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HEALTHCARE & LIFE SCIENCES
0
INDUSTRY UPDATE │ SEPTEMBER 2015
www.harriswilliams.com
PAGE |
www.harriswilliams.com
WHATWE’RE READING
1
CONTENTS
PUBLIC MARKETS OVERVIEW
EQUITY MARKETS OVERVIEW
M&A OVERVIEW
DEBT MARKETS OVERVIEW
HEALTHCARE & LIFE SCIENCES PUBLIC COMPARABLES
M&A TRANSACTIONS
CONTACTS
Turner BredrupManaging [email protected]+1 (804) 915-0110
James ClarkManaging [email protected]+1 (804) 915-0119
Cheairs PorterManaging [email protected]+1 (804) 915-0130
Geoff SmithManaging [email protected]+1 (804) 915-0195
Andy [email protected]+1 (415) 217-3419
Paul [email protected]+1 (804) 932-1326
Whit [email protected]+1 (804) 932-1321
Jacques FuVice [email protected]+1 (804) 915-0185
Andy HewlettVice [email protected]+1 (415) 217-3427
Bill KayserVice [email protected]+1 (804) 915-0180
Nick OwensVice [email protected]+1 (804) 887-6027
MANAGED CARE AND HOSPITALS | ACCELERATION IN WAKE OF ACA
Following five years of significant deal activity, 2015 is on pace to notch the mostU.S. hospital deals since 1999, with 71 announced through the end of August. In apiece from August 21st, the Wall Street Journal examines the rationale underlyingthe M&A activity in the managed care and healthcare provider spaces, as well asthe unfolding anti-trust reviews from the FTC and the Justice Department. Hospitalsand managed care providers are striving to gain scale to offer a complete rangeof services and cover a wide geographic area, but regulators are concerned thatsuch activity may harm end consumers. The larger systems argue that thecoordination of all aspects of patients’ care can improve health and be moreefficient, but the regulatory meetings will ultimately decide the fate of theproposed mega-mergers. On Tuesday, a Senate subcommittee is set to heartestimony from the chief executives of Aetna Inc., which plans to acquire HumanaInc., and Anthem Inc., which is seeking to buy Cigna Corp., while UnitedHealthGroup Inc., the remaining large insurer, won’t be testifying. A link to the article canbe found here. (A subscription to the Wall Street Journal may be required)
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
PHARMACEUTICAL DRUGS | A CHALLENGE TO BRAND NAME DRUGS
Pharmaceutical trade groups are asking Congress to exempt drug patents fromthe Inter Partes Review process, a faster and less costly process than the currentfederal review used by generic drug companies to challenge brand namepatents. Analysis from the Congressional Budget Office found that the proposedpatent law change could cost federal healthcare programs $1.3 billion over adecade by delaying new generic medicines from reaching the market. Thecurrent system, created by a 1984 law, requires the FDA to wait 2.5 years beforeapproving generic versions of medicines whose patents are being challenged incourt, allowing a greater window of time for brand-name drugs to profit. The WallStreet Journal analyzes the argument between allowing pharma companies toachieve brand-name financial success versus unnecessarily delaying the entranceof generic, low-cost alternatives to the market. A link to the article can be foundhere. (A subscription to the Wall Street Journal may be required)
PHARMACEUTICAL DRUGS | TUBERCULOSIS PRICE INCREASE RESCINDED
The Nasdaq Biotechnology Index fell more than 4 percent as investors worry aboutpossible government action to control pharmaceutical prices. The most recentcommentary from politicians regarding potential price gouging is focused onTuring Pharmaceuticals, which last month acquired Daraprim, a 62-year-old drugused to treat a serious parasitic infection, and raised its price to $750 per tablet,from $13.50 post-acquisition. The cases of Daraprim and of the tuberculosis drug,Cycloserine, are examples of a relatively new business strategy — acquiring old,neglected drugs, often for rare diseases, and turning them into costly “specialty”drugs. A link to the article can be found here.
PAGE |
PUBLICMARKETS OVERVIEW
2
Key Trading Statistics (detail begins on page 6)
Public Company Sector Performance
(12-month % change in stock price)
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Change in Stock Price
3 mos. 12 mos. Revenue EBITDA Revenue EBITDA
Clinical Laboratories 2 $31,456 (5.0%) 8.6% 2.2x 10.9x 2.0x 9.8x
Contract Pharma Manufacturing 2 5,594 11.3% 73.4% 3.4x 14.9x 3.2x 13.2x
Contract Research Organizations 9 $38,260 (0.5%) 16.6% 2.9x 14.4x 2.8x 13.2x
Disease Management 2 8,887 (9.4%) 8.3% 2.1x 14.6x 2.0x 12.3x
Emergency Serv ices 1 $2,114 (11.2%) (36.2%) 2.1x 8.1x 2.0x 7.8x
Healthcare Staffing 5 19,786 10.9% 21.7% 1.5x 16.3x 1.3x 13.4x
HMO - Medical 10 $310,932 (6.0%) 36.6% 0.8x 9.7x 0.7x 9.4x
Information Serv ices 14 40,709 (3.8%) 3.8% 5.0x 18.0x 4.3x 15.8x
Specialty Managed Care 3 $7,057 10.6% 11.4% 1.2x 8.5x 6.6x 5.0x
Specialty Pharmacy 1 2,691 2.2% NM 1.0x NM 1.0x NM
Retail Pharmacy 3 $246,533 0.0% 32.6% 0.9x 11.6x 0.8x 12.0x
Specialty Pharmacy Management 2 73,837 (2.8%) 22.3% 0.7x 10.3x 0.7x 9.9x
Dental Products 3 $107,136 (3.4%) 9.9% 3.0x 14.5x 3.0x 12.8x
Durable Medical Equipment 3 10,941 (11.7%) 14.7% 1.8x 13.4x 1.8x 12.2x
Life Sciences Tools 4 $121,505 (3.5%) 4.3% 2.7x 13.8x 3.3x 14.2x
Medical Devices and Products 14 618,427 (3.8%) 13.6% 3.6x 14.0x 3.6x 12.8x
Medical / Surgical / Dental Supplies & Distribution 6 $123,519 (5.4%) 12.7% 0.3x 13.0x 0.3x 10.4x
