Healthcare & Life Sciences Industry Update...Overview May 2013 34.6% 55.3% 40 30.9% 60 80 100 120 140 160 180 ... 4/28/2013 Conceptus, Inc. Bayer HealthCare, LLC 4/26/2013 Actient

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Member FINRA/SIPC

Healthcare & Life Sciences

Industry Update May 2013

• Healthcare real estate trusts are pulling back from their exposure to nursing facilities,

according to an article in The Wall Street Journal. Publicly traded healthcare property

managers, including Health Care REIT, Senior Housing Properties Trust, and Ventas, have

disclosed in public filings reductions to their nursing facility tenants or cessation in

acquisition of nursing facilities. This comes at a time of uncertainty for nursing facilities

and other healthcare providers with recent cuts to many state Medicaid budgets and a broad

2% cut to Medicare reimbursement for many healthcare services, including skilled nursing,

as part of the budget sequestration that took effect on April 1. (a subscription to The Wall

Street Journal Online may be required)

• A report from the Brookings Institution, whose authors include former Health and Human

Services Secretary Michael Leavitt and former Senate Majority Leader Tom Daschle,

estimates that the federal government could save more than $300 billion in healthcare costs

over the next 10 years with more integrated care and a move to a risk-based payment

system. The report recommends transforming Medicare into a “Medicare comprehensive-

care” system in which providers receive a capitated payment based on care quality and

patient outcome, and with per-capita spending growth limited to per-capita GDP. The

authors estimate the federal government would save $120 billion from 2019 to 2023 alone.

An article published by Modern Healthcare provides a concise summary. The report itself

can be found here.

• On May 8, the Federal Government released a report that, for the first time, will expose the

prices charged by hospitals across the U.S. for the 100 most common procedures. The

report reveals that there is significant variation in the prices hospitals charge for the same

procedures, even within the same state. For example, a lower limb replacement in

Richmond, VA can cost approximately four times as much as in Winchester, VA. The

report comes as part of an effort by Medicare to provide more transparency with respect to

healthcare costs for patients and consumers. An article published by the Washington Post

highlights key findings of the report and the original report can be found here.

What We’ve Been

Reading

May 2013

1

http://online.wsj.com/article/SB10001424127887323798104578453263895944642.html?mod=rss_mobile_uber_feed

















http://www.modernhealthcare.com/article/20130429/NEWS/304299937?AllowView=VW8xUmo5Q21TcWJOb1gzb0tNN3RLZ0h0MWg5SVgra3NZRzROR3l0WWRMWGJVUDhJRWxiNUtpQzMyWmV2NVhVWUpiK20=&utm_source=link-20130429-NEWS-304299937&utm_medium=email&utm_campaign=am









http://www.brookings.edu/research/reports/2013/04/person-centered-health-care-reform












http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/08/one-hospital-charges-8000-another-38000/?hpid=z2













http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/Medicare-Provider-Charge-Data/index.html













2

Key Trading

Statistics

(detail begins

on page 6)

Equity Trading

Overview

May 2013

Public Company

Sector

Performance

(12-month %

change in stock

price)

Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Clinical Laboratories 3 $7,915 (3.5%) 6.2% 1.7x 7.6x 1.7x 8.0x

Contract Pharma Manufacturing 5 1,110 20.2% 92.7% 1.5x 11.4x 1.6x 9.1x

Contract Research Organizations 5 2,247 12.1% 52.0% 1.6x 12.9x 1.6x 11.1x

Disease Management 2 3,407 28.1% 57.9% 1.6x 11.5x 1.5x 8.9x

Emergency Services 1 2,064 (15.3%) 30.5% 2.4x 7.8x 2.3x 8.6x

Health Care Staffing 4 1,410 7.2% 51.4% 1.0x 12.8x 0.9x 11.4x

HMO - Medical 10 17,860 11.5% 12.1% 0.4x 6.9x 0.4x 6.7x

Information Services 11 2,745 10.1% 19.3% 3.0x 15.8x 2.9x 11.1x

Specialty Managed Care 2 2,959 13.4% 13.5% 0.9x 7.4x 0.9x NA

Specialty Pharmacy Management 5 17,209 10.5% 25.6% 0.8x 9.2x 0.8x 9.1x

Dental Products 3 28,567 3.9% 17.2% 2.6x 14.6x 2.5x 12.4x

Durable Medical Equipment 5 1,918 (8.0%) (15.1%) 1.1x 10.3x 1.1x 7.2x

Life Sciences Tools 3 16,354 12.1% 20.2% 2.6x 10.2x 2.5x 9.3x

Medical Devices and Products 14 39,366 2.6% 20.8% 2.7x 10.3x 2.7x 9.5x

Medical / Surgical / Dental Supplies 6 11,643 4.5% 13.6% 0.2x 9.1x 0.2x 8.7x

Acute-Care Hospitals 6 15,453 14.4% 57.7% 1.1x 7.7x 1.0x 7.3x

Assisted Living 6 2,240 6.5% 36.8% 2.2x 13.3x 2.0x 12.9x

Diagnostic Imaging 3 2,647 (8.8%) 2.7% 1.5x 6.3x 1.5x 5.7x

Dialysis Services 2 21,947 1.6% 15.6% 2.3x 11.2x 1.7x 8.2x

Home Care / Hospice 6 633 3.5% 24.7% 0.6x 6.2x 0.6x 7.1x

Long-Term Care 3 1,242 (0.2%) 8.8% 0.9x 6.0x 0.8x 5.6x

Physician Practice Management 3 2,039 3.9% 18.8% 1.9x 9.7x 1.7x 10.2x

Psychiatric Hospitals / Management 3 2,965 (1.2%) 24.5% 0.3x 5.8x 0.3x 5.9x

Surgicenters / Rehabilitation 4 2,313 1.7% 7.3% 1.6x 6.9x 1.5x 7.3x

Payer, Provider, & Pharmacy Support Services 48 $5,893 9.4% 36.1% 1.5x 10.3x 1.5x 9.3x

Products & Devices 31 $19,570 3.0% 11.3% 1.8x 10.9x 1.8x 9.4x

Provider-Based Services 36 $5,720 2.4% 21.9% 1.4x 8.1x 1.2x 7.8x

HW&Co. HCLS Composite Index 115 $8,677 5.5% 25.6% 1.5x 9.6x 1.4x 8.7x

S&P 500 6.4% 14.3%

Payer

, P

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& P

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Median TEV/

Forward MulitplesSectorNumber of

Companies

Average

Enterprise

Value ($ mm)

Median TEV/

LTM Multiples

Contract Pharma Manufacturing

Disease Management

Acute-Care Hospitals

Contract Research Organizations

Health Care Staffing

Assisted Living

Emergency Services

Specialty Pharmacy Management

HW&Co. HCLS Composite Index

Home Care / Hospice

Psychiatric Hospitals / Management

Medical Devices and Products

Life Sciences Tools

Information Services

Physician Practice Management

Dental Products

Dialysis Services

S&P 500

Medical / Surgical / Dental Supplies

Specialty Managed Care

HMO - Medical

Long-Term Care

Surgicenters / Rehabilitation

Clinical Laboratories

Diagnostic Imaging

Durable Medical Equipment

(40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% 120.0%

3

Healthcare &

Life Sciences

Industry Stock

Performance

Top 25 Equity

Offerings

(by proceeds)

Equity Markets

Overview

May 2013

34.6%

55.3%

30.9%

40

60

80

100

120

140

160

180

Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index

Closing Date Filing Date Issuer Ticker Transaction Type

Gross Proceeds

($mm)

