Credit Suisse [email protected] August 29

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATION®

Client-Driven Solutions, Insights, and Access

02 September 2014

Americas/United States

Equity Research

Healthcare Technology & Distribution (Health Care Distribution & IT (US)) /

MARKET WEIGHT

Healthcare Distribution & Technology

WEEKLY ANALYSIS

Santangelo's Weekly Dose: DoD Issues RFP to

Modernize Electronic Health Records

■ Major News and Events:

o DoD Issues RFP to Modernize Electronic Health Records

o NextGen Healthcare to Provide Single Sign On Solution to North

Carolina Pediatric Associates

o KLAS Research Says 27% of Physician Practices Considering

Replacing their EHRs

o CMS Finalizes New Rule to Postpone the Start Date of MU Stage 3

Script Data from IMS Health – Overall Prescription volume was up 4.1%

y/y for the week ended August 15th. New Rx growth was up 4.9% y/y while

refill Rx was up 3.2% y/y for the week. Our rolling 4-week average is 3.6%,

marginally down as compared to the last week's reported rolling 4 -week

average of 3.7%.

Insider Transactions – There were insider transactions at CAH, OCR,

XRAY, CRL, MDSO and ALGN last week. For details on recent insider

transactions please see p. 6.

■ Acquisition Updates – For recent acquisition updates see p. 8.

■ Contract Updates – For recent contract updates see p. 10.

Exhibit 1: Weekly & YTD Price Performance as of 9/2 Valuation Comparisons Glen Santangelo 212-538-5678

Credit Suisse [email protected]

Name Ticker Rating Week YTD Name Ticker Rating Week YTD

Drug Distributors LTC Pharmacy

AmerisourceBergen ABC-US OP 0.9% 10.1% Omnicare OCR-US OP 0.3% 5.6%

Cardinal Health CAH-US OP 0.5% 10.3% PharMerica PMC-US OP -1.7% 15.8%

McKesson MCK-US OP 0.7% 20.8%

CROs

Dental Distributors Charles River Laboratories CRL-US N -2.2% 11.4%

Henry Schein HSIC-US N -0.2% 4.8% Covance Inc. CVD-US OP -1.0% -5.9%

The Patterson Companies PDCO-US U -0.5% -2.3% Icon PLC ICLR-US OP -3.2% 22.6%

PAREXEL International Corp. PRXL-US OP -1.5% 24.9%

Dental Manufacturers Quintiles Transnational Q-US OP 0.5%

Sirona Dental SIRO-US OP 0.0% 16.1%

Dentsply International XRAY-US OP -1.4% -1.6% HCIT

Align Technology ALGN-US N -3.8% -4.7% Cerner Corp. CERN-US N 1.0% 3.4%

Medidata Solutions MDSO-US OP 0.6% -23.1%

Other Distributors Allscripts Healthcare Solutions MDRX-US OP -0.8% -4.4%

Owens & Minor OMI-US U 0.1% -5.9% Quality Systems QSII-US U 0.3% -25.6%

athenahealth ATHN-US NR 1.3% 7.4%

Pharmacy Benefit Managers Health Insurance Innovations HIIQ-US OP -2.7% 26.0%

Express Scripts ESRX-US OP -1.5% 5.3%

Catamaran Corp CTRX-US OP -0.7% -0.7% Weight Management

Weight Watchers International, Inc. WTW-US N 0.0% -25.0%

Clinical Laboratories

Lab Corporation of America LH-US N 0.8% 17.4%

Quest Diagnostics DGX-US N 0.8% 18.1%

S&P 500 Healthcare Services Index SP5SHCS -0.8% 9.4%

S&P 500 Healthcare Index SP5EHCR 0.3% 14.8%

S&P 500 Index S&PCOMP 0.2% 8.4%

Healthcare Technology & Distribution

August 29, 2014

Source: Thomson, Company data, Credit Suisse estimates

Research Analysts

Glen Santangelo

212 538 5678

[email protected]

Jeffrey Bailin, CFA

212 325 6167

[email protected]

02 September 2014

Healthcare Distribution & Technology 2

Industry News

DoD Issues RFP to Modernize Electronic Health Records

On 8/25/2014 the Department of Defense released a formal request for proposal (RFP) to modernize its EHR and enable the DoD to share health data with the private sector and the Department of Veterans Affairs. The multi-billion dollar request aims to replace many of the current DoD legacy health care IT systems to achieve initial fielding of a modernized replacement by the end of calendar year 2016. The officials expect to select the solution in the third quarter of Fiscal 2015. In addition, the press release noted that the RFP was formulated from intense work spanning 11 months and considering more than 1,500 questions/comments from industry. The fully operational new solution is expected to support health care needs of 9.6M beneficiaries and over 153,000 Military Health System personnel. For a copy of Press release, click here

NextGen Healthcare to Provide Single Sign On Solution to North Carolina Pediatric Associates

On 8/26/2014 NextGen Healthcare, a wholly owned subsidiary of Quality Systems Inc., announced that it has signed an agreement with North Carolina Pediatric Associates to install NextGen Ambulatory EHR, NextGen Practice Management and NextGen Patient Portal across the enterprise. NextGen solutions will deploy an integrated platform built on single database for its four locations to streamline processes and assist in advanced patient care. This agreement will facilitate North Carolina Pediatric Associates for meeting its specialty-specific needs as it transitions to ICD-10 and MU Stage 2. For a copy of press release, click here

KLAS Research Says 27% of Physician Practices Considering Replacing their EHRs

A recent article published on the KLAS report on Clinical Innovation & Technology, suggests that more than 25% of small and large physician practices are considering replacing their electronic health record systems. The report also highlighted that apart from the 27% considering replacing existing EHR systems, an additional 12% want to replace their EHR, but face financial and organizational barriers. KLAS interviewed more than 400 small and large US physicians during the study. The reasons listed for the desire to replace their EHR, varied by practice size as the large practices desire to consolidate from multiple EHRs and small practices are seeking to resolve functionality, support and cost concerns. The report states that looking forward, Allscripts, GE Healthcare, McKesson and NextGen may lose more customers than other vendors as 40-50% of their responding customers responded with potential plans to leave. Cerner and Epic remain favorably positioned with large physician practices that are affiliated with hospitals and athenahealth, eClinicalWorks, Epic and Greenway are being considered by independent practices. For a copy of the article, click here

CMS Finalizes EHR Meaningful-Use Rule to Postpone the Start Date of MU Stage 3

On 8/29/2014 the CMS finalized a new rule that allows hospitals and eligible professionals more flexibility in the attestation to meaningful-use requirements for the EHR incentive program. The idea was first proposed in a May draft rule, which was left unchanged in the final rule announced on 8/29/2014. The new rule pushes back the beginning of the third stage of meaningful-use attestation one year until 1/1/2017 from the previous start date of 1/1/2016. Providers will also gain increased flexibility by being allowed to use 2011 Edition software for an extra year, as some had been struggling with the adoption of 2014 certified EHRs. For a copy of the article, click here

http://www.defense.gov/news/newsarticle.aspx?id=123005

http://investor.qsii.com/releasedetail.cfm?ReleaseID=867645

http://www.ihealthbeat.org/articles/2014/8/28/report-27-of-physician-practices-considering-replacing-their-ehrs

http://www.modernhealthcare.com/article/20140829/NEWS/308299938

02 September 2014


Weekly Prescription Volume Monitor Overall Prescription volume was up 3.2% y/y for the week ended August 22

nd. New Rx

growth was up 4.3% y/y while refill Rx was up 2.1% y/y for the week. Our rolling 4-week

average is 3.6%, inline with the last week's reported rolling 4 -week average.

Exhibit 2: U.S. TOTAL Prescription Volume Growth – Weekly

-18.0%

-12.0%

-6.0%

0.0%

6.0%

12.0%

18.0%

24.0%

1/6/

2012

1/27

/201

22/

17/2

012

3/9/

2012

3/30

/201

24/

20/2

012

5/11

/201

26/

1/20

126/

22/2

012

7/13

/201

28/

3/20

128/

24/2

012

9/14

/201

210

/5/2

012

10/2

6/20

1211

/16/

2012

12/7

/201

212

/28/

2012

1/18

/201

32/

8/20

133/

1/20

133/

22/2

013

4/12

/201

35/

3/20

135/

24/2

013

6/14

/201

37/

5/20

137/

26/2

013

8/16

/201

39/

6/20

139/

27/2

013

10/1

8/20

1311

/8/2

013

11/2

9/20

1312

/20/

2013

1/10

/201

41/

31/2

014

2/21

/201

43/

14/2

014

4/4/

2014

4/25

/201

45/

16/2

014

6/6/

2014

6/27

/201

47/

18/2

014

8/8/

2014

Tot Rx

Source: IMS Health, National Prescription AuditTM

, Total Rx (week ending Aug 22, 2014)

Exhibit 3: U.S. NEW Rx and REFILL Rx Prescription Volume Growth – Weekly

-24.0%

-19.0%

-14.0%

-9.0%

-4.0%

1.0%

6.0%

11.0%

16.0%

21.0%

26.0%

6-J

an

27-J

an

17

-Fe

b

9-M

ar

30-M

ar

20-A

pr

11-M

ay

1-J

un

22-J

un

13-J

ul

3-A

ug

24-A

ug

14-S

ep

5-O

ct

26-O

ct

16-N

ov

7-D

ec

28-D

ec

18-J

an

8-F

eb

1-M

ar

22-M

ar

12-A

pr

3-M

ay

24-M

ay

14-J

un

5-J

ul

26-J

ul

16-A

ug

6-S

ep

27-S

ep

18-O

ct

8-N

ov

29-N

ov

20-D

ec

10-J

an

31-J

an

21

-Fe

b

14-M

ar

4-A

pr

25-A

pr

16-M

ay

6-J

un

27-J

un

18-J

ul

8-A

ug

New Rx Ref Rx

Source: IMS Health, National Prescription Audit

TM, Total Rx (week ending Aug 22, 2014)

02 September 2014


Monthly Prescription Volume Monitor Monthly Rx unit growth was up 3.5% in July, up sequentially from 2.6% y/y increase

witnessed in June. The breakdown of Rx volume by dispensing channel reveals that total

prescription volume in combined retail and long-term care increased on a y/y basis while it

decreased for mail-order channel. Note that IMS now reports retail as a single combined

channel.