Acute-Care Hospitals 4 116,631 0.4% 1.7% 1.2x 8.6x 1.2x 8.1x
Assisted Liv ing 3 $12,965 (27.0%) (21.5%) 2.8x 14.5x 2.3x 13.4x
Diagnostic Imaging 3 9,154 (6.2%) (8.1%) 1.6x 9.1x 1.8x 9.4x
Dialysis Serv ices 2 $58,230 (10.0%) 4.9% 1.9x 10.7x 1.9x 10.3x
Home Care, Hospice, and Home Infusion 6 6,014 13.3% 47.8% 1.3x 12.7x 1.3x 11.9x
Long-Term Care 3 $6,992 (4.1%) 5.3% 1.0x 11.1x 0.8x 8.3x
Physician Practice Management 2 10,267 20.5% 44.3% 3.2x 15.8x 3.0x 15.0x
Behavioral Health / Management 6 $28,770 (4.1%) 10.0% 1.6x 10.7x 1.4x 10.0x
Surgicenters / Rehabilitation 5 19,582 1.1% 21.3% 2.3x 13.7x 2.1x 11.2x
Payor, Provider, & Pharmacy Support Serv ices 54 $787,855 (2.5%) 30.5% 1.3x 12.0x 1.2x 11.2x
Products & Devices 30 $981,528 (6.3%) 3.8% 3.2x 12.8x 3.1x 11.9x
Provider-Based Serv ices 34 $268,604 (1.1%) 14.6% 2.0x 11.2x 1.9x 10.4x
HW&Co. HCLS Composite Index 118 $2,037,987 (1.8%) 14.4% 2.4x 12.4x 2.3x 11.5x
S&P 500 (6.4%) (1.6%)
Pro
du
cts
&
De
vic
es
Pro
vid
er-
Ba
sed
Se
rvic
es
Median TEV/
Forward MulitplesSectorNumber of
Companies
Aggregate
Enterprise Value
($ mm)
Median TEV/
LTM Multiples
Pa
yo
r, P
rov
ide
r, &
Ph
arm
ac
y S
up
po
rt
Se
rvic
es
Contract Pharma Manufacturing
Home Care, Hospice, and Home Infusion
Physician Practice Management
HMO - Medical
Contract Research Organizations
Specialty Pharmacy Management
Healthcare Staffing
Surgicenters / Rehabilitation
Contract Research Organizations
Durable Medical Equipment
Medical Devices and Products
Medical / Surgical / Dental Supplies & Distribution
HW&Co. HCLS Composite Index
Specialty Managed Care
Behavioral Health / Management
Dental Products
Clinical Laboratories
Disease Management
Long-Term Care
Dialysis Services
Life Sciences Tools
Information Services
Acute-Care Hospitals
Specialty Pharmacy
S&P 500
Diagnostic Imaging
Assisted Living
Emergency Services
(60.0%) (50.0%) (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
PAGE |
EQUITYMARKETS OVERVIEW
3
Healthcare & Life Sciences Industry Stock Performance
Top 25 Equity Offerings
(by proceeds)
184.6%
140.2%
159.0%
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
40
60
80
100
120
140
160
180
200
220
Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15
S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index
Closing Date Issuer Ticker Transaction Type Gross Proceeds ($ mm)
08/10/15 Acadia Healthcare Co Inc ACHC Follow-On $407.2
08/21/15 Intrexon Corp XON Follow-On 230.0
08/04/15 Integra LifeSciences Hldg Corp IART Follow-On 201.3
08/05/15 Aimmune Therapeutics Inc AIMT IPO 184.0
08/11/15 PTC Therapeutics Inc PTCT Convertible 175.0
08/05/15 Surgical Care Affiliates Inc SCAI Follow-On 151.8
08/14/15 Cocrystal Pharma Inc COCP Follow-On 150.0
08/07/15 XenoPort Inc XNPT Follow-On 150.0
08/11/15 Global Blood Therapeutics Inc GBT IPO 138.0
08/05/15 Dermira Inc DERM Follow-On 111.3
08/13/15 LDR Holding Corp LDRH Follow-On 92.0
08/12/15 Inotek Pharmaceuticals Corp ITEK Follow-On 79.2
08/05/15 Corium International Inc CORI Follow-On 52.0
08/11/15 Akebia Therapeutics Inc AKBA Follow-On 50.0
08/04/15 Zynerba Pharmaceuticals Inc ZYNE IPO 48.3
08/05/15 Hemispherx BioPharma Inc HEB Follow-On 47.3
08/14/15 WaferGen Bio-systems Inc WGBS Follow-On 34.5
08/28/15 Nobilis Health Corp NHC Follow-On 33.0
08/21/15 Mast Therapeutics Inc MSTX Follow-On 30.0
08/18/15 Rigel Pharmaceuticals Inc RIGL Follow-On 30.0
08/26/15 Axogen Inc AXGN Follow-On 17.5
08/19/15 MediciNova Inc MNOV Follow-On 17.5
08/25/15 EnteroMedics Inc ETRM Follow-On 17.4
08/03/15 Abeona Therapeutics Inc ABEO Follow-On 15.6
08/25/15 Skyline Medical Inc SKLN Follow-On 15.0
PAGE |
M&A OVERVIEW
4
Announced Healthcare & Life Sciences M&A
Healthcare & Life Sciences M&A Trends
Announced Private Equity M&A Activity
QUARTERLY M&A ACTIVITY
HEALTHCARE TRANSACTION HIGHLIGHTS
ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS
MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES
PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) PEG INVESTMENTS AND EXITS
Note: Transactions based on publicly available information
LTM DEAL STATISTICS
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
221
291
200 209
304
248
304290 279
292 303 312
260
12
22
1612
18
15
22
1411
1511
13
8
0
50
100
150
200
250
300
350
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Nu
mb
er
of Tr
an
sac
tio
ns
PEG Acquirer Strategic Acquirer
69
94
113
79
42
7165 65
61 62
32
60 62
95
49 50
80
120
139144 143
72
0
20
40
60
80
100
120
140
160
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015YTD
Nu
mb
er
of Tr
an
sac
tio
ns
Number of Investments Number of Exits
$110.6
$141.4
$101.6 $108.2
$236.6
$346.4
0
200
400
600
800
1,000
1,200
1,400
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2010 2011 2012 2013 2014 2015YTD
Nu
mb
er o
f Tran
sac
tion
sAg
gre
ga
te T
ran
sac
tio
n V
alu
e
($ in
billio
ns)
Aggregate Deal Value Number of Transactions
12.8x
11.1x 10.9x 10.0x
13.6x 14.3x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
0.0x
3.0x
6.0x
9.0x
12.0x
15.0x
18.0x
21.0x
2010 2011 2012 2013 2014 2015YTD
EV
/ LTM S
ale
s Mu
ltiple
EV
/ L
TM E
BIT
DA
Mu
ltip
le
TEV / LTM EBITDA TEV / LTM Sales
Aggregate Number Median Transaction Multiples
Value ($bn) of Deals TEV/Rev TEV/EBITDA
$497.6 1,318 2.20x 13.6x
Announced Target Buyer
8/24/2015 Renal Ventures Management, LLC DaVita HealthCare Partners Inc. (NYSE:DVA)
8/24/2015 Physicians Immediate Med P.C. CRH Healthcare, LLC
8/22/2015 Dialysis Newco, Inc. U.S. Renal Care Inc.
