5, x 12.7x 1.4x 12.2x Cross Country Healthcare, Inc % 40.5% Sep-15 Dec x 16.3x 0.7x 16.1x On Assignment Inc % 60.7% , ,130 2, Sep-15 Dec-14 2, x 14.6x 1.5x 13.0x Team Health Holdings, Inc (8.2%) (3.7%) , ,143 3, Sep-15 Dec-14 3, x 15.2x 1.5x 13.5x Number of Companies 5 Median: (2.2%) 40.5% Total $13,722 $17,670 $12,698 $13, x 14.6x 1.4x 13.0x Market Cap. Weighted Average: (11.3%) 10.0% 1.5x 15.2x 1.5x 13.5x As of October 30, (1) Unsolicited bid to be acquired by AmSurg Corp. (NasdaqGS:AMSG) in a $7.8 billion transaction on October 12, AmSurg withdrew its offer on November 2, 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 10/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Commercial: Aetna Inc. $ % 42.4% $ $81.01 $40,024 $7,838 $1,797 $46,129 $59,950 $5,222 $4,561 Sep-15 Dec-14 $60,311 $5,630 $4, x 8.8x 0.8x 8.2x Anthem, Inc (10.2%) 12.9% ,328 17,778 1,548 52,558 77,953 6,325 5,769 Sep-15 Dec-14 78,221 5,219 4, x 8.3x 0.7x 10.1x Cigna Corp (1) (6.9%) 38.0% ,532 5,205 2,381 37,848 37,276 3,991 3,659 Sep-15 Dec-14 38,091 4,139 3, x 9.5x 1.0x 9.1x Health Net, Inc. (2) (3.3%) 35.3% , ,819 15, Sep-15 Dec-14 16, x 11.3x 0.3x 8.2x Humana Inc. (3) (2.8%) 30.2% ,477 4,129 1,597 28,659 53,256 2,697 2,429 Sep-15 Dec-14 54,954 2,917 2, x 10.6x 0.5x 9.8x UnitedHealth Group Incorporated (2.3%) 25.5% ,311 31,783 7, , ,941 12,486 11,318 Sep-15 Dec ,235 12,939 11, x 11.0x 0.9x 10.6x Number of Companies 6 Median: (3.0%) 32.7% Total $254,638 $307,695 $391,341 $404, x 10.1x 0.7x 9.5x Market Cap. Weighted Average: (3.7%) 28.7% 0.8x 10.0x 0.8x 9.8x Government: Centene Corp. $59.48 (14.9%) 32.2% $83.00 $45.40 $7,090 $1,281 $1,665 $6,864 $19,854 $853 $747 Sep-15 Dec-14 $22,528 $815 $ x 8.0x 0.3x 8.4x Molina Healthcare, Inc (8.8%) 33.3% , ,164 2,240 12, Sep-15 Dec-14 14, x 4.6x 0.2x 4.4x Universal American Corp 7.46 (18.5%) (19.5%) , Sep-15 Dec-14 1, x 30.8x 0.3x 15.1x WellCare Health Plans, Inc % 37.5% ,905 1,213 1,423 3,779 13, Sep-15 Dec-14 13, x 8.4x 0.3x 6.8x Number of Companies 4 Median: (11.9%) 32.7% Total $15,075 $13,443 $48,326 $52, x 8.2x 0.3x 7.6x Market Cap. Weighted Average: (6.7%) 31.8% 0.3x 8.3x 0.3x 7.3x Information Services Data/Analytics: Castlight Health, Inc. $5.06 (30.9%) (61.1%) $13.44 $3.94 $477 $0 $26 $313 $68 ($79) ($81) Sep-15 Dec-14 $76 ($64) ($66) 4.6x NM 4.1x NM Inovalon Holdings, Inc (6.8%) NM , , Sep-15 Dec x 21.2x 6.6x 18.2x National Research Corp (6.5%) (6.4%) Sep-15 Dec x 13.6x 3.9x 13.1x Number of Companies 3 Median: (6.8%) (33.7%) Total $4,321 $400 $576 $ x 17.4x 4.1x 15.6x Market Cap. Weighted Average: (9.5%) (7.4%) 6.5x 20.4x 6.1x 17.6x ehealth: WebMD Health Corp. $40.66 (6.3%) (2.3%) $48.91 $35.64 $1,500 $803 $612 $1,695 $607 $129 $111 Sep-15 Dec-14 $630 $188 $ x 13.2x 2.7x 9.0x Number of Companies 1 Median: (6.3%) (2.3%) Total $1,500 $1,695 $607 $ x 13.2x 2.7x 9.0x Market Cap. Weighted Average: (6.3%) (2.3%) 2.8x 13.2x 2.7x 9.0x Hospital/Physician: Allscripts Healthcare Solutions, Inc. $14.06 (2.4%) 1.7% $15.41 $11.00 $2,656 $655 $91 $3,251 $1,382 $98 $15 Sep-15 Dec-14 $1,404 $243 $ x 33.1x 2.3x 13.4x Athenahealth, Inc % 26.7% , , Sep-15 Dec x NM 6.6x 33.7x Cerner Corporation (7.9%) 5.8% , ,940 4,103 1, Oct-15 Jan-15 4,532 1,467 1, x 20.2x 5.1x 