Exhibit 4: U.S. Monthly TOTAL Prescription Volume Growth by Dispensing Channel 2013

TOTAL RX JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Combined Retail 7.0% 1.9% 2.2% 2.0% 2.2% 2.4% 2.8% 2.1% 3.0% 5.1% 2.5% 2.4%

Long-Term Care 8.4% 5.8% 5.7% 5.0% 4.2% 3.5% 3.8% 3.4% 2.6% 4.9% 6.1% 6.3%

Mail-order 2.3% -6.3% -6.1% -11.4% -7.0% -7.3% -16.6% -19.1% -20.8% -18.0% -17.7% -21.2%

Total 7.2% 1.7% 1.9% 1.5% 1.8% 1.9% 1.6% 0.8% 1.5% 3.7% 1.6% 1.4%

3.6% 1.7% 1.3% 2.2%

2014

TOTAL RX JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Combined Retail -1.0% 1.0% 2.1% 3.4% 3.8% 3.4% 4.2% -97.8% -102.5% -99.8% -97.7% -102.3%

Long-Term Care 2.6% 3.3% 5.8% 5.8% 5.7% 6.0% 7.1% -98.1% -102.3% -99.6% -98.1% -102.0%

Mail-order -22.4% -19.1% -18.1% -14.5% -14.8% -14.6% -4.0% -96.4% -104.1% -99.4% -96.6% -104.0%

Total -1.7% 0.1% 1.3% 2.7% 2.9% 2.6% 3.5%

-0.1% 2.8% 3.5%


, Total Rxs (Jan 2013 – July 2014)

Exhibit 5: U.S. Monthly BRANDED Prescription Volume Growth by Dispensing Channel 2013

TOTAL BRAND RX JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Combined Retail -12.9% -18.6% -18.5% -18.5% -15.8% -13.0% -12.6% -8.7% -5.2% -1.6% -4.6% -7.2%

Long-Term Care -13.0% -14.4% -12.8% -5.8% -2.5% 2.8% 4.6% 7.5% 9.5% 11.5% 10.4% 8.9%

Mail-order -22.5% -26.9% -26.0% -30.3% -20.7% -17.5% -23.7% -23.6% -23.6% -18.8% -18.9% -21.2%

Total -13.6% -19.3% -19.0% -18.9% -15.4% -12.4% -12.5% -9.5% -6.2% -2.6% -5.3% -7.4%

-17.3% -15.6% -9.4% -5.1%

2014

TOTAL BRAND RX JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Combined Retail -10.6% -8.0% -7.7% -6.5% -6.7% -7.6% -7.1% -97.8% -102.5% -99.8% -97.7% -102.3%

Long-Term Care -3.7% -4.0% -3.9% -4.4% -5.7% -6.1% -6.5% -98.1% -102.3% -99.6% -98.1% -102.0%

Mail-order -23.3% -20.6% -20.0% -18.4% -19.3% -18.2% -12.8% -96.4% -104.1% -99.4% -96.6% -104.0%

Total -11.1% -9.0% -8.7% -7.4% -8.1% -8.6% -8.1%

-9.6% -8.0% -8.1%


, Brand Rxs (Jan 2013 –July 2014)

Exhibit 6: U.S. Monthly GENERIC Prescription Volume Growth by Dispensing Channel 2013

TOTAL GENERIC RX JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Combined Retail 10.7% 5.8% 6.2% 5.9% 5.4% 5.0% 5.3% 3.7% 4.2% 6.1% 3.5% 3.9%

Long-Term Care 12.7% 9.8% 9.2% 6.7% 5.1% 3.6% 3.5% 3.2% 1.9% 4.2% 5.7% 6.5%

Mail-order 14.6% 3.8% 3.8% -2.8% -1.3% -3.3% -13.2% -17.1% -19.2% -16.9% -16.8% -20.8%

Total 11.4% 6.1% 6.3% 5.5% 5.0% 4.5% 4.1% 2.5% 2.7% 4.7% 2.7% 2.9%

7.9% 5.0% 3.1% 3.4%

2014

TOTAL GENERIC RX JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Combined Retail 0.4% 2.3% 3.4% 4.6% 5.1% 4.7% 5.4% -97.8% -102.5% -99.8% -97.7% -102.3%

Long-Term Care 3.9% 4.4% 6.8% 6.7% 6.8% 6.8% 8.4% -98.1% -102.3% -99.6% -98.1% -102.0%

Mail-order -21.0% -17.3% -16.1% -11.7% -12.3% -11.9% -0.2% -96.4% -104.1% -99.4% -96.6% -104.0%

Total -0.2% 1.5% 2.7% 4.1% 4.4% 4.1% 4.9%

1.4% 4.2% 4.9%


, Generic Rxs (Jan 2013 – July 2014)

02 September 2014


Insider Transaction Activity We track insider transaction activity of twenty eight companies. For the most notable trades from management teams

within our universe, please see the exhibit below.

Exhibit 7: Insider Transaction Activity – April 2014 – August 2014 (Grouped by Company) Position

Ticker Investor Name Title Change Price $ Value Chg Buy/Sell Tran Date Transaction Type

AmerisourceBergen

ABC HOWELL PEYTON R O (45,000) $71.53 $3,218,850 Sell 6/20/2014 Open market or private sale of non-derivative or derivative security.

ABC COLLIS STEVEN H CEO (157,500) $71.83 $11,313,225 Sell 6/11/2014 Open market or private sale of non-derivative or derivative security.

ABC CHOU JOHN G O (37,500) $71.28 $2,673,000 Sell 5/22/2014 Open market or private sale of non-derivative or derivative security.

Align Technology, Inc

ALGN WHITE DAVID L CFO (4,600) $54.42 $250,313 Sell 8/21/2014 Open market or private sale of non-derivative or derivative security.

ALGN PRESCOTT THOMAS M CEO (14,896) $55.07 $820,323 Sell 8/19/2014 Open market or private sale of non-derivative or derivative security.

ALGN COSINUKE ROBERT L O (1,531) $131.16 $200,806 Sell 8/11/2014 Open market or private sale of non-derivative or derivative security.

ALGN PASCAUD RAPHAEL O (2,000) $50.79 $101,582 Sell 5/1/2014 Open market or private sale of non-derivative or derivative security.

Accretive Health

No recent transactions

Athenahealth

ATHN BUSH JONATHAN CEO (100) $122.23 $12,223 Sell 8/4/2014 Open market or private sale of non-derivative or derivative security.

ATHN COSINUKE ROBERT L O (1,800) $126.27 $227,286 Sell 6/10/2014 Open market or private sale of non-derivative or derivative security.

ATHN ROBINSON DAVID ERIC D (12,674) $124.78 $1,581,462 Sell 6/12/2014 Open market or private sale of non-derivative or derivative security.


ATHN KAHANE STEPHEN N O (5,000) $126.42 $632,100 Sell 6/2/2014 Open market or private sale of non-derivative or derivative security.

ATHN KAHANE STEPHEN N O (1,300) $122.81 $159,653 Sell 5/1/2014 Open market or private sale of non-derivative or derivative security.


ATHN COSINUKE ROBERT L O (1,500) $118.29 $177,435 Sell 5/12/2014 Open market or private sale of non-derivative or derivative security.

Cardinal Health

CAH HENDERSON JEFFREY WILLIAM CFO (26,567) $72.63 $1,929,561.21 Sell 8/27/2014 Open market or private sale of non-derivative or derivative security.

CAH KAUFMANN MICHAEL C O (6,833) $72.06 $492,385.98 Sell 8/18/2014 Open market or private sale of non-derivative or derivative security.


CAH BLAKE MARK R O (4,782) $72.15 $345,021.30 Sell 8/18/2014 Open market or private sale of non-derivative or derivative security.


CAH MORFORD CRAIG S O (43,359) $70.03 $3,036,430.77 Sell 8/8/2014 Open market or private sale of non-derivative or derivative security.

CAH BLAKE MARK R O (23,114) $73.41 $1,696,798.74 Sell 7/24/2014 Open market or private sale of non-derivative or derivative security.

CAH LAWS STUART G O (21,266) $72.50 $1,541,785.00 Sell 7/24/2014 Open market or private sale of non-derivative or derivative security.




CAH BARRETT GEORGE S CEO (8,416) $65.04 $547,376.64 Sell 5/12/2014 Open market or private sale of non-derivative or derivative security.


Cerner

CERN ZOLLARS WILLIAM D D (9,200) $55.20 $507,840 Sell 8/8/2014 Open market or private sale of non-derivative or derivative security.

