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 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 RE READING INSURANCE REGULATIONS AND FAILED MERGERS SHAPED 2017 The health insurance industry in 2017 was defined as much by events that didn't take place as those that did. Two megamergers between four of the largest insurance companies were ultimately abandoned at the start of the year, sparing hospitals from the possibility of lower reimbursement and consumers from higher prices. Months later, in December, CVS Health and insurer Aetna announced a deal that could ultimately spark change in the way Americans access care, if their merger is greenlighted by regulators. Congressional Republicans failed repeatedly to repeal the Affordable Care Act, former President Barack Obama's signature healthcare law under which some 20 million people gained coverage. Yet, the Trump administration succeeded in undermining the law in part by ending the cost-sharing reduction subsidies that lower out-of-pocket costs for certain exchange enrollees, and through actions that ensured fewer Americans signed up for coverage during open enrollment. Instead of merging to become bigger health plans, "insurers are now moving into vertical integration, which is sort of a different way to go," Dr. Mario Molina said. "It remains to be seen if (the CVS-Aetna merger) will create synergies and lower costs. The federal administration also shortened the fifth open-enrollment period that began Nov. 1 from three months to 45 days. At the same time, it slashed the budget for marketing the exchanges from $100 million to $10 million, and gutted the funding that goes to "navigators" who help educate and enroll customers in exchange coverage. Despite those obstacles, more than 8.8 million people enrolled in 2018 coverage through the federally run marketplace before open enrollment ended Dec. 15. "Figuring out how the legislation and the regulatory framework will evolve in a new administration that cannot legislatively accomplish what it set out to accomplish is what we will find out as we move into '18 and '19," said Ron Williams, former CEO of Aetna and now chairman of value-based care company Agilon. A link to the original article can be found here. M&A TWO FUTURES FOR HEALTHCARE VC ACQUISITIONS Big Venture Capital exits are on the rise in healthcare. There were nine VC acquisitions worth $100 million or more in the healthcare industry in the second half of 2017, compared with six in the first half, according to Dow Jones VentureSource. Healthcare was the largest growing industry. The median amount of time for VC-backed healthcare companies to reach liquidity through an acquisition was more than seven years in longer than any previous year and longer than any other industry. Yet, in 2017 the median healthcare company raised ~$21 million before being acquired. The median healthcare business for acquisitions greater than $100 million last year had raised a median of ~$35 million. While tech companies get more headlines and clicks, healthcare companies have been testing out new ways of funding their businesses. From drug platforms to hospital spinoffs to all-in megadeal launches to innovative debt strategies, healthcare is where innovative financing models are emerging. 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) Andy Hewlett Vice President ahewlett@harriswilliams.com +1 (415) Ricky Ng Vice President rng@harriswilliams.com +1 (415) Nick Owens Vice President nowens@harriswilliams.com +1 (804) PAGE 1