04/04/13 04/04/13 Emergency Medical Services N/A IPO $750.0

04/11/13 09/28/12 Infinity Pharmaceuticals Inc INFI Follow-On 456.7

04/22/13 04/22/13 Clovis Oncology Inc CLVS Follow-On 200.0

04/19/13 03/18/13 BioScrip Inc BIOS Follow-On 172.5

04/10/13 03/08/13 Chimerix Inc CMRX IPO 117.9

04/12/13 04/12/13 Portola Pharmaceuticals Inc PTLA IPO 115.0

04/25/13 03/11/13 Spectranetics Corp SPNC Follow-On 98.3

04/10/13 06/21/12 Synergy Pharmaceuticals Inc SGYPU Follow-On 90.1

04/25/13 04/25/13 Supernus Pharmaceuticals Inc SUPN Convertible 90.0

04/29/13 04/29/13 Regado Biosciences Inc RGDO IPO 75.0

04/04/13 04/04/13 Receptos Inc N/A IPO 70.5

04/16/13 03/20/13 ChemoCentryx Inc CCXI Follow-On 69.0

04/11/13 03/08/13 Omthera Pharmaceuticals Inc OMTH IPO 64.0

04/11/13 03/29/13 Durata Therapeutics Inc DRTX Follow-On 57.6

04/15/13 04/12/13 OvaScience Inc OVSC Follow-On 35.2

04/11/13 10/05/12 Coronado Biosciences Inc CNDO Follow-On 31.0

04/01/13 04/01/13 Solta Medical Inc SLTM Follow-On 26.1

04/05/13 04/05/13 Atossa Genetics Inc ATOS Follow-On 25.5

04/29/13 04/29/13 Aastrom Biosciences Inc ASTM Follow-On 25.0

04/22/13 04/22/13 Cempra Inc CEMP Follow-On 25.0

04/18/13 04/18/13 ImmunoCellular Therapeutics IMUC Follow-On 25.0

04/16/13 04/16/13 Apricus Biosciences Inc APRI Follow-On 17.2

04/29/13 04/29/13 Synthetic Biologics Inc AEN Follow-On 15.5

04/01/13 04/01/13 Centene Corp CNC Follow-On 15.3

04/04/13 04/01/11 MEI Pharma Inc MEIP Follow-On 15.2

4

Announced

Healthcare &

Life Sciences

M&A

Announced Healthcare & Life Sciences Transactions Median Healthcare & Life Sciences Transaction Multiples

PEG Investments and Exits PEG Investments by Segment (Last 3 Years)

Healthcare &

Life Sciences

M&A Trends

Announced

Private Equity

M&A Activity

Middle Market Healthcare Transaction Highlights Quarterly M&A Activity

LTM Deal Statistics

Note: Transactions based on publicly available information

M&A Overview

May 2013

$194.1 $174.6

$110.6

$141.4

$101.6

$33.5

0

200

400

600

800

1000

1200

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2008 2009 2010 2011 2012 2013 YTD

Nu

mb

er o

f Tra

nsa

ctio

ns_

_

Ag

greg

ate

Tra

nsa

cti

on

Va

lue (

$ i

n b

illi

on

s)

Aggregate Deal Value # of deals

15.2x

7.7x

12.8x

11.1x 10.9x

14.4x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

0x

3x

6x

9x

12x

15x

18x

21x

2008 2009 2010 2011 2012 2013 YTD

EV

/ LT

M R

ev

en

ue M

ultip

le_

_EV

/ L

TM

EB

ITD

A M

ult

iple

__

TEV / LTM EBITDA TEV / LTM Sales

255

225242

256267

245 236219

229 221

291

200

81

19

17

13

1816

1318

11

2012

22

16

7

0

50

100

150

200

250

300

350

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Nu

mb

er o

f T

ra

nsa

cti

on

s__

PEG Acquirer Strategic Acquirer

40

58

69

94

113

79

42

7165 65

2327

40

60 62

95

49 50

80

120

139

35

0

20

40

60

80

100

120

140

160

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD

Tra

nsa

cti

on

Vo

lum

e'

Number of Investments Number of Exits

HC&LS Industry Number of

Segment Companies

Biotechnology 5

Healthcare Technology 19

Healthcare Distributors 7

Healthcare Equipment 26

Healthcare Facilities 32

Healthcare Services 61

Healthcare Supplies 8

Life Sciences Tools & Services 16

Managed Healthcare 6

Pharmaceuticals 17

Aggregate Number Median Transaction Multiples

Value ($bn) of Deals TEV/Rev TEV/EBITDA

$1,527.3 1,012 2.25x 10.4x

Announced Target Buyer

4/30/2013 Semantelli Corporation IMS Health Incorporated

4/28/2013 Conceptus, Inc. Bayer HealthCare, LLC

4/26/2013 Actient Pharmaceuticals, LLC Auxilium Pharmaceuticals Inc

4/25/2013 Bioreclamation, LLC Thompson Street Capital Partners

4/17/2013 Managed Healthcare Associates, Inc. Roper Industries Inc.

4/15/2013 AxelaCare Health Solutions, LLC. Harvest Partners, LLC

4/14/2013 Life Technologies Corporation Thermo Fisher Scientific, Inc.

4/11/2013 UAS Laboratories, Inc. Lakeview Equity Partners, LLC

4/5/2013 SYNARC Inc. Water Street Healthcare Partners

4/2/2013 AndersonBrecon Inc. Frazier Healthcare; Greenspring Associates

Key Credit

Statistics

Top 20 Recent

Healthcare &

Life Sciences

Debt Offerings

(by deal amount)

Average Secondary Spread

Average Spread on Healthcare Loans

Credit Statistics

Quarterly Healthcare Loan Volume

Debt Markets

Overview

May 2013

5

$0

$3

$6

$9

$12

$15

$18

$21

$24

1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13

Lo

an

Vo

lum

e b

y Q

ua

rte

r (

$ i

n b

illi

on

s)_

__

Pro Rata Institutional

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

2007 2008 2009 2010 2011 2012 2013YTD

Aver

age

Sp

read

Over

LIB

OR

__

Revolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 200

L + 400

L + 600

L + 800

L + 1000

Aver

age

Sp

read

Over

LIB

OR

__

1

(1) Not available for 2013YTD.

0.0x

2.0x

4.0x

6.0x

Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash Interest EBITDA - Capex/Cash Interest

EB

ITD

A M

ult

iple

__

2007 2008 2009 2010 2011 2012 2013YTD

Date Effective Borrower Name Description Tranche Amount ($mn) Type Rating Spread

04/26/13 Bausch & Lomb Inc Optical instruments and lenses $1,920 Term Loan B B+ / Caa1 L+ 300

04/26/13 Bausch & Lomb Inc Optical instruments and lenses 1,336 Term Loan B NR / Caa1 L+ 350

04/26/13 Bausch & Lomb Inc Optical instruments and lenses 500 Revolver/Line >= 1 Yr. NR / Caa1 L+ 325

04/26/13 Bausch & Lomb Inc Optical instruments and lenses 399 Delay Draw Term Loan B+ / Caa1 L+ 325

04/26/13 Bausch & Lomb Inc Optical instruments and lenses 170 Delay Draw Term Loan NR / Caa1 L+ 325

04/23/13 HCA Inc General medical & surgical hospitals 2,373 Term Loan B BB / B3 L+ 275

04/04/13 Celgene Corp Pharmaceutical preparations 1,500 Revolver/Line >= 1 Yr. NR / Baa2 L+ 113

04/05/13 Apria Healthcare Group Inc Home health care services 900 Term Loan B BB- / B2 L+ 550

04/11/13 Surgery Center Holdings Inc Offices & clinics of medical doctors 315 Term Loan B B / NR L+ 475

04/11/13 Surgery Center Holdings Inc Offices & clinics of medical doctors 120 Term Loan CCC+ / NR L+ 850

04/11/13 Surgery Center Holdings Inc Offices & clinics of medical doctors 30 Revolver/Line >= 1 Yr. B / NR N/A

04/03/13 RadNet Inc Medical laboratories 389 Term Loan B B+ / NR L+ 325

04/15/13 Steward Healthcare Offices & clinics of medical doctors 285 Term Loan B B / B2 L+ 550

04/25/13 Catalent Pharma Solution Pharmaceutical preparations 275 Term Loan B NR / Caa1 N/A

04/24/13 Harden Healthcare Home health care services 150 Term Loan B NR / NR L+ 550

04/24/13 Harden Healthcare Home health care services 40 Revolver/Line >= 1 Yr. NR / NR N/A

04/05/13 Synarc Inc Medical laboratories 100 Term Loan A NR / NR N/A

04/05/13 Synarc Inc Medical laboratories 15 Revolver/Line >= 1 Yr. NR / NR N/A

04/03/13 Advanced Infusion Solutions Inc Home health care services 50 Term Loan NR / NR L+ 450

04/03/13 Advanced Infusion Solutions Inc Home health care services 10 Revolver/Line >= 1 Yr. NR / NR L+ 450