15.6x Computer Programs & Systems Inc (29.9%) (41.3%) Sep-15 Dec x 11.1x 2.1x 11.7x HMS Holdings Corp (9.3%) (53.0%) Sep-15 Dec x 11.5x 2.1x 8.7x MedAssets, Inc % 8.4% , , Sep-15 Dec x 10.3x 3.0x 9.5x Premier, Inc (4.0%) 2.2% , ,335 1, Sep-15 Jun-15 1, x 3.9x 1.1x 3.0x Quality Systems Inc % (6.0%) Sep-15 Mar x 13.0x 1.5x 9.1x The Advisory Board Company (26.3%) (17.2%) , , Sep-15 Dec x 31.2x 3.1x 13.9x Number of Companies 9 Median: (4.0%) 1.7% Total $38,231 $40,374 $10,042 $10, x 12.3x 2.3x 11.7x Market Cap. Weighted Average: (5.2%) 5.4% 5.0x 20.3x 4.6x 17.2x As of October 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 10/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty Managed Care Assurant Inc. $ % 20.4% $82.58 $59.73 $5,448 $1,222 $1,544 $6,619 $10,400 $374 $236 Sep-15 Dec-14 $8,362 $980 $ x 17.7x 0.8x 6.8x CorVel Corporation % (3.3%) Sep-15 Mar-15 NA NA NA 1.3x 10.0x NA NA HealthEquity, Inc (2.9%) 61.7% , , Jul-15 Jan x NM 13.8x NM Number of Companies 3 Median: 3.4% 20.4% Total $7,981 $8,976 $11,003 $8, x 13.9x 7.3x 6.8x Market Cap. Weighted Average: 5.4% 28.1% 4.3x 16.9x 4.1x 6.8x Retail Pharmacy CVS Health Corporation $98.78 (12.5%) 15.5% $ $81.37 $109,646 $27,222 $2,890 $133,863 $149,199 $11,186 $9,187 Sep-15 Dec-14 $152,886 $980 NA 0.9x 12.0x 0.9x NM Walgreens Boots Alliance, Inc (12.3%) 34.5% ,199 14,383 3, , ,444 6,872 5,308 Aug-15 Aug ,150 8,870 7, x 15.1x 0.9x 11.7x Rite Aid Corporation 7.88 (12.1%) 52.1% ,244 7, ,536 27,853 1, Aug-15 Feb-15 30,932 1, x 11.9x 0.5x 11.0x Number of Companies 3 Median: (12.3%) 34.5% Total $210,089 $253,384 $280,496 $303, x 12.0x 0.9x 11.4x Market Cap. Weighted Average: (12.4%) 25.6% 1.1x 13.5x 1.0x 11.4x Specialty Pharmacy Diplomat Pharmacy, Inc. $28.11 (38.4%) 30.1% $52.33 $15.45 $1,789 $140 $16 $1,967 $2,992 $65 $44 Sep-15 Dec-14 $2,796 $46 $71 0.7x 30.4x 0.7x NM Number of Companies 1 Median: (38.4%) 30.1% Total $1,789 $1,967 $2,992 $2, x 30.4x 0.7x NM Market Cap. Weighted Average: (38.4%) NM 0.7x 30.4x 0.7x NM Specialty Pharmacy Management Express Scripts Holding Company $86.38 (4.3%) 14.4% $94.61 $68.06 $58,417 $15,687 $438 $73,673 $101,889 $6,928 $4,849 Sep-15 Dec-14 $102,123 $7,078 $6, x 10.6x 0.7x 10.4x PharMerica Corporation (15.5%) 3.3% ,198 2, Sep-15 Dec-14 2, x 9.0x 0.6x 8.6x Number of Companies 2 Median: (9.9%) 8.8% Total $59,286 $74,871 $103,920 $104, x 9.8x 0.7x 9.5x Market Cap. Weighted Average: (4.5%) 14.2% 0.7x 10.6x 0.7x 10.4x As of October 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 10/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $ % 3.4% $ $ $96,796 $11,253 $2,983 $106,329 $30,695 $8,496 $7,108 Sep-15 Dec-14 $30,378 $8,405 $7, x 12.5x 3.5x 12.7x DENTSPLY International Inc % 21.5% ,511 1, ,432 2, Sep-15 Dec-14 2, x 16.6x 3.5x 15.4x Sirona Dental Systems Inc. (1) % 38.9% , ,760 1, Jun-15 Sep-14 1, x 18.8x 5.0x 16.9x Number of Companies 3 Median: 6.2% 21.5% Total $111,407 $121,522 $34,564 $34, x 16.6x 3.5x 15.4x Market Cap. Weighted Average: 4.2% 6.7% 3.5x 13.2x 3.6x 13.1x Durable Medical Equipment Hill-Rom Holdings, Inc. $52.69 (4.8%) 19.2% $58.73 $42.54 $2,989 $2,233 $123 $3,453 $1,988 $243 $124 Sep-15 Sep-15 $2,670 $489 $ x 14.2x 1.3x 7.1x Invacare Corporation % 10.1% , (10) Sep-15 