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4 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 $40, % 15.8% 2.3x 11.6x 2.2x 10.7x Contract Pharma Manufacturing 2 8,940 (5.1%) 2.7% 3.8x 15.9x 3.5x 13.9x Contract Research Organizations 6 63, % 46.6% 3.4x 16.5x 3.1x 13.5x Disease Management 1 1,569 (10.4%) 61.0% 2.9x 12.6x 2.5x 11.3x Healthcare Staffing 4 18,314 (1.3%) 5.3% 1.5x 12.6x 1.3x 11.0x HMO - Medical 8 480, % 42.5% 1.0x 12.8x 0.9x 10.5x Information Services 10 44,046 (3.7%) 33.2% 4.4x 16.9x 4.0x 12.6x Retail Pharmacy 3 188,546 (6.0%) (13.0%) 0.5x 7.8x 0.5x 7.4x Specialty Managed Care 3 9,200 (2.8%) 13.3% 1.8x 13.8x 5.3x 25.7x Specialty Pharmacy 1 1,502 (3.1%) 56.1% 0.3x 17.8x 0.3x 9.9x Spec Pharma and Generics ,143 (2.5%) (2.7%) 3.0x 9.1x 3.0x 9.0x Specialty Pharmacy Management 1 54, % 7.6% 0.5x 7.5x 0.5x 7.2x Dental Products 2 169, % 22.5% 4.6x 19.2x 4.3x 16.4x Durable Medical Equipment 3 20, % 35.6% 2.8x 17.5x 2.7x 15.4x Life Sciences Tools 3 170, % 34.2% 4.7x 19.3x 4.2x 16.4x Medical Devices and Products , % 21.0% 4.5x 18.1x 4.2x 14.3x Medical / Surgical / Dental Supplies & Distribution 6 109,792 (7.5%) (10.5%) 0.2x 9.5x 0.2x 9.0x Acute-Care Hospitals 4 104,244 (10.9%) (6.1%) 0.9x 8.2x 1.0x 7.6x Assisted Living 2 8,120 (0.5%) (20.2%) 2.2x 13.3x 2.1x 12.0x Diagnostic Imaging 2 11,095 (0.7%) 46.6% 2.5x 14.9x 2.4x 12.0x Dialysis Services 3 66, % 7.6% 1.8x 9.5x 1.7x 9.8x Home Care, Hospice, and Home Infusion 6 9, % 44.1% 1.8x 15.4x 1.7x 13.1x Long-Term Care 3 6,432 (1.7%) (0.5%) 0.8x 9.9x 0.7x 7.8x Physician Practice Management 1 6, % (20.2%) 2.0x 11.2x 1.8x 10.9x Behavioral Health / Management 5 24,955 (7.3%) 6.5% 1.3x 8.8x 1.2x 7.2x Surgicenters / Rehabilitation 4 17, % 17.7% 1.9x 11.2x 1.7x 10.1x Payor, Provider, & Pharmacy Support Services 53 $1,172, % 21.9% 1.8x 12.4x 1.7x 10.3x Products & Devices 27 $1,382, % 25.2% 4.5x 16.8x 4.1x 14.0x Provider-Based Services 30 $254, % 13.8% 1.8x 10.8x 1.7x 9.8x HW&Co. HCLS Composite Index 110 $2,810, % 17.2% 3.3x 14.7x 3.0x 12.3x S&P % 18.9% Median TEV/ LTM Multiples Median TEV/ Forward Mulitples Public Company Sector Performance (12-month % change in stock price) Disease Management Specialty Pharmacy Diagnostic Imaging Contract Research Organizations Home Care, Hospice, and Home Infusion HMO - Medical Durable Medical Equipment Life Sciences Tools Information Services Dental Products Medical Devices and Products S&P 500 Surgicenters / Rehabilitation HW&Co. HCLS Composite Index Clinical Laboratories Specialty Managed Care Behavioral Health / Management Healthcare Staffing Contract Pharma Manufacturing Long-Term Care Spec Pharma and Generics Acute-Care Hospitals Medical / Surgical / Dental Supplies & Distribution Retail Pharmacy Physician Practice Management Assisted Living (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% PAGE 3

5 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance (1) 180% 160% 140% 120% 146.2% 132.8% 123.9% 100% 80% 60% 40% Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-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) 12/08/17 Denali Therapeutics NASDAQ:DNLI Initial Public Offering $ /14/17 Argenx SE NASDAQ:ARGX Follow-On /07/17 Odonate Therapeutics NASDAQ:ODT Initial Public Offering /18/17 Madrigal Pharmaceuticals, Inc. NASDAQ:MDGL Follow-On /07/17 Quanterix NASDAQ:QTRX Initial Public Offering /13/17 Fate Therapeutics NASDAQ:FATE Follow-On /15/17 Dicerna Pharmaceuticals Inc. NASDAQ:DRNA Follow-On /18/17 Verastem NASDAQ:VSTM Follow-On /11/17 Fennec Pharmaceuticals Inc. NASDAQ:FENC Follow-On /13/17 Proteostasis Therapeutics, Inc. NASDAQ:PTI Follow-On /12/17 Vistagen Therapeutics, Inc. NASDAQ:VSGN Follow-On /07/17 Viking Therapeutics, Inc. NASDAQ:VKTX Follow-On /21/17 Catalyst Biosciences, Inc. NASDAQ:CBIO Follow-On /22/17 Acasti Pharma Inc. NASDAQ:ACST Follow-On /01/17 Myomo Inc. NYSE:MYO Follow-On /20/17 Yield10 Bioscience, Inc. NASDAQ:YTEN Follow-On /08/17 Fibrocell Science NASDAQ:FCSC Follow-On /15/17 Trovagene NASDAQ:TROV Follow-On /20/17 Akers Biosciences, Inc. NASDAQ:AKER Follow-On 2.3 PAGE 4