8/21/2015 Prairie Community Health, Inc. Horizon Health Care, Inc.
8/21/2015 Monte Nido & Affiliates, LLC Lev ine Leichtman Capital Partners
8/10/2015 North American Dental Group, LLC ABRY Partners, LLC; The Riv erside Company
8/6/2015 ADP Adv ancedMD, Inc. Marlin Equity Partners, LLC
8/6/2015 World of Weed, Inc. Med-Cannabis Pharma, Inc. (OTCBB:MCPI)
8/4/2015 Bay Area Anesthesia, LLC AmSurg Corp. (NasdaqGS:AMSG)
8/4/2015 Lifeline Cryogenics, LLC California Cryobank Stem Cell Serv ices LLC
HC&LS Industry Number of
Segment Companies
Healthcare Facilities 50
Healthcare Serv ices 45
Healthcare Equipment 21
Pharmaceuticals 19
Healthcare Technology 16
Life Sciences Tools & Serv ices 14
Healthcare Supplies 11
Healthcare Distributors 6
Biotechnology 3
Managed Healthcare 3
PAGE |
L + 0
L + 100
L + 200
L + 300
L + 400
L + 500
2010 2011 2012 2013 2014 1H15A
ve
rag
e S
pre
ad
Ov
er
LIB
OR
Revolving Credit / Term Loan A Weighted-Average Institutional
DEBTMARKETS OVERVIEW
5
Key Credit Statistics
QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS
Select Healthcare & Life Sciences Debt Offerings
(by deal amount)
CREDIT METRICS AVERAGE SECONDARY SPREAD
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
$0
$3
$6
$9
$12
$15
$18
$21
$24
2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15
Loa
n V
olu
me
by
Qu
art
er
($ in
billio
ns)
Pro Rata Institutional
L + 0
L + 200
L + 400
L + 600
L + 800
2Q10 1Q11 4Q11 3Q12 2Q13 1Q14 4Q14
Av
era
ge
Sp
rea
d O
ve
r LI
BO
R
0.0x
2.0x
4.0x
6.0x
Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash
Interest
EBITDA -
Capex/Cash
Interest
EB
ITD
A M
ultip
le
2010 2011 2012 2013 2014 2015 YTD
Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread
08/12/15 Aetna Inc Hospital/medical serv ice plans $16,200.0 Bridge Loan NR / NR L+ 100
08/05/15 St Jude Medical Inc Electromedical equipment 3,700.0 Bridge Loan NR / NR L+ 100
08/17/15 Aetna Inc Hospital/medical serv ice plans 3,200.0 Term Loan NR / NR L+ 100
08/21/15 St Jude Medical Inc Electromedical equipment 2,600.0 Delay Draw Term Loan NR / NR L+ 113
08/21/15 St Jude Medical Inc Electromedical equipment 2,600.0 Term Loan NR / NR L+ 113
08/14/15 AMAG Pharmaceuticals Inc Pharmaceutical preparations 800.0 Term Loan B Ba2 / BB L+ 375
08/14/15 Patterson Cos Inc Medical and hospital equipment 300.0 Term Loan B NR / NR L+ 425
08/04/15 Ardent Medical Serv ices Inc General med'l/surgical hospitals 250.0 Term Loan B NR / NR L+ 550
08/14/15 Albany Molecular Research Inc Medicinals and botanicals 230.0 Term Loan B B1 / B+ L+ 475
PAGE |
PUBLIC COMPARABLES
6
Payor, Provider, & Pharmacy Support Services
As of August 31, 2015.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Stock Price
% Change 52 Week
8/31/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Clinical Laboratories
Laboratory Corp. of America Holdings 117.81 (0.1%) 9.9% 131.19 95.61 11,911 6,787 619 18,095 7,056 1,414 1,108 Jun-15 Dec-14 8,481 1,706 1,258 2.6x 12.8x 2.1x 10.6x
Quest Diagnostics Inc. 67.80 (9.9%) 7.3% 89.00 56.27 9,733 3,748 150 13,361 7,551 1,469 1,158 Jun-15 Dec-14 7,536 1,495 1,194 1.8x 9.1x 1.8x 8.9x
Number of Companies 2 Median: (5.0%) 8.6% Total $21,643 $31,456 $14,607 $16,017 2.2x 10.9x 2.0x 9.8x
Market Cap. Weighted Average: (4.5%) 8.7% 2.2x 11.1x 2.0x 9.9x
Contract Pharma Manufacturing
Cambrex Corporation. 47.81 19.5% 118.1% 53.99 15.76 1,500 60 63 1,497 395 106 83 Jun-15 Dec-14 430 122 99 3.8x 14.2x 3.5x 12.3x
West Pharmaceutical Serv ices, Inc. 55.85 3.2% 28.6% 61.73 43.11 4,021 327 252 4,096 1,401 263 174 Jun-15 Dec-14 1,414 290 191 2.9x 15.6x 2.9x 14.1x