Healthcare & Life Sciences Trading Statistics

May 2013

As of April 30, 2013 6

Payer, Provider, & Pharmacy Support Services

Stock Price

% Change 52 Week

4/30/2013 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA

Clinical Laboratories

Bio-Reference Laboratories Inc. $25.50 (8.0%) 19.6% $32.86 $18.29 $707 $24 $26 $705 $684 $96 $79 Jan-13 Oct-12 $711 $107 $89 1.0x 7.4x 1.0x 6.6x

Laboratory Corp. of America Holdings 93.36 4.0% 6.2% 95.92 81.56 8,679 2,323 186 10,837 5,689 1,288 1,100 Mar-13 Dec-12 5,789 1,278 1,075 1.9x 8.3x 1.9x 8.5x

Quest Diagnostics Inc. 56.33 (3.5%) (2.4%) 64.87 53.25 8,902 3,409 134 12,204 7,261 1,577 1,292 Mar-13 Dec-12 7,316 1,535 1,263 1.7x 7.6x 1.7x 8.0x

Number of Companies 3 Median: (3.5%) 6.2% Total $18,288 $7,915 $13,634 $13,817 1.7x 7.6x 1.7x 8.0x

Mean: (2.5%) 7.8% $7,915 1.5x 7.8x 1.5x 7.7x

Contract Pharma Manufacturing

Akorn, Inc. $15.05 20.2% 24.1% $16.87 $11.19 $1,444 $106 $46 $1,508 $278 $92 $81 Mar-13 Dec-12 $334 $116 $108 5.9x 17.0x 4.5x 13.0x

Cambrex Corporation. 12.49 6.1% 92.7% 14.33 6.30 375 72 32 415 281 59 37 Mar-13 Dec-12 305 65 43 1.5x 7.4x 1.4x 6.4x

Integrated Biopharma Inc. 0.00 25.0% 292.2% 0.33 0.03 4 15 0 19 31 (1) (1) Dec-12 Jun-12 NA NA NA 0.6x NM NA NA

Patheon Inc. 4.42 22.8% 101.8% 4.48 1.75 619 590 55 1,154 809 98 57 Jan-13 Oct-12 1,023 142 82 1.4x 11.8x 1.1x 8.1x

West Pharmaceutical Services, Inc. 63.86 7.5% 42.2% 65.47 42.68 2,210 420 0 2,456 1,290 221 144 Mar-13 Dec-12 1,376 241 159 1.9x 10.9x 1.8x 10.2x

Number of Companies 5 Median: 20.2% 92.7% Total $4,653 $1,110 $2,689 $3,037 1.5x 11.4x 1.6x 9.1x

Mean: 16.3% 110.6% $1,110 2.3x 11.8x 2.2x 9.4x

Contract Research Organizations

Albany Molecular Research Inc. $11.93 95.6% 274.0% $11.95 $2.25 $375 $8 $23 $360 $227 $31 $14 Dec-12 Dec-12 NA NA NA 1.6x 11.6x NA NA

Charles River Laboratories International, Inc. 43.49 5.0% 22.4% 46.90 31.48 2,123 649 100 2,675 1,135 256 175 Mar-13 Dec-12 1,176 276 202 2.4x 10.4x 2.3x 9.7x

Covance Inc. 74.56 12.1% 59.5% 75.73 44.19 4,161 325 430 3,988 2,230 314 197 Mar-13 Dec-12 2,345 346 221 1.8x 13.2x 1.7x 11.5x

ICON Public Limited Company 32.12 10.9% 44.8% 35.86 20.25 1,936 0 137 1,746 1,179 133 89 Mar-13 Dec-12 1,294 163 117 1.5x 13.2x 1.3x 10.7x

PAREXEL International Corporation 40.95 24.7% 52.0% 41.32 23.75 2,381 382 0 2,466 1,664 191 123 Mar-13 Jun-12 1,704 207 136 1.5x 12.9x 1.4x 11.9x


Mean: 29.7% 90.5% $2,247 1.7x 12.3x 1.7x 11.0x

Disease Management

Alere Inc. $25.68 23.0% 7.5% $26.92 $17.13 $2,085 $3,709 $328 $6,073 $2,819 $594 $137 Dec-12 Dec-12 $2,937 $659 $518 2.2x 10.0x 2.1x 9.2x

Healthways Inc. 13.89 33.3% 108.2% 13.92 6.21 474 269 2 741 677 57 29 Mar-13 Dec-12 728 86 31 1.1x 13.0x 1.0x 8.6x


Mean: 28.1% 57.9% $3,407 1.6x 11.5x 1.5x 8.9x

Emergency Services

Air Methods Corp. $36.59 (15.3%) 30.5% $50.61 $27.16 $1,420 $648 $4 $2,064 $851 $264 $181 Dec-12 Dec-12 $908 $239 $153 2.4x 7.8x 2.3x 8.6x

Number of Companies 1 Median: (15.3%) 30.5% Total $1,420 $2,064 $851 $908 2.4x 7.8x 2.3x 8.6x

Mean: (15.3%) 30.5% $2,064 2.4x 7.8x 2.3x 8.6x

Health Care Staffing

AMN Healthcare Services Inc. $13.73 14.6% 104.6% $15.94 $5.45 $630 $159 $2 $783 $980 $71 $57 Mar-13 Dec-12 $1,023 $76 $61 0.8x 11.6x 0.8x 10.3x

Cross Country Healthcare, Inc. 5.00 (9.1%) 8.5% 6.23 3.80 158 34 10 181 443 3 (6) Dec-12 Dec-12 455 13 5 0.4x 57.2x 0.4x 14.0x

On Assignment Inc. 24.27 3.1% 29.7% 26.09 14.48 1,292 384 8 1,667 1,472 147 118 Mar-13 Dec-12 1,651 161 124 1.1x 11.4x 1.0x 10.4x

Team Health Holdings, Inc. 37.28 11.4% 73.1% 38.55 21.27 2,561 514 65 3,010 2,166 216 168 Mar-13 Dec-12 2,360 244 200 1.4x 14.0x 1.3x 12.3x


Mean: 5.0% 54.0% $1,410 0.9x 23.5x 0.9x 11.7x

Company NameLTM

Period

Lastest

FYE Date

TEV/ LTM MultiplesEquity

Mkt. ValueTotal Debt

Cash and

Equiv.

Total

Ent.

Value

(TEV)

Lastest Twelve Months

(LTM)TEV/ Fwd MultiplesForward Estimate


May 2013

As of April 30, 2013


7

Stock Price

% Change 52 Week


HMO - Medical

Commercial:

Aetna Inc. $57.44 17.3% 30.4% $58.64 $34.58 $18,720 $6,798 $3,228 $22,335 $37,218 $3,537 $3,094 Mar-13 Dec-12 $39,338 $3,360 $3,080 0.6x 6.3x 0.6x 6.6x

Cigna Corp. 66.17 12.5% 43.1% 66.94 39.01 18,989 5,395 3,306 21,325 30,548 2,770 2,397 Mar-13 Dec-12 32,050 3,372 2,831 0.7x 6.6x 0.7x 6.3x

Coventry Health Care Inc. 49.55 7.5% 65.2% 49.86 28.94 6,676 1,585 1,532 6,862 13,990 877 756 Mar-13 Dec-12 14,843 853 726 0.5x 7.4x 0.5x 8.0x

Health Net, Inc. 29.40 11.6% (17.4%) 36.90 16.65 2,332 499 230 2,601 11,256 228 195 Mar-13 Dec-12 11,174 332 321 0.2x 11.4x 0.2x 7.8x

Humana Inc. 74.11 (0.3%) (8.1%) 85.18 59.92 11,762 2,898 1,398 13,391 39,393 2,727 2,365 Mar-13 Dec-12 41,271 2,491 2,152 0.3x 5.7x 0.3x 5.4x

UnitedHealth Group Incorporated 59.93 6.9% 6.7% 63.95 50.32 61,424 18,049 10,038 71,623 113,676 10,013 9,076 Mar-13 Dec-12 122,464 10,636 9,417 0.6x 7.2x 0.6x 6.7x

WellPoint Inc. 72.92 11.5% 7.5% 74.43 52.52 21,902 15,357 1,665 35,594 63,984 5,440 4,666 Mar-13 Dec-12 71,429 4,453 3,957 0.6x 6.5x 0.5x 8.0x