6 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 12/27/2017 PetVet Care Centers LLC Kohlberg Krav is Roberts & Co. LP 12/20/2017 Autism Learning Partners LLC FFL Partners LLC 12/19/2017 Kindred Healthcare, Inc. Humana, Inc.; TPG Capital LLC; Welsh, Carson, Anderson & Stowe 12/18/2017 Net Health Systems, Inc. The Carlyle Group LP 12/13/2017 Connect Healthcare Spring Mountain Capital LP 12/12/2017 Repros Therapeutics, Inc. Allergan Plc 12/12/2017 Safe Passage Neuromonitoring LLC NuVasiv e, Inc. 12/6/2017 Dav ita Medical Holdings LLC Optum, Inc. 12/4/2017 VMI Nutrition, Inc. Kohlberg & Co. LLC; Nellson Nutraceutical LLC 12/4/2017 Aurora Health Care, Inc. Adv ocate Health Care Network 12/3/2017 Aetna, Inc. CVS Health Corp. 12/1/2017 CBM Pathology Summit Partners LP; KRG Capital LLC; Aurora Diagnostics Holdings LLC LTM DEAL STATISTICS Aggregate Number Median Transaction Multiples Value ($bn) of Deals TEV/Rev TEV/EBITDA $ x 13.1x 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 $ ,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 23 Healthcare Serv ices 178 Healthcare Equipment 40 Pharmaceuticals 27 Healthcare Technology 8 Life Sciences Tools & Serv ices 1 Healthcare Supplies 12 Healthcare Distributors 5 Biotechnology 32 Managed Healthcare 9 Number of Transactions PEG INVESTMENTS PAGE 5

7 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 12/12/17 nthrive [fka Precyse Healthcare] Home health care services $798.0 N/A NR / NR L /21/17 Censeohealth LLC Home health care services Term Loan B B2 / B L /20/17 Autism Learning Partners Offices of health practices nec 83.0 Term Loan NR / NR L /07/17 Prelude Fertility Inc Offices/clinics of med'l doctors 63.0 Term Loan NR / NR L+ 450 PAGE 6

8 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Laboratory Corporation of America Holdings $ % 24.5% $ $ $16,238 $7,218 $409 $23,377 $10,074 $1,965 $1,447 Sep-17 Dec-16 $10,998 $2,177 $1, x 11.9x 2.1x 10.7x Quest Diagnostics Incorporated % 7.2% ,424 3, ,315 7,634 1,530 1,270 Sep-17 Dec-16 7,924 1,620 1, x 11.3x 2.2x 10.7x Number of Companies 2 Median: 5.4% 15.8% Total $29,662 $40,692 $17,708 $18, x 11.6x 2.2x 10.7x Market Cap. Weighted Average: 5.4% 16.6% 2.3x 11.6x 2.2x 10.7x Contract Pharma Manufacturing Cambrex Corporation $48.00 (12.7%) (10.4%) $62.95 $42.55 $1,573 $0 $118 $1,490 $530 $175 $145 Sep-17 Dec-16 $537 $164 $ x 8.5x 2.8x 9.1x West Pharmaceutical Services, Inc % 15.8% , ,450 1, Sep-17 Dec-16 1, x 23.2x 4.3x 18.8x Number of Companies 2 Median: (5.1%) 2.7% Total $8,900 $8,940 $2,097 $2, x 15.9x 3.5x 13.9x Market Cap. Weighted Average: (0.2%) 11.1% 4.4x 20.6x 4.0x 17.1x Contract Research Organizations Catalent Inc % 53.8% ,458 2, ,741 2, Sep-17 Jun-17 2, x 16.0x 2.7x 11.9x Charles River Laboratories International, Inc % 43.9% ,184 1, ,344 1, Sep-17 Dec-16 1, x 14.6x 3.2x 13.2x ICON Plc (1.5%) 49.4% , ,197 1, Sep-17 Dec-16 1, x 15.7x 3.3x 14.0x INC Research Holdings, Inc (16.6%) (16.2%) ,549 3, ,552 2, Sep-17 Dec-16 3, x 24.6x 2.0x 10.9x PRA Health Sciences, Inc % 66.0% ,771 1, ,161 2, Sep-17 Dec-16 2, x 22.6x 3.1x 16.2x IQVIA Holdings Inc % 29.0% ,362 9,754 1,147 30,290 9,508 1, Sep-17 Dec-16 8,528 2,191 1, x 17.0x 3.6x 13.8x Number of Companies 6 Median: 2.1% 46.6% Total $47,397 $63,285 $19,351 $20, x 16.5x 3.1x 13.5x Market Cap. Weighted Average: 2.3% 36.3% 3.3x 17.8x 3.2x 13.6x Disease Management Tivity Health, Inc (10.4%) 61.0% , , Sep-17 Dec x 12.6x 2.5x 11.3x Number of Companies 1 Median: (10.4%) 61.0% Total $1,448 $1,569 $543 $ x 12.6x 2.5x 11.3x Market Cap. Weighted Average: (10.4%) 61.0% 2.9x 12.6x 2.5x 11.3x Healthcare Staffing AMN Healthcare Services, Inc. $ % 26.8% $51.75 $33.61 $2,353 $320 $20 $2,735 $1,967 $241 $209 Sep-17 Dec-16 $2,081 $271 $ x 11.4x 1.3x 10.1x Envision Healthcare Holdings, Inc (23.1%) (46.3%) ,181 6, ,034 7,207 1, Sep-17 Dec-16 8, x 9.6x 1.3x 11.9x Cross Country Healthcare, Inc (10.3%) (16.2%) Sep-17 Dec x 13.9x 0.6x 9.2x On Assignment, Inc % 44.7% , ,999 2, Sep-17 Dec-16 2, x 14.7x 1.4x 11.9x Number of Companies 4 Median: (1.3%) 5.3% Total $10,343 $18,314 $12,610 $14, x 12.6x 1.3x 11.0x Market Cap. Weighted Average: (1.7%) 1.1% 1.5x 11.9x 11.4x PAGE 7