Number of Companies 2 Median: 11.3% 73.4% Total $5,521 $5,594 $1,796 $1,844 3.4x 14.9x 3.2x 13.2x
Market Cap. Weighted Average: 7.6% 52.9% 3.2x 15.2x 3.1x 13.6x
Contract Research Organizations
Albany Molecular Research Inc. $19.94 (1.0%) 0.7% $23.95 $13.73 $707 $202 $43 $866 $320 $35 $13 Jun-15 Dec-14 $380 $68 $44 2.7x 24.9x 2.3x 12.8x
Catalent, Inc. 31.79 (0.5%) 47.9% 34.42 21.21 3,951 1,888 151 5,721 1,831 419 278 Jun-15 Jun-15 1,901 463 331 3.1x 13.7x 3.0x 12.4x
Charles River Laboratories International, Inc. 68.89 (4.8%) 16.6% 84.69 55.47 3,223 773 151 3,861 1,317 291 197 Jun-15 Dec-14 1,345 321 243 2.9x 13.3x 2.9x 12.0x
ICON Public Limited Company 77.00 18.7% 55.4% 84.14 49.67 4,610 60 107 4,478 1,555 311 255 Jun-15 Dec-14 1,587 338 281 2.9x 14.4x 2.8x 13.3x
INC Research Holdings, Inc. 41.01 18.6% NM 51.69 19.61 2,307 475 99 2,684 860 181 124 Jun-15 Dec-14 907 202 183 3.1x 14.8x 3.0x 13.3x
PAREXEL International Corporation 65.72 (1.1%) 16.4% 76.17 52.19 3,637 354 207 3,784 2,016 297 212 Jun-15 Jun-15 2,175 352 260 1.9x 12.7x 1.7x 10.7x
PRA Health Sciences, Inc. 37.63 12.5% NM 43.44 18.47 2,264 944 61 3,147 1,312 187 101 Jun-15 Dec-14 1,369 239 216 2.4x 16.8x 2.3x 13.2x
Quintiles Transnational Holdings Inc. 74.51 6.9% 32.8% 80.45 51.09 9,143 2,491 804 10,831 4,229 751 628 Jun-15 Dec-14 4,354 785 665 2.6x 14.4x 2.5x 13.8x
WuXi PharmaTech (Cayman) Inc. 42.26 (1.8%) 14.2% 46.14 32.40 2,998 341 254 2,889 738 134 86 Jun-15 Dec-14 798 170 115 3.9x 21.6x 3.6x 17.0x
Number of Companies 9 Median: (0.5%) 16.6% Total $32,839 $38,260 $14,179 $14,818 2.9x 14.4x 2.8x 13.2x
Market Cap. Weighted Average: 5.9% 27.4% 2.8x 15.1x 2.7x 13.2x
Disease Management
Alere Inc. $51.97 0.8% 46.6% $55.99 $34.74 $4,455 $3,599 $465 $8,200 $2,544 $538 $223 Jun-15 Dec-14 $2,560 $581 $496 3.2x 15.2x 3.2x 14.1x
Healthways Inc. 12.21 (19.5%) (30.1%) 23.30 11.37 438 254 5 687 773 49 28 Jun-15 Dec-14 778 65 14 0.9x 14.0x 0.9x 10.6x
Number of Companies 2 Median: (9.4%) 8.3% Total $4,893 $8,887 $3,316 $3,338 2.1x 14.6x 2.0x 12.3x
Market Cap. Weighted Average: (1.1%) 39.7% 3.0x 15.1x 3.0x 13.8x
Emergency Services
Air Methods Corp. $37.45 (11.2%) (36.2%) $60.12 $34.25 $1,472 $664 $29 $2,114 $1,028 $260 $179 Jun-15 Dec-14 $1,053 $270 $186 2.1x 8.1x 2.0x 7.8x
Number of Companies 1 Median: (11.2%) (36.2%) Total $1,472 $2,114 $1,028 $1,053 2.1x 8.1x 2.0x 7.8x
Market Cap. Weighted Average: (11.2%) (36.2%) 2.1x 8.1x 2.0x 7.8x
Healthcare Staffing
AMN Healthcare Serv ices Inc. $33.60 26.4% 122.2% $37.25 $14.96 $1,601 $226 $14 $1,813 $1,222 $111 $93 Jun-15 Dec-14 $1,398 $143 $114 1.5x 16.3x 1.3x 12.7x
Envision Healthcare Holdings, Inc. 40.97 10.9% 12.1% 45.95 30.48 7,610 2,237 173 9,704 4,907 593 427 Jun-15 Dec-14 5,438 659 475 2.0x 16.4x 1.8x 14.7x
Cross Country Healthcare, Inc. 13.89 30.8% 74.1% 15.62 7.86 448 72 9 511 756 25 17 Jun-15 Dec-14 768 33 23 0.7x 20.4x 0.7x 15.6x
On Assignment Inc. 35.98 (4.0%) 21.7% 41.49 25.98 1,894 830 42 2,682 1,934 194 155 Jun-15 Dec-14 2,014 234 154 1.4x 13.8x 1.3x 11.4x
Team Health Holdings, Inc. 58.74 0.4% 0.4% 70.21 50.83 4,255 868 51 5,076 3,221 322 225 Jun-15 Dec-14 3,528 379 236 1.6x 15.7x 1.4x 13.4x
Number of Companies 5 Median: 10.9% 21.7% Total $15,808 $19,786 $12,040 $13,146 1.5x 16.3x 1.3x 13.4x
Market Cap. Weighted Average: 8.4% 23.0% 1.6x 15.7x 1.4x 13.4x
TEV/ Fwd MultiplesForward Twelve Month
EstimateCompany NameLTM
Period
Latest
FYE Date
TEV/ LTM MultiplesEquity
Mkt.
Value
Total DebtCash and
Equiv.
