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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized 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 VE BEEN DOING PRIMARY CARE WHAT HOSPITALS OF THE FUTURE LOOK LIKE In a shift away from their traditional inpatient facilities, health-care providers are investing in outpatient clinics, same-day surgery centers, free-standing emergency rooms and microhospitals, which offer as few as eight beds for overnight stays. They are setting up programs that monitor people 24/7 in their own homes. And they are turning to digital technology to treat and keep tabs on patients remotely from a high-tech hub. Already, the U.S. has more hospital beds than it needs in most markets, suggests a March 2017 report by Medpac, an independent analysis group reporting to Congress. The average hospital-occupancy rate was just 62% in There were also more hospital closings than openings over the four years ending in 2015, with nearly half of those converting to outpatient-only facilities. Hospitals have continued to close their doors, especially in rural areas, and a spate of mergers will speed consolidation. Payment models for shifting care out of hospitals are being worked out, but Medicare and private insurers are weighing various reimbursement approaches such as bundled payments, which provide a single sum for 30 days of services, regardless of where they are delivered. A link to the original article can be found here. PHARMA CROS INVESTING MORE IN TECH According to a report by the Tufts Center for the Study of Drug Development (CSDD), the clinical trial study start-up process averages 5 to 6 months in duration, though 11% of sites are never activated. As stakeholders are increasingly aware that better study start-up processes are linked to shorter clinical timelines, the emphasis has been shifting in that direction, said Sujay Jadhav, gobalto CEO. The increasing use of technology and impact on cycle time reductions is a very positive industry trend. According to the report, 80% of respondents who invested in technology reported time savings with CROs investing 10% more than sponsors. As such, the research found that CROs complete all site-related activities 6 to 11 weeks faster than sponsors. However, 80% of respondents still indicated a need to improve tools and technology to enable more effective processes, with 30% to 40% of respondents reporting they are unsatisfied with their processes. Those who did report a high level of satisfaction with their processes have 57.5% shorter cycle times. Additionally, across sponsors and CROs, average cycle times are 9.9 weeks shorter (28%) at repeat sites than at new sites. A link to the study can be found here. M&A FITBIT STEPS INTO HEALTHCARE WITH TWINE HEALTH ACQUISITION Fitbit is acquiring health coaching platform Twine Health, Fitbit announced, furthering the wearables company's push into healthcare. Now, with this acquisition expected to close in the first quarter of 2018 the company stands to have more offerings for health plans and systems and self-insured employers, according to a news release. "With the acquisition of Twine Health, we can efficiently expand our healthcare expertise and achieve speed to market with a connected health platform," said Adam Pellegrini, general manager for Fitbit Health Solutions. The acquisition also stands to boost Fitbit's subscription-based revenue. A link to the original article can be found here. CONTENTS PUBLIC MARKETS OVERVIEW EQUITY MARKETS OVERVIEW M&A OVERVIEW DEBT MARKETS OVERVIEW HEALTHCARE & LIFE SCIENCES PUBLIC COMPARABLES M&A TRANSACTIONS CONTACTS Turner Bredrup Managing Director tbredrup@harriswilliams.com +1 (804) James Clark Managing Director jclark@harriswilliams.com +1 (804) Andy Dixon Managing Director adixon@harriswilliams.com +1 (415) Cheairs Porter Managing Director cporter@harriswilliams.com +1 (804) Geoff Smith Managing Director gsmith@harriswilliams.com +1 (804) Paul Hepper Director phepper@harriswilliams.com +1 (804) Whit Knier Director wknier@harriswilliams.com +1 (804) Eugene Bord Vice President ebord@harriswilliams.com +1 (804) Tyler Bradshaw Vice President tbradshaw@harriswilliams.com +1 (804) Mervyn Han Vice President mhan@harriswilliams.com +1 (804) Ricky Ng Vice President rng@harriswilliams.com +1 (415) Nick Owens Vice President nowens@harriswilliams.com +1 (804) PAGE 0