9 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Commercial: Aetna Inc. $ % 44.9% $ $ $58,838 $10,159 $17,996 $64,355 $61,435 $3,948 $3,888 Sep-17 Dec-16 $60,763 $6,365 $5, x 16.3x 1.1x 10.1x Anthem, Inc % 55.4% ,774 16,231 4,075 70,211 89,123 5,996 5,322 Sep-17 Dec-16 91,493 6,576 6, x 11.7x 0.8x 10.7x Cigna Corporation % 49.9% ,072 5,348 3,185 53,209 41,025 4,274 3,880 Sep-17 Dec-16 43,891 5,119 4, x 12.4x 1.2x 10.4x Humana Inc % 22.3% ,439 5,101 3,877 31,295 53,456 3,732 2,388 Sep-17 Dec-16 56,409 4,074 3, x 8.4x 0.6x 7.7x UnitedHealth Group Incorporated % 36.9% ,641 31,692 15, , ,159 17,454 15,209 Dec-17 Dec ,609 20,193 18, x 13.5x 1.1x 11.7x Number of Companies 5 Median: 12.6% 44.9% Total $415,764 $454,615 $446,197 $475, x 12.4x 1.1x 10.4x Market Cap. Weighted Average: 12.1% 40.9% 1.1x 13.1x 1.0x 10.8x Government: Centene Corporation $ % 77.5% $ $55.89 $17,399 $4,721 $4,068 $18,182 $47,487 $2,063 $1,590 Sep-17 Dec-16 $60,414 $2,759 $2, x 8.8x 0.3x 6.6x Molina Healthcare, Inc % 40.7% ,378 2,297 2,819 2,734 19,468 (31) 70 Sep-17 Dec-16 20, x NM 0.1x 4.2x WellCare Health Plans, Inc % 46.7% ,954 1,182 4,054 5,342 16, Sep-17 Dec-16 18, x 7.6x 0.3x 5.6x Number of Companies 3 Median: 11.5% 46.7% Total $30,731 $26,258 $83,135 $99, x 8.2x 0.3x 5.6x Market Cap. Weighted Average: 9.0% 63.3% 0.3x 8.4x 0.3x 6.0x Information Services Data/Analytics: Castlight Health, Inc. $3.75 (12.8%) (25.7%) $5.10 $3.05 $303 $6 $87 $415 $124 ($53) ($58) Sep-17 Dec-16 $164 ($9) ($13) 3.3x NM 2.5x NM Inovalon Holdings, Inc (12.0%) 47.8% , Sep-17 Dec x 23.3x 3.8x 14.9x National Research Corporation % 35.6% , Sep-17 Dec x NM 12.4x NM Number of Companies 3 Median: (12.0%) 35.6% Total $2,251 $1,587 $671 $ x 23.3x 3.8x 14.9x Market Cap. Weighted Average: (5.5%) 32.6% 8.2x 23.3x 7.4x 14.9x Hospital/Physician: Allscripts Healthcare Solutions, Inc. $ % 39.8% $15.20 $10.19 $2,629 $1,416 $109 $4,397 $1,714 $275 $68 Sep-17 Dec-16 $2,142 $435 $ x 16.0x 2.1x 10.1x Athenahealth, Inc % 26.4% , ,568 1, Sep-17 Dec-16 1, x 27.9x 4.1x 16.3x Cerner Corporation (5.5%) 40.6% , ,513 5,086 1, Sep-17 Dec-16 5,578 1,847 1, x 14.5x 4.0x 12.2x Computer Programs and Systems, Inc % 26.3% Sep-17 Dec x 18.0x 1.9x 10.4x HMS Holdings Corp (14.7%) (6.8%) , , Sep-17 Dec x 14.6x 2.9x 11.6x Premier Inc (10.4%) (4.1%) , ,935 1, Sep-17 Jun-17 1, x 15.7x 4.1x 12.6x Quality Systems, Inc (13.7%) 3.3% Sep-17 Mar x 10.9x 1.6x 10.3x Number of Companies 7 Median: (5.5%) 26.3% Total $34,728 $42,459 $10,800 $12, x 15.7x 2.9x 11.6x Market Cap. Weighted Average: (3.7%) 33.2% 4.2x 16.7x 3.8x 12.6x PAGE 8

10 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty Managed Care Assurant, Inc. $ % 8.8% $ $86.00 $5,426 $1,068 $0 $5,573 $6,329 $392 $0 Sep-17 Dec-16 $6,661 NA $ x 14.2x 0.8x NA CorVel Corporation (2.8%) 44.7% Sep-17 Mar-17 NA NA NA 1.8x 13.4x NA NA HealthEquity Inc (7.8%) 13.3% , , Oct-17 Jan x NM 9.7x 25.7x Number of Companies 3 Median: (2.8%) 13.3% Total $9,254 $9,200 $7,081 $6, x 13.8x 5.3x 25.7x Market Cap. Weighted Average: 0.6% 14.1% 4.5x 14.1x 3.9x 25.7x Retail Pharmacy CVS Health Corporation $72.50 (10.8%) (8.2%) $84.72 $66.45 $73,442 $25,789 $2,560 $97,184 $182,351 $12,390 $9,905 Sep-17 Dec-16 $191,934 $13,070 $10, x 7.8x 0.5x 7.4x Walgreens Boots Alliance Inc (6.0%) (13.0%) ,920 14,005 1,830 86, ,453 7,354 5,702 Nov-17 Aug ,338 9,709 8, x 11.8x 0.7x 8.9x Rite Aid Corporation ( * ) % (76.1%) ,096 3, ,933 29, Dec-17 Mar-17 25, x 7.3x 0.2x 7.1x Number of Companies 3 Median: (6.0%) (13.0%) Total $147,458 $188,546 $332,159 $350, x 7.8x 0.5x 7.4x