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)
PAGE |
PUBLIC COMPARABLES
7
Payor, Provider, & Pharmacy Support Services
As of August 31, 2015.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Stock Price
% Change 52 Week
8/31/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
HMO - Medical
Commercial:
Aetna Inc. $114.52 (2.9%) 39.4% $134.40 $71.81 $39,932 $8,384 $1,126 $47,251 $59,724 $5,159 $4,511 Jun-15 Dec-14 $60,659 $5,315 $4,871 0.8x 9.2x 0.8x 8.9x
Anthem, Inc. 141.05 (16.0%) 21.1% 173.59 108.92 36,897 18,352 1,553 53,695 76,608 6,587 5,794 Jun-15 Dec-14 78,144 5,334 4,749 0.7x 8.2x 0.7x 10.1x
Cigna Corp(1) 140.79 (0.0%) 48.8% 170.68 85.75 36,253 5,196 1,969 39,569 36,644 3,930 3,601 Jun-15 Dec-14 38,104 4,117 3,508 1.1x 10.1x 1.0x 9.6x
Health Net, Inc.(2) 64.06 2.9% 35.7% 76.67 42.61 4,951 610 757 4,804 15,602 380 361 Jun-15 Dec-14 16,720 580 567 0.3x 12.6x 0.3x 8.3x
Humana Inc.(3) 182.79 (14.8%) 42.0% 219.79 121.04 27,092 4,432 2,250 29,274 52,131 2,596 2,323 Jun-15 Dec-14 54,783 2,823 2,448 0.6x 11.3x 0.5x 10.4x
UnitedHealth Group Incorporated 115.70 (3.8%) 33.5% 126.21 80.72 110,327 18,104 7,887 122,159 138,211 12,292 11,203 Jun-15 Dec-14 154,419 12,999 11,223 0.9x 9.9x 0.8x 9.4x
Number of Companies 6 Median: (3.3%) 37.6% Total $255,452 $296,752 $378,920 $402,829 0.7x 10.0x 0.7x 9.5x
Market Cap. Weighted Average: (5.9%) 35.7% 0.8x 9.8x 0.8x 9.5x
Government:
Centene Corp. $61.72 (18.1%) 58.0% $83.00 $37.53 $7,350 $1,149 $1,967 $6,687 $18,548 $732 $632 Jun-15 Dec-14 $22,417 $807 $693 0.4x 9.1x 0.3x 8.3x
Molina Healthcare, Inc. 74.59 2.5% 55.9% 82.37 40.79 4,181 920 2,014 3,087 11,619 416 334 Jun-15 Dec-14 14,266 521 419 0.3x 7.4x 0.2x 5.9x
Universal American Corp 7.15 (30.3%) (16.4%) 11.16 6.73 577 85 128 535 1,947 (7) (18) Jun-15 Dec-14 1,668 32 21 0.3x NM 0.3x 16.7x
WellCare Health Plans, Inc. 90.67 5.8% 37.7% 97.58 55.43 3,996 1,213 1,340 3,870 13,775 408 373 Jun-15 Dec-14 13,921 559 484 0.3x 9.5x 0.3x 6.9x
Number of Companies 4 Median: (7.8%) 46.8% Total $16,105 $14,179 $45,889 $52,271 0.3x 9.1x 0.3x 7.6x
Market Cap. Weighted Average: (7.2%) 49.7% 0.3x 8.8x 0.3x 7.6x
Information Services
Data/Analytics:
Castlight Health, Inc. $5.29 (39.4%) (55.6%) $15.10 $4.73 $499 $0 $32 $334 $61 ($79) ($81) Jun-15 Dec-14 $76 ($64) ($66) 5.5x NM 4.4x NM
Inovalon Holdings, Inc. 21.89 (17.6%) NM 33.75 17.78 3,234 290 194 2,727 387 139 119 Jun-15 Dec-14 433 159 133 7.0x 19.7x 6.3x 17.1x
National Research Corp. 31.99 (0.3%) (16.9%) 40.10 27.54 379 7 41 345 100 30 26 Jun-15 Dec-14 103 31 27 3.5x 11.6x 3.3x 11.3x
Number of Companies 3 Median: (17.6%) (36.2%) Total $4,111 $345 $548 $612 5.5x 15.6x 4.4x 14.2x
Market Cap. Weighted Average: (18.7%) (8.3%) 6.5x 18.8x 5.8x 16.5x
eHealth:
WebMD Health Corp. $41.13 (10.4%) (14.9%) $49.32 $34.48 $1,517 $952 $757 $1,712 $598 $122 $104 Jun-15 Dec-14 $629 $187 $122 2.9x 14.0x 2.7x 9.2x
Number of Companies 1 Median: (10.4%) (14.9%) Total $1,517 $1,712 $598 $629 2.9x 14.0x 2.7x 9.2x
Market Cap. Weighted Average: (10.4%) (14.9%) 2.9x 14.0x 2.7x 9.2x
Hospital/Physician:
Allscripts Healthcare Solutions, Inc. $13.77 (2.1%) (6.8%) $15.41 $11.00 $2,601 $663 $77 $3,196 $1,373 $80 ($6) Jun-15 Dec-14 $1,406 $245 $150 2.3x NM 2.3x 13.1x
Athenahealth, Inc. 132.97 14.0% (7.9%) 153.25 107.88 5,138 301 105 5,323 835 62 (0) Jun-15 Dec-14 919 168 81 6.4x NM 5.8x 31.7x
Cerner Corporation 61.76 (8.2%) 7.1% 75.72 55.75 21,312 623 294 21,376 3,812 1,070 808 Jul-15 Jan-15 4,538 1,461 1,085 5.6x 20.0x 4.7x 14.6x
Computer Programs & Systems Inc. 46.02 (12.1%) (25.1%) 64.86 43.10 520 0 26 483 193 43 40 Jun-15 Dec-14 189 39 35 2.5x 11.1x 2.6x 12.3x
HMS Holdings Corp. 10.45 (38.7%) (54.3%) 23.69 8.11 925 198 150 973 453 87 34 Jun-15 Dec-14 466 111 49 2.1x 11.2x 2.1x 8.8x
MedAssets, Inc. 21.12 1.2% (8.2%) 23.90 17.00 1,267 841 10 2,098 750 219 104 Jun-15 Dec-14 763 234 82 2.8x 9.6x 2.7x 9.0x
Merge Healthcare Incorporated(4) 7.09 55.5% 172.7% 7.13 2.04 689 219 20 938 228 39 30 Jun-15 Dec-14 251 54 30 4.1x 23.8x 3.7x 17.3x
Premier, Inc. 35.65 (7.0%) 12.9% 39.81 29.29 1,346 18 147 977 1,007 329 275 Jun-15 Jun-15 1,156 439 342 1.0x 3.0x 0.8x 2.2x
Quality Systems Inc. 13.59 (14.2%) (13.2%) 18.75 12.00 820 0 105 703 494 52 39 Jun-15 Mar-15 509 77 40 1.4x 13.5x 1.4x 9.2x
The Advisory Board Company 48.63 (4.2%) (2.0%) 60.38 37.47 2,070 564 50 2,584 666 62 26 Jun-15 Dec-14 773 171 44 3.9x NM 3.3x 15.1x
Number of Companies 10 Median: (5.6%) (7.4%) Total $36,688 $38,652 $9,811 $10,971 2.7x 11.2x 2.7x 12.7x
Market Cap. Weighted Average: (3.8%) 3.8% 4.9x 18.1x 4.2x 16.0x
Forward Twelve Month
EstimateTEV/ LTM Multiples TEV/ Fwd Multiples
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE DateCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
(1) To be acquired by Anthem (NYSE:ANTM) in a $54.2 billion transaction announced July 24, 2015.