Mean: 9.6% 18.2% $24,819 0.5x 7.3x 0.5x 7.0x

Government:

Centene Corp. 46.20 5.7% 16.7% 48.55 24.26 2,514 536 731 2,320 9,636 96 42 Mar-13 Dec-12 10,707 329 264 0.2x 24.2x 0.2x 7.1x

Molina Healthcare, Inc. 33.20 16.4% 29.4% 34.28 17.63 1,508 644 1,170 981 6,246 114 69 Mar-13 Dec-12 6,948 243 168 0.2x 8.6x 0.1x 4.0x

WellCare Health Plans, Inc. 58.31 15.2% (4.7%) 68.65 44.75 2,533 356 1,378 1,567 7,874 264 245 Mar-13 Dec-12 8,971 390 353 0.2x 4.9x 0.2x 4.0x


Mean: 12.4% 13.8% $1,623 0.2x 12.6x 0.2x 5.0x

Information Services

Data/Analytics:

Accelrys Inc. $9.85 6.9% 19.7% $9.98 $7.44 $550 $0 $73 $420 $165 $11 ($13) Mar-13 Dec-12 $187 $37 $27 2.5x 39.9x 2.2x 11.4x

National Research Corp. 59.95 11.5% 24.0% 61.58 41.00 414 13 8 419 86 27 23 Dec-12 Dec-12 99 32 27 4.8x 15.3x 4.2x 13.3x

Number of Companies 2 Median: 9.2% 21.9% Total $965 $419 $252 $286 3.7x 27.6x 3.2x 12.3x

Mean: 9.2% 21.9% $419 3.7x 27.6x 3.2x 12.3x

eHealth:

WebMD Health Corp. 24.15 50.7% 6.2% 24.85 13.13 1,184 800 992 992 470 23 (0) Dec-12 Dec-12 $449 $77 $49 2.1x 42.7x NA NA

Number of Companies 1 Median: 50.7% 6.2% Total $1,184 $992 $470 $449 2.1x 42.7x NA NA

Mean: 50.7% 6.2% $992 2.1x 42.7x NA NA

Hospital/Physician:

Allscripts Healthcare Solutions, Inc. $13.84 23.4% 24.7% $14.23 $8.84 $2,443 $444 $104 $2,784 $1,446 $124 $38 Dec-12 Dec-12 $1,511 $282 $186 1.9x 22.4x 1.8x 9.9x

athenahealth, Inc. 96.26 10.1% 32.9% 99.79 56.33 3,534 105 48 3,341 451 38 14 Mar-13 Dec-12 542 110 80 7.9x 65.4x 6.2x 30.3x

Cerner Corporation 96.77 17.3% 19.3% 97.52 67.64 16,633 182 281 15,810 2,646 746 601 Mar-13 Dec-12 2,990 971 725 6.0x 21.2x 5.3x 16.3x

Computer Programs & Systems Inc. 52.46 (0.2%) (12.0%) 60.93 44.95 581 0 7 564 188 46 42 Mar-13 Dec-12 201 52 48 3.0x 12.4x 2.8x 10.8x

HMS Holdings Corp. 25.21 (8.7%) 4.8% 37.19 18.50 2,208 324 139 2,392 483 152 96 Mar-13 Dec-12 505 161 101 5.0x 15.7x 4.7x 14.8x

MedAssets, Inc. 18.73 (4.6%) 48.5% 19.99 10.73 1,141 875 9 2,021 663 209 106 Mar-13 Dec-12 680 221 95 3.2x 10.4x 3.0x 9.2x

Merge Healthcare Incorporated 3.12 13.9% (27.3%) 4.38 2.20 292 250 44 499 252 29 10 Mar-13 Dec-12 265 59 30 2.0x 15.8x 1.9x 8.4x

Quality Systems Inc. 17.87 (2.2%) (52.2%) 38.67 15.04 1,064 0 102 957 458 108 95 Dec-12 Mar-12 466 120 97 2.1x 8.9x 2.1x 8.0x

Number of Companies 8 Median: 5.0% 12.0% Total $1,674 $3,546 $470 $524 3.1x 15.8x 2.9x 10.3x

Mean: 6.1% 4.8% $2,207 3.1x 15.8x 2.9x 10.3x

Company NameEquity


Cash and

Equiv.

Total

Ent.

Value

(TEV)


(LTM)LTM

Period

Lastest

FYE Date

Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples


May 2013



8

Stock Price

% Change 52 Week


Specialty Managed Care

Assurant Inc. 47.54 23.6% 17.8% 47.86 32.41 3,754 1,765 1,605 5,424 8,586 898 775 Mar-13 Dec-12 8,478 NA 781 0.6x 6.0x 0.6x NA

CorVel Corporation 47.47 3.2% 9.2% 51.36 39.71 514 0 21 493 422 56 40 Dec-12 Mar-12 426 NA NA 1.2x 8.8x 1.2x NA

Number of Companies 2 Median: 13.4% 13.5% Total $4,267 $2,959 $9,008 $8,904 0.9x 7.4x 0.9x NA

Mean: 13.4% 13.5% $2,959 0.9x 7.4x 0.9x NA

Specialty Pharmacy Management

BioScrip Inc. $13.86 22.0% 87.0% $13.92 $6.14 $922 $226 $62 $1,086 $663 $34 $22 Dec-12 Dec-12 $838 $66 $45 1.6x 32.3x 1.3x 16.4x

Express Scripts Holding Company 59.37 10.5% 6.4% 66.06 49.79 48,465 14,447 1,990 60,932 107,789 6,217 3,946 Mar-13 Dec-12 100,596 6,700 6,326 0.6x 9.8x 0.6x 9.1x

Catamaran Corporation 58.17 9.8% 29.9% 59.00 42.03 11,977 1,075 311 12,780 11,443 506 319 Mar-13 Dec-12 14,511 676 449 1.3x 31.2x 0.9x 18.9x

Omnicare Inc. 43.77 12.7% 25.6% 43.77 29.24 4,593 2,052 510 6,135 6,092 703 566 Mar-13 Dec-12 6,131 681 571 1.0x 8.7x 1.0x 9.0x

PharMerica Corporation 12.89 (11.8%) 8.6% 15.42 9.03 381 272 8 684 1,774 112 79 Mar-13 Dec-12 1,663 113 80 0.4x 6.6x 0.4x 6.0x


Mean: 8.7% 31.5% $17,209 0.9x 14.3x 0.8x 10.1x

TEV/ LTM Multiples TEV/ Fwd MultiplesTotal

Ent.

Value

(TEV)


(LTM)LTM

Period

Lastest

FYE Date

Forward EstimateCompany Name

Equity


Cash and

Equiv.


May 2013


Products & Devices

9

Stock Price

% Change 52 Week


Dental Products

3M Company $104.71 3.9% 17.2% $108.72 $81.99 $72,270 $5,936 $2,928 $73,830 $30,052 $7,806 $6,495 Mar-13 Dec-12 $31,064 $8,159 $6,861 2.5x 9.5x 2.4x 9.0x

DENTSPLY International Inc. 42.35 0.9% 3.1% 43.63 35.04 6,060 1,718 80 7,737 2,928 534 405 Dec-12 Dec-12 3,046 623 503 2.6x 14.6x 2.5x 12.4x

Sirona Dental Systems Inc. 73.54 11.2% 45.6% 75.27 40.59 4,179 75 124 4,134 994 255 183 Dec-12 Sep-12 1,087 296 260 4.2x 16.2x 3.8x 14.0x


Mean: 5.3% 22.0% $28,567 3.1x 13.4x 2.9x 11.8x

Durable Medical Equipment

Hill-Rom Holdings, Inc. 34.07 1.7% 5.0% 36.23 24.69 2,036 327 87 2,276 1,692 274 176 Mar-13 Sep-12 1,726 317 190 1.3x 8.3x 1.3x 7.2x

Invacare Corporation 13.45 (20.1%) (15.1%) 18.27 10.26 429 117 25 520 1,438 51 13 Mar-13 Dec-12 1,333 NA (7) 0.4x 10.3x 0.4x NA