3 PUBLIC MARKETS OVERVIEW (1) 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 2 $43, % 22.6% 2.4x 12.7x 2.3x 11.3x Contract Pharma Manufacturing 2 9, % 12.9% 4.0x 16.8x 3.8x 14.9x Contract Research Organizations 6 66,138 (6.7%) 30.4% 3.3x 18.2x 3.1x 14.0x Disease Management 1 1,634 (16.2%) 51.1% 2.9x 12.9x 2.6x 11.6x Healthcare Staffing 4 19, % 23.2% 1.5x 13.5x 1.4x 11.4x HMO - Medical 8 532, % 49.8% 1.1x 14.0x 1.0x 11.9x Information Services 10 42, % 20.7% 4.3x 15.9x 3.9x 12.4x Retail Pharmacy 3 200, % (8.2%) 0.6x 8.5x 0.6x 8.3x Specialty Managed Care 3 9,364 (9.1%) 9.4% 1.7x 11.2x 5.6x 27.6x Specialty Pharmacy 1 1, % 96.4% 0.4x 23.4x 0.4x 12.2x Specialty Pharmacy Management 1 57, % 15.0% 0.6x 7.8x 0.6x 7.4x Dental Products 2 178, % 25.3% 4.6x 18.9x 4.3x 16.1x Durable Medical Equipment 3 23, % 49.2% 2.8x 18.3x 2.7x 16.4x Life Sciences Tools 3 209, % 47.1% 5.2x 21.4x 4.7x 17.8x Medical Devices and Products , % 21.4% 4.7x 18.4x 4.4x 15.6x Medical / Surgical / Dental Supplies & Distribution 6 118, % (4.8%) 0.2x 10.3x 0.2x 9.7x Spec Pharma and Generics , % (5.1%) 3.1x 9.6x 3.1x 9.6x Acute-Care Hospitals 4 110, % (2.2%) 0.9x 8.4x 1.0x 7.9x Assisted Living 2 7,674 (10.2%) (34.4%) 2.1x 12.8x 2.0x 11.2x Diagnostic Imaging 2 12, % 69.6% 2.6x 14.7x 2.6x 13.0x Dialysis Services 3 71, % 22.4% 2.1x 11.3x 1.7x 10.7x Home Care, Hospice, and Home Infusion 6 9, % 40.5% 1.9x 20.7x 1.8x 13.8x Long-Term Care 3 6,458 (0.2%) 13.2% 0.8x 9.8x 0.7x 7.9x Physician Practice Management 1 6, % (22.7%) 1.9x 11.5x 1.8x 10.8x Behavioral Health / Management 5 26, % 7.9% 1.3x 9.3x 1.2x 7.7x Surgicenters / Rehabilitation 4 18, % 30.7% 2.0x 11.4x 1.8x 10.3x Payor, Provider, & Pharmacy Support Services 41 $982, % 33.2% 1.4x 13.2x 1.3x 11.3x Products & Devices 26 $1,713, % 25.9% 4.6x 17.3x 4.3x 14.5x Provider-Based Services 30 $268, % 23.4% 2.0x 11.6x 1.8x 10.4x HW&Co. HCLS Composite Index 109 $2,965, % 22.4% 3.4x 15.5x 3.1x 13.1x S&P % 23.9% Median TEV/ LTM Multiples Median TEV/ Forward Mulitples Public Company Sector Performance (12-month % change in stock price) Specialty Pharmacy Diagnostic Imaging Disease Management HMO - Medical Durable Medical Equipment Life Sciences Tools Home Care, Hospice, and Home Infusion Surgicenters / Rehabilitation Contract Research Organizations Dental Products S&P 500 Healthcare Staffing Clinical Laboratories Dialysis Services HW&Co. HCLS Composite Index Medical Devices and Products Long-Term Care Contract Pharma Manufacturing Specialty Managed Care Behavioral Health / Management Acute-Care Hospitals Medical / Surgical / Dental Supplies & Distribution Spec Pharma and Generics Retail Pharmacy Physician Practice Management Assisted Living (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% 100.0% 110.0% PAGE 2

4 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance (1) 180% 160% 140% 120% 133.9% 127.0% 118.1% 100% 80% 60% 40% Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 S&P 500 Dow Jones U.S. Healthcare Index HW&Co. HCLS Index Top Equity Offerings (2) (by proceeds) Closing Date Issuer Ticker Transaction Type Gross Proceeds ($ mm) 01/31/18 Seattle Genetics NASDAQ:SGEN Follow-On $ /25/18 Audentes Therapeutics NASDAQ:BOLD Follow-On /26/18 ARMO BioSciences NASDAQ:ARMO Initial Public Offering /30/18 Cymabay Therapeutics NASDAQ:CBAY Follow-On /24/18 Iovance Biotherapeutics NASDAQ:IOVA Follow-On /26/18 Solid Biosciences NASDAQ:SLDB Initial Public Offering /24/18 Adamas Pharmaceuticals NASDAQ:ADMS Follow-On /25/18 Menlo Therapeutics NASDAQ:MNLO Initial Public Offering /03/18 Crispr Therapeutics NASDAQ:CRSP Follow-On /02/18 Atara Biotherapeutics NASDAQ:ATRA Follow-On /26/18 restorbio NASDAQ:TORC Initial Public Offering /25/18 Rocket Pharmaceuticals NASDAQ:RCKT Follow-On /25/18 Athenex, Inc. NASDAQ:ATNX Follow-On /25/18 Albireo Pharma, Inc. NASDAQ:ALBO Follow-On /22/18 Urogen Pharma NASDAQ:URGN Follow-On /19/18 Arrowhead Pharmaceuticals NASDAQ:ARWR Follow-On /23/18 Stemline Therapeutics NASDAQ:STML Follow-On /25/18 Synlogic, Inc. NASDAQ:SYBX Follow-On /31/18 Syros Pharmaceuticals NASDAQ:SYRS Follow-On /08/18 Novan, Inc. NASDAQ:NOVN Follow-On /16/18 HTG Molecular Diagnostics NASDAQ:HTGM Follow-On /16/18 Obalon Therapeutics NASDAQ:OBLN Follow-On /25/18 Eyenocia NASDAQ:EYEN Initial Public Offering /25/18 Conformis Inc. NASDAQ:CFMS Follow-On 20.0 PAGE 3