Market Cap. Weighted Average: (8.3%) (11.5%) 0.6x 9.7x 0.6x 8.1x Specialty Pharmacy Diplomat Pharmacy, Inc. $20.07 (3.1%) 56.1% $21.99 $12.25 $1,382 $149 $27 $1,502 $4,475 $84 $22 Sep-17 Dec-16 $5,372 $152 $ x 17.8x 0.3x 9.9x Number of Companies 1 Median: (3.1%) 56.1% Total $1,382 $1,502 $4,475 $5, x 17.8x 0.3x 9.9x Market Cap. Weighted Average: (3.1%) 56.1% 0.3x 17.8x 0.3x 9.9x Specialty Pharmacy Management Express Scripts Holding Company $ % 7.6% $75.64 $55.80 $42,274 $14,908 $3,396 $54,413 $99,605 $7,274 $5,386 Sep-17 Dec-16 $100,955 $7,601 $7, x 7.5x 0.5x 7.2x Number of Companies 1 Median: 17.9% 7.6% Total $42,274 $54,413 $99,605 $100, x 7.5x 0.5x 7.2x Market Cap. Weighted Average: 17.9% 7.6% 0.5x 7.5x 0.5x 7.2x Spec Pharma and Generics Allergan Plc $ (20.2%) (21.1%) $ $ $54,404 $30,336 $5,442 $84,392 $15,479 $5,986 ($1,085) Sep-17 Dec-16 $15,629 $7,438 $7, x 14.1x 5.4x 11.3x Eagle Pharmaceuticals, Inc (10.4%) (32.2%) Sep-17 Dec NA 2.9x 8.2x 3.7x 8.5x Endo International Plc 7.75 (9.5%) (50.6%) ,731 8,281 1,100 8,912 3,942 1, Sep-17 Dec-16 3,109 1,357 1, x 5.3x 2.9x 6.6x Horizon Pharma Plc % (9.9%) ,393 1, ,652 1,092 (84) (364) Sep-17 Dec-16 1, NA 3.3x NM 3.2x 9.0x Impax Laboratories, Inc (18.0%) 29.6% , , (24) Sep-17 Dec x 21.2x 2.2x 9.4x Jazz Pharmaceuticals Plc (7.9%) 25.2% ,072 1, ,400 1, Sep-17 Dec-16 1,846 1,052 1, x 12.1x 5.1x 8.9x Lannett Company, Inc % 4.5% , Sep-17 Jun x 7.1x 2.4x 6.4x Mallinckrodt Plc (39.6%) (54.4%) ,143 5, ,632 3,317 1, Sep-17 Sep-16 3,128 1,250 1, x 5.7x 2.4x 6.1x Mylan N.V % 13.2% ,690 14, ,482 11,940 3,234 1,477 Sep-17 Dec-16 12,678 4,189 3, x 11.3x 2.9x 8.7x Perrigo Co. Plc % 5.9% ,276 3, ,261 4,993 1, Sep-17 Dec-16 4,996 1,152 1, x 14.1x 3.1x 13.2x Teva Pharmaceutical Industries % (47.5%) ,198 34, ,473 24,071 6,576 4,555 Sep-17 Dec-16 19,584 5,376 4, x 8.9x 3.0x 10.9x Valeant Pharmaceuticals International Inc % 46.9% ,244 27,141 1,892 32,665 8,964 3, Sep-17 Dec-16 8,441 3,334 3, x 9.1x 3.9x 9.8x Number of Companies 12 Median: (2.5%) (2.7%) Total $133,056 $261,143 $77,066 $72, x 9.1x 3.0x 9.0x Market Cap. Weighted Average: 0.5% (10.2%) 4.1x 12.2x 4.1x 10.5x *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 Q 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Dental Products 3M Company $ % 31.9% $ $ $140,188 $11,663 $3,417 $152,513 $30,996 $8,746 $7,167 Sep-17 Dec-16 $33,344 $9,727 $8, x 17.4x 4.6x 15.7x DENTSPLY SIRONA, Inc % 13.0% ,120 1, ,609 3, Sep-17 Dec-16 4, x 20.9x 4.0x 17.1x Number of Companies 2 Median: 11.1% 22.5% Total $155,308 $169,122 $34,895 $37, x 19.2x 4.3x 16.4x Market Cap. Weighted Average: 11.9% 30.1% 4.9x 17.8x 4.5x 15.8x Durable Medical Equipment Hill-Rom Holdings, Inc. $ % 49.6% $85.74 $55.04 $5,548 $2,309 $232 $7,751 $2,744 $546 $335 Sep-17 Sep-17 $2,866 $593 $ x 14.2x 2.7x 13.1x Invacare Corporation % 28.1% (15) (30) Sep-17 Dec (7) 0.7x NM 0.6x NM ResMed Inc % 35.6% ,018 1, ,359 2, Sep-17 Jun-17 2, x 20.8x 5.2x 17.8x Number of Companies 3 Median: 10.0% 35.6% Total $18,119 $20,748 $5,830 $6, x 17.5x 2.7x 15.4x Market Cap. Weighted Average: 11.1% 39.7% 4.7x 18.7x 4.3x 16.3x Life Sciences Tools Agilent Technologies, Inc. $ % 46.7% $70.93 $45.38 $21,633 $2,011 $2,678 $21,169 $4,472 $1,054 $840 Oct-17 Oct-17 $4,798 $1,183 $1, x 20.1x 4.4x 17.9x Becton, Dickinson and Company % 28.8% ,107 18,870 14,200 52,531 12,093 3,331 2,243 Sep-17 Sep-17 16,325 5,479 4, x 15.8x 3.2x 9.6x Thermo Fisher Scientific Inc % 34.2% ,141 21, ,113 19,824 5,043 3,110 Sep-17 Dec-16 22,947 5,916 5, x 19.3x 4.2x 16.4x Number of Companies 3 Median: 4.3% 34.2% Total $146,881 $170,814 $36,389 $44, x 19.3x 4.2x 16.4x Market Cap. Weighted Average: 3.9% 34.3% 4.7x 18.2x 3.9x 14.4x Medical Devices and Products Abbott Laboratories $ % 49.0% $57.77 $38.25 $99,336 $24,025 $11,199 $113,122 $25,134 $4,766 $2,269 Sep-17 Dec-16 $30,167 $7,947 $6, x 23.7x 3.7x 14.2x Baxter International Inc % 46.0% ,218 3,498 3,517 35,978 10,432 2,091 1,359 Sep-17 Dec-16 11,086 2,674 1, x 17.2x 3.2x 13.5x Boston Scientific Corporation (15.0%) 14.2% ,042 5, ,583 8,830 2,234 1,397 Sep-17 Dec-16 9,580 2,774 1, x 17.7x 4.1x 14.3x ConforMIS Inc 2.38 (32.4%) (71.4%) (54) (57) Sep-17 Dec (45) (49) 1.0x NM 0.9x NM C. R. Bard, Inc.