Prism Medical Ltd. 5.32 (8.0%) (15.2%) 6.55 4.85 45 23 2 66 75 6 4 Feb-13 Nov-12 82 10 NA 0.9x 10.3x 0.8x 6.6x

ResMed Inc. 48.02 2.5% 41.2% 48.47 29.82 6,891 341 1,013 6,219 1,472 440 359 Mar-13 Jun-12 1,511 458 375 4.2x 14.1x 4.1x 13.6x

Rotech Healthcare Inc. 0.18 (62.0%) (86.5%) 1.35 0.09 5 525 19 511 466 75 9 Sep-12 Dec-11 NA NA NA 1.1x 6.8x NA NA

Number of Companies 5 Median: (8.0%) (15.1%) Total $9,405 $1,918 $5,142 $4,652 1.1x 10.3x 1.1x 7.2x

Mean: (17.2%) (14.1%) $1,918 1.6x 10.0x 1.7x 9.1x

Life Sciences Tools

Agilent Technologies Inc. $41.44 (6.7%) (1.8%) $45.66 $35.32 $14,386 $2,361 $2,450 $14,300 $6,903 $1,401 $1,083 Jan-13 Oct-12 $7,014 $1,546 $1,282 2.1x 10.2x 2.0x 9.3x

Becton, Dickinson and Company 94.30 12.1% 20.2% 97.14 71.56 18,291 4,170 0 19,947 7,848 2,120 1,614 Mar-13 Sep-12 7,994 2,150 1,603 2.6x 9.4x 2.5x 9.3x

Life Technologies Corporation 73.69 14.4% 59.0% 73.85 39.73 12,662 2,397 262 14,816 3,822 1,198 798 Mar-13 Dec-12 3,922 1,410 1,164 3.9x 12.4x 3.8x 10.5x


Mean: 6.6% 25.8% $16,354 2.8x 10.7x 2.8x 9.7x

Medical Devices and Products

Abbott Laboratories $36.92 11.1% (40.5%) $72.47 $31.64 $57,989 $20,476 $0 $63,384 $39,968 $11,686 $8,917 Mar-13 Dec-12 $22,452 $5,299 $4,193 1.6x 5.4x 2.8x 12.0x

ArthroCare Corporation 34.65 (4.3%) 38.8% 36.99 24.14 976 0 219 838 368 95 74 Dec-12 Dec-12 380 94 71 2.3x 8.9x 2.2x 8.9x

Baxter International Inc. 69.87 2.9% 26.1% 72.85 48.98 37,967 5,869 2,689 40,667 14,250 4,005 3,285 Mar-13 Dec-12 15,516 4,211 3,422 2.9x 10.3x 2.6x 9.7x

Boston Scientific Corporation 7.49 2.5% 19.6% 7.95 4.79 10,114 4,254 268 14,100 7,144 1,632 941 Mar-13 Dec-12 7,066 1,587 880 2.0x 8.6x 2.0x 8.9x

CR Bard Inc. 99.36 (2.8%) 0.4% 108.31 93.69 7,997 1,409 879 8,526 2,968 915 783 Mar-13 Dec-12 3,069 890 746 2.9x 9.3x 2.8x 9.6x

Danaher Corp. 60.94 1.6% 12.4% 62.90 49.18 42,214 4,471 2,151 44,602 18,389 4,083 3,228 Mar-13 Dec-12 18,956 4,159 3,292 2.4x 10.8x 2.4x 10.7x

Hanger, Inc. 30.39 8.3% 29.0% 32.03 20.43 1,050 521 0 1,551 1,001 167 131 Mar-13 Dec-12 1,070 185 146 1.6x 9.4x 1.4x 8.4x

Hologic Inc. 20.37 (13.7%) 6.5% 23.96 16.18 5,452 5,005 752 9,769 2,303 729 281 Mar-13 Sep-12 2,625 1,064 829 4.5x 13.6x 3.7x 9.2x

Hospira Inc. 33.12 (3.6%) (5.7%) 37.78 28.62 5,479 1,746 727 6,442 4,010 231 2 Mar-13 Dec-12 4,106 652 481 1.6x 15.4x 1.6x 9.9x

Johnson & Johnson 85.23 15.0% 30.9% 85.89 61.71 238,391 15,892 14,855 233,467 68,590 21,741 17,812 Mar-13 Dec-12 70,996 23,100 18,923 3.4x 10.8x 3.3x 10.1x

Medtronic, Inc. 46.68 0.0% 22.2% 47.98 35.67 47,324 11,492 1,298 56,352 16,427 5,449 4,639 Jan-13 Apr-12 16,519 6,010 5,187 3.4x 10.3x 3.4x 9.4x

Stryker Corporation 65.58 3.5% 20.2% 67.15 49.43 24,793 2,772 1,913 23,078 8,686 2,068 1,791 Mar-13 Dec-12 8,962 2,568 2,150 2.7x 11.2x 2.6x 9.0x

Thermo Fisher Scientific, Inc. 80.68 14.6% 45.0% 84.55 48.14 28,958 7,118 1,004 35,068 12,645 2,648 1,656 Mar-13 Dec-12 12,948 2,754 2,502 2.8x 13.2x 2.7x 12.7x

Zimmer Holdings, Inc. 76.45 2.7% 21.5% 77.53 57.46 12,778 1,703 657 13,280 4,470 1,668 1,321 Mar-13 Dec-12 4,573 1,740 1,372 3.0x 8.0x 2.9x 7.6x


Mean: 2.7% 16.2% $39,366 2.6x 10.4x 2.6x 9.7x

Medical / Surgical / Dental Supplies

AmerisourceBergen Corporation $54.12 18.7% 45.4% $56.91 $35.48 $12,536 $1,396 $1,347 $12,585 $81,384 $1,418 $1,268 Mar-13 Sep-12 $86,710 $1,410 $1,248 0.2x 8.9x 0.1x 8.9x

Cardinal Health, Inc. 44.22 (1.0%) 4.6% 47.23 36.91 15,073 4,160 2,305 15,715 102,437 2,362 2,001 Mar-13 Jun-12 100,650 2,313 1,990 0.1x 6.9x 0.2x 6.8x

Henry Schein, Inc. 90.40 4.2% 17.8% 92.90 71.97 7,919 653 91 8,767 9,134 770 643 Mar-13 Dec-12 9,522 802 678 1.0x 11.4x 0.9x 10.9x

McKesson Corporation 105.82 0.2% 15.8% 111.55 84.65 24,644 4,479 2,726 26,397 123,534 2,846 2,275 Dec-12 Mar-12 123,728 3,134 2,625 0.2x 9.2x 0.2x 8.4x

Owens & Minor Inc. 32.57 5.3% 11.4% 33.23 26.97 2,061 214 219 2,057 8,966 250 206 Mar-13 Dec-12 9,146 265 213 0.2x 8.2x 0.2x 7.8x

Patterson Companies, Inc. 37.95 4.8% 11.3% 38.25 30.82 4,031 775 472 4,334 3,609 398 353 Jan-13 Apr-12 3,641 402 356 1.2x 10.9x 1.2x 10.8x


Mean: 5.4% 17.7% $11,643 0.5x 9.3x 0.5x 8.9x

TEV/ Fwd MultiplesCash and

Equiv.

Total

Ent.