CERN PATTERSON NEAL L CEO (14,000) $56.39 $789,460 Sell 8/13/2014 Open market or private sale of non-derivative or derivative security.

CERN PATTERSON NEAL L CEO 141,000 $60.11 $8,475,031 Sell 3/11/2014 Open market or private sale of non-derivative or derivative security.

CERN PATTERSON NEAL L CEO 187,979 $59.82 $11,244,133 Sell 3/12/2014 Open market or private sale of non-derivative or derivative security.

Charles River Laboratories

CRL MASSARO GEORGE E D (10,440) $60.00 $626,400 Sell 8/26/2014 Open market or private sale of non-derivative or derivative security.

CRL ACKERMAN THOMAS F CFO (100) $59.34 $5,934 Sell 8/18/2014 Open market or private sale of non-derivative or derivative security.

CRL WALLMAN RICHARD F D (3,240) $58.20 $188,568 Sell 8/12/2014 Open market or private sale of non-derivative or derivative security.

CRL CHUBB STEPHEN D D (2,000) $52.93 $105,855 Sell 6/2/2014 Open market or private sale of non-derivative or derivative security.

CRL KOCHEVAR DEBORAH TURNER D (100) $53.29 $5,329 Sell 5/22/2014 Open market or private sale of non-derivative or derivative security.

CRL MASSARO GEORGE E D (150) $52.76 $7,914 Sell 5/9/2014 Open market or private sale of non-derivative or derivative security.

CVS/Caremark

CVS BORATTO EVA C O (22,107) $76.77 $1,697,154 Sell 7/21/2014 Open market or private sale of non-derivative or derivative security.

CVS BRENNAN TROYEN A O (3,456) $75.00 $259,200 Sell 3/31/2014 Open market or private sale of non-derivative or derivative security.

CVS BORATTO EVA C O (4,425) $74.51 $329,707 Sell 4/2/2014 Open market or private sale of non-derivative or derivative security.

Covance

CVD NUTT BRIAN H O (210) $103.22 $21,676 Sell 2/25/2014 Open market or private sale of non-derivative or derivative security.

CVD LOVETT JAMES W O (3,400) $101.50 $345,100 Sell 2/20/2014 Open market or private sale of non-derivative or derivative security.

CVD KLITGAARD WILLIAM E O (3,400) $101.50 $345,100 Sell 2/20/2014 Open market or private sale of non-derivative or derivative security.

CVD HERRING JOSEPH L CEO (119,876) $97.67 $11,708,289 Sell 2/7/2014 Open market or private sale of non-derivative or derivative security.

CVD KELLER-TANNER DEBORAH L O (14,165) $98.14 $1,390,153 Sell 2/7/2014 Open market or private sale of non-derivative or derivative security.

CVD CIMINO RICHARD F O (13,000) $99.10 $1,288,300 Sell 2/10/2014 Open market or private sale of non-derivative or derivative security.

CVD HELTON SANDRA LYNN D (2,800) $99.03 $277,284 Sell 2/10/2014 Open market or private sale of non-derivative or derivative security.

CVD NUTT BRIAN H O (1,808) $100.12 $181,017 Sell 2/10/2014 Open market or private sale of non-derivative or derivative security.

CVD CORNELL ALISON A CFO (5,554) $99.84 $554,511 Sell 2/12/2014 Open market or private sale of non-derivative or derivative security.

Quest Diagnostics

DGX DOHERTY CATHERINE T O (25,000) $60.12 $1,502,900 Sell 8/8/2014 Open market or private sale of non-derivative or derivative security.

DGX PREVOZNIK MICHAEL E GC (14,377) $61.01 $877,182 Sell 8/4/2014 Open market or private sale of non-derivative or derivative security.

DGX ZIEGLER JOHN B III D (1,865) $61.90 $115,444 Sell 7/25/2014 Open market or private sale of non-derivative or derivative security.

DGX BONGIORNO THOMAS F O (4,000) $61.72 $246,869 Sell 7/28/2014 Open market or private sale of non-derivative or derivative security.

DGX BALDWIN JOHN C D (8,000) $62.31 $498,480 Sell 7/29/2014 Open market or private sale of non-derivative or derivative security.

DGX PREVOZNIK MICHAEL E GC (16,384) $62.51 $1,024,103 Sell 7/30/2014 Open market or private sale of non-derivative or derivative security.

DGX BRITELL JENNE K D (8,000) $62.37 $498,960 Sell 7/30/2014 Open market or private sale of non-derivative or derivative security.

DGX ZIEGLER JOHN B III D (1,975) $57.65 $113,855 Sell 5/22/2014 Open market or private sale of non-derivative or derivative security.

DGX GUINAN MARK J CFO 4,000 $55.51 $222,023 Buy 5/5/2014 Open market or private purchase of non-derivative or derivative security.

DGX PFEIFFER GARY M D (10,000) $55.95 $559,511 Sell 5/7/2014 Open market or private sale of non-derivative or derivative security.

Express Scripts

ESRX BREEN MAURA C D (12,694) $69.94 $887,755 Sell 8/1/2014 Open market or private sale of non-derivative or derivative security.

ESRX BENANAV GARY G D (12,694) $70.82 $898,989 Sell 8/5/2014 Open market or private sale of non-derivative or derivative security.

ESRX WADE SARA E O (20,000) $70.44 $1,408,800 Sell 8/5/2014 Open market or private sale of non-derivative or derivative security.

ESRX PAZ GEORGE CEO (681,508) $71.21 $48,530,185 Sell 6/13/2014 Open market or private sale of non-derivative or derivative security.

Henry Schein

HSIC ALPERIN BARRY J D (7,500) $120.39 $902,925 Sell 6/9/2014 Open market or private sale of non-derivative or derivative security.

HSIC MATTHEWS NORMAN STUART D (6,637) $118.68 $787,679 Sell 5/28/2014 Open market or private sale of non-derivative or derivative security.

HSIC BRONS PAUL D (5,363) $113.77 $610,149 Sell 5/15/2014 Open market or private sale of non-derivative or derivative security.

HSIC KABAT DONALD J D (5,000) $116.30 $581,500 Sell 5/19/2014 Open market or private sale of non-derivative or derivative security.

HSIC SULLIVAN LOUIS W D (500) $115.95 $57,975 Sell 5/13/2014 Open market or private sale of non-derivative or derivative security.

HSIC SHOFF LONNIE O 150 $113.56 $17,034 Buy 4/30/2014 Open market or private purchase of non-derivative or derivative security.

Lab Corp

LH KING DAVID P CEO (1,600) $105.99 $169,584 Sell 7/22/2014 Open market or private sale of non-derivative or derivative security.

LH BRECHER MARK E O (2,600) $102.31 $266,006 Sell 6/4/2014 Open market or private sale of non-derivative or derivative security.

LH HAYES WILLIAM B CFO (22,100) $104.50 $2,309,450 Sell 6/6/2014 Open market or private sale of non-derivative or derivative security.

LH EBERTS F SAMUEL III O (10,000) $104.37 $1,043,700 Sell 6/6/2014 Open market or private sale of non-derivative or derivative security.

LH BOYLE JAMES T JR CO (38,600) $103.00 $3,975,800 Sell 6/9/2014 Open market or private sale of non-derivative or derivative security.

LH BELINGARD JEAN LUC D (100) $98.68 $9,868 Sell 4/30/2014 Open market or private sale of non-derivative or derivative security.

LH HAYES WILLIAM B CFO (2,497) $98.39 $245,680 Sell 4/30/2014 Open market or private sale of non-derivative or derivative security.

LH LANE WENDY E D (390) $98.97 $38,599 Sell 4/30/2014 Open market or private sale of non-derivative or derivative security.

LH MITTELSTAEDT ROBERT E JR D (1,542) $98.39 $151,717 Sell 4/30/2014 Open market or private sale of non-derivative or derivative security.

Source: Company data, Credit Suisse estimates, Thomson

02 September 2014


Exhibit 8: Insider Transaction Activity – April 2014 – August 2014 (Grouped by Company) Position

Ticker Investor Name Title Change Price $ Value Chg Buy/Sell Tran Date Transaction Type

McKesson

MCK BLAKE PATRICK O (15,000) $190.00 $2,850,000 Sell 6/2/2014 Open market or private sale of non-derivative or derivative security.

MCK JULIAN PAUL C O (21,057) $183.20 $3,857,558 Sell 5/28/2014 Open market or private sale of non-derivative or derivative security.

MCK IRBY ALTON F III D (4,000) $182.73 $730,916 Sell 5/28/2014 Open market or private sale of non-derivative or derivative security.


MCK SEEGER LAUREEN E GC (7,583) $183.30 $1,389,956 Sell 5/28/2014 Open market or private sale of non-derivative or derivative security.

MCK FIGUEREDO JORGE L O (5,417) $183.29 $992,904 Sell 5/28/2014 Open market or private sale of non-derivative or derivative security.

MCK TYLER BRIAN SCOTT O (8,250) $184.17 $1,519,411 Sell 5/22/2014 Open market or private sale of non-derivative or derivative security.


Allscripts

MDRX KLAYKO MICHAEL A D (3,500) $14.41 $50,435 Sell 8/18/2014 Open market or private purchase of non-derivative or derivative security.

MDRX BLACK PAUL M CEO (42,603) $19.07 $812,439 Sell 3/14/2014 Payment of exercise price or tax liability by delivering or withholding securities incident to the receipt, exercise or vesting of a security issued in accordance with Rule 16b-3.