Dec-14 1, (11) 0.5x NM 0.5x NM ResMed Inc % 10.6% , ,724 1, Sep-15 Jun-15 1, x 15.9x 4.3x 14.8x Number of Companies 3 Median: 0.5% 10.6% Total $11,596 $11,753 $4,876 $5, x 15.1x 1.3x 10.9x Market Cap. Weighted Average: 0.6% 12.8% 3.6x 15.5x 3.4x 12.7x Life Sciences Tools Agilent Technologies Inc. $37.76 (7.8%) (30.5%) $55.41 $33.12 $12,514 $1,655 $2,075 $12,097 $6,979 $1,198 $912 Jul-15 Oct-14 $4,040 $844 $ x 10.1x 3.0x 14.3x Becton, Dickinson and Company (6.2%) 11.8% ,965 13,171 1,559 41,539 10,282 2,268 1,500 Sep-15 Sep-15 12,741 3,558 2, x 18.3x 3.3x 11.7x Thermo Fisher Scientific, Inc (6.0%) 12.2% ,194 13, ,012 16,806 4,061 2,384 Sep-15 Dec-14 16,870 4,179 3, x 16.0x 3.9x 15.6x VWR Corporation % 24.1% ,614 2, ,550 4, Sep-15 Dec-14 4, x 12.4x 1.3x 12.0x Number of Companies 4 Median: (6.1%) 12.0% Total $98,287 $124,198 $38,375 $37, x 14.2x 3.1x 13.1x Market Cap. Weighted Average: (6.0%) 7.1% 3.6x 15.8x 3.5x 14.1x Medical Devices and Products Abbott Laboratories $44.80 (11.8%) 3.0% $51.74 $39.00 $66,772 $8,355 $4,048 $64,491 $20,573 $4,716 $3,288 Sep-15 Dec-14 $20,563 $4,910 $4, x 13.7x 3.1x 13.1x Baxter International Inc (6.5%) (46.6%) ,398 6,729 6,680 27,981 16,106 4,144 3,138 Sep-15 Dec-14 9,904 1, x 6.8x 2.8x 18.3x Boston Scientific Corporation % 38.7% ,568 5, ,077 7,314 1,799 1,047 Sep-15 Dec-14 7,496 2,021 1, x 16.7x 4.0x 14.9x ConforMIS, Inc (12.3%) NM (51) (53) Sep-15 Dec (52) (55) 13.0x NM 12.2x NM CR Bard Inc (3.5%) 15.8% ,769 1,410 1,098 14,175 3,412 1, Sep-15 Dec-14 3,416 1, x 13.7x 4.2x 13.8x Danaher Corp % 17.1% ,944 15,012 3,342 77,194 20,662 4,665 3,655 Oct-15 Dec-14 20,826 4,708 3, x 16.5x 3.7x 16.4x Hanger, Inc (32.0%) (38.7%) ,030 1, Jun-14 Dec-13 1, x 6.5x 1.0x 6.3x Hologic Inc (4.6%) 49.9% ,951 3, ,007 2, Sep-15 Sep-15 2,843 1, x 14.4x 4.9x 12.9x Johnson & Johnson % (5.6%) ,544 19, ,173 70,517 22,554 18,850 Sep-15 Dec-14 70,199 23,058 19, x 11.6x 3.7x 11.4x K2M Group Holdings, Inc (18.7%) 16.9% (13) (37) Sep-15 Dec (33) 3.5x NM 3.4x NM Medtronic plc (5.6%) 9.6% ,494 35,600 2, ,107 23,127 7,024 5,232 Jul-15 Apr-15 28,939 10,019 8, x 17.4x 4.2x 12.2x Penumbra, Inc % NM , , Sep-15 Dec (6) (9) 7.1x NM 7.1x NM Stryker Corporation (6.1%) 9.9% ,953 3,490 3,626 36,069 9,849 2,644 2,259 Sep-15 Dec-14 9,944 2,645 2, x 13.6x 3.6x 13.6x Teleflex Incorporated (0.3%) 17.8% ,533 1, ,321 1, Sep-15 Dec-14 1, x 15.7x 3.5x 13.7x Zemach Hammerman Ltd (0.8%) 16.4% Jun-15 Dec-14 NA NA NA 2.0x NM NA NA Number of Companies 15 Median: (4.6%) 15.8% Total $629,265 $658,711 $177,741 $177, x 13.7x 3.7x 13.6x Market Cap. Weighted Average: (2.0%) 3.1% 3.9x 13.6x 3.8x 12.8x Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $96.51 (7.6%) 13.8% $ $84.77 $20,866 $3,493 $2,555 $22,191 $135,962 $1,611 $1,368 Sep-15 Sep-15 $148,010 $2,414 $2, x 13.8x 0.1x 9.2x Cardinal Health, Inc (1.4%) 5.1% ,031 5,550 4,616 27, ,516 2,842 2,362 Sep-15 Jun ,249 3,174 2, x 9.8x 0.2x 8.8x Henry Schein, Inc % 26.2% , ,911 10, Sep-15 Dec-14 10, x 15.2x 1.3x 15.0x McKesson Corporation (17.7%) (12.1%) ,144 9,388 5,635 46, ,716 4,213 3,323 Sep-15 Mar ,333 5,249 4, x 11.1x 0.2x 8.9x Owens & Minor Inc % 8.5% , ,703 9, Sep-15 Dec-14 9, x 10.0x 0.3x 9.6x Patterson Companies, Inc (4.8%) 11.2% ,776 1, ,266 