Value

(TEV)


(LTM)LTM

Period

Lastest

FYE DateCompany Name

Equity


TEV/ LTM MultiplesForward Estimate


May 2013


Provider-Based Services

10

Stock Price

% Change 52 Week


Acute-Care Hospitals

Community Health Systems, Inc. $45.57 18.3% 87.2% $48.59 $20.71 $4,213 $9,695 $285 $14,061 $13,044 $1,785 $1,153 Mar-13 Dec-12 $13,508 $2,006 $1,215 1.1x 7.7x 1.0x 7.0x

Health Management Associates Inc. 11.49 10.2% 59.6% 13.63 5.92 2,976 3,582 37 6,464 5,876 932 558 Mar-13 Dec-12 6,951 958 583 1.1x 6.6x 0.9x 6.7x

HCA Holdings, Inc. 39.89 4.8% 48.2% 41.83 23.91 17,757 28,608 594 47,675 33,048 6,246 4,560 Mar-13 Dec-12 37,816 6,357 4,633 1.4x 7.3x 1.3x 7.5x

Lifepoint Hospitals Inc. 48.00 11.7% 23.0% 49.78 34.32 2,275 1,749 160 3,916 3,472 505 282 Mar-13 Dec-12 4,310 546 320 1.1x 7.8x 0.9x 7.2x

Tenet Healthcare Corp. 45.36 17.5% 118.5% 49.13 17.24 4,695 5,427 95 10,140 9,204 1,164 720 Mar-13 Dec-12 10,733 1,358 888 1.1x 8.7x 0.9x 7.5x

Universal Health Services Inc. 66.59 17.2% 55.9% 68.75 36.90 6,524 3,670 17 10,463 7,000 1,267 952 Mar-13 Dec-12 8,134 1,241 921 1.5x 8.3x 1.3x 8.4x


Mean: 13.3% 65.4% $15,453 1.2x 7.7x 1.1x 7.4x

Assisted Living

Assisted Living Concepts Inc. $11.92 22.0% (33.4%) $20.33 $6.93 $276 $182 $10 $447 $228 $41 $16 Dec-12 Dec-12 $220 $36 NA 2.0x 11.0x 2.0x 12.3x

Brookdale Senior Living Inc. 25.79 (3.7%) 35.7% 29.92 14.99 3,165 2,331 28 5,777 2,473 388 134 Mar-13 Dec-12 2,829 404 150 2.4x 15.6x 2.0x 14.3x

Capital Senior Living Corp. 24.26 16.6% 150.4% 27.90 9.31 665 407 18 1,052 319 54 13 Mar-13 Dec-12 361 71 26 3.5x 21.2x 2.9x 14.8x

Emeritus Corp. 25.70 (4.4%) 49.4% 30.95 14.24 1,217 4,068 114 5,185 1,529 275 116 Mar-13 Dec-12 1,881 383 185 3.7x 20.6x 2.8x 13.5x

Five Star Quality Care Inc. 4.73 (17.9%) 37.9% 6.87 2.98 228 63 15 258 1,228 46 20 Mar-13 Dec-12 1,464 48 21 0.2x 5.6x 0.2x 5.4x

Skilled Healthcare Group, Inc. 7.04 35.6% (8.2%) 8.41 4.97 276 452 5 723 872 91 65 Mar-13 Dec-12 889 102 75 0.8x 7.2x 0.8x 7.1x


Mean: 8.1% 38.6% $2,240 2.1x 13.5x 1.8x 11.2x

Diagnostic Imaging

Alliance Healthcare Services, Inc. $12.75 97.1% 86.1% $12.92 $3.61 $132 $545 $31 $700 $462 $145 $55 Mar-13 Dec-12 $464 $137 NA 1.5x 4.6x 1.5x 5.1x

RadNet, Inc. 2.74 (11.0%) (11.3%) 3.24 2.13 110 582 0 693 647 104 46 Dec-12 Dec-12 678 123 55 1.1x 6.3x 1.0x 5.7x

Varian Medical Systems Inc. 65.14 (8.8%) 2.7% 75.78 52.90 7,108 238 740 6,550 2,908 684 618 Mar-13 Sep-12 3,029 698 630 2.3x 9.6x 2.2x 9.4x


Mean: 25.7% 25.8% $2,647 1.6x 6.8x 1.6x 6.7x

Dialysis Services

DaVita HealthCare Partners Inc. $118.65 3.3% 33.9% $128.74 $77.81 $12,548 $8,573 $534 $21,326 $8,182 $1,741 $1,397 Dec-12 Dec-12 $11,308 $2,359 $1,847 2.6x 12.1x 1.9x 9.0x

Fresenius Medical Care AG & Co. KGAA 52.36 (0.0%) (2.7%) 60.24 47.98 16,067 8,056 535 22,567 14,293 2,780 2,164 Mar-13 Dec-12 14,689 3,048 2,421 2.0x 10.3x 1.5x 7.4x


Mean: 1.6% 15.6% $21,947 2.3x 11.2x 1.7x 8.2x

Home Care / Hospice

Addus HomeCare Corporation $11.84 42.5% 156.3% $14.60 $3.57 $129 $0 $18 $144 $248 $19 $16 Mar-13 Dec-12 $253 $17 $15 0.6x 8.1x 0.6x 8.3x

Almost Family Inc. 19.74 (0.4%) (19.0%) 25.10 17.87 184 1 26 159 349 31 29 Dec-12 Dec-12 351 29 25 0.5x 5.1x 0.5x 5.5x

Amedisys Inc. 10.04 (9.0%) (31.8%) 15.95 8.81 316 79 7 389 1,436 82 42 Mar-13 Dec-12 1,331 69 28 0.3x 4.7x 0.3x 5.7x

Gentiva Health Services Inc. 10.49 5.6% 26.7% 12.90 5.13 324 935 207 1,054 1,713 183 156 Dec-12 Dec-12 1,705 162 139 0.6x 5.8x 0.6x 6.5x

LHC Group, Inc. 21.72 1.4% 22.6% 23.20 15.69 382 20 10 407 626 63 55 Dec-12 Dec-12 674 53 46 0.7x 6.5x 0.6x 7.7x

Chemed Corp. 81.62 8.0% 35.3% 81.67 54.06 1,540 177 73 1,644 1,444 185 161 Mar-13 Dec-12 1,493 207 170 1.1x 8.9x 1.1x 7.9x

Number of Companies 6 Median: 3.5% 24.7% Total $320 $633 $1,031 $1,002 0.6x 6.2x 0.6x 7.1x

Mean: 8.0% 31.7% $633 0.6x 6.5x 0.6x 6.9x

Long-Term Care

The Ensign Group, Inc. $34.87 22.7% 30.6% $35.87 $23.40 $770 $209 $43 $936 $841 $88 $59 Mar-13 Dec-12 $916 $145 $113 1.1x 7.7x 1.0x 6.5x

Kindred Healthcare Inc. 10.49 (0.2%) 8.8% 12.76 7.75 567 1,680 43 2,128 6,198 445 240 Mar-13 Dec-12 5,868 453 220 0.3x 4.9x 0.4x 4.7x

National Healthcare Corp. 46.43 (4.8%) 1.8% 50.17 40.75 657 10 67 663 742 96 66 Dec-12 Dec-12 803 NA NA 0.9x 6.0x 0.8x NA


Mean: 5.9% 13.7% $1,242 0.8x 6.2x 0.7x 5.6x

TEV/ LTM Multiples TEV/ Fwd MultiplesCompany Name

Equity


Cash and

Equiv.

Total

Ent.

Value

(TEV)


(LTM)LTM

Period

Lastest

FYE Date

Forward Estimate


May 2013

As of April 30, 2013 11

Provider-Based Services Stock Price

% Change 52 Week


Physician Practice Management

Multispecialty / Primary Care:

IPC The Hospitalist Company, Inc. $45.62 8.7% 18.8% $48.42 $33.10 $765 $20 $21 $764 $547 $59 $55 Mar-13 Dec-12 $608 $67 $62 1.4x 12.8x 1.3x 11.3x

Number of Companies 1 Median: 8.7% 18.8% Total $765 $764 $547 $608 1.4x 12.8x 1.3x 11.3x

Mean: 8.7% 18.8% $764 1.4x 12.8x 1.3x 11.3x

Specialty:

MEDNAX, Inc. 88.73 3.9% 26.3% 91.00 59.24 4,351 184 34 4,468 1,897 435 402 Mar-13 Dec-12 2,144 493 454 2.5x 10.6x 2.1x 9.1x


Mean: 3.9% 26.3% $4,468 2.5x 10.6x 2.1x 9.1x

Dental:

Birner Dental Management Services Inc. $16.36 1.4% 6.2% $23.03 $16.21 $33 $6 $1 $38 $62 $4 $1 Dec-12 Dec-12 NA NA NA 0.6x 8.7x NA NA

Number of Companies 1 Median: 1.4% 6.2% Total $33 $38 $62 $0 0.6x 8.7x NA NA

Mean: 1.4% 6.2% $38 0.6x 8.7x NA NA

Psychiatric Hospitals / Management

Magellan Health Services Inc. $51.16 (1.2%) 15.5% $56.58 $40.24 $1,373 $28 $188 $1,089 $3,256 $234 $201 Mar-13 Dec-12 $3,435 $245 $173 0.3x 4.7x 0.3x 4.4x