5 Number of Transactions M&A OVERVIEW (1) HEALTHCARE & LIFE SCIENCES Announced Healthcare & Life Sciences M&A QUARTERLY M&A ACTIVITY HEALTHCARE TRANSACTION HIGHLIGHTS Number of Transactions Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 PE Buyer Strategic Buyer Announced Target Buyer 1/22/2018 Juno Therapeutics, Inc. Celgene Corp. 1/19/2018 Arlington Eye Center Centre Partners Management LLC; Chesapeake Eye Care Co. LLC 1/18/2018 Renewal Dermatology & Laser, APMC Frazier Management LLC; MWD Management LLC 1/16/2018 Biv arus, Inc. EQT Partners AB; Press Ganey Holdings, Inc. 1/11/2018 Spendmend LLC Sheridan Capital Partners LLC 1/10/2018 Tri-Valley Neonatal Medical Group, Inc. MEDNAX, Inc. 1/4/2018 Connecture, Inc. Francisco Partners Management LLC 1/4/2018 X32 Healthcare, LLC Team Health, Inc. 1/3/2018 Glen Research Corp. GTCR LLC; Marav ai Life Sciences, Inc. 1/3/2018 Drayer Physical Therapy Institute LLC Rev elstoke Capital Partners LLC; Upstream Rehabilitation, Inc. 1/3/2018 Lucy Li, MD, PA Epiphany Dermatology PA 1/2/2018 The Aesthetic Dermatology Center of Vero Beach Harv est Partners LP; ADCS Clinics LLC LTM DEAL STATISTICS Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $ x 11.0x Note: Transactions based on publicly available information Healthcare & Life Sciences M&A Trends ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES Aggregate Transaction Value ($ in billions) $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $576.0 $277.9 $236.6 $165.8 $101.6 $108.2 $ YTD 1,400 1,200 1, Number of Transactions EV / LTM EBITDA Multiple 18.0x 16.0x 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x 13.6x 14.2x 13.0x 13.1x 10.9x 10.0x x 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x EV / LTM Sales Multiple Volume Total Deals EBITDA Multiple Revenue Multiple Announced Private Equity M&A Activity PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) HC&LS Industry Number of Segment Companies Healthcare Facilities 22 Healthcare Serv ices 189 Healthcare Equipment 41 Pharmaceuticals 27 Healthcare Technology 8 Life Sciences Tools & Serv ices 1 Healthcare Supplies 12 Healthcare Distributors 4 Biotechnology 31 Managed Healthcare PEG INVESTMENTS YTD PAGE 4

6 DEBT MARKETS OVERVIEW Key Credit Statistics (3) QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS $24 L Loan Volume by Quarter ($ in billions) $21 $18 $15 $12 $9 $6 $3 $0 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q 17 Pro Rata Institutional CREDIT METRICS Average Spread Over LIBOR L L L L L Revolving Credit / Term Loan A Weighted-Average Institutional AVERAGE SECONDARY SPREAD 6.0x L EBITDA Multiple 4.0x 2.0x Average Spread Over LIBOR L L x Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest L + 0 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 Select Healthcare & Life Sciences Debt Offerings (4) (by deal amount) Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread 01/03/18 Envigo Laboratories Inc Medical laboratories $350.0 Term Loan B B3 / B- L+ 550 PAGE 5

7 PUBLIC COMPARABLES Payor, Provider, & Pharmacy Support Services (1) Clinical Laboratories 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Laboratory Corporation of America Holdings $ % 30.0% $ $ $17,764 $6,762 $317 $24,597 $10,441 $1,968 $1,435 Dec-17 Dec-17 $11,054 $2,191 $1, x 12.5x 2.2x 11.2x Quest Diagnostics Incorporated % 15.1% ,423 3, ,576 7,709 1,436 1,166 Dec-17 Dec-17 7,948 1,621 1, x 12.9x 2.3x 11.5x Number of Companies 2 Median: 13.2% 22.6% Total $32,187 $43,173 $18,150 $19, x 12.7x 2.3x 11.3x Market Cap. Weighted Average: 13.2% 23.3% 2.4x 12.7x 2.3x 11.3x Contract Pharma Manufacturing Cambrex Corporation $ % 7.4% $62.95 $42.55 $1,847 $0 $183 $1,704 $535 $175 $143 Dec-17 Dec-17 $540 $165 $ x 9.7x 3.2x 10.3x West Pharmaceutical Services, Inc (1.2%) 18.4% , ,792 1, Dec-17 Dec-17 1, x 23.9x 4.5x 19.4x Number of Companies 2 Median: 14.6% 12.9% Total $9,287 $9,496 $2,134 $2, x 16.8x 3.8x 14.9x Market Cap. Weighted Average: 5.1% 16.2% 4.5x 21.1x 4.2x 17.6x Contract Research Organizations Catalent Inc $ % 73.9% $47.87 $26.71 $6,183 $2,742 $339 $8,592 $2,300 $456 $295 Dec-17 Jun-17 $2,529 $573 $ x 18.9x 3.4x 15.0x Charles River Laboratories International, Inc (9.3%) 30.5% ,994 1, ,092 1, Dec-17 Dec-17 1, x 14.2x 3.0x 12.6x ICON Plc (7.9%) 30.3% , ,996 1, Dec-17 Dec-17 1, x 14.7x 3.2x 13.4x INC Research Holdings, Inc (32.9%) (27.6%) ,002 3, ,094 2, Sep-17 Dec-16 3, x 22.9x 1.9x 10.0x PRA Health Sciences, Inc % 55.4% ,770 1, ,148 2, Dec-17 Dec-17 2, x 20.8x 3.0x 15.9x IQVIA Holdings Inc (5.5%) 30.2% ,254 10,225 1,005 32,216 9,746 1, Dec-17 Dec-17 8,571 2,212 1, x 17.5x 3.8x 14.6x Number of Companies 6 Median: (6.7%) 30.4% Total $48,134 $66,138 $19,923 $20, x 18.2x 3.1x 14.0x Market Cap. Weighted Average: (4.5%) 34.1% 3.3x 17.8x 3.3x 14.1x Disease Management Tivity Health, Inc. $38.75 (16.2%) 51.1% $48.50 $24.05 $1,535 $148 $163 $1,634 $557 $127 $124 Dec-17 Dec-17 $621 $141 $ x 12.9x 2.6x 11.6x Number of Companies 1 Median: (16.2%) 51.1% Total $1,535 $1,634 $557 $ x 12.9x 2.6x 11.6x Market Cap. Weighted Average: (16.2%) 51.1% 2.9x 12.9x 2.6x 11.6x Healthcare Staffing AMN Healthcare Services, Inc. $ % 49.7% $54.25 $34.71 $2,563 $320 $41 $2,931 $1,988 $245 $213 Dec-17 Dec-17 $2,091 $273 $ x 12.0x 1.4x 10.7x Envision Healthcare Holdings, Inc (15.5%) (47.1%) ,354 6, ,210 7,207 1, Sep-17 Dec-16 8, x 9.8x 1.3x 12.0x Cross Country Healthcare, Inc % (3.2%) Sep-17 Dec x 15.0x 0.6x 9.9x On Assignment, Inc % 69.1% , ,649 2, Dec-17 Dec-17 3, x 17.1x 1.5x 12.8x Number of Companies 4 Median: 12.4% 23.2% Total $11,411 $19,380 $12,689 $14, x 13.5x 1.4x 11.4x Market Cap. Weighted Average: 7.9% 17.2% 1.6x 13.1x 11.9x PAGE 6

8 PUBLIC COMPARABLES Payor, Provider, & Pharmacy Support Services (1) 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Commercial: Aetna Inc. $ % 57.5% $ $ $61,053 $9,159 $6,356 $65,719 $60,535 $4,139 $3,680 Dec-17 Dec-17 $61,854 $5,999 $5, x 15.9x 1.1x 11.0x Anthem, Inc % 60.8% ,638 19,932 3,609 82,697 90,114 5,466 5,014 Dec-17 Dec-17 91,714 6,402 6, x 15.1x 0.9x 12.9x Cigna Corporation % 42.5% ,369 5,348 3,656 54,888 41,616 4,274 3,190 Dec-17 Dec-17 44,187 5,097 4, x 12.8x 1.2x 10.8x Humana Inc % 42.0% ,262 5,061 4,042 42,049 53,767 4,747 3,380 Dec-17 Dec-17 56,947 3,849 3, x 8.9x 0.7x 10.9x UnitedHealth Group Incorporated % 46.1% ,456 31,692 11, , ,168 17,454 15,218 Dec-17 Dec ,280 19,782 17, x 14.7x 1.1x 13.0x Number of Companies 5 Median: 10.4% 46.1% Total $445,778 $502,539 $447,200 $480, x 14.7x 1.1x 11.0x Market Cap. Weighted Average: 12.1% 49.0% 1.2x 14.2x 1.1x 12.3x Government: Centene Corporation $ % 69.5% $ $63.12 $18,599 $4,699 $4,207 $19,468 $48,382 $1,750 $1,198 Dec-17 Dec-17 $60,249 $2,711 $2, x 11.1x 0.3x 7.2x Molina Healthcare, Inc % 61.1% ,453 2,169 3,186 4,145 19,883 (316) 149 Dec-17 Dec-17 20, x NM 0.2x 6.2x WellCare Health Plans, Inc % 44.6% ,367 1,182 4,204 6,438 17, Dec-17 Dec-17 18, x 9.9x 0.3x 6.5x Number of Companies 3 Median: 14.5% 61.1% Total $33,419 $30,051 $85,272 $99, x 10.5x 0.3x 6.5x Market Cap. Weighted Average: 15.5% 61.1% 0.4x 10.7x 0.3x 6.8x Information Services Data/Analytics: Castlight Health, Inc. $3.70 (3.9%) 19.4% $4.75 $3.05 $299 $5 $93 $376 $131 ($55) ($61) Dec-17 Dec-17 $164 ($8) ($11) 2.9x NM 2.3x NM Inovalon Holdings, Inc (22.4%) 12.6% , Dec-17 Dec x 17.7x 3.3x 13.1x National Research Corporation % 40.2% , Dec-17 Dec x NM 12.5x NM Number of Companies 3 Median: (3.9%) 19.4% Total $2,128 $1,595 $698 $ x 17.7x 3.3x 13.1x Market Cap. Weighted Average: (6.8%) 26.3% 8.1x 17.7x 7.4x 13.1x Hospital/Physician: Allscripts Healthcare Solutions, Inc. $ % 27.3% $16.13 $11.25 $2,694 $1,577 $163 $4,581 $1,806 $260 $42 Dec-17 Dec-17 $2,165 $437 $ x 17.6x 2.1x 10.5x Athenahealth, Inc (2.0%) (0.5%) , ,208 1, Dec-17 Dec-17 1, x 22.0x 3.8x 15.0x Cerner Corporation % 28.7% , ,087 5,142 1, Dec-17 Dec-17 5,616 1,851 1, x 15.0x 4.1x 12.5x Computer Programs and Systems, Inc (0.7%) 32.5% Dec-17 Dec x 15.1x 1.9x 10.3x HMS Holdings Corp (11.0%) (5.7%) , , Dec-17 Dec x 14.9x 2.8x 11.5x Premier Inc (0.7%) 1.9% , ,563 1, Dec-17 Jun-17 1, x 9.9x 2.7x 8.3x Quality Systems, Inc (7.6%) (13.4%) Dec-17 Mar x 12.0x 1.6x 10.0x Number of Companies 7 Median: (0.7%) 1.9% Total $35,226 $40,437 $11,080 $12, x 15.0x 2.7x 10.5x Market Cap. Weighted Average: 1.4% 20.7% 4.1x 15.8x 3.7x 12.3x PAGE 7

9 PUBLIC COMPARABLES Payor, Provider, & Pharmacy Support Services (1) 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty Managed Care Assurant, Inc. $91.48 (9.1%) (5.8%) $ $86.00 $4,811 $1,519 $0 $5,523 $6,299 $601 $0 Dec-17 Dec-17 $6,701 NA $ x 9.2x 0.8x NA CorVel Corporation (13.9%) 34.7% Dec-17 Mar-17 NA NA NA 1.7x 13.2x NA NA HealthEquity Inc % 9.4% , , Oct-17 Jan x NM 10.4x 27.6x Number of Companies 3 Median: (9.1%) 9.4% Total $8,856 $9,364 $7,063 $6, x 11.2x 5.6x 27.6x Market Cap. Weighted Average: (6.2%) 3.9% 5.3x 9.9x 4.6x 27.6x Retail Pharmacy CVS Health Corporation $ % (0.2%) $84.00 $66.45 $79,712 $27,002 $1,807 $105,778 $184,765 $12,468 $9,989 Dec-17 Dec-17 $189,848 $12,818 $10, x 8.5x 0.6x 8.3x Walgreens Boots Alliance Inc % (8.2%) ,558 14,005 1,830 89, ,453 7,354 5,702 Nov-17 Aug ,432 9,440 8, x 12.1x 0.7x 9.4x Rite Aid Corporation ( * ) % (61.2%) ,327 3, ,154 29, Dec-17 Mar-17 22, x 7.6x 0.2x 7.7x Number of Companies 3 Median: 14.8% (8.2%) Total $156,597 $200,029 $334,573 $345, x 8.5x 0.6x 8.3x Market Cap. Weighted Average: 14.5% (4.9%) 0.6x 10.2x 0.6x 8.8x Specialty Pharmacy Diplomat Pharmacy, Inc. $ % 96.4% $27.78 $13.39 $1,859 $149 $27 $1,978 $4,475 $84 $22 Sep-17 Dec-16 $5,479 $162 $ x 23.4x 0.4x 12.2x Number of Companies 1 Median: 28.2% 96.4% Total $1,859 $1,978 $4,475 $5, x 23.4x 0.4x 12.2x Market Cap. Weighted Average: 28.2% 96.4% 0.4x 23.4x 0.4x 12.2x Specialty Pharmacy Management Express Scripts Holding Company $ % 15.0% $83.49 $55.80 $44,845 $14,908 $3,396 $57,022 $99,605 $7,274 $5,386 Sep-17 Dec-16 $101,349 $7,675 $7, x 7.8x 0.6x 7.4x Number of Companies 1 Median: 29.2% 15.0% Total $44,845 $57,022 $99,605 $101, x 7.8x 0.6x 7.4x Market Cap. Weighted Average: 29.2% 15.0% 0.6x 7.8x 0.6x 7.4x *40% of Rite Aid s stores to be acquired by Walgreens in a $4.4 billion transaction announced June 29 th, 2017 and set to close in Q2 2018, with the remainder of stores to be acquired by Albertson s, as announced on February 20 th, PAGE 8

10 PUBLIC COMPARABLES Products & Devices (1) 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $ % 43.3% $ $ $149,173 $14,009 $4,166 $163,383 $31,657 $8,898 $7,354 Dec-17 Dec-17 $33,825 $9,877 $8, x 18.4x 4.8x 16.5x DENTSPLY SIRONA, Inc (0.4%) 7.2% ,967 1, ,439 3, Sep-17 Dec-16 4, x 19.4x 3.7x 15.7x Number of Companies 2 Median: 4.2% 25.3% Total $163,140 $178,822 $35,556 $38, x 18.9x 4.3x 16.1x Market Cap. Weighted Average: 8.0% 40.2% 5.1x 18.5x 4.7x 16.5x Durable Medical Equipment Hill-Rom Holdings, Inc. $ % 44.9% $91.11 $58.77 $5,647 $2,249 $234 $7,776 $2,776 $605 $394 Dec-17 Sep-17 $2,885 $611 $ x 12.9x 2.7x 12.7x Invacare Corporation % 60.0% (15) (28) Dec-17 Dec (4) 0.7x NM 0.7x NM ResMed Inc % 49.2% ,406 1, ,659 2, Dec-17 Jun-17 2, x 23.8x 6.0x 20.1x Number of Companies 3 Median: 18.7% 49.2% Total $20,656 $23,105 $5,938 $6, x 18.3x 2.7x 16.4x Market Cap. Weighted Average: 15.9% 48.4% 5.4x 20.7x 4.9x 18.0x Life Sciences Tools Agilent Technologies, Inc. $ % 49.9% $75.00 $48.47 $23,719 $2,145 $2,887 $22,980 $4,616 $1,082 $874 Jan-18 Oct-17 $4,826 $1,187 $1, x 21.2x 4.8x 19.4x Becton, Dickinson and Company % 37.0% ,723 22,798 1,321 77,362 12,250 3,379 2,262 Dec-17 Sep-17 16,514 5,340 4, x 22.9x 4.7x 14.5x Thermo Fisher Scientific Inc % 47.1% ,867 21,008 1, ,869 20,918 5,098 3,065 Dec-17 Dec-17 23,608 6,103 5, x 21.4x 4.6x 17.8x Number of Companies 3 Median: 15.6% 47.1% Total $178,309 $209,211 $37,784 $44, x 21.4x 4.7x 17.8x Market Cap. Weighted Average: 14.9% 43.8% 5.6x 21.9x 4.7x 16.8x Medical Devices and Products Abbott Laboratories $ % 48.8% $64.60 $41.44 $108,196 $27,924 $9,610 $127,233 $27,390 $5,143 $2,122 Dec-17 Dec-17 $30,950 $7,882 $6, x 24.7x 4.1x 16.1x Baxter International Inc % 50.3% ,244 3,498 3,517 39,951 10,561 2,091 1,258 Dec-17 Dec-17 11,164 2,702 1, x 19.1x 3.6x 14.8x Boston Scientific Corporation (0.6%) 16.2% ,395 5, ,565 9,048 2,369 1,525 Dec-17 Dec-17 9,654 2,794 1, x 18.4x 4.5x 15.6x ConforMIS Inc 1.39 (60.7%) (83.3%) (54) (56) Dec-17 Dec (44) (48) 0.6x NM 0.5x NM Danaher Corporation % 20.7% ,552 10, ,415 18,330 4,419 3,180 Dec-17 Dec-17 19,520 4,678 3, x 18.4x 4.2x 17.4x Hologic, Inc % 5.4% ,344 3, ,680 3, Dec-17 Sep-17 3,292 1,112 1, x 15.5x 4.5x 13.2x Johnson & Johnson (0.9%) 22.0% ,250 34,581 18, ,658 76,481 25,207 19,565 Dec-17 Dec-17 81,366 29,545 25, x 15.7x 4.9x 13.4x K2M Group Holdings, Inc % 3.7% (7) (34) Sep-17 Dec (17) 3.8x NM 3.3x NM Medtronic plc % 13.0% ,252 28,820 14, ,785 29,725 9,237 6,539 Jan-18 Apr-17 30,195 9,922 8, x 14.2x 4.3x 13.2x Penumbra, Inc (0.9%) 39.2% , , (1) (4) Sep-17 Dec x NM 8.4x NM Stryker Corporation % 33.1% ,517 7,222 2,793 66,924 12,444 3,402 2,760 Dec-17 Dec-17 13,561 3,851 3, x 19.7x 4.9x 17.4x Teleflex Incorporated % 65.6% ,512 2, ,877 2, Dec-17 Dec-17 2, x 26.8x 6.1x 19.9x Number of Companies 12 Median: 6.8% 21.4% Total $834,636 $919,411 $189,881 $202, x 18.4x 4.4x 15.6x Market Cap. Weighted Average: 4.7% 26.4% 4.9x 17.6x 4.6x 14.6x Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $ % 14.2% $ $71.90 $21,779 $4,637 $3,038 $23,609 $155,441 $2,471 $2,048 Dec-17 Sep-17 $170,914 $2,473 $2, x 9.6x 0.1x 9.5x Cardinal Health, Inc % (4.2%) ,585 9,759 1,249 31, ,614 3,263 2,365 Dec-17 Jun ,459 3,314 2, x 9.6x 0.2x 9.4x Henry Schein, Inc (3.7%) (5.3%) ,878 1, ,310 12,462 1, Dec-17 Dec-17 13,269 1, x 13.6x 1.1x 12.7x McKesson Corporation % 21.4% ,207 8,794 2,619 42, ,442 3,893 2,949 Dec-17 Mar ,236 4,355 3, x 11.0x 0.2x 9.9x Owens & Minor, Inc (14.3%) (41.3%) , ,060 9, Dec-17 Dec-17 10, x 9.6x 0.2x 7.1x Patterson Companies, Inc (3.0%) (13.7%) ,403 1, ,347 5, Oct-17 Apr-17 5, x 11.1x 0.8x 10.8x Number of Companies 6 Median: 6.5% (4.8%) Total $96,143 $118,529 $520,809 $547, x 10.3x 0.2x 9.7x Market Cap. Weighted Average: 17.9% 8.3% 0.3x 10.7x 0.3x 10.0x PAGE 9