4, Aug-15 Apr-15 5, x 14.2x 1.2x 13.3x Number of Companies 6 Median: (3.1%) 9.8% Total $108,723 $119,647 $455,030 $481, x 12.4x 0.3x 9.4x Market Cap. Weighted Average: (8.3%) 3.0% 0.4x 11.9x 0.4x 9.9x As of October 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 10/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $28.04 (52.8%) (47.2%) $65.00 $25.36 $3,313 $16,989 $365 $20,492 $19,557 $2,806 $1,668 Sep-15 Dec-14 $19,629 $2,959 $1, x 7.3x 1.0x 6.9x HCA Holdings, Inc (26.0%) (0.9%) ,043 29, ,791 39,065 7,691 5,808 Sep-15 Dec-14 39,559 7,770 5, x 7.6x 1.5x 7.6x LifePoint Health, Inc (19.9%) (0.1%) ,998 2, ,035 5, Sep-15 Dec-14 5, x 7.7x 1.0x 7.1x Tenet Healthcare Corp (44.6%) (43.4%) ,123 14, ,384 18,085 2,270 1,441 Sep-15 Dec-14 19,639 2,287 1, x 8.5x 1.0x 8.5x Number of Companies 4 Median: (35.3%) (22.1%) Total $37,478 $103,703 $81,814 $84, x 7.7x 1.0x 7.3x Market Cap. Weighted Average: (29.4%) (8.5%) 1.4x 7.7x 1.4x 7.5x Assisted Living Brookdale Senior Living Inc. $20.91 (36.1%) (36.8%) $39.89 $20.27 $3,858 $6,485 $78 $10,256 $4,240 $809 ($7) Sep-15 Dec-14 $4,996 $863 $78 2.4x 12.7x 2.1x 11.9x Capital Senior Living Corp % 2.8% , Sep-15 Dec x 18.9x 3.3x 16.5x Five Star Quality Care Inc (28.1%) (19.1%) , (15) Sep-15 Dec-14 1, x 10.4x 0.1x 6.0x Number of Companies 3 Median: (28.1%) (19.1%) Total $4,686 $11,811 $5,762 $6, x 12.7x 2.1x 11.9x Market Cap. Weighted Average: (30.3%) (30.5%) 2.5x 13.5x 2.2x 12.3x Long-Term Care Kindred Healthcare Inc. $13.40 (34.0%) (36.9%) $24.66 $12.18 $1,124 $3,165 $120 $4,353 $6,539 $508 $353 Sep-15 Dec-14 $7,197 $625 $ x 8.6x 0.6x 7.0x National Healthcare Corp % 7.8% Sep-15 Dec-14 NA NA NA 1.1x 9.0x NA NA The Ensign Group, Inc (16.5%) 11.3% , ,071 1, Sep-15 Dec-14 1, x 10.2x 0.8x 8.0x Number of Companies 3 Median: (16.5%) 7.8% Total $3,132 $6,379 $8,683 $8, x 9.0x 0.7x 7.5x Market Cap. Weighted Average: (16.5%) (7.0%) 0.9x 9.3x 0.7x 7.5x Diagnostic Imaging Alliance Healthcare Services, Inc. $8.46 (38.6%) (66.3%) $25.83 $7.58 $90 $552 $43 $669 $458 $116 $59 Sep-15 Dec-14 NA NA NA 1.5x 5.8x NA NA RadNet, Inc % (28.2%) Sep-15 Dec x 9.3x 1.2x 7.5x Varian Medical Systems, Inc (8.7%) (6.5%) , ,417 3, Oct-15 Oct-15 3, x 12.0x 2.3x 11.1x Number of Companies 3 Median: (8.7%) (28.2%) Total $8,146 $9,034 $4,337 $3, x 9.3x 1.8x 9.3x Market Cap. Weighted Average: (8.7%) (8.0%) 2.3x 11.9x 2.3x 11.0x Dialysis Services DaVita HealthCare Partners Inc. $77.51 (1.4%) (0.1%) $85.17 $70.12 $16,703 $9,198 $934 $25,102 $13,565 $2,486 $1,858 Sep-15 Dec-14 $13,701 $2,518 $1, x 10.1x 1.8x 10.0x Fresenius Medical Care AG & Co. KGAA % 41.4% ,988 9, ,992 17,125 3,025 2,303 Sep-15 Dec-14 16,875 3,129 2, x 11.2x 2.0x 10.9x Number of Companies 2 Median: 3.8% 20.6% Total $41,691 $59,094 $30,690 $30, x 10.7x 1.9x 10.4x Market Cap. Weighted Average: 4.8% 24.7% 1.9x 10.8x 1.9x 10.5x Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $24.98 (5.5%) 29.4% $38.08 $19.51 $276 $3 $42 $237 $335 $24 $19 Sep-15 Dec-14 $338 $26 $21 0.7x 9.9x 0.7x 9.0x Almost Family Inc % 43.9% Oct-15 Dec x 12.0x 0.8x 11.1x Amedisys Inc (7.4%) 56.6% , ,396 1, Sep-15 Dec-14 1, x 15.7x 1.1x 12.6x Chemed Corp % 48.3% , ,755 1, Sep-15 Dec-14 1, x 12.7x 1.8x 12.0x LHC Group, Inc % 85.3% Sep-15 Dec