(2) To be acquired by Centene (NYSE:CNC) in a $6.3 billion transaction announced July 2, 2015.
(3) To be acquired by Aetna (NYSE:AET) in a $37.0 billion transaction announced July 3, 2015.
(4) To be acquired by IBM (NYSE:IBM) in a $1.0 billion transaction announced August 6, 2015.
PAGE |
PUBLIC COMPARABLES
8
Payor, Provider, & Pharmacy Support Services
As of August 31, 2015.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Stock Price
% Change 52 Week
8/31/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Specialty Managed Care
Assurant Inc. $74.35 12.9% 11.4% $80.08 $59.73 $4,968 $1,267 $1,297 $4,937 $10,569 $629 $493 Jun-15 Dec-14 $8,255 $980 $796 0.5x 7.8x 0.6x 5.0x
CorVel Corporation 30.03 (16.4%) (26.6%) 41.47 28.08 598 0 27 571 495 62 43 Jun-15 Mar-15 NA NA NA 1.2x 9.2x NA NA
HealthEquity, Inc. 29.32 10.6% 51.3% 34.56 16.11 1,663 0 109 1,548 107 29 22 Jul-15 Jan-15 123 38 25 14.5x NM 12.5x NM
Number of Companies 3 Median: 10.6% 11.4% Total $7,230 $7,057 $11,171 $8,378 1.2x 8.5x 6.6x 5.0x
Market Cap. Weighted Average: 10.0% 17.4% 3.7x 8.0x 3.6x 5.0x
Retail Pharmacy
CVS Health Corporation $102.40 0.0% 28.9% $113.58 $77.40 $114,483 $13,145 $1,244 $126,230 $145,577 $10,920 $8,976 Jun-15 Dec-14 $151,094 $980 NA 0.9x 11.6x 0.8x NM
Walgreens Boots Alliance, Inc. 86.55 0.8% 43.0% 97.30 58.39 94,537 16,247 4,449 106,617 93,979 6,395 4,927 May-15 Aug-14 103,529 7,473 6,000 1.1x 16.7x 1.0x 14.3x
Rite Aid Corporation 8.25 (5.4%) 32.6% 9.36 4.42 8,373 7,444 153 13,686 27,853 1,274 825 Aug-15 Feb-15 30,639 1,409 876 0.5x 10.7x 0.4x 9.7x
Number of Companies 3 Median: 0.0% 32.6% Total $217,393 $246,533 $267,409 $285,262 0.9x 11.6x 0.8x 12.0x
Market Cap. Weighted Average: (1.2%) 30.9% 1.1x 13.6x 1.0x 13.5x
Specialty Pharmacy
Diplomat Pharmacy, Inc. $39.49 2.2% NM $52.33 $15.45 $2,513 $191 $17 $2,691 $2,640 $44 $30 Jun-15 Dec-14 $2,796 $46 $71 1.0x NM 1.0x NM
Number of Companies 1 Median: 2.2% NM Total $2,513 $2,691 $2,640 $2,796 1.0x NM 1.0x NM
Market Cap. Weighted Average: 2.2% NM 1.0x NM 1.0x NM
Specialty Pharmacy Management
Express Scripts Holding Company $83.60 (4.1%) 13.1% $94.61 $68.06 $56,491 $16,734 $721 $72,513 $102,445 $6,820 $4,776 Jun-15 Dec-14 $103,973 $7,032 $6,607 0.7x 10.6x 0.7x 10.3x
PharMerica Corporation 32.72 (1.6%) 31.5% 36.96 19.42 996 350 21 1,324 2,003 134 87 Jun-15 Dec-14 1,995 139 86 0.7x 9.9x 0.7x 9.5x
Number of Companies 2 Median: (2.8%) 22.3% Total $57,487 $73,837 $104,448 $105,968 0.7x 10.3x 0.7x 9.9x
Market Cap. Weighted Average: (4.0%) 13.4% 0.7x 10.6x 0.7x 10.3x
TEV/ LTM Multiples TEV/ Fwd MultiplesCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
Estimate
PAGE |
PUBLIC COMPARABLES
9
Products & Devices
As of August 31, 2015.