11 PUBLIC COMPARABLES Products & Devices (1) 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Spec Pharma and Generics Allergan Plc $ % (17.6%) $ $ $59,951 $30,075 $6,449 $88,742 $15,941 $7,084 ($285) Dec-17 Dec-17 $15,359 $7,463 $7, x 12.5x 5.8x 11.9x Eagle Pharmaceuticals, Inc % (13.6%) Sep-17 Dec NA 3.3x 9.2x 4.2x 10.2x Endo International Plc % (43.5%) ,543 8,281 1,100 8,724 3,942 1, Sep-17 Dec-16 3,059 1,335 1, x 5.2x 2.9x 6.5x Horizon Pharma Plc % (11.1%) ,385 1, ,644 1,092 (84) (364) Sep-17 Dec-16 1, NA 3.3x NM 3.2x 9.0x Impax Laboratories, Inc % 47.9% , , (24) Sep-17 Dec x 23.5x 2.4x 10.4x Jazz Pharmaceuticals Plc % 19.5% ,737 1, ,081 1, Sep-17 Dec-16 1,867 1,054 1, x 13.0x 5.4x 9.6x Lannett Company, Inc % 1.0% , Dec-17 Jun x 7.0x 2.1x 5.8x Mallinckrodt Plc (43.0%) (62.9%) ,716 5, ,196 3,317 1, Sep-17 Sep-16 3,169 1,272 1, x 5.4x 2.3x 5.7x Mylan N.V % 12.6% ,980 14, ,772 11,940 3,234 1,477 Sep-17 Dec-16 12,762 4,248 3, x 11.4x 2.9x 8.7x Perrigo Co. Plc % 19.0% ,763 3, ,752 4,993 1, Sep-17 Dec-16 5,027 1,152 1, x 14.6x 3.1x 13.7x Teva Pharmaceutical Industries % (38.9%) ,087 32, ,601 22,544 6,026 3,936 Dec-17 Dec-17 19,200 5,295 4, x 9.6x 3.0x 10.9x Valeant Pharmaceuticals International Inc % 34.3% ,452 27,141 1,892 31,865 8,964 3, Sep-17 Dec-16 8,422 3,334 3, x 8.9x 3.8x 9.6x Number of Companies 12 Median: 7.8% (5.1%) Total $140,714 $264,796 $76,013 $71, x 9.6x 3.1x 9.6x Market Cap. Weighted Average: 15.0% (7.8%) 4.3x 11.8x 4.4x 10.9x PAGE 10

12 PUBLIC COMPARABLES Provider-Based Services (1) 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $5.65 (4.2%) (11.7%) $10.51 $3.85 $648 $13,941 $590 $14,609 $16,765 $1,797 $871 Sep-17 Dec-16 $14,082 $1,613 $ x 8.1x 1.0x 9.1x HCA Healthcare Inc % 26.0% ,415 33, ,791 43,614 8,188 6,057 Dec-17 Dec-17 45,839 8,612 6, x 8.8x 1.6x 8.3x LifePoint Health, Inc % (16.7%) ,949 2, ,974 6, Dec-17 Dec-17 6, x 7.6x 0.8x 6.4x Tenet Healthcare Corporation % 7.3% ,906 14, ,842 19,061 2,018 1,138 Sep-17 Dec-16 18,171 2,498 1, x 9.3x 1.0x 7.5x Number of Companies 4 Median: 17.5% (2.2%) Total $39,918 $110,216 $85,731 $84, x 8.4x 1.0x 7.9x Market Cap. Weighted Average: 31.5% 22.4% 1.6x 8.7x 1.5x 8.2x Assisted Living Brookdale Senior Living Inc. $9.50 (5.3%) (36.5%) $16.23 $8.78 $1,771 $5,142 $552 $6,359 $4,747 $661 $179 Dec-17 Dec-17 $4,639 $652 $ x 9.6x 1.4x 9.8x Capital Senior Living Corporation (15.2%) (32.3%) , , Sep-17 Dec x 16.0x 2.7x 12.7x Number of Companies 2 Median: (10.2%) (34.4%) Total $2,114 $7,674 $5,213 $5, x 12.8x 2.0x 11.2x Market Cap. Weighted Average: (6.9%) (35.9%) 1.6x 10.6x 1.6x 10.2x Long-Term Care Kindred Healthcare, Inc.(*) $ % 38.3% $11.90 $5.50 $841 $3,321 $228 $4,125 $6,524 $421 $298 Sep-17 Dec-16 $6,135 $504 $ x 9.8x 0.7x 8.2x National HealthCare Corporation (2.5%) (16.7%) Dec-17 Dec-17 NA NA NA 0.9x 8.4x NA NA Ensign Group, Inc (0.2%) 13.2% , ,482 1, Dec-17 Dec-17 1, x 10.7x 0.8x 7.6x Number of Companies 3 Median: (0.2%) 13.2% Total $2,968 $6,458 $9,340 $8, x 9.8x 0.7x 7.9x Market Cap. Weighted Average: 13.9% 10.8% 0.8x 9.7x 0.7x 7.9x Diagnostic Imaging RadNet, Inc. $10.15 (7.3%) 75.0% $11.90 $5.25 $483 $618 $8 $1,100 $912 $117 $50 Sep-17 Dec-16 $932 $152 $64 1.2x 9.4x 1.2x 7.2x Varian Medical Systems, Inc % 64.2% , ,187 2, Dec-17 Sep-17 2, x 20.0x 3.9x 18.7x Number of Companies 2 Median: 7.5% 69.6% Total $12,165 $12,287 $3,646 $3, x 14.7x 2.6x 13.0x Market Cap. Weighted Average: 21.2% 64.6% 4.0x 19.6x 3.8x 18.3x Dialysis Services American Renal Associates Holdings, Inc. $ % (1.6%) $23.30 $9.91 $595 $559 $68 $1,418 $750 $150 $113 Sep-17 Dec-16 $830 $115 NA 1.9x 9.5x 1.7x 12.3x DaVita Inc.(**) % 22.4% ,305 9, ,925 10,877 2,180 1,620 Dec-17 Dec-17 16,170 2,338 1, x 11.4x 1.5x 10.7x Fresenius Medical Care AG & Co. KGaA % 23.5% ,696 9, ,977 21,608 3,980 3,073 Sep-17 Dec-16 23,861 4,421 3, x 11.3x 1.9x 10.2x Number of Companies 3 Median: 28.5% 22.4% Total $50,596 $71,319 $33,234 $40, x 11.3x 1.7x 10.7x Market Cap. Weighted Average: 17.2% 8.6% 2.1x 11.3x 1.8x 10.3x Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $35.85 (0.4%) 5.0% $40.75 $29.90 $416 $44 $46 $415 $417 $33 $27 Sep-17 Dec-16 $453 $41 $32 1.0x 12.4x 0.9x 10.1x Almost Family, Inc.(***) % 20.7% Sep-17 Dec x 16.0x 1.1x 12.0x Amedisys, Inc % 17.0% , ,867 1, Sep-17 Dec-16 1, x 12.8x 1.1x 11.1x Chemed Corporation % 56.9% , ,453 1, Dec-17 Dec-17 1, x 27.4x 2.6x 16.0x LHC Group, Inc.