Providence Service Corp. 17.51 (4.7%) 24.5% 20.09 9.56 228 130 56 309 1,106 44 29 Dec-12 Dec-12 1,128 52 36 0.3x 7.0x 0.3x 5.9x

Universal Health Services Inc. 66.59 17.2% 55.9% 68.75 36.90 6,524 3,670 17 10,463 7,000 1,267 952 Mar-13 Dec-12 8,134 1,241 921 1.5x 8.3x 1.3x 8.4x


Mean: 3.8% 32.0% $2,965 0.5x 5.0x 0.6x 6.3x

Surgicenters / Rehabilitation

Surgery Centers:

AmSurg Corp. $33.56 7.6% 16.7% $34.41 $25.00 $1,071 $623 $42 $2,140 $960 $321 $290 Mar-13 Dec-12 $1,072 $361 $331 2.2x 6.6x 2.0x 5.9x

Number of Companies 1 Median: 7.6% 16.7% Total $1,071 $2,140 $960 $1,072 2.2x 6.6x 2.0x 5.9x

Mean: 7.6% 16.7% $2,140 2.2x 6.6x 2.0x 5.9x

Rehabilitation / Long Term Acute Care:

HEALTHSOUTH Corp. $27.50 15.6% 22.8% $27.99 $18.44 $2,399 $1,365 $80 $4,155 $2,168 $515 $430 Mar-13 Dec-12 $2,249 $526 $440 1.9x 7.9x 1.8x 7.9x

Select Medical Holdings Corporation 8.25 (13.2%) (3.7%) 14.89 7.83 1,157 1,504 5 2,644 2,917 391 328 Mar-13 Dec-12 2,997 397 328 0.9x 6.5x 0.9x 6.7x

US Physical Therapy Inc. 23.86 (4.2%) (2.1%) 28.40 22.69 288 18 12 312 247 43 38 Dec-12 Dec-12 258 37 39 1.3x 7.2x 1.2x 8.4x

Number of Companies 3 Median: (4.2%) (2.1%) Total $3,843 $2,370 $5,332 $5,504 1.3x 7.2x 1.2x 7.9x

Mean: (0.6%) 5.7% $2,370 1.4x 7.2x 1.3x 7.6x

Company NameEquity


Cash and

Equiv.

Total

Ent.

Value

(TEV)


(LTM)LTM

Period

Lastest

FYE Date

Forward Estimate TEV/ LTM Multiples TEV/ Fwd Multiples

12

M&A Detail

May 2013

Announced U.S.

Healthcare &

Life Sciences

M&A

Enterprise Enterprise Value / LTM Private Equity

Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement

4/30/2013 Enzon Pharmaceuticals Inc., Customized

PEGylation Linker Technology Platform And

Locked Nucleic Acid

Enzon Pharmaceuticals Inc.

(NasdaqGS:ENZN)

Belrose Pharma Inc. $0.8 - - - No

4/30/2013 BodyMedia, Inc. Draper Fisher Jurvetson; Comcast

Ventures; Draper Triangle, LLC;

Ascension Health Ventures, LLC

AliphCom, Inc. - - - - Yes

4/30/2013 Semantelli Corporation - IMS Health Incorporated - - - - No

4/30/2013 OB/GYN Specialists of Northern Kentucky, Inc. - Seven Hills Ob-Gyn Associates, Inc. - - - - No

4/30/2013 Global Healthcare Exchange, LLC, Channel

Intelligence Business

Global Healthcare Exchange, LLC ValueCentric, LLC - - - - No

4/29/2013 Ingenuity Systems, Inc. - Qiagen NV (NasdaqGS:QGEN) $105.0 5.3x - - No

4/29/2013 Spectrum Health Network, Inc. Allderdice Media Holding Inc. Health Media Network LLC - - - - No

4/29/2013 Qstaff Incorporated, QStaff Home Healthcare

and Advanced Care Hospice

QSTAFF Incorporated Kindred Healthcare Inc. (NYSE:KND) - - - - No

4/29/2013 Berkeley Bio-Organic Research Laboratories - SK3 Group Inc. (OTCPK:SKTO) - - - - No

4/28/2013 Conceptus, Inc. (NasdaqGS:CPTS) VantagePoint Capital Partners;

Federated Investors, Inc.

Bayer HealthCare, LLC $1,028.9 7.1x 34.5x 48.4x Yes

4/26/2013 Beardsworth Consulting Group, Inc. - TFS Trial Form Support International

AB

- - - - No

4/26/2013 Actient Pharmaceuticals, LLC GTCR, LLC Auxilium Pharmaceuticals Inc.

(NasdaqGS:AUXL)

$635.0 - - - Yes

4/26/2013 Eight Skilled Nursing Facilities in Massachusetts

and New Hampshire

ElderTrust of Florida, Inc. National Health Investors Inc.

(NYSE:NHI)

$37.1 - - - No

4/26/2013 DNA Logix, Inc., Suite of Technologies DNA Logix, Inc. Co-Diagnostics, Inc. - - - - No

4/26/2013 Westhealth, Inc. North Memorial Health Care Harrison Street Real Estate Capital,

LLC

- - - - No

4/26/2013 M & M Orthopaedics, Ltd. - DuPage Medical Group, Ltd - - - - No

4/25/2013 Orthodontic Specialists Management, LLC - Sebring Software, Inc. $7.2 - - - No

4/25/2013 Bioreclamation, LLC Lineage Capital, LLC Thompson Street Capital Partners - - - - Yes

4/25/2013 Freedom Pharmaceuticals, Inc. - Fagron Group BV - - - - No

4/25/2013 Bracco Diagnostics Inc., Healthcare Protective

Products Division

Bracco Diagnostics Inc. Emergent BioSolutions, Inc.

(NYSE:EBS)

$26.0 - - - No

4/24/2013 Kindred Healthcare Inc., 17 Non-Strategic

Facilities

Kindred Healthcare Inc.

(NYSE:KND)

Vibra Healthcare, LLC $187.0 0.6x 9.4x - No

4/24/2013 Doctors Research Group, Inc. - Abyrx, Inc. - - - - No

4/24/2013 ORTHOCON, Inc. Canaan Partners Abyrx, Inc. - - - - Yes

4/23/2013 Six Arkansas Skilled Nursing Centers Perennial Healthcare Management,

LLC

CHP Partners LP $56.4 - - - Yes

4/23/2013 Owl biomedical, Inc. - Miltenyi Biotec GmbH - - - - No

4/23/2013 Tranzyme, Inc. (NasdaqGM:TZYM) Thomas, McNerney & Partners; T.

Rowe Price Associates, Inc.;

Panorama Capital; H.I.G.

BioVentures, LLC

Ocera Therapeutics, Inc. - - - - No

4/22/2013 Rehab Health Care - National Seating & Mobility, Inc. - - - - No

4/22/2013 Saint Joseph Rehabilitation Institute - The Sanders Trust $17.0 - - - No

4/22/2013 Prostate Solutions of Arizona, PC - 21st Century Oncology of Arizona - - - - No

4/20/2013 Arizona Regional Medical Center - Banner Health - - - - No

4/19/2013 Arch Therapeutics, Inc. - Almah, Inc. - - - - No

4/19/2013 Merck & Co. Inc., Rights to NR2B Receptor

Antagonist

Merck & Co. Inc. (NYSE:MRK) Cerecor, Inc. - - - - No

4/19/2013 St. Luke's Episcopal Health System Episcopal Diocese of Texas Catholic Health Initiatives - - - - No

4/18/2013 Two Skilled Nursing Facilities, in Canton and

Corinth, Texas

- National Health Investors Inc.

(NYSE:NHI)

$26.3 - - - No

4/17/2013 Dignity Health, Lab-Related Clinical Outreach

Operations

Dignity Health Quest Diagnostics Inc. (NYSE:DGX) - - - - No

4/17/2013 Managed Healthcare Associates, Inc. Diamond Castle Holdings, LLC Roper Industries Inc. (NYSE:ROP) $1,000.0 - - - Yes

4/17/2013 Siemens Medical Solutions USA, Inc., Two

Investigational Positron Emission Tomography

(PET) Tracers

Siemens Medical Solutions USA,

Inc.