(1) To be acquired by DENTSPLY International (NYSE:XRAY) in a $5.5 billion transaction announced September 15, 2015.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Stock Price
% Change 52 Week
8/31/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Dental Products
3M Company 142.14 (10.6%) (1.3%) 170.50 130.60 88,801 8,517 2,983 93,870 31,120 8,516 7,133 Jun-15 Dec-14 30,840 8,608 7,173 3.0x 11.0x 3.0x 10.9x
DENTSPLY International Inc. 52.41 0.7% 9.9% 57.61 43.83 7,327 1,200 96 8,278 2,782 573 450 Jun-15 Dec-14 2,721 604 516 3.0x 14.5x 3.0x 13.7x
Sirona Dental Systems Inc.(1) 95.38 (3.4%) 17.0% 105.37 74.38 5,328 80 423 4,988 1,146 280 244 Jun-15 Sep-14 1,150 391 293 4.4x 17.8x 4.3x 12.8x
Number of Companies 3 Median: (3.4%) 9.9% Total $101,456 $107,136 $35,048 $34,711 3.0x 14.5x 3.0x 12.8x
Market Cap. Weighted Average: (9.4%) 0.5% 3.1x 11.6x 3.1x 11.2x
Durable Medical Equipment
Hill-Rom Holdings, Inc. 52.84 2.5% 20.6% 57.95 39.58 2,997 578 123 3,462 1,894 274 175 Jun-15 Sep-14 1,904 308 219 1.8x 12.6x 1.8x 11.3x
Invacare Corporation 17.59 (19.1%) 14.7% 23.59 11.65 572 48 23 597 1,214 1 (23) Jun-15 Dec-14 1,162 11 (15) 0.5x NM 0.5x NM
ResMed Inc. 51.94 (11.7%) (2.1%) 75.33 45.58 7,298 301 717 6,882 1,679 482 409 Jun-15 Jun-15 1,771 524 441 4.1x 14.3x 3.9x 13.1x
Number of Companies 3 Median: (11.7%) 14.7% Total $10,868 $10,941 $4,787 $4,838 1.8x 13.4x 1.8x 12.2x
Market Cap. Weighted Average: (8.2%) 5.1% 3.3x 13.8x 3.1x 12.6x
Life Sciences Tools
Agilent Technologies Inc. 36.31 (11.8%) (36.5%) 59.40 33.57 12,098 1,655 2,075 11,681 6,979 1,198 912 Jul-15 Oct-14 4,041 868 752 1.7x 9.8x 2.9x 13.5x
Becton, Dickinson and Company 141.02 0.4% 20.4% 154.98 112.15 29,650 13,171 1,559 41,224 9,410 2,417 1,733 Jun-15 Sep-14 10,290 2,695 2,160 4.4x 17.1x 4.0x 15.3x
Thermo Fisher Scientific, Inc. 125.37 (3.3%) 4.3% 141.25 14.00 49,958 14,064 768 63,215 16,854 4,026 2,308 Jun-15 Dec-14 16,809 4,253 3,808 3.8x 15.7x 3.8x 14.9x
VWR Corporation 26.25 (3.7%) NM 28.83 20.60 3,448 2,067 130 5,385 4,327 456 332 Jun-15 Dec-14 4,295 464 383 1.2x 11.8x 1.3x 11.6x
Number of Companies 4 Median: (3.5%) 4.3% Total $95,155 $121,505 $37,570 $35,436 2.7x 13.8x 3.3x 14.2x
Market Cap. Weighted Average: (3.3%) 4.0% 3.6x 15.2x 3.6x 14.7x
Medical Devices and Products
Abbott Laboratories 45.29 (6.8%) 7.2% 51.74 39.28 67,502 8,778 4,048 65,221 20,502 4,638 3,229 Jun-15 Dec-14 20,647 5,089 4,075 3.2x 14.1x 3.2x 12.8x
Baxter International Inc. 38.45 (42.3%) (48.7%) 75.36 34.50 20,976 14,230 6,680 28,559 16,326 4,049 3,036 Jun-15 Dec-14 9,873 1,571 940 1.7x 7.1x 2.9x 18.2x
Boston Scientific Corporation 16.74 (8.4%) 32.0% 18.62 11.10 22,498 5,112 903 26,707 7,272 1,741 1,009 Jun-15 Dec-14 7,430 2,049 1,254 3.7x 15.3x 3.6x 13.0x
ConforMIS, Inc. 16.00 0.0% NM 26.93 15.55 651 11 14 647 59 (45) (47) Jun-15 Dec-14 65 (51) (54) 10.9x NM 10.0x NM
CR Bard Inc. 193.79 13.8% 30.6% 202.47 141.49 14,379 1,400 1,098 14,676 3,377 1,048 873 Jun-15 Dec-14 3,415 1,024 838 4.3x 14.0x 4.3x 14.3x
Danaher Corp. 87.02 0.8% 13.6% 92.92 70.12 59,477 3,163 3,342 59,369 20,288 4,604 3,630 Jul-15 Dec-14 20,183 4,750 3,734 2.9x 12.9x 2.9x 12.5x
Hanger, Inc. 17.93 (22.0%) (20.0%) 26.79 17.04 616 540 5 1,151 1,061 156 117 Jun-14 Dec-13 1,072 163 116 1.1x 7.4x 1.1x 7.0x
Hologic Inc. 38.81 8.5% 56.1% 43.00 22.70 10,937 3,942 885 13,993 2,641 964 464 Jun-15 Sep-14 2,693 1,018 892 5.3x 14.5x 5.2x 13.7x
Johnson & Johnson 93.98 (6.2%) (9.4%) 109.49 81.79 260,241 19,307 10,639 245,594 71,882 23,498 19,784 Jun-15 Dec-14 70,684 23,648 19,985 3.4x 10.5x 3.5x 10.4x
K2M Group Holdings, Inc. 21.23 (18.8%) 49.4% 26.29 12.31 878 0 29 849 201 (14) (40) Jun-15 Dec-14 217 0 (33) 4.2x NM 3.9x NM
Medtronic plc 72.29 (5.3%) 13.2% 79.50 55.54 102,232 35,600 2,979 118,999 23,127 7,024 5,232 Jul-15 Apr-15 28,748 9,980 8,420 5.1x 16.9x 4.1x 11.9x
Stryker Corporation 98.65 2.6% 18.4% 105.34 77.87 37,147 3,469 3,626 36,336 9,818 2,623 2,242 Jun-15 Dec-14 9,969 2,638 2,475 3.7x 13.9x 3.6x 13.8x
Teleflex Incorporated 130.80 1.6% 19.5% 140.50 101.95 5,441 1,112 325 6,230 1,802 410 309 Jun-15 Dec-14 1,821 485 402 3.5x 15.2x 3.4x 12.8x
Zemach Hammerman Ltd. 2.56 (2.4%) (8.5%) 2.66 2.09 46 78 8 97 50 1 0 Jun-15 Dec-14 NA NA NA 1.9x NM NA NA
Number of Companies 14 Median: (3.8%) 13.6% Total $603,020 $618,427 $178,406 $176,817 3.6x 14.0x 3.6x 12.8x
Market Cap. Weighted Average: (5.4%) 2.9% 3.7x 12.7x 3.5x 11.9x
Medical / Surgical / Dental Supplies & Distribution
AmerisourceBergen Corporation 100.04 (11.1%) 29.3% 120.68 74.32 21,629 3,750 2,555 22,824 132,080 1,544 1,319 Jun-15 Sep-14 135,096 2,088 1,871 0.2x 14.8x 0.2x 10.9x
Cardinal Health, Inc. 82.27 (6.7%) 11.6% 91.91 71.72 26,932 5,493 4,616 27,809 102,531 2,694 2,243 Jun-15 Jun-15 114,036 3,063 2,834 0.3x 10.3x 0.2x 9.1x
Henry Schein, Inc. 136.81 (3.4%) 14.3% 149.95 109.34 11,410 736 47 12,668 10,419 890 736 Jun-15 Dec-14 10,641 924 766 1.2x 14.2x 1.2x 13.7x
McKesson Corporation 197.58 (16.7%) 1.3% 243.61 160.10 45,918 9,796 5,635 51,595 183,115 4,237 3,311 Jun-15 Mar-15 193,758 5,235 4,648 0.3x 12.2x 0.3x 9.9x
Owens & Minor Inc. 33.99 2.0% (1.2%) 36.35 31.55 2,142 575 201 2,516 9,691 258 213 Jun-15 Dec-14 9,848 278 215 0.3x 9.8x 0.3x 9.1x
Patterson Companies, Inc. 45.83 (4.2%) 13.8% 53.07 39.28 4,618 1,726 186 6,107 4,579 440 384 Aug-15 Apr-15 5,415 464 405 1.3x 13.9x 1.1x 13.2x
Number of Companies 6 Median: (5.4%) 12.7% Total $112,648 $123,519 $442,415 $468,794 0.3x 13.0x 0.3x 10.4x
Market Cap. Weighted Average: (11.0%) 10.9% 0.4x 12.5x 0.4x 10.4x
TEV/ LTM Multiples TEV/ Fwd MultiplesCash and
Equiv.Company Name
Equity
Mkt.