(***) (6.0%) 25.3% , ,304 1, Sep-17 Dec-16 1, x 13.9x 1.1x 12.5x Number of Companies 5 Median: 11.5% 20.7% Total $8,340 $8,984 $5,345 $5, x 13.9x 1.1x 12.0x Market Cap. Weighted Average: 12.7% 1.6% 2.0x 20.5x 1.8x 13.8x Home Infusion: BioScrip, Inc. $ % 103.6% $3.39 $1.35 $356 $479 $38 $876 $875 $38 $9 Sep-17 Dec-16 $721 $65 $37 1.0x 23.3x 1.2x 13.6x Number of Companies 1 Median: 10.3% 103.6% Total $356 $876 $875 $ x 23.3x 1.2x 13.6x Market Cap. Weighted Average: 10.3% 103.6% 1.0x 23.3x 1.2x 13.6x *To be acquired by a consortium including Humana, TPG Capital, and Welsh Carson Anderson & Stowe in a $783.2 million deal announced on December 19 th, **DaVita Medical Group to be acquired by UnitedHealth in a $4.9 billion deal announced on December 6 th, ***To combine in an all-stock merger and will continue to trade on NASDAQ under the ticker LHCG PAGE 11

13 PUBLIC COMPARABLES Provider-Based Services (1) 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 1/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty: MEDNAX, Inc. $ % (22.7%) $72.13 $40.56 $4,946 $1,853 $70 $6,691 $3,458 $583 $480 Dec-17 Dec-17 $3,680 $618 $ x 11.5x 1.8x 10.8x Number of Companies 1 Median: 20.6% (22.7%) Total $4,946 $6,691 $3,458 $3, x 11.5x 1.8x 10.8x Market Cap. Weighted Average: 20.6% (22.7%) 1.9x 11.5x 1.8x 10.8x Behavioral Health / Management AAC Holdings, Inc. $ % 12.6% $13.06 $5.99 $216 $226 $14 $405 $318 $39 $17 Dec-17 Dec-17 $346 $66 $34 1.3x 10.5x 1.2x 6.1x Acadia Healthcare Company, Inc % (11.2%) ,993 3, ,162 2, Dec-17 Dec-17 3, x 10.6x 2.0x 9.5x Civitas Solutions, Inc (5.9%) (4.1%) ,369 1, Dec-17 Sep-17 1, x 9.2x 0.9x 7.7x Magellan Health, Inc % 32.9% , ,375 5, Sep-17 Dec-16 7, x 8.8x 0.3x 5.5x Universal Health Services, Inc % 7.9% ,650 4, ,708 10,243 1,692 1,250 Sep-17 Dec-16 11,941 1,791 1, x 9.3x 1.3x 8.8x Number of Companies 5 Median: 13.0% 7.9% Total $16,912 $26,020 $20,315 $24, x 9.3x 1.2x 7.7x Market Cap. Weighted Average: 15.4% 7.6% 1.5x 9.5x 1.3x 8.4x Surgicenters / Rehabilitation Surgery Centers (*) : Surgery Partners, Inc. $ % (15.9%) $24.05 $7.10 $759 $2,293 $204 $3,174 $1,187 $204 $160 Sep-17 Dec-16 $1,749 $262 NA 2.7x 15.5x 1.8x 12.1x Number of Companies 1 Median: 68.1% (15.9%) Total $759 $3,174 $1,187 $1, x 15.5x 1.8x 12.1x Market Cap. Weighted Average: 68.1% (15.9%) 2.7x 15.5x 1.8x 12.1x Rehabilitation: Encompass Health Corporation $ % 36.3% $54.13 $38.85 $5,225 $2,622 $157 $8,163 $3,844 $825 $644 Sep-17 Dec-16 $4,215 $848 $ x 9.9x 1.9x 9.6x Select Medical Holdings Corporation (7.6%) 42.2% ,369 2, ,642 4, Dec-17 Dec-17 5, x 10.9x 1.1x 8.9x U.S. Physical Therapy, Inc % 8.3% , Sep-17 Dec x 17.8x 2.5x 16.2x Number of Companies 3 Median: 11.8% 36.3% Total $8,549 $14,904 $8,684 $9, x 10.9x 1.9x 9.6x Market Cap. Weighted Average: 8.2% 34.8% 2.0x 11.1x 1.8x 10.2x * Figures are adjusted for minority interest. PAGE 12

14 M&A TRANSACTIONS Announced U.S. Healthcare & Life Sciences M&A (1) Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 1/1/2018 Wyoming Valley Prosthetics & Orthotics - Boas Surgical, Inc. $ No 1/2/2018 Atlanta Biologicals, Inc. - Bio-Techne Corp No 1/2/2018 Integra I.T. Solutions LLC - DAS Health Ventures, Inc. 1/2/2018 Veracity Medical Solutions, Inc. - Arcamed Acquisition LLC No 1/2/2018 Community Health Care, Inc. (Massachusetts) - Webster Capital Management LLC; $1, x - - Yes BayMark Health Services, Inc. 1/2/2018 The Aesthetic Dermatology Center of Vero Beach - Harvest Partners LP; ADCS Clinics LLC 1/3/2018 Viamet Pharmaceuticals Corp. - NovaQuest Capital Management LLC 1/3/2018 Glen Research Corp. - GTCR LLC; Maravai Life Sciences, Inc. $ Yes 1/3/2018 Faichi Solutions LLC - Saksoft, Inc No 1/3/2018 Drayer Physical Therapy Institute LLC - Revelstoke Capital Partners LLC; Upstream Rehabilitation, Inc.; Yukon Partners Management LLC 1/3/2018 Lucy Li, MD, PA - Epiphany Dermatology PA $ No 1/4/2018 The Stepping Stones Group LLC - Rothschild Merchant Banking; Five Arrows Capital Partners 1/4/2018 Connecture, Inc. - Francisco Partners Management LLC 1/4/2018 Zyga Technology, Inc. - RTI Surgical, Inc No 1/4/2018 X32 Healthcare, LLC - Team Health, Inc No 1/4/2018 TruClinic LLC - InTouch Technologies, Inc. $ No 1/5/2018 Friendswood TRS LLC Cornerstone Realty Advisors LLC HMG Park Manor of Friendswood LLC $ x - - No 1/5/2018 Avant Healthcare Professionals LLC - Jackson Healthcare LLC No 1/5/2018 Des Peres Hospital, Inc. Tenet Healthcare Corp. St. Luke's Hospital (Missouri) No 1/7/2018 Impact Biomedicines, Inc. - Celgene Corp No 1/8/2018 Practice Fusion, Inc. - Allscripts Healthcare LLC No 1/8/2018 Advanced Inpatient Medicine LLC - Adfinitas Health LLC No 1/8/2018 Perry Crabb & Associates, Inc. - Mazzetti, Inc No 1/8/2018 Continuing Education Alliance LLC - Renovus Capital Partners $ Yes 1/9/2018 Neishloss & Fleming, Inc. - Integrity Marketing Group LLC $ No 1/9/2018 FlagshipHealth Group - Predictive Technology Group, Inc No 1/9/2018 New Orleans Urgent Care LLC - Ochsner Health System $ No 1/10/2018 Tri-Valley Neonatal Medical Group, Inc. - MEDNAX, Inc. $ No 1/10/2018 Millenium Home Health Care, Inc. - Fulcrum Equity Partners, Inc.; Five Points $ Yes Healthcare LLC 1/11/2018 ProVation Medical, Inc. Wolters Kluwer NV CCG Operations LLC; Clearlake Capital Group LP 1/11/2018 Healthfirst Financial LLC - Frontier Capital LLC; AccessOne MedCard, Inc. 1/11/2018 Olivo Laboratories LLC - Shiseido Americas Corp. $3, x - - No 1/11/2018 e+ healthcare LLC - Alliance HealthCare Services, Inc No 1/11/2018 Spendmend LLC - Sheridan Capital Partners LLC; Spendmend LLC /Private Group/ 1/12/2018 Meridian Surgical Partners LLC /7 Ambulatory Meridian Surgical Partners LLC MFC Nueterra Holding Co. LLC $ No Surgical Centers/ 1/12/2018 Avidity Home Health - Stratum Health System, Inc No 1/15/2018 Chattanooga Dental Care - New MainStream Capital; CORDENTAL Group 1/16/2018 Precision Eye Services, Inc. /Laser Business/ Precision Eye Services, Inc. LENSAR, Inc. $ No 1/16/2018 E4 Health, Inc. - New Directions Behavioral Health LLC $ No 1/16/2018 DPN USA LLC - Frazier Management LLC; Community Care Health Network, Inc. 1/16/2018 Bivarus, Inc. - EQT Partners AB; Press Ganey Holdings, Inc. 1/17/2018 Pisgah Labs, Inc. - Ipca Laboratories Ltd.; Onyx Scientific Ltd.; Ipca Pharmaceuticals, Inc. $ No 1/17/2018 Wound Care Education Institute - OnCourse Learning Corp.; Compass No Partners Asset Management LLC 1/17/2018 Via Oncology LLC The University of Pittsburgh Cancer Elsevier BV No Institute 1/18/2018 Bio-Pharm, Inc. - Torrent Pharma, Inc. $ x -2.2x -2.2x No 1/18/2018 Surgical Hospital of Oklahoma LLC UnitedHealth Group, Inc. The Inland Real Estate Group of Cos., Inc.; Inland Real Estate Acquisitions, Inc No 1/18/2018 Renewal Dermatology & Laser, APMC - Frazier Management LLC; MWD Management LLC 1/19/2018 Chesapeake Medical Staffing, Inc. - American Surgical Assistants, Inc.; Great $ Yes Point Partners Private Equity 1/19/2018 Arlington Eye Center - Centre Partners Management LLC; Chesapeake Eye Care Co. LLC 1/21/2018 Bioverativ, Inc. - Sanofi No PAGE 13

15 M&A TRANSACTIONS Announced U.S. Healthcare & Life Sciences M&A (1) Enterprise Enterprise Value / LTM Private Equity Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement 1/22/2018 Juno Therapeutics, Inc. - Celgene Corp No 1/22/2018 Idera Pharmaceuticals, Inc. - BioCryst Pharmaceuticals, Inc No 1/22/2018 Data Sciences International, Inc. - Harvard Bioscience, Inc No 1/22/2018 Maestro Healthcare Technology, Inc. - AXA SA No 1/23/2018 MedXM MSO, Inc. - Quest Diagnostics, Inc No 1/23/2018 RedX Medical, LLC - Mobile Science Technologies, Inc. $ No 1/24/2018 Behavior Care Specialists, Inc. - Pharos Capital Group LLC; The Family $ x - - Yes Treatment Network, Inc. 1/25/2018 MEDTranDirect, Inc. - Mediware Information Systems, Inc.; TPG Capital LLC 1/29/2018 Fifth Avenue Healthcare Services - Seeman Holtz Property & Casualty, Inc. $ No 1/29/2018 Network Medical, Inc. (Alabama) - Blue Wolf Capital Management LLC; $ Yes StateServ Medical LLC 1/30/2018 Insight Strategy Advisors LLC - Precision Value & Health No 1/30/2018 CorePharma LLC Impax Laboratories, Inc. CorePharma LLC /Patel Arpit/ No 1/30/2018 Ready Hands, Inc. - BelHealth Investment Partners LLC; Care Advantage, Inc. 1/31/2018 Omnyx LLC General Electric Co. Inspirata, Inc No 1/31/2018 Cascadian Therapeutics, Inc. - Seattle Genetics, Inc. $ No 1/31/2018 Campbell County HMA LLC Community Health Systems, Inc. Rennova Health, Inc No 1/31/2018 Bend Dermatology Clinic LLC - Frazier Management LLC; MWD Management LLC $ Yes PAGE 14

16 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. 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 One International Place Suite 2620 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) Washington, D.C th St. NW 2nd Floor Washington, D.C Phone: +1 (202) 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 1. FactSet. 2. Company Filings. 3. S&P. 4. PNC Debt Capital Markets. 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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized 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. 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 2018 Harris Williams & Co., all rights reserved. PAGE 16