Eli Lilly and Company (NYSE:LLY) - - - - No

4/17/2013 AdCare Health Systems Inc. (AMEX:ADK) - Brogdon Family, LLC $292.2 1.4x 28.0x 89.2x No

4/16/2013 Unigene Laboratories Inc., Peptelligence(TM)

Drug Delivery Platform and Certain Assets

Unigene Laboratories Inc.

(OTCPK:UGNE)

Victory Park Capital Advisors, LLC - - - - No

4/16/2013 Community General Hospital Of Dilly, Texas, - Prospect Medical Holdings, Inc. - - - - No

4/16/2013 The Children's Secret Garden Inc. - Child Health Holdings, Inc. - - - - No

4/15/2013 NeurogesX, Inc., Certain Assets NeurogesX, Inc. (OTCBB:NGSX.E) Acorda Therapeutics, Inc.

(NasdaqGS:ACOR)

$12.0 - - - No

4/15/2013 Dean Health Systems, Inc. - SSM Health Care Corporation - - - - No

4/15/2013 AxelaCare Health Solutions, LLC. Excellere Partners Harvest Partners, LLC - - - - Yes

4/15/2013 NeighborMD Nashville Capital Network,

Investment Arm

TriStar Health System, Inc.; CareSpot - - - - Yes

4/15/2013 VeraLight, Inc. CMEA Capital; Dow Venture

Capital; EPIC Ventures; Psilos

Group; InLight Solutions, Inc.;

Miraculins Inc. (TSXV:MOM) - - - - Yes

M&A Detail

May 2013

Announced U.S.

Healthcare &

Life Sciences

M&A

(Continued)

Enterprise Enterprise Value / LTM Private Equity

Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement

4/14/2013 Life Technologies Corporation

(NasdaqGS:LIFE)

BlackRock, Inc. (NYSE:BLK);

Glenview Capital Management, LLC;

Paulson & Co. Inc.

Thermo Fisher Scientific, Inc.

(NYSE:TMO)

$15,733.0 4.1x 13.1x 19.7x Yes

4/12/2013 Exemplar Pharma, LLC - Allergan Inc. (NYSE:AGN) $20.0 - - - No

4/12/2013 Warm Springs Rehabilitation Hospital of Allen - Post Acute Medical LLC - - - - No

4/11/2013 SJMDHS, L.L.C. Christus Continuing Care Kindred Healthcare Inc. (NYSE:KND) - - - - No

4/11/2013 Gerald C. Burnett, M.D., LTD - DermOne Inc. - - - - No

4/11/2013 Merck & Co. Inc., Patent Family to West Nile

Virus Vaccine Technology

Merck & Co. Inc. (NYSE:MRK) Hawaii Biotech, Inc. - - - - No

4/11/2013 UAS Laboratories, Inc. - Lakeview Equity Partners, LLC - - - - Yes

4/10/2013 The Digestive Disease Center - Beach Surgical Holdings, LLC - - - - No

4/10/2013 Shafaie Enterprises, LLC - ONRAD, Inc. - - - - No

4/8/2013 Neonatology Associates, Ltd. - MEDNAX, Inc. (NYSE:MD) - - - - No

4/8/2013 Global Safety Surveillance, Inc. Argosy Capital; Edison Venture Telerx Marketing Inc. - - - - Yes

4/8/2013 Sentrx Safety Solutions - Telerx Marketing Inc. - - - - No

4/8/2013 Crozer-Keystone Surgery Center at Haverford - Crozer-Keystone Health System Inc. - - - - No

4/8/2013 Palazzo Di Oro Presidium Asset Solutions ValStone Partners, LLC; Senior

Management Advisors, Inc.

$2.0 - - - Yes

4/8/2013 Sleep Management Institute, LLC, Two Centers Sleep Management Institute, LLC The Christ Hospital Health Network - - - - No

4/7/2013 Wide Open MRI of Bullhead City, LLC - Valley View Medical Center - - - - No

4/5/2013 Intelligent Living Inc. - Feel Golf Co., Inc. (OTCPK:FEEL) $0.6 - - - No

4/5/2013 Strategic Diagnostics Inc., Substaintially All

Assets

Strategic Diagnostics Inc.

(NasdaqGM:SDIX)

SDIX, LLC $33.9 2.3x - - No

4/5/2013 SYNARC Inc. Center for Clinical and Basic

Research A/S

Water Street Healthcare Partners - - - - Yes

4/5/2013 Ascension Urgent Care - St. Elizabeth Hospital, Inc. - - - - No

4/4/2013 Fairview Health Services, Inc. - University of Minnesota - - - - No

4/4/2013 Southwest CARE Center: Women's Health

Services and Family Medicine

- Southwest CARE Center, Inc. - - - - No

4/4/2013 Six Transitional Care Facilities In Oregon,

Washington, Idaho And Colorado

- Avamere Group, Inc. - - - - No

4/4/2013 Odyssey Medical, Inc., Ophthalmic Assets Odyssey Medical, Inc. Beaver-Visitec International, Inc. - - - - No

4/3/2013 Greater Hazleton Health Alliance - Lehigh Valley Health Network, Inc. - - - - No

4/3/2013 AlphaCore Pharma LLC - MedImmune, LLC - - - - No

4/3/2013 Ennis Healthcare Systems, Inc. - University General Health System, Inc.

(OTCPK:UGHS)

- - - - No

4/3/2013 Three Skilled Nursing Facilities in Texas - Keystone Care, Inc. - - - - No

4/2/2013 inVentiv Health, Inc., MySTRO Sample

Management and Fulfillment Business

inVentiv Health, Inc. J. Knipper & Company, Inc. - - - - No

4/2/2013 Obagi Medical Products, Inc. Eagle Asset Management, Inc.;

Gabelli Funds, LLC; BlackRock

Advisors, LLC

Merz Pharma GmbH & Co. KGaA $349.0 2.9x 16.9x 18.3x No

4/2/2013 AndersonBrecon Inc. AmerisourceBergen Corporation

(NYSE:ABC)

Frazier Healthcare Ventures;

Greenspring Associates, Inc.;

Thomas, McNerney & Partners; QIC

$308.0 - - - Yes

4/2/2013 Life-Tech, Inc., Anesthesia Business Life-Tech, Inc. Kimberly-Clark Health Care Inc. - - - - No

4/2/2013 Solari Hospice Care, LLC - VITAS Healthcare Corporation - - - - No

4/2/2013 UVP, LLC Carlisle Enterprises, LLC; NewWest

Capital Partners; Cloquet Capital

Partners, LLC

Analytik Jena AG (XTRA:AJA) - - - - Yes

4/2/2013 Culpeper Medical Associates, L.L.C. - UVA Physicians Group - - - - No

4/2/2013 Epi-Plus(R) Twentyfirst Century Biochemicals, Rockland Immunochemicals, Inc. - - - - No

4/2/2013 ClinicAnywhere - TekLinks, Inc. - - - - No

4/2/2013 Advanced Homecare, LLC - Infinity HomeCare, L.L.C. - - - - No

4/1/2013 Two Senior Housing Communities In Iowa GCI Development, LLC CNL Healthcare Properties, Inc. $12.2 - - - No

4/1/2013 Triangle Urological Group, P.C. - Highmark Inc. - - - - No

4/1/2013 Demarius Corporation - Sarnova Inc. - - - - No

4/1/2013 Apricus Biosciences, Inc., NitroMist Apricus Biosciences, Inc.

(NasdaqCM:APRI)

Mist Pharmaceuticals, LLC - - - - No

13

Turner Bredrup Managing Director

[email protected]

+1 (804) 915-0110

Cheairs Porter Managing Director

[email protected]

+1 (804) 915-0130

James Clark Managing Director

[email protected]

+1 (804) 915-0119

Todd Morris Managing Director

[email protected]

+1 (415) 217-3412

Andy Dixon Director

[email protected]

+1 (415) 217-3419

Geoff Smith Director

[email protected]

+1 (804) 915-0195

Whit Knier Vice President

[email protected]

+1 (804) 932-1321

Paul Hepper Vice President

[email protected]

+1 (804) 932-1326

Andy Hewlett Vice President

[email protected]

+1 (415) 217-3427

Contacts

14

mailto:[email protected]









15

Sources:

Capital IQ.

Thomson Financial.

S&P.

Reuters.

Bloomberg.

Irving Levin Associates.

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