MDRX SNOW DEBORAH O (14,740) $18.75 $276,375 Sell 3/13/2014 Open market or private sale of non-derivative or derivative security.

Medidata Solutions

MDSO HIRSCHFELD STEVEN ISAAC O (23,801) $44.00 $1,047,299 Sell 8/22/2014 Open market or private sale of non-derivative or derivative security.

MDSO SPIELMAN BRYAN CHARLES OX (20,000) $47.73 $954,500 Sell 8/26/2014 Open market or private sale of non-derivative or derivative security.

MDSO OTNER MICHAEL I GC (6,338) $44.75 $283,594 Sell 8/7/2014 Open market or private sale of non-derivative or derivative security.

MDSO DE VRIES GLEN MICHAEL P (20,000) $45.11 $902,164 Sell 8/12/2014 Open market or private sale of non-derivative or derivative security.

MDSO DOUGLAS CORY A CFO (20,000) $45.27 $905,306 Sell 8/12/2014 Open market or private sale of non-derivative or derivative security.

MDSO SPIELMAN BRYAN CHARLES OX (2,261) $45.00 $101,745 Sell 8/4/2014 Open market or private sale of non-derivative or derivative security.

MDSO SHERIF TAREK A CEO (20,000) $44.81 $896,164 Sell 8/5/2014 Open market or private sale of non-derivative or derivative security.





MDSO DOUGLAS CORY A CFO 2,611 $8.22 $21,462 Buy 6/12/2014 Exercise or conversion of derivative security exempted pursuant to Rule 16b-3 (acquired pursuant to employee stock option plan).

MDSO SHERIF TAREK A CEO (182) $40.00 $7,280 Sell 6/9/2014 Open market or private sale of non-derivative or derivative security.



MDSO SHERIF TAREK A CEO (20,000) $55.05 $1,101,036 Sell 4/3/2014 Open market or private sale of non-derivative or derivative security.


MDSO MATEO ALAN V O (5,208) $55.00 $286,440 Sell 4/1/2014 Open market or private sale of non-derivative or derivative security.

Omnicare

OCR WALLMAN AMY D (5,672) $63.84 $362,119 Sell 8/20/2014 Open market or private sale of non-derivative or derivative security.

OCR KRAFT ROBERT O CFO 1,500 $60.00 $90,000 Buy 5/6/2014 Open market or private purchase of non-derivative or derivative security.

Owens & Minor

OMI VAN SUMEREN MARK A O (1,800) $32.54 $58,572 Sell 5/6/2014 Open market or private sale of non-derivative or derivative security.

OMI MEIER RICHARD A CFO 2,500 $32.50 $81,250 Buy 5/7/2014 Open market or private purchase of non-derivative or derivative security.

OMI SLEDD ROBERT C D (3,750) $32.75 $122,813 Sell 5/8/2014 Open market or private sale of non-derivative or derivative security.

OMI LOWRY MICHAEL WAYNE C 745 34.07 $25,382 Buy 4/30/2014 Open market or private sale of non-derivative or derivative security.

Patterson Co.

PDCO MUNIZ SEAN M O (1,095) $39.58 $43,342 Sell 6/9/2014 Open market or private sale of non-derivative or derivative security.

PDCO BUCK JOHN D D 2,500 $37.11 $92,775 Buy 4/17/2014 Exercise or conversion of derivative security exempted pursuant to Rule 16b-3 (acquired pursuant to employee stock option plan).

PDCO ARMSTRONG R STEPHEN CFO 3,930 $38.50 $151,305 Buy 4/24/2014 Exercise or conversion of derivative security exempted pursuant to Rule 16b-3 (acquired pursuant to employee stock option plan).

PDCO LACY ANDRE B D (536) $41.93 $22,472 Sell 3/19/2014 Open market or private sale of non-derivative or derivative security.

Pharmerica

PMC OAKLEY ROBERT A D (8,399) $26.55 $223,002 Sell 8/8/2014 Open market or private sale of non-derivative or derivative security.

PMC CANERIS THOMAS A GC (12,192) $28.60 $348,691 Sell 5/13/2014 Open market or private sale of non-derivative or derivative security.

PMC WEISHAR GREGORY S CEO (60,000) $26.27 $1,576,470 Sell 3/14/2014 Open market or private sale of non-derivative or derivative security.

PMC TOMASSETTI BERARD E O (3,812) $25.22 $96,146 Sell 3/12/2014 Open market or private sale of non-derivative or derivative security.

PMC MCKAY ROBERT A O (18,646) $26.08 $486,200 Sell 3/13/2014 Open market or private sale of non-derivative or derivative security.

PAREXEL International

PRXL COOPER ANITA O (4,916) $57.56 $282,965 Sell 8/18/2014 Open market or private sale of non-derivative or derivative security.

PRXL SAARONY GADI O (6,075) $57.78 $351,014 Sell 8/20/2014 Open market or private sale of non-derivative or derivative security.

PRXL LOVE RICHARD L D (6,000) $57.33 $343,980 Sell 8/11/2014 Open market or private sale of non-derivative or derivative security.

PRXL GOLDBERG MARK ALAN P (16,761) $56.33 $944,147 Sell 8/13/2014 Open market or private sale of non-derivative or derivative security.

PRXL FORTUNE PATRICK J D (3,000) $53.04 $159,120 Sell 6/5/2014 Open market or private sale of non-derivative or derivative security.

Quality Systems

QSII LEAVITT JOCELYN GC 1,450 $15.23 $22,084 Buy 7/30/2014 Open market or private purchase of non-derivative or derivative security.

QSII BRISTOL GEORGE H Director (8,000) $18.26 $146,080 Sell 01/29/2014 Open market or private sale of non-derivative or derivative security

Quintiles Transnational Corp

Q EVANISKO MICHAEL J D (5,000) $54.00 $270,000 Sell 7/2/2014 Open market or private sale of non-derivative or derivative security.

Q TPG ADVISORS III INC B (3,287,210) $50.23 $165,116,558 Sell 5/27/2014 Open market or private sale of non-derivative or derivative security.

Q GILLINGS MIREILLE DO (570,681) $50.31 $28,710,961 Sell 3/26/2014 Open market or private sale of non-derivative or derivative security.

Q GILLINGS MIREILLE DO (3,304,540) $50.31 $166,251,407 Sell 3/18/2014 Open market or private sale of non-derivative or derivative security.

Q CONNAUGHTON JOHN P DO (3,579,370) $50.31 $180,078,105 Sell 3/18/2014 Open market or private sale of non-derivative or derivative security.

Q TPG ADVISORS III INC B (3,564,120) $50.31 $179,310,877 Sell 3/18/2014 Open market or private sale of non-derivative or derivative security.

Q BAIN CAPITAL INVESTORS L L C B (3,579,370) $50.31 $180,078,105 Sell 3/18/2014 Open market or private sale of non-derivative or derivative security.

Q GORDON CHRISTOPHER R DO (3,579,370) $50.31 $180,078,105 Sell 3/18/2014 Open market or private sale of non-derivative or derivative security.

Q 3I CORP B (2,513,760) $50.31 $126,467,266 Sell 3/18/2014 Open market or private sale of non-derivative or derivative security.

Sirona Dental

SIRO FRIEDMAN JONATHAN I GC (1,562) $78.90 $123,242 Sell 8/12/2014 Open market or private sale of non-derivative or derivative security.

SIRO HOOD WILLIAM K D 15,000 $27.00 $405,000 Buy 6/23/2014 Exercise or conversion of derivative security exempted pursuant to Rule 16b-3 (acquired pursuant to employee stock option plan).

SIRO KOWALOFF ARTHUR D D (6,000) $74.00 $444,000 Sell 3/10/2014 Open market or private sale of non-derivative or derivative security.

Catamaran Corporation

CTRX KRAEMER HARRY M JANSEN JR D 1,312 $43.66 $57,282 Buy 8/6/2014 Exercise or conversion of derivative security exempted pursuant to Rule 16b-3 (acquired pursuant to employee stock option plan).

CTRX BERMAN CLIFFORD E GC (4,604) $46.02 $211,876 Sell 7/30/2014 Open market or private sale of non-derivative or derivative security.

CTRX ROMZA JOHN H CT (3,612) $44.38 $160,297 Sell 8/4/2014 Open market or private sale of non-derivative or derivative security.

CTRX THIERER MARK A CEO (63,984) $43.06 $2,755,004 Sell 5/20/2014 Open market or private sale of non-derivative or derivative security.

CTRX MASSO ANTHONY R D 3,000 $42.36 $127,093 Buy 5/12/2014 Open market or private purchase of non-derivative or derivative security.

Thermo Fisher Scientific

TMO PESICKA EDWARD A O (200) $123.51 $24,702 Sell 3/24/2014 Open market or private sale of non-derivative or derivative security.

TMO LOEWALD THOMAS W O (100) $126.58 $12,658 Sell 3/10/2014 Open market or private sale of non-derivative or derivative security.

Weight Watchers International

WTW WESTEND SA B 51,790 23 1,209,928 Buy 8/15/2014 Open market or private purchase of non-derivative or derivative security.



Dentsply International

XRAY JONES LESLIE ALAN D (2,000) $48.30 $96,592 Sell 8/25/2014 Open market or private sale of non-derivative or derivative security.

XRAY ALFANO MICHAEL C D (2,764) $47.25 $130,604 Sell 5/30/2014 Open market or private sale of non-derivative or derivative security.