x 10.9x 1.1x 11.8x Number of Companies 5 Median: 3.5% 48.3% Total $5,479 $5,685 $4,373 $4, x 12.0x 1.1x 11.8x Market Cap. Weighted Average: 4.1% 54.5% 1.4x 12.9x 1.4x 11.9x Home Infusion: BioScrip, Inc. $1.97 (18.9%) (68.4%) $7.01 $1.30 $135 $449 $1 $611 $1,040 ($30) ($50) Sep-15 Dec-14 $983 $20 ($265) 0.6x NM 0.6x 29.8x Number of Companies 1 Median: (18.9%) (68.4%) Total $135 $611 $1,040 $ x NM 0.6x 29.8x Market Cap. Weighted Average: (18.9%) (68.4%) 0.6x NM 0.6x 29.8x As of October 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 10/30/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Multispecialty / Primary Care: IPC Healthcare, Inc. (1) $ % 88.5% $80.23 $37.68 $1,370 $130 $12 $1,498 $729 $67 $61 Sep-15 Dec-14 $746 $66 $57 2.1x 22.5x 2.0x 22.9x Number of Companies 1 Median: 46.6% 88.5% Total $1,370 $1,498 $729 $ x 22.5x 2.0x 22.9x Market Cap. Weighted Average: 46.6% 88.5% 2.1x 22.5x 2.0x 22.9x Specialty: MEDNAX, Inc. $70.47 (14.1%) 14.6% $86.09 $61.66 $6,601 $1,362 $65 $7,895 $2,689 $608 $548 Sep-15 Dec-14 $2,787 $624 $ x 13.0x 2.8x 12.6x Number of Companies 1 Median: (14.1%) 14.6% Total $6,601 $7,895 $2,689 $2, x 13.0x 2.8x 12.6x Market Cap. Weighted Average: (14.1%) 14.6% 2.9x 13.0x 2.8x 12.6x Behavioral Health / Management AAC Holdings, Inc. $23.20 (38.1%) 9.4% $46.60 $15.09 $520 $122 $45 $631 $175 $32 $26 Sep-15 Dec-14 $211 $43 $24 3.6x 19.5x 3.0x 14.7x Acadia Healthcare Company, Inc (22.3%) 3.9% ,399 2, ,318 1, Sep-15 Dec-14 1, x 18.5x 3.6x 15.8x Civitas Solutions, Inc % 62.2% ,587 1, Jun-15 Sep-14 1, x 11.1x 1.2x 10.4x Magellan Health, Inc (11.8%) (11.1%) , ,406 4, Sep-15 Dec-14 4, x 6.8x 0.3x 7.2x Providence Service Corp % 18.6% ,250 1, Sep-15 Dec-14 2, x 11.2x 0.6x 11.1x Universal Health Services Inc (13.7%) 18.9% ,090 3, ,456 8,765 1,654 1,260 Sep-15 Dec-14 9,656 1,655 1, x 9.3x 1.6x 9.3x Number of Companies 6 Median: (12.7%) 14.0% Total $20,125 $26,648 $18,172 $19, x 11.2x 1.4x 10.7x Market Cap. Weighted Average: (13.6%) 15.5% 2.1x 11.6x 1.9x 10.9x Surgicenters / Rehabilitation Surgery Centers (2) : AmSurg Corp. $ % 32.1% $87.42 $48.49 $3,395 $2,250 $126 $5,701 $2,444 $340 $294 Sep-15 Dec-14 $2,530 $483 NA 2.3x 16.8x 2.3x 11.8x Surgical Care Affiliates, Inc (21.0%) (2.8%) , , Sep-15 Dec-14 1, NA 1.9x 12.9x 1.9x 10.9x Number of Companies 2 Median: (9.9%) 14.7% Total $4,564 $7,581 $3,420 $3, x 14.8x 2.1x 11.3x Market Cap. Weighted Average: (4.5%) 23.2% 2.2x 15.8x 2.1x 11.6x Rehabilitation: HEALTHSOUTH Corp. $34.83 (22.8%) (12.1%) $48.37 $33.00 $3,185 $2,824 $46 $5,481 $2,857 $653 $527 Sep-15 Dec-14 $3,117 $682 $ x 8.4x 1.8x 8.0x Select Medical Holdings Corporation (22.9%) (13.7%) ,482 2, ,140 3, Sep-15 Dec-14 3, x 11.4x 1.1x 10.4x US Physical Therapy Inc (6.0%) 14.2% Sep-15 Dec x 12.6x 2.1x 13.7x Number of Companies 3 Median: (22.8%) (12.1%) Total $5,277 $10,298 $6,597 $7, x 11.4x 1.8x 10.4x Market Cap. Weighted Average: (20.9%) (9.5%) 1.7x 9.7x 1.6x 9.3x As of October 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 10/30/2015 hoh18.75 A Senior Living Community in Virginia - Capital Senior Living Corp. (NYSE:CSU) $ No 10/30/2015 PDI, Inc., Commercial Services Business PDI, Inc. (NasdaqGM:PDII) Publicis Touchpoint Solutions, Inc. $ x x No 10/30/2015 