(*) % 47.8% ,643 1,301 25,219 3,875 1,218 1,010 Sep-17 Dec-16 4,194 1,370 1, x 20.7x 6.0x 18.4x Danaher Corporation % 18.7% ,566 10, ,759 17,828 4,105 2,880 Sep-17 Dec-16 19,128 4,620 3, x 18.5x 4.0x 16.4x Hologic, Inc % 6.7% ,785 3, ,056 3, Sep-17 Sep-17 3,285 1,113 1, x 15.8x 4.6x 13.5x Johnson & Johnson % 21.0% ,361 35,166 16, ,446 74,413 25,698 20,870 Oct-17 Jan-17 80,632 29,685 25, x 15.6x 5.0x 13.5x K2M Group Holdings, Inc (15.1%) (11.4%) (7) (34) Sep-17 Dec (18) 3.2x NM 2.9x NM Medtronic plc % 12.9% ,295 29,072 13, ,943 29,639 9,381 6,619 Oct-17 Apr-17 30,091 9,821 8, x 13.4x 4.2x 12.8x Penumbra, Inc % 46.8% , , (1) (4) Sep-17 Dec x NM 8.1x NM Stryker Corporation % 28.5% ,947 7,225 2,689 63,406 12,130 3,252 2,628 Sep-17 Dec-16 13,260 3,784 3, x 19.5x 4.8x 16.8x Teleflex Incorporated % 54.0% ,209 2,250 1,018 12,824 2, Oct-17 Dec-16 2, x 22.5x 5.3x 17.4x Number of Companies 13 Median: 3.8% 21.0% Total $802,840 $912,367 $188,048 $204, x 18.1x 4.2x 14.3x Market Cap. Weighted Average: 6.0% 24.8% 4.9x 17.1x 4.5x 14.1x Medical / Surgical / Dental Supplies & Distribution AmerisourceBergen Corporation $ % 15.7% $97.85 $71.90 $20,024 $3,794 $2,435 $21,706 $153,144 $2,441 $2,018 Sep-17 Sep-17 $168,914 $2,450 $2, x 8.9x 0.1x 8.9x Cardinal Health, Inc (8.4%) (15.3%) ,276 10,003 1,181 28, ,578 3,157 2,384 Sep-17 Jun ,342 3,327 2, x 9.0x 0.2x 8.5x Henry Schein, Inc (14.8%) (8.7%) ,968 1, ,283 12,264 1, Sep-17 Dec-16 13,192 1, x 12.9x 1.0x 11.8x McKesson Corporation % 10.0% ,512 8,321 2,563 40, ,955 4,039 3,125 Sep-17 Mar ,952 4,393 3, x 9.9x 0.2x 9.1x Owens & Minor, Inc (35.3%) (47.0%) , ,949 9, Sep-17 Dec-16 10, x 8.0x 0.2x 6.5x Patterson Companies, Inc (6.5%) (12.2%) ,426 1, ,369 5, Oct-17 Apr-17 5, x 11.2x 0.8x 10.9x Number of Companies 6 Median: (7.5%) (10.5%) Total $87,362 $109,792 $512,780 $545, x 9.5x 0.2x 9.0x Market Cap. Weighted Average: (1.4%) 1.8% 0.3x 9.9x 0.3x 9.3x *To be acquired by Becton Dickinson in deal valued at $24.0 billion, following announcement on August 28 th 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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Acute-Care Hospitals Community Health Systems, Inc. $4.26 (44.5%) (25.8%) $10.51 $3.85 $489 $13,941 $590 $14,454 $16,765 $1,797 $871 Sep-17 Dec-16 $14,010 $1,611 $ x 8.0x 1.0x 9.0x HCA Healthcare Inc % 18.9% ,100 32, ,382 42,693 8,029 5,945 Sep-17 Dec-16 45,300 8,450 6, x 8.3x 1.5x 7.9x LifePoint Health, Inc (14.0%) (13.3%) ,963 2, ,941 6, Sep-17 Dec-16 6, x 6.6x 0.8x 6.4x Tenet Healthcare Corporation (7.7%) 1.1% ,530 14, ,467 19,061 2,018 1,138 Sep-17 Dec-16 18,193 2,490 1, x 9.2x 1.0x 7.4x Number of Companies 4 Median: (10.9%) (6.1%) Total $35,082 $104,244 $84,925 $83, x 8.2x 1.0x 7.6x Market Cap. Weighted Average: 7.4% 15.7% 1.5x 8.2x 1.4x 7.8x Assisted Living Brookdale Senior Living Inc. $9.70 (8.5%) (23.1%) $16.31 $8.78 $1,808 $5,515 $582 $6,740 $4,790 $690 $200 Sep-17 Dec-16 $4,637 $650 $ x 9.8x 1.5x 10.4x Capital Senior Living Corporation % (17.2%) , , Sep-17 Dec x 16.7x 2.8x 13.6x Number of Companies 2 Median: (0.5%) (20.2%) Total $2,219 $8,120 $5,256 $5, x 13.3x 2.1x 12.0x Market Cap. Weighted Average: (5.5%) (22.0%) 1.7x 11.1x 1.7x 11.0x Long-Term Care Kindred Healthcare, Inc.