Source: Company data, Credit Suisse estimates, Thomson

02 September 2014


Acquisition Updates

Health Insurance Innovations Acquires American Service Insurance Agency

On 8/8/2014 Health Insurance Innovations announced the acquisition of the privately held American Service Insurance Agency (ASIA), a distributor of individual insurance programs including primary short-term medical (STM), ACA, hospital indemnity, Medicare, life insurance and dental policies. Management noted that the acquisition will result in immediate accretion and is in line with their strategy to expand captive distribution channels for sustainable growth. HIIQ paid $4.0M, of which $1.8M represents an initial cash payment, and the remainder is tied to the financial performance of ASIA's business over next 2 years. The company noted that it will benefit from the vertical integration of the insurance products distributor with its profitable down-line subsidiary call center network. For a copy of press release, click here

PharMerica Announces Acquisition of Rx Advantage

■ On 8/1/2014 PharMerica announced that it has completed the acquisition of Rx

Advantage Inc. Rx Advantage provides pharmacy services to long-term care facilities

and other customers primarily in Alabama and Florida. PharMerica management noted

the acquisition is in-line with company's strategy to pursue accretive acquisitions,

although we note that the terms of the transactions were not disclosed. The press

release highlighted that the Rx Advantage acquisition will increase PharMerica's

footprint in region where they have complementary operations. For a copy of press

release, click here

Health Insurance Innovations Acquires HealthPocket Inc.

■ On 7/14/2014 Health Insurance Innovation announced the acquisition of privately held

HealthPocket Inc. for approx. $31M in cash and stock (total EV of roughly $32M

including repaid debt). HealthPocket a health technology firm offers an online

database of health insurance information which helps consumers to compare health

plans in order to make more informed decisions. HIIQ management noted that the

acquisition fits its growth strategy to move into new products and solution to enhance

its growth profile. The company expects that the transaction will increase the quality of

its leads which in turn will drive increased sales. The press release noted that HIIQ will

pay a total consideration of approx. $30.8M consisting of $20.8M in cash and

approximately 788K shares of HIIQ common stock. For a copy of our note published

on 7/15/2014 click Transformative HealthPocket Deal Augments Existing Growth

Drivers and Offers Strategic Diversification and for a copy of press release click

here

Allscripts Acquires Oasis Medical Solutions; a London Based Patient

Administration System

On 7/10/2014 Allscripts announced acquisition of Oasis Medical Solutions Ltd, a privately held, London based Patient Administrative System and health informatics solution provider. Oasis PAS system has partnership with numerous NHS trusts and provides scalable administrative workflow across all avenues of care. The combination of Oasis PAS technology with Allscripts Sunrise clinical platform will offer single-source advanced electronic patient record solution throughout United Kingdom. It is noted that The Oasis PAS is used across more than a dozen of NHS trust and hospital averaging over 500 beds per facility. The financial terms of the acquisition were not disclosed. For a copy of press release, click here

http://investor.hiiquote.com/releasedetail.cfm?ReleaseID=865361

http://phx.corporate-ir.net/phoenix.zhtml?c=186053&p=irol-newsArticle&ID=1954227&highlight=

https://plus.csintra.net/ECP_S/v2/container/container.html#loc=RESEARCH_ARTICLE&rp_ravWindow=true&rp_docId=1035409421

https://plus.csintra.net/ECP_S/v2/container/container.html#loc=RESEARCH_ARTICLE&rp_ravWindow=true&rp_docId=1035409421

http://investor.hiiquote.com/releasedetail.cfm?ReleaseID=859597


02 September 2014


PharMerica Acquires Altius Healthcare

■ On 7/1/2014 Amerita Inc., a wholly owned subsidiary of PharMerica expanded the

company's footprint in Arizona with the acquisition of Altius Healthcare. Altius provides

home infusion and specialty infusion for patients at home, doctor's offices, assisted

living facilities, ambulatory infusion centers and other non-hospital settings. The

financial terms of the transaction were not disclosed, but this deal is consistent with

management's strategy to add $100M in annualized revenues through M&A across its

various business platforms. For a copy of the press release, click here

PAREXEL International Announced Acquisition of ATLAS Medical Services

■ On 7/1/2014 PAREXEL International announced the acquisition of all outstanding

equity of ATLAS Medical Services, a provider of clinical research services in Turkey,

the Middle East and North Africa. ATLAS was noted to have particular expertise in

various therapeutic categories including Oncology, Hematology, Endocrinology,

Cardiovascular, Anesthesiology, Infectious Diseases, and the Central Nervous

System. ATLAS provides services across all phases of clinical development and works

with more than 28 biopharmaceutical services companies. In addition the firm also

provides clinical trial-related services from study planning and feasibility, through site

selection, data management and medical writing. ATLAS was established in 2005 and

is a privately owned firm headquartered in Istanbul. Last year, ATLAS had revenues of

approximately $4M. The transaction was funded with existing cash and its impact on

revenue and earnings per share of 2015 is not material. For a copy of the press

release, click here

OMI to Acquire Medical Action Industries

■ On 6/25/2014 Owens & Minor announced that it has signed an agreement to acquire

Medical Action Industries Inc., a provider of custom procedure trays and kits. Under

the agreement OMI will acquire the entire outstanding shares of Medical Action for

$13.80 per share, representing a transaction value of approximately $208M. OMI and

Medical Action have had a long term relationship, with OMI accounting for roughly

45% of Medical Action's $287.8M in FY14 sales. Management noted that the

transaction is consistent with their strategy of broadening service offerings to support

both manufacturers and provider customers. OMI expects transaction to be accretive

to its non GAAP income in 2015 and anticipates synergies of $10M-$12M by the end

of calendar year 2016. For a copy of press release, click here

Covance Acquires London Based Medaxial

■ Covance announced on May 19 the acquisition of London-based Medaxial, a market

access/ healthcare economics and outcome research consultancy firm. Medaxial is in

business of health economic modeling, market access strategy, data dissemination

services and communicating the value of biopharmaceutical product and medical

device to healthcare payers and related stakeholders. Covance's market access

service is currently based in Gaithersburg, Md., Greenfield, Ind., San Diego and

Sydney, and it expected that Medaxial will complement the legacy market access

offerings worldwide. For a copy of our note published on May 19, 2014 please see

Medaxial Deal Fits Strategically But Unlikely to Move Needle and for a copy of

press release, click here

Henry Schein to Acquire SmarkPak

■ On 5/22/14, Henry Schein announced that the company has entered into an

agreement to acquire a 60% stake in SmartPak, a provider of equine supplements and

horse supplies across United States. SmartPak had sales of $105M in 2013 will help

Henry Schein expand its portfolio of services to the equine community. It is noted that


http://www.parexel.com/company/news-events/press-releases/2014/parexel-international-announces-acquisition-atlas-medical-services-provider-clinical-research-services-turkey/

http://investors.owens-minor.com/releasedetail.cfm?ReleaseID=856425

https://plus.credit-suisse.com/r/cb0bi3

http://www.covance.com/investors/financial-info/press-releases/press-release.php?reqtype=releasetxt&reqid=1932277

02 September 2014


the transaction is expected to close in June, with Oak Hill Capital Partners and

SmartPak's existing management team continuing to own the remaining equity stake.

Henry Schein expects the transaction to be neutral on its EPS for 2H14 and FY2015

and accretive by $0.02-$0.03 in 2016. For a copy of press release, click here

Quintiles to Acquire Encore Health Resources

Quintiles disclosed on 5/12/14 that it had signed an agreement to acquire Encore

Health Resources. In the press release announcing the transaction, Quintiles

management highlighted the importance of successfully integrating EHR & real-world

information into clinical trial work to support the ongoing focus on real-world outcomes

& market access services. In particular, Quintiles emphasized Encore's expertise with

hospitals & hospital information as an avenue to expand its service offering. Encore

was founded in 2009 and consists of 300 employees (250 consultants) located across

North America. The company's primary business focus is on implementation &

advisory services related to EHRs. For a copy of the press release, click here.

Cardinal Health to Acquire AccessClosure Expands Portfolio of Physician

Preference Items

■ Cardinal Health announced on 4/2/14 an agreement to acquire AccessClosure, a

privately held U.S. medical device manufacturer focusing on extravascular closure

devices and the interventional cardiology market. The all-cash transaction is valued at

$320M and expected to be completed by early June 2014. AccessClosure's annual

revenues are more than $80M. CAH noted that the transaction will have minimal

impact on non-GAAP earnings in fiscal year 2014 and be slightly accretive to non-

GAAP earnings in fiscal 2015. For more details please see our note published 4/2/14

Additional Capital Deployment Starting To Build F15 Tailwind. For a copy of press

release, click here

ICON to Acquire Aptiv Solution for Cash Consideration of $143.5M (3/31/14)

■ ICON announced on 3/31/14 its intention to acquire Aptiv Solution for a cash

consideration of $143.5M. Aptiv Solutions is a privately held CRO focused on the

design and execution of adaptive clinical trials for pharmaceutical and biotech

customers. It also owns Niphix, a full-service, oncology-focused CRO serving both

Japanese and international customers. Niphix operations will be combined with

ICON’s current operations in Tokyo and Osaka. For more details please see our note

published 3/31/14 Here Comes the Capital Deployment - Aptiv Deal Represents

Nice Strategic Fit. For a copy of press release, click here

AmerisourceBergen Acquires Minority Stake in Profarma (3/24/14)