HealthFusion, Inc. BNY Mellon-Alcentra Mezzanine Quality Systems Inc. (NasdaqGS:QSII) $ Yes Partners 10/29/2015 Blue Belt Technologies, Inc. - Smith & Nephew plc (LSE:SN.) $ No 10/29/2015 Wheaton Franciscan Services, Inc., Southeast Wheaton Franciscan Services, Inc. Ascension No Wisconsin operations and related Corporate Services 10/29/2015 Consultants in Laboratory Medicine of Greater - Aurora Diagnostics Holdings, LLC No Toledo, Inc. 10/29/2015 Aesynt Incorporated Francisco Partners Management LLC Omnicell, Inc. (NasdaqGS:OMCL) $ x 13.8x - No 10/28/2015 CKS Productions, Inc. - Kinnser Software, Inc No 10/28/2015 Embassy Dental Professionals, P.C. - Marquee Dental Partners, LLC No 10/28/2015 Pacific Cancer Institute - Alliance Oncology, LLC No 10/28/2015 Peace Inc. - Grace Harbor Group Yes 10/28/2015 Abbeville County Memorial Center, Home Abbeville Area Medical Center Aeroflow Inc No Medical Equipment Business 10/27/2015 Nipro Diagnostics, Inc. Nipro Corporation (TSE:8086) Sinocare Inc. (SZSE:300298) $ No 10/27/2015 Neurowave Monitoring, Inc. - BNN Holdings Corp No 10/26/2015 CAS Medical Systems, 740 SELECT Product Line CAS Medical Systems Inc. Zoe Medical, Incorporated $ No (NasdaqCM:CASM) 10/26/2015 Perseon Corporation (NasdaqCM:PRSN) Heights Capital Management, Inc.; Galil Medical Inc. $ x - - Yes Empery Asset Management, LP; Sabby Management, LLC 10/26/2015 Intersection Medical, Inc., Key Assets and Intersection Medical, Inc. ImpediMed Limited (ASX:IPD) No Intellectual Property 10/26/2015 Mach7 Technologies, Inc. - 3D Medical Limited (ASX:3DM) $ No 10/26/2015 VBI Vaccines Inc (NasdaqCM:VBIV) Arch Venture Partners, L.P.; SciVac Therapeutics Inc. (TSX:VAC) $ No Perceptive Advisors LLC; 5AM Venture Management LLC; Sandor Advisors, LLC; Clarus Ventures, LLC; RTW Investments, LLC; The Del Mar Consulting Group, Inc. Retirement Plan Trust 10/26/2015 Atlas Medical Software Atlas Development Corporation Roper Technologies, Inc. (NYSE:ROP) $ No 10/26/2015 TriVascular Technologies, Inc. (NasdaqGS:TRIV) Delphi Ventures; MPM Capital; New Endologix Inc. (NasdaqGS:ELGX) Yes Enterprise Associates; Permal Group LLC; Kaiser Permanente Ventures; Greenspring Associates, Inc.; Deerfield Management Company, L.P.; Pinnacle Ventures, L.L.C; Kearny Venture Partners; Redmile Group, LLC; FMR Co., Inc.; Epidarex Capital; Rock Springs Capital 10/26/2015 Fremont Emergency Services and Advanced - Team Health Holdings, Inc. (NYSE:TMH) No Care Emergency Services and Advanced Care Emergency 10/23/2015 Animal Trustees of Austin, Inc. - Emancipet, Inc No 10/23/2015 Advanced Foot Care Centers, LLP - Extremity Healthcare, Inc No 10/22/2015 Hospital Medicine Consultants, LLC - IPC Healthcare, Inc. (NasdaqGS:IPCM) No 10/22/2015 Radiology Associates, Inc. - Rhode Island Medical Imaging, Inc No 10/22/2015 NextGen Healthcare Information Systems, Hospital NextGen Healthcare Information QuadraMed Affinity Corporation No Solutions Division Systems, LLC 10/22/2015 Orthopaedicare Ventures, LLC - The Rothman Institute No 10/22/2015 NovaRx Corporation - Viropro Inc. (OTCPK:VPRO) No 10/21/2015 Vree Health, LLC Merck Sharp & Dohme Corp. PatientSafe Solutions, Inc No 10/21/2015 Eating Recovery Center, The Carolinas - Eating Recovery Center LLC No 10/20/2015 Talyst Systems, LLC Talyst, Inc. Columbia Pacific Advisors, LLC No 10/20/2015 McGuire Group Pharmacy, Inc. - PharMerica Corporation (NYSE:PMC) No 10/20/2015 Xtend Healthcare LLC WestView Capital Partners; Navient Corporation (NasdaqGS:NAVI) Yes Brentwood Capital Advisors LLC, Investment Arm 10/20/2015 River Valley Health Partners - Prime Healthcare Services, Inc No 10/20/2015 Cervel Neurotech, Inc., Multi-Coil Transcranial Cervel Neurotech, Inc. Rio Grande Neurosciences Inc No Magnetic Stimulation Technology And Related Patents 10/19/2015 MP Biomedicals, LLC - Valiant Co., Ltd. (SZSE:002643) $ x - 2.9x No 10/19/2015 Mediscan, LLC. And Mediscan Diagnostic Services, LLC And Mediscan Nursing Staffing, LLC - Cross Country Healthcare, Inc. (NasdaqGS:CCRN) $ x - - No 10/19/2015 Doctors Allergy Formula, LLC - Bausch & Lomb Incorporated No 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 10/16/2015 Admune Therapeutics LLC - Novartis International AG $ No 10/16/2015 Bartow HMA, LLC Health Management Associates Inc. BayCare Health System, Inc No 10/16/2015 Reconceived, LLC - Vivere Health, LLC No 10/16/2015 Dirigo Pines Retirement Community, LLC Affiliated Healthcare Systems, Inc.; CPF Senior Living Acquisitions LLC No Rosscare, Inc. 10/15/2015 Diagnostic Imaging Group, LLC New Primecare Llc; Mid Flushing Mid Rockland Imaging Partners, Inc. $ No Medical Arts Building, Inc. 10/15/2015 Shippert Enterprises, Ltd. - SCP Medical Products, LLC No 10/15/2015 Northstar Psychological Services, Inc. - South Bay Mental Health Center, Inc No 10/15/2015 MedMark Services, Inc. - Addiction Research and Treatment, Inc No 10/14/2015 B&H Consulting Services, Inc. - Voisin Consulting SARL No 10/14/2015 Medicom Technologies, Inc. - Concert Care Healthcare Solutions No 10/13/2015 Thermomedics, Inc. Sanomedics, Inc. (OTCPK:SIMH.D) PositiveID Corporation (OTCPK:PSID) No 10/13/2015 Project Rendezvous Holding Corporation Platinum Equity, LLC Digirad Corporation (NasdaqGM:DRAD) $ Yes 10/13/2015 DNA Diagnostics Center, Inc. MTS Health Investors, LLC GHO Capital Partners LLP $ Yes 10/13/2015 Global Laser Vision San Diego Lasik Center - Vision Group Holdings, LLC No 10/12/2015 Team Health Holdings, Inc. (NYSE:TMH) The Blackstone Group, Private Equity Group; Pennant Capital Management, LLC; Maverick Capital, Ltd. AmSurg Corp. (NasdaqGS:AMSG) $5, x 17.5x 25.5x Yes 10/12/2015 Crozer-Keystone Health System Inc. - Prospect Medical Holdings, Inc No 10/9/2015 Adheron Therapeutics, Inc. HealthCare Ventures LLC; SR One; Roche Holding AG (SWX:ROG) $ No MedImmune Ventures, Inc.; Amgen Ventures 10/9/2015 Optics Plus, Inc. - HOYA Vision Care, North America, Inc No 10/9/2015 BluePearl Veterinary Partners LLC - Mars Petcare US, Inc No 10/8/2015 Immunomic Therapeutics, Inc., Worldwide License Immunomic Therapeutics, Inc. Astellas Pharma, Inc. (TSE:4503) $ No to LAMP-vax Products 10/8/2015 Lone Star Dermatology - Dermatology Associates of Central No Texas 10/8/2015 Start Fresh Private Management, Inc. - MyLife Recovery Centers, Inc No 10/8/2015 Rocky Mountain Artificial Limb and Brace, Inc. - BCP Group No 10/7/2015 Healthcare Revenue Strategies, LLC - RevSpring, Inc No 10/7/2015 