(*) $ % 20.5% $11.90 $5.50 $887 $3,321 $228 $4,169 $6,524 $421 $298 Sep-17 Dec-16 $6,128 $507 $ x 9.9x 0.7x 8.2x National HealthCare Corporation (2.6%) (20.6%) Sep-17 Dec-16 NA NA NA 0.9x 8.2x NA NA Ensign Group, Inc (1.7%) (0.5%) , ,426 1, Sep-17 Dec-16 1, x 10.9x 0.7x 7.4x Number of Companies 3 Median: (1.7%) (0.5%) Total $2,949 $6,432 $9,277 $8, x 9.9x 0.7x 7.8x Market Cap. Weighted Average: 11.3% (0.5%) 0.8x 9.8x 0.7x 7.8x Diagnostic Imaging RadNet, Inc. $10.10 (12.6%) 54.2% $11.90 $5.25 $481 $618 $8 $1,098 $912 $117 $50 Sep-17 Dec-16 $932 $152 $64 1.2x 9.4x 1.2x 7.2x Varian Medical Systems, Inc % 39.1% , ,997 2, Sep-17 Sep-17 2, x 20.4x 3.6x 16.7x Number of Companies 2 Median: (0.7%) 46.6% Total $10,664 $11,095 $3,580 $3, x 14.9x 2.4x 12.0x Market Cap. Weighted Average: 10.0% 39.8% 3.6x 19.9x 3.5x 16.3x Dialysis Services American Renal Associates Holdings, Inc. $ % (18.0%) $23.30 $9.91 $547 $559 $68 $1,367 $750 $150 $113 Sep-17 Dec-16 $823 $114 NA 1.8x 9.1x 1.7x 12.0x DaVita Inc.(**) % 12.3% ,243 9, ,973 15,213 2,422 1,640 Sep-17 Dec-16 16,144 2,349 1, x 9.5x 1.4x 9.8x Fresenius Medical Care AG & Co. KGaA % 7.6% ,470 9, ,767 20,944 3,857 2,978 Sep-17 Dec-16 22,947 4,243 3, x 10.8x 1.8x 9.8x Number of Companies 3 Median: 16.2% 7.6% Total $46,261 $66,107 $36,907 $39, x 9.5x 1.7x 9.8x Market Cap. Weighted Average: 10.6% 3.7% 1.9x 10.4x 1.7x 9.9x Home Care, Hospice, and Home Infusion Home Care / Hospice: Addus HomeCare Corporation $34.80 (1.4%) (1.6%) $40.75 $29.90 $404 $44 $46 $403 $417 $33 $27 Sep-17 Dec-16 $450 $41 $32 1.0x 12.1x 0.9x 9.7x Almost Family, Inc.(***) % 24.4% Sep-17 Dec x 15.6x 1.1x 11.8x Amedisys, Inc (5.8%) 23.8% , ,836 1, Sep-17 Dec-16 1, x 12.6x 1.1x 11.0x Chemed Corporation % 51.4% , ,116 1, Sep-17 Dec-16 1, x 16.7x 2.4x 14.8x LHC Group, Inc.(***) (13.6%) 34.6% , ,276 1, Sep-17 Dec-16 1, x 13.6x 1.1x 12.4x Number of Companies 5 Median: (1.4%) 24.4% Total $7,965 $8,553 $5,320 $5, x 13.6x 1.1x 11.8x Market Cap. Weighted Average: 6.9% 1.7% 1.8x 15.0x 1.7x 13.0x Home Infusion: BioScrip, Inc. $ % 185.3% $3.39 $1.00 $371 $479 $38 $891 $875 $38 $9 Sep-17 Dec-16 $717 $63 $35 1.0x 23.7x 1.2x 14.2x Number of Companies 1 Median: 5.8% 185.3% Total $371 $891 $875 $ x 23.7x 1.2x 14.2x Market Cap. Weighted Average: 5.8% 185.3% 1.0x 23.7x 1.2x 14.2x *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 12/31/ mos. 12 mos. High Low Value (TEV) Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA Specialty: MEDNAX, Inc. $ % (20.2%) $72.13 $40.56 $5,005 $1,826 $59 $6,731 $3,378 $599 $497 Sep-17 Dec-16 $3,658 $616 $ x 11.2x 1.8x 10.9x Number of Companies 1 Median: 23.9% (20.2%) Total $5,005 $6,731 $3,378 $3, x 11.2x 1.8x 10.9x Market Cap. Weighted Average: 23.9% (20.2%) 2.0x 11.2x 1.8x 10.9x Behavioral Health / Management AAC Holdings, Inc. $9.00 (9.4%) 31.2% $13.06 $5.99 $217 $227 $16 $409 $304 $32 $11 Sep-17 Dec-16 $341 $66 $34 1.3x 12.9x 1.2x 6.2x Acadia Healthcare Company, Inc (31.7%) (2.9%) ,866 3, ,056 2, Sep-17 Dec-16 3, x 10.6x 2.0x 9.4x Civitas Solutions, Inc (7.3%) (16.4%) ,265 1, Sep-17 Sep-17 1, x 8.6x 0.8x 7.2x Magellan Health, Inc % 27.8% , ,300 5, Sep-17 Dec-16 7, x 8.5x 0.3x 5.4x Universal Health Services, Inc % 6.5% ,936 4, ,926 10,243 1,692 1,250 Sep-17 Dec-16 11,884 1,788 1, x 8.8x 1.3x 8.3x Number of Companies 5 Median: (7.3%) 6.5% Total $15,980 $24,955 $20,243 $24, x 8.8x 1.2x 7.2x Market Cap. Weighted Average: (3.0%) 7.3% 1.4x 9.1x 1.2x 8.0x Surgicenters / Rehabilitation Surgery Centers (*) : Surgery Partners, Inc. $ % (23.7%) $24.05 $7.10 $590 $2,293 $204 $3,005 $1,187 $204 $160 Sep-17 Dec-16 $1,766 $259 NA 2.5x 14.7x 1.7x 11.6x Number of Companies 1 Median: 16.9% (23.7%) Total $590 $3,005 $1,187 $1, x 14.7x 1.7x 11.6x Market Cap. Weighted Average: 16.9% (23.7%) 2.5x 14.7x 1.7x 11.6x Rehabilitation: HealthSouth Corporation $ % 18.9% $50.41 $38.24 $4,878 $2,622 $157 $7,815 $3,844 $825 $644 Sep-17 Dec-16 $4,184 $860 $ x 9.5x 1.9x 9.1x Select Medical Holdings Corporation (8.1%) 31.7% ,362 2, ,705 4, Sep-17 Dec-16 4, x 11.6x 1.2x 9.7x U.S. Physical Therapy, Inc % 1.9% , Sep-17 Dec x 17.1x 