AmerisourceBergen announced on 3/24/14 that it has reached a definitive agreement to buy minority stake in Brazilian pharmaceutical wholesaler Profarma Distribuidora de Produtos Farmacêuticos S.A. In addition company will establish a joint venture with Profarma for specialty distribution and services. The Company expects to invest a total of approximately $100 million with transaction expected to close in the June quarter of 2014.As per the agreement AmerisourceBergen will purchase up to a 19.9% minority stake by offering R$22.50 per share. Additionally the joint venture for specialty distribution constitutes Profarma existing business and an equity investment form AmerisourceBergen with 50% stake. The company expects the transaction will not have a meaningful impact to its EPS from continued operation for fiscal 2014. For more details please see our note published 3/24/14 Acquisition of Minority Interest in Profarma Establishes Beachhead in Brazil. For a copy of press release, click here

Charles River Laboratories to Acquire Galapagos (3/13/14)


http://investors.quintiles.com/investor-relations/press-releases/press-releases-details/2014/Quintiles-Announces-Agreement-to-Acquire-Encore-Health-Resources/default.aspx

https://doc.research-and-analytics.csfb.com/doc?language=ENG&format=PDF&document_section=1&document_id=806117150

http://ir.cardinalhealth.com/news/news-details/2014/Cardinal-Health-Expands-Portfolio-Of-Physician-Preference-Items/default.aspx

http://www.niphix.co.jp/



http://www.iconplc.com/news-events/news/icon-to-acquire-aptiv-sol/index.xml



http://www.amerisourcebergen.com/investor/phoenix.zhtml?c=61181&p=irol-newsArticle&ID=1911753&highlight=

02 September 2014


■ Charles River Laboratories announced on 3/13/14, signing a definitive agreement to

acquire the CRO service division of Galapagos NV which includes Argenta and

BioFocus. The acquisition will position Charles River to integrate in vitro with in vivo

capabilities. The transaction price is €129 M in cash (approx. $179 M) in addition to

the initial purchase price; the transaction includes future performance payments of up

to €5 million (approx. $7M). Argenta and BioFocus combined sales (2013) stands at

€63 M at a combined growth rate of 10%. The purchase price implies a multiple of

approximately 2x 2013 sales and approximately 12x 2013 adjusted EBITDA. The

company management noted that the transaction is expected to be completed in

second quarter of 2014 resulting in 6% increase in net sales and will be accretive to

non GAAP EPS by approx. $0.10 in 2014. For a copy of press release, click here

Quest Diagnostics Announces Acquisition of Summit Health (3/11/14)

■ Quest Diagnostics announced on 3/11/14 that it has entered into a definitive purchase

agreement to acquire Summit Health. Headquartered in Novi, Michigan Summit Health

is a privately held provider of on-site prevention and wellness programs for employers,

health plans, retail clinics and wellness focused organizations. The company

management noted that it is in-line with the capital deployment strategy of company

which aims to grow one to two percent a year through strategically aligned, accretive

acquisitions. Although the terms of transaction are not disclosed the transaction is

expected to be completed in the first half of 2014. For a copy of press release, click

here

Henry Schein Acquires Lincoln Dental Supply (2/4/14)

■ Henry Schein announced on 2/4/14 the acquisition of Lincoln Dental Supply from

Keystone Industries. Lincoln Dental Supply will become part of Zahn Dental, Henry

Schein's dental laboratory distribution business. Lincoln dental supply with a sales of

approximately $18M, offers range of dental products and equipment within United

States and Canada. By this acquisition company expects to strengthen its presence in

North America and expands is offering to prosthetic segment of this business. It is

noted that the financial terms of the transaction were not disclosed. Earlier this month

Henry Schein also announced acquisition of Arseus Lab to increase its presence in

European dental and technology segment. For a copy of the press release, click here

McKesson Acquires Celesio (1/23/14)

■ McKesson announced on 1/23/14 that it has reached an agreement with Franz Haniel

& Cie. GmbH to acquire its entire stake in Celesio for €23.50 per share. McKesson

also announced the acquisition of Celesio convertible bonds from Elliott through a

separate agreement. Following the close of both transactions, MCK's ownership stake

will exceed 75% ownership of Celesio shares. These agreements are not subject to

closing conditions and the transaction is expected to close within 10 business days.

McKesson expects to fund the transaction with cash and has a bridge financing facility

to fund the balance. The acquisition is expected to be accretive by $1.00 to $1.20 to

EPS in the first twelve months following the close of transaction. MCK will consolidate

Celesio's financial results during its fiscal fourth quarter ending March 2014.

Separately, McKesson intends to initiate a tender offer for the remaining minority

holders once the transaction is complete. For details, please see our note MCK: With

Agreement to Acquire Celesio in Place, Raising PT to $200 published 1/23/14 For a

copy of press release, click here

Quest Diagnostics to Acquire Solstas Lab Partners

http://ir.criver.com/phoenix.zhtml?c=121668&p=irol-newsArticle&ID=1908541&highlight=

http://ir.questdiagnostics.com/phoenix.zhtml?c=82068&p=irol-newsArticle&ID=1907793&highlight=


http://investor.mckesson.com/press-release/mckesson-secures-acquisition-celesio-through-new-agreements

02 September 2014


■ Quest Diagnostics announced last week that it has signed a definitive agreement to

acquire Solstas Lab Partners Group and its subsidiaries. The approximately $570

million transaction is expected to be complete in the first half of 2014. Solstas is a

portfolio company of Welch, Carson, Anderson and Stove and has operations in the

southeastern United States. The acquired company will bring an innovative test menu

and scientific expertise. Quest Diagnostic expects the acquisition to add 5% to

annualized revenues (about 1% of which will be from professional lab services) and be

modestly accretive to EPS in 2014. For details, please see our note DGX: Solstas

Acquisition to Provide Lift to Revenue Growth published 1/22/14. For a copy of the

press release, click here

Henry Schein Acquires Five Companies from Arseus (1/6/2014)

■ Henry Schein, Inc. announced on 1/6/14 that it has signed agreement to acquire five

businesses from Arseus NV representing annual sales of $97 million. The acquisitions

are expected to strengthen Henry Schein’s European dental and technology

businesses. The acquired companies include a French dental practice management

software company and four distributors serving dentists and dental laboratories in

France, the Netherlands and Belgium. The release noted that one of the transactions

has been completed while the dental and dental laboratory distribution transactions

will close in the next 90 days. Financial terms of the transaction were however, not

disclosed. Further, Henry Schein expects the transactions to be dilutive to earnings

per share in 2014 by approximately $0.03. Additionally, the company revised its 2014

EPS range to be $5.29 to $5.39, which represents a growth of 8-10% from the

midpoint of the 2013 guidance range. For a copy of the press release, click here

http://ir.questdiagnostics.com/phoenix.zhtml?c=82068&p=irol-newsArticle&ID=1892619&highlight=

http://investor.henryschein.com/phoenix.zhtml?c=74322&p=irol-newsArticle&ID=1887857&highlight=

02 September 2014


Contract Updates

NextGen Healthcare to Provide Single Sign On Solution to North Carolina Pediatric Associates

On 8/26/2014 NextGen Healthcare, a wholly owned subsidiary of Quality Systems Inc., announced that it has signed an agreement with North Carolina Pediatric Associates to install NextGen Ambulatory EHR, NextGen Practice Management and NextGen Patient Portal across the enterprise. NextGen solutions will deploy an integrated platform built on single database for its four locations to streamline processes and assist in advanced patient care. This agreement will facilitate North Carolina Pediatric Associates for meeting its specialty- specific needs as it transitions to ICD-10 and MU Stage 2. For a copy of press release, click here

Baylor Scott & White Selects Allscripts dbMotion Solutions

■ On 8/20/2014 Allscripts announced that Texas-based health system, Baylor Scott &

White, selected the Allscripts dbMotion health information exchange platform for

interoperability and population health analytics. Baylor Scott & White currently uses

multiple disparate EHRs which poses an obstacle to the communication and sharing of

patient health information. Allscripts' dbMotion platform will help the health system

integrate and harmonize patient information from these diverse technologies and

enable the provider to access the same information from every care setting. In

addition, Baylor Scott & White will leverage Allscripts dbMotion Clinical Analytics to

analyze data points and improve clinical decision making. Baylor Scott& White is the

largest non-profit health care system in Texas comprising 50 hospitals and more than

500 patient care sites. For a copy of press release, click here

CAH and Fred's Announce Primary Supply Agreement

On 8/11/2014 Cardinal Health announced that it has signed a new multiyear agreement to supply branded and generic pharmaceuticals to Fred's more than 360 in-store pharmacies and EIRIS health services in USA. Under the new agreement, the companies will form a strategic alliance to support Fred's key initiative of rapid pharmacy growth and to improve supply chain and asset management tools. Fred's management noted that the new alliance will position them to achieve aggressive growth goals in retail locations, clinical services and specialty pharmacy. For a copy of press release, click here

McKesson Extends Pharmaceutical Distribution Agreement with CVS Caremark for 3 Years

■ On 7/30/2014 McKesson Corporation announced a three year extension of its existing

pharmaceutical distribution agreement with CVS Caremark through June, 2019 On the

company's earnings call management noted no major changes to the nature of the

relationship. Recall that MCK distributes primarily branded pharmaceutical products to

CVS PBM mail facilities. For a copy of press release, click here

Capital Women's Care Extends NextGen RCM services for Next 10 Years

■ On 7/31/2014 NextGen Healthcare, a wholly owned subsidiary of Quality Systems

announced that it has entered into a ten year agreement with Capital Women's Care