Bradley & Monson Physical Therapy, LLP - MOTION PT Holdings, Inc No 10/7/2015 South Kingston Internal Medicine - Swedish Health Services, Inc No 10/7/2015 Hospice Advantage, Inc. Sentinel Capital Partners, L.L.C.; Hospice Compassus, Inc Yes Norwest Mezzanine Partners 10/6/2015 Lancaster Regional Hospital, L.P. R&K Healthcare Real Estate, L.L.C. Global Medical REIT, Inc. $ No 10/6/2015 The Hammonds Centre, LLC - Physiotherapy Corporation No 10/6/2015 Blue Jay Consulting, LLC - Koninklijke Philips N.V (ENXTAM:PHIA) No 10/6/2015 Benchmark Systems, Inc. - Antworks $ No 10/6/2015 Tech Pharmacy Services, Inc. DFW Capital Partners; Galen Partners Partners Pharmacy, L.L.C Yes 10/6/2015 Aria Health System - Jefferson Health System, Inc No 10/5/2015 PharMEDium Healthcare Holdings, Inc. Clayton, Dubilier & Rice, Inc. AmerisourceBergen Drug Corporation $3, x NM 58.1x Yes 10/5/2015 FSC Laboratories, Inc., Primsol Business FSC Laboratories, Inc. Aytu BioScience, Inc. (OTCPK:AYTU) $ No 10/5/2015 For Eyes Optical Company, Inc. - Grandvision B.V. (ENXTAM:GVNV) No 10/5/2015 Concordia Pharmaceuticals Inc., Three Concordia Pharmaceuticals Inc. Teligent, Inc. (NasdaqGS:TLGT) $ No Commercialized Injectable Products 10/5/2015 Excelsior Medical Corporation PNC Erieview Capital; RoundTable ICU Medical, Inc. (NasdaqGS:ICUI) $ Yes Healthcare Management, LLC 10/5/2015 ASAP Urgent Care, Medical Facility in Hamden ASAP Urgent Care, LLC PhysicianOne Urgent Care No 10/5/2015 Insero Health, Inc. Florida Institute for the Commercialization of Public Research Biscayne Pharmaceuticals, Inc No 10/5/2015 Nightingale Informatix Corporation, Practice Management Business Nightingale Informatix Corporation (TSXV:NGH) Pulse Systems, Inc. $ x - - No 10/5/2015 Lifestages Centers for Women - Premier Health Specialists, Inc No 10/5/2015 St. Luke's Cornwall Hospital - Montefiore Health System, Inc No 10/5/2015 MedQuery, Inc. - Schlesinger Associates, Inc 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 10/4/2015 ncontact, Inc. Hercules Technology Growth Capital, Inc. (NYSE:HTGC); Harbert Venture Partners, LLC 10/2/2015 Spectra Healthcare Management, Inc., Revenue Cycle Management Business Spectra Healthcare Management, Inc. AtriCure, Inc. (NasdaqGM:ATRC) $ No Doctors Administrative Solutions, LLC No 10/2/2015 Hospital Resources Management LLC - HNI Healthcare No 10/2/2015 HealthPlus of Michigan, Inc. - Health Alliance Plan of Michigan, Inc No 10/1/2015 Global Medical Imaging, LLC WJ Partners, LLC Jordan Industries International, LLC Yes 10/1/2015 Ocala Hospital Group, PA and Hospitalists of - IPC Healthcare, Inc. (NasdaqGS:IPCM) No Ocala, LLC and Ocala Geriatric Services 10/1/2015 Sikka Software Corporation Sierra Ventures; OrbiMed Advisors, L.L.C.; ATA Venture Management, LLC RingCentral, Inc. (NYSE:RNG) No 10/1/ /20 Healthcare LLC Prudent Management; 20/20 HealthCare Partners LLC Konica Minolta Medical Imaging U.S.A., Inc Yes 10/1/2015 Cardea Associates, Inc. - Cardiac Insight, Inc No 10/1/2015 Star Ophthalmic Instruments, Inc. - Enhanced Medical Services, LLC No 10/1/2015 Strata Pathology Services Inc. Linden LLC Yes PAGE 14

16 INDUSTRY UPDATE NOVEMBER 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