2.4x 15.7x Number of Companies 3 Median: 6.6% 18.9% Total $8,149 $14,571 $8,616 $9, x 11.6x 1.9x 9.7x Market Cap. Weighted Average: 3.6% 20.7% 1.9x 10.9x 1.7x 10.0x * 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 12/1/2017 Paragon Vision Sciences, Inc. Valeant Pharmaceuticals CooperVision, Inc. $ No International, Inc. 12/1/2017 CBM Pathology - Summit Partners LP; KRG Capital LLC; Yes Aurora Diagnostics Holdings LLC 12/1/2017 Stellis Health P.A. /Albertville Clinic/ Stellis Health P.A. Global Medical REIT, Inc No 12/3/2017 Aetna, Inc. - CVS Health Corp No 12/4/2017 Reproductive Medicine Associates of - Instituto Valenciano de Infertilidad SL $1, x - - No Philadelphia PC 12/4/2017 VMI Nutrition, Inc. - Kohlberg & Co. LLC; Nellson Yes Nutraceutical LLC 12/4/2017 Aurora Health Care, Inc. - Advocate Health Care Network No 12/4/2017 Aspen Community Living - Dungarvin, Inc.; Dungarvin Ohio, LLC $ No 12/4/2017 Dickinson County Healthcare System - Bellin Health Systems, Inc No 12/5/2017 Imthera Medical, Inc. - LivaNova Plc No 12/5/2017 BPBD LLC - VistaVu Solutions Ltd. $ No 12/5/2017 Bayfront Health Dade City Volunteer Foundation, Inc. Community Health Systems, Inc. Adventist Health System Sunbelt Healthcare Corp No 12/5/2017 Rey Medical & Wellness Centers LLC - Cano Health LLC No 12/6/2017 Davita Medical Holdings LLC DaVita, Inc. Optum, Inc No 12/6/2017 Harpoon Medical, Inc. - Edwards Lifesciences Corp No 12/7/2017 Entellus Medical, Inc. - Stryker Corp. $ No 12/7/2017 Restorative Health Care - Corpus Christi, Inc. - Noor, Inc. $ x - - No 12/8/2017 The Holland Square Group LLC - WestView Capital Management Co., Yes Inc.; ALKU LLC 12/12/2017 Repros Therapeutics, Inc. - Allergan Plc No 12/12/2017 Northeast Veterinary Supply Co., Inc. - MWI Veterinary Supply, Inc.; MWI No Veterinary Supply Co. 12/12/2017 Arlene E. Haywood M.D. P.A. - MBF Healthcare Advisors LLC; Strategic Yes Health Services LLC 12/12/2017 Ruggieri Consulting Group LLC - OneDigital Health & Benefits No 12/12/2017 Jesus B. Menendez-Rivera M.D. P.A. - MBF Healthcare Advisors LLC; Strategic Yes Health Services LLC 12/12/2017 Safe Passage Neuromonitoring LLC - NuVasive, Inc. $ No 12/12/2017 Peake Software Labs, Inc. - QGenda, Inc. $ No 12/12/2017 Dextera Surgical, Inc. - Sartorius BBI Systems GmbH; Aesculap, No Inc. 12/12/2017 Angles For Sexual Health Identity & Education, Inc. - Youth Services of Glenview/Northbrook $ No 12/13/2017 Alpha Life Foundation, Inc. - Turbo Global Partners, Inc. $ No 12/13/2017 Connect Healthcare - Spring Mountain Capital LP; StartUp $ Yes Health LLC; Colle Capital Partners; Health Platforms, Inc. 12/15/2017 ClarVista Medical, Inc. - Alcon, Inc No 12/18/2017 Net Health Systems, Inc. - The Carlyle Group LP (Corporate Private Yes Equity); Level Equity Management LLC; Net Health Systems, Inc. /Private Group/ 12/18/2017 SERG Solutions LLC - Henry Schein, Inc. $3, x - - No 12/19/2017 Kindred Healthcare, Inc. - Humana, Inc.; TPG Capital LLC; Welsh, Carson, Anderson & Stowe; Kindred Healthcare, Inc. /Private Group/ Yes 12/19/2017 Wolfe Laboratories, Inc. - Pace Analytical Life Sciences LLC No 12/19/2017 Sports & Orthopedic Leaders, Inc. - GPB Capital Holdings LLC; Alliance $ Yes Physical Therapy Partners LLC 12/20/2017 Medical Simulation Corp. /Endovascular Business/ Medical Simulation Corp. Mentice AB; Priveq Partners Holding AB No 12/20/2017 Autism Learning Partners LLC - FFL Partners LLC Yes 12/22/2017 Ignyta, Inc. - Roche Holding AG $ No 12/26/2017 Sucampo Pharmaceuticals, Inc. - Mallinckrodt Plc $ No 12/27/2017 PetVet Care Centers LLC - Kohlberg Kravis Roberts & Co. LP Yes 12/31/2017 DrugScan, Inc. Toxicology Holdings Corp. ACM Medical Laboratory, Inc No PAGE 13

15 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 14

16 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 15