LLC to continue providing RCM solutions. Capital Women's Care has been NextGen's

client since 2002 and is a private OB/GYN practices in the mid-Atlantic region with 45

locations. As per the new agreement Capital Women's will continue to leverage



http://ir.cardinalhealth.com/news/news-details/2014/Freds-And-Cardinal-Health-Announce-Primary-Supply-Agreement/default.aspx

http://investor.mckesson.com/press-release/mckesson-extends-pharmaceutical-distribution-agreement-cvs-caremark

02 September 2014


NextGen RCM to support the business side of the practices, streamline revenue cycle

and enhance cash flows. For a copy of press release, click here

Wheeling Hospital Renews and Expands Allscripts Sunrise EHR

■ On 7/15/2014 Allscripts announced that Wheeling Hospital has renewed the use of its

Sunrise EHR system through 2021. Along with this renewal Wheeling Hospital has

also announced it will use Sunrise Financial Manager and Allscripts FollowMyHealth, a

patient engagement platform which allows online access to health information. The

press release noted that Wheeling Hospital in addition will collaborate with Allscripts to

achieve Stage 7 on HIMSS Analytics Electronic Medical Record Adoption Models

(EMRAM). For a copy of press release, click here

NextGen to Extend RCM Services to Putnam County Memorial Hospital

■ On 7/17/2014 NextGen Healthcare Information System LLC, a wholly owned

subsidiary of Quality Systems Inc. announced that it will provide Revenue Cycle

Management (RCM) services to Putnam County Memorial Hospital (PCMH). PCMH

will leverage RCM to improve charge integrity, revenue capture and accounts

receivables collection. PCMH intends to use a single platform across clinical,

administrative and revenue solutions to streamline processes, reduce costs and

enhance operational workflow. Additionally, the press release noted that NextGen

RCM Services will continue to grow not only with ambulatory physicians, but also in

the hospital setting to address problems specific to the claims and payments phases

of hospital reimbursement. For a copy of press release click here

Memorial Sloan Kettering Deploys Allscripts dbMotion & Renews Sunrise

Solutions

On 7/9/2014 Allscripts announced that Memorial Sloan Kettering Cancer Center (MSK) will deploy Allscripts dbMotion interoperability and population health analytics solution. Allscripts dbMotion will address MSK's need for interoperability and connectivity solution to normalize and harmonize data across settings and systems. In addition MSK will leverage dbMotion Collaborate web based functionality which provides high-level visibility into patient information across the organization thereby delivering key data, analytics and insights. MSK also renews and extends the use of Allscripts Sunrise Suites to manage better care and patient outcome. For a copy of press release, click here

Express Scripts Renews DoD 7-Year TRICARE Pharmacy Program Contract (4/18/2014)

Express Scripts announced on April 18, 2014 that the US Department of Defense has

awarded the company a 7-year contract to administer the fourth generation of the

TRICARE Pharmacy Program. The contact includes administration of a retail

pharmacy network, operation of the TRICARE Mail Order Pharmacy and providing

Specialty Pharmacy Services covering approximately 10 M beneficiaries in total, with

the latest iteration of the contract taking effect 5/1/15. Recall that Express Scripts has

been providing the DoD’s home delivery and retail pharmacy network services since

2003 & 2004, respectively, with specialty services added in 2009. For a copy of press

release, click here and for a copy of our note on the contract renewal, click here






https://doc.research-and-analytics.csfb.com/docView?sourceid=em&document_id=x563087&serialid=xoXfAvb1t2U9iTb3CoDZKh6rN%2bTjhO0qdAMfjNiUjeg%3d

02 September 2014


Southern Illinois University Healthcare Chooses Allscripts TouchWorks EHR

(4/24/2014)

Allscripts announced on 4/24/14 that Southern Illinois University (SIU) Healthcare

has chosen Allscripts TouchWorks electronic health record for clinics in Springfield

and Southern Illinois. SIU HealthCare has 55 sites in 46 Illinois communities including

Springfield and satellite locations in Carbondale, Decatur and Quincy. The press

release noted that Allscripts TouchWorks will replace all existing ambulatory solutions

at SIU Healthcare Sites and will be hosted on Springfield Clinic’s Allscripts

TouchWorks system which has been implemented since 2008. For a copy of press

release, click here

Cerner and OTTR Chronic Care Solutions to Integrate Technology for Organ Transplant Care Teams (3/27/14)

Cerner Corp. announced on 3/27/14 that it will integrate its services and products with OTTR (Organ Transplant Tracking Record) Chronic Care Solutions to enhance the workflows and processes required to support solid organ, blood and marrow transplant care delivery teams. It is noted that Cerner will be the exclusive EHR supplier to OTTR to enable use of technology tools to support lifesaving transplants. For a copy of press release, click here

Henry Schein Chosen as Exclusive Veterinary Distributor of P&G's Iams®

Therapeutic Diet Formulas (2/26/14)

■ Henry Schein announced on 2/26/14 an agreement with Proctor and Gamble for being

exclusive distributor of P&G's Iams® therapeutic diet formulas in the contiguous

United States. As per the agreement Henry Schein Animal Health, the U.S. animal

health division will distribute the Iams' therapeutic and wellness diets including special

formulas to help nutritionally manage pet health concerns such as digestive

imbalance, skin & coat, weight management and joint and urinary issues as part of a

complete portfolio of pet nutritional solutions. For a copy of press release, click here

South Nassau Communities hospital Selects Allscripts dbmotion

■ Allscripts announced that it had been chosen by South Nassau Communities to

implement Allscripts dbmotion and FollowMyHealth for system integration, data

exchange and next generation health management. South Nassau also announced to

become Reference Site as a part of Allscripts Reference Program. An Allscripts

Reference Site allows healthcare IT professionals and decision-makers to see how the

Allscripts Open and integrated platform can connect and help optimize patient care.

South Nassau expects the new comprehensive solution will seamlessly fit with

Allscripts Sunrise platform and will deliver analytics insight for better patient care. For

a copy of the press release, click here

Dameron Hospital Association and Guam Regional Medical City Choose Allscripts'

Sunrise Suite of EHR Solutions (1/8/2014)

■ Dameron Hospital Association and Guam Regional Medical City (GRMC) separately

announced they had selected Allscripts to deploy the Sunrise clinical product suites as

their electronic health record (EHR) solution. Dameron will utilize the Allscripts Sunrise

platform to help it effectively and efficiently manage its range of medical, surgical and

intensive care services. On the other hand, GRMC, chose Allscripts to deploy a

complete clinical and financial system that includes Sunrise Critical Care(TM), Sunrise

Emergency Care(TM), Sunrise Laboratory(TM), Patient Registration, EPSi and

Sunrise Financial Manager for EHR, Revenue Cycle Management and overall

budgeting and planning. For a copy of the press releases, click here and here







02 September 2014


Big Bend Hospice Selects Allscripts Homecare Software Solution (1/2/2014)

■ Big Bend Hospice, Inc., based in Florida announced last week that it has chosen

Allscripts Homecare software solution to improve the delivery of critical clinical

information in the home. Big Bend Hospice chose Allscripts based on the reputation

and stability of its Homecare solution and also due to its reliability, ease-of-use and its

ability to integrate across platforms. Additionally, Big Bend Hospice also chose

Allscripts’ AllDocs solution which provides advanced workflows and helps

organizations become paperless. For a copy of the article, click here

http://www.4-traders.com/ALLSCRIPTS-HEALTHCARE-SOL-9987/news/Allscripts-Healthcare-Solutions-Inc--Big-Bend-Hospice-Selects-Allscripts-Homecare-17743923/

02 September 2014


Price/Earnings Multiples Comparison

Exhibit 9: Healthcare Technology & Distribution Comps

Valuation Comparisons Glen Santangelo 212-538-5678

Credit Suisse [email protected]

Price

Name Ticker Rating 08/29/14 Market Cap 2013E 2014E 2013E 2014E

Drug Distributors:

AmerisourceBergen Corp. ABC OP 77.39 $17,188 $4.09 $4.60 18.9 x 16.8 x

Cardinal Health, Inc. CAH OP 73.70 24,552 $3.93 $4.47 18.8 x 16.5 x

McKesson Corporation MCK OP 195.03 44,466 $10.60 12.06 18.4 x 16.2 x

Peer group average 18.7 x 16.5 x

Dental Distributors:

Henry Schein Inc. HSIC N 119.69 10,116 5.37 6.02 22.3 x 19.9 x

The Patterson Companies PDCO U 40.27 4,199 2.24 2.42 17.9 x 16.6 x


Dental Manufacturers:

Sirona Dental Systems SIRO OP 81.51 4,646 3.72 4.18 21.9 x 19.5 x

DENTSPLY International Inc. XRAY OP 47.71 6,804 2.52 2.77 19.0 x 17.2 x

Align Technology ALGN N 54.46 4,386 1.77 2.08 30.8 x 26.1 x


Other Distributors:

Owens & Minor Inc. OMI U 34.40 2,169 1.82 2.04 18.9 x 16.9 x

Pharmacy Benefit Managers:

Express Scripts Inc. ESRX OP 73.93 55,931 4.87 5.40 15.2 x 13.7 x

Catamaran Corp CTRX OP 47.12 9,759 2.21 2.55 21.3 x 18.5 x


Clinical Laboratories:

Lab Corporation of America LH N 107.23 9,018 6.72 7.25 15.9 x 14.8 x

Quest Diagnostics DGX N 63.21 9,001 4.03 4.29 15.7 x 14.7 x


LTC Pharmacy:

Omnicare Incorporated OCR OP 63.77 6,216 3.70 4.11 17.2 x 15.5 x

PharMerica Corporation PMC OP 24.89 770 1.52 1.80 16.4 x 13.9 x


Weight Management:

Weight Watchers International Inc. WTW N 24.69 1,375 3.63 1.80 13.7 x 17.0 x

Nutrisystem NTRI NR 16.32 465 0.41 0.63 25.9 x 20.9 x


CROs:

Charles River Laboratories CRL N 59.10 2,759 3.34 3.57 17.7 x 16.5 x

Covance, Inc. CVD OP 82.90 4,747 3.85 4.43 21.5 x 18.7 x

PAREXEL International Corp. PRXL OP 56.44 3,135 2.46 2.92 23.0 x 19.3 x

Quintiles Transnational Q OP 56.12 7,094 2.64 2.92 31.7 x 19.2 x


HCIT:

Cerner Corporation CERN N 57.66 19,290 1.65 1.93 35.0 x 29.9 x

Medidata Solutions Inc MDSO OP 46.54 2,381 0.78 0.96 59.4 x 48.7 x

Allscripts Healthcare Solutions Inc. MDRX OP 14.78 2,631 0.37 0.56 40.4 x 26.3 x

Quality Systems, Inc QSII U 15.66 914 0.58 0.64 27.2 x 24.3 x

Accretive Health, Inc. AH NR N/A 780 0.41 NA NA NA

Health Insurance Innovations HIIQ OP 12.74 183 0.23 0.75 NM 16.9 x


Calendar P/E

Healthcare Technology & Distribution

August 29, 2014

Calendar EPS

Source: Thomson, Credit Suisse estimates

02 September 2014


Companies Mentioned (Price as of 29-Aug-2014)

Aetna Inc. (AET.N, $82.13) Align Technology, Inc. (ALGN.OQ, $54.46) Allscripts Healthcare Solutions Inc. (MDRX.OQ, $14.78) AmerisourceBergen Corp. (ABC.N, $77.39) AstraZeneca (AZN.L, 4567.0p) Atossa Genetics (ATOS.OQ, $1.85) CVS Caremark Corporation (CVS.N, $79.45) Cardinal Health, Inc. (CAH.N, $73.7) Catamaran Corp (CTRX.OQ, $47.12) Celesio (CLSGn.DE, €25.85) Cerner Corporation (CERN.OQ, $57.66) Charles River Laboratories International Inc. (CRL.N, $59.1) Cigna Corp. (CI.N, $94.6) Covance, Inc. (CVD.N, $82.9) DENTSPLY International Inc. (XRAY.OQ, $47.7) Express Scripts Inc. (ESRX.OQ, $73.93) Health Insurance Innovations, Inc (HIIQ.OQ, $12.74) Henry Schein Inc. (HSIC.OQ, $119.69) ICON plc (ICLR.OQ, $49.54) IDEXX Labs (IDXX.OQ, $123.97) International Business Machines Corp. (IBM.N, $192.3) Lab Corporation of America (LH.N, $107.23) McKesson Corporation (MCK.N, $195.03) Medidata Solutions Inc (MDSO.OQ, $46.54) Omnicare Incorporated (OCR.N, $63.77) Owens & Minor Inc. (OMI.N, $34.4) PAREXEL International Corp. (PRXL.OQ, $56.44) PharMerica Corporation (PMC.N, $24.89) Premier (PINC.OQ, $31.58) Qiagen (QGEN.OQ, $24.16) Quality Systems, Inc (QSII.OQ, $15.66, UNDERPERFORM, TP $15.0) Quest Diagnostics (DGX.N, $63.21) Quintiles Transnational Holdings, Inc. (Q.N, $56.12) Sanofi (SASY.PA, €83.5) Sirona Dental Systems (SIRO.OQ, $81.51) The Patterson Companies (PDCO.OQ, $40.27) Walgreen Co. (WAG.N, $60.52) Weight Watchers International Inc. (WTW.N, $24.69) WellPoint Inc. (WLP.N, $116.51)

Disclosure Appendix

Important Global Disclosures

Glen Santangelo and Jeffrey Bailin, CFA, each certify, with respect to the companies or securities that the individual analyzes, that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

3-Year Price and Rating History for Quality Systems, Inc (QSII.OQ)

QSII.OQ Closing Price Target Price

Date (US$) (US$) Rating

12-Mar-12 42.91 47.00 N *

10-May-12 30.14 30.00

26-Jul-12 15.95 18.00

01-Oct-12 17.90 18.00 U

26-Oct-12 17.19 16.00

24-Jan-13 18.97 17.00

25-Jul-13 21.40 20.00

24-Oct-13 24.02 21.00

23-Jan-14 19.95 20.00

29-May-14 16.45 17.00

05-Aug-14 15.56 15.00

* Asterisk signifies initiation or assumption of coverage.

N EU T RA L

U N D ERPERFO RM

The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities

02 September 2014


As of December 10, 2012 Analysts’ stock rating are defined as follows:

Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark*over the next 12 months.

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Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.

*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage u niverse which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most a ttractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ra tings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin Ame rican and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe. For Australian and New Zealand stocks, 12 -month rolling yield is incorporated in the absolute total return calculat ion and a 15% and a 7.5% threshold replace the 10-15% level in the Outperform and Underperform stock rating definitions, respectively. The 15% and 7.5% thresholds replace the +10-15% and -10-15% levels in the Neutral stock rating definition, respectively. Prior to 10th December 2012, Japanese ratings were based on a stock’s total return relative to the average total return of the relevant country or regional benchmark.

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Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation:

Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months.

Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months.

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Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%)

Outperform/Buy* 44% (53% banking clients)

Neutral/Hold* 40% (51% banking clients)

Underperform/Sell* 13% (44% banking clients)

Restricted 3%

*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdin gs, and other individual factors.

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See the Companies Mentioned section for full company names

The subject company (AET.N, CI.N, CVS.N, IBM.N, WTW.N, WLP.N, ABC.N, WAG.N, CVD.N, MDSO.OQ, DGX.N, CTRX.OQ, LH.N, MCK.N, PMC.N, CAH.N, CERN.OQ, HIIQ.OQ, HSIC.OQ, MDRX.OQ, Q.N) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse.

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Credit Suisse provided non-investment banking services to the subject company (AET.N, IBM.N, WLP.N, ABC.N) within the past 12 months

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02 September 2014


Credit Suisse has received investment banking related compensation from the subject company (AET.N, IBM.N, WLP.N, ABC.N, CTRX.OQ, LH.N, PMC.N, HIIQ.OQ, HSIC.OQ) within the past 12 months

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (AET.N, AZN.L, CI.N, CVS.N, IBM.N, WTW.N, WLP.N, SIRO.OQ, QGEN.OQ, XRAY.OQ, ABC.N, WAG.N, CVD.N, MDSO.OQ, DGX.N, CTRX.OQ, OCR.N, OMI.N, LH.N, ALGN.OQ, ICLR.OQ, MCK.N, PMC.N, CAH.N, CERN.OQ, HIIQ.OQ, HSIC.OQ, MDRX.OQ) within the next 3 months.

Credit Suisse has received compensation for products and services other than investment banking services from the subject company (AET.N, IBM.N, WLP.N, ABC.N) within the past 12 months

As of the date of this report, Credit Suisse makes a market in the following subject companies (QSII.OQ, AET.N, CI.N, CVS.N, IBM.N, PDCO.OQ, WTW.N, WLP.N, SIRO.OQ, QGEN.OQ, XRAY.OQ, CRL.N, ESRX.OQ, ABC.N, WAG.N, CVD.N, MDSO.OQ, DGX.N, CTRX.OQ, OCR.N, OMI.N, LH.N, PRXL.OQ, ALGN.OQ, ICLR.OQ, MCK.N, PMC.N, CAH.N, CERN.OQ, HIIQ.OQ, HSIC.OQ, MDRX.OQ, Q.N).

As of the end of the preceding month, Credit Suisse beneficially own 1% or more of a class of common equity securities of (QGEN.OQ).

Credit Suisse has a material conflict of interest with the subject company (WLP.N) . Credit Suisse Securities (USA) LLC is acting as financial advisor to Wellpoint on their announced acquisition of Amerigroup.

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Important Regional Disclosures

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The analyst(s) involved in the preparation of this report have not visited the material operations of the subject company (QSII.OQ, AET.N, AZN.L, CI.N, CVS.N, CVS.N, IBM.N, PDCO.OQ, SASY.PA, WTW.N, WLP.N, SIRO.OQ, QGEN.OQ, XRAY.OQ, CRL.N, ESRX.OQ, ABC.N, WAG.N, CVD.N, MDSO.OQ, DGX.N, CTRX.OQ, OCR.N, OMI.N, LH.N, PRXL.OQ, ALGN.OQ, ICLR.OQ, MCK.N, PMC.N, CAH.N, CERN.OQ, HIIQ.OQ, HSIC.OQ, MDRX.OQ, Q.N) within the past 12 months

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The following disclosed European company/ies have estimates that comply with IFRS: (AZN.L, SASY.PA, QGEN.OQ, CAH.N).

An analyst involved in the preparation of this report received third party benefits in connection with this research report from the subject company (CVS.N)

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02 September 2014


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Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can be eroded due to changes in redemption amounts. Care is required when investing in such instruments. When you purchase non-listed Japanese fixed income securities (Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, Japanese corporate bonds) from CS as a seller, you will be requested to pay the purchase price only.

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