Value
Total Debt
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
Estimate
PAGE |
PUBLIC COMPARABLES
10
Provider-Based Services
As of August 31, 2015.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Stock Price
% Change 52 Week
8/31/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Acute-Care Hospitals
Community Health Systems, Inc. $53.70 (2.9%) (1.1%) $65.00 $44.74 $6,345 $16,937 $365 $23,524 $19,491 $2,917 $1,786 Jun-15 Dec-14 $20,010 $3,065 $1,828 1.2x 8.1x 1.2x 7.7x
HCA Holdings, Inc. 86.62 5.9% 24.1% 95.49 43.91 35,964 29,904 673 66,569 38,429 7,699 5,838 Jun-15 Dec-14 39,640 7,852 5,920 1.7x 8.6x 1.7x 8.5x
LifePoint Health, Inc. 78.13 3.8% 4.5% 88.18 62.95 3,470 2,211 423 5,375 4,963 628 350 Jun-15 Dec-14 5,206 708 419 1.1x 8.6x 1.0x 7.6x
Tenet Healthcare Corp. 49.23 (7.4%) (19.5%) 63.61 41.47 4,902 14,754 299 21,163 17,568 2,187 1,336 Jun-15 Dec-14 18,432 2,304 1,390 1.2x 9.7x 1.1x 9.2x
Number of Companies 4 Median: 0.4% 1.7% Total $50,680 $116,631 $80,451 $83,288 1.2x 8.6x 1.2x 8.1x
Market Cap. Weighted Average: 3.3% 15.4% 1.6x 8.7x 1.5x 8.4x
Assisted Living
Brookdale Senior Liv ing Inc. $27.42 (27.2%) (21.5%) $39.89 $26.79 $5,059 $6,476 $78 $11,457 $4,151 $792 ($43) Jun-15 Dec-14 $4,995 $856 $54 2.8x 14.5x 2.3x 13.4x
Capital Senior Liv ing Corp. 20.84 (19.1%) (8.9%) 27.75 20.11 615 724 39 1,299 398 70 16 Jun-15 Dec-14 410 82 18 3.3x 18.6x 3.2x 15.9x
Five Star Quality Care Inc. 3.38 (27.0%) (27.2%) 5.07 3.08 166 80 22 208 1,115 17 (17) Jun-15 Dec-14 1,369 32 2 0.2x 12.2x 0.2x 6.5x
Number of Companies 3 Median: (27.0%) (21.5%) Total $5,840 $12,965 $5,664 $6,774 2.8x 14.5x 2.3x 13.4x
Market Cap. Weighted Average: (26.4%) (20.4%) 2.7x 14.8x 2.3x 13.5x
Long-Term Care
Kindred Healthcare Inc. $20.08 (12.4%) (2.8%) $24.66 $16.94 $1,684 $3,260 $120 $4,913 $6,003 $444 $289 Jun-15 Dec-14 $7,211 $629 $471 0.8x 11.1x 0.7x 7.8x
National Healthcare Corp. 60.36 (4.1%) 5.3% 66.50 54.33 860 45 72 885 892 107 71 Jun-15 Dec-14 NA NA NA 1.0x 8.3x NA NA
The Ensign Group, Inc. 46.95 1.3% 34.1% 54.08 33.17 1,200 50 51 1,193 1,155 96 73 Jun-15 Dec-14 1,290 135 109 1.0x 12.4x 0.9x 8.9x
Number of Companies 3 Median: (4.1%) 5.3% Total $3,744 $6,992 $8,050 $8,502 1.0x 11.1x 0.8x 8.3x
Market Cap. Weighted Average: (6.1%) 10.9% 0.9x 10.9x 0.8x 8.3x
Diagnostic Imaging
Alliance Healthcare Serv ices, Inc. $14.32 (22.1%) (49.7%) $31.01 $12.72 $152 $543 $43 $731 $448 $115 $57 Jun-15 Dec-14 NA NA NA 1.6x 6.4x NA NA
RadNet, Inc. 6.14 (5.7%) (8.1%) 10.35 5.88 273 647 5 916 755 101 43 Jun-15 Dec-14 771 125 48 1.2x 9.1x 1.2x 7.3x
Varian Medical Systems, Inc. 81.25 (6.2%) (4.4%) 96.67 76.73 8,021 494 951 7,506 3,093 659 592 Jul-15 Sep-14 3,109 653 583 2.4x 11.4x 2.4x 11.5x
Number of Companies 3 Median: (6.2%) (8.1%) Total $8,445 $9,154 $4,296 $3,880 1.6x 9.1x 1.8x 9.4x
Market Cap. Weighted Average: (6.4%) (5.4%) 2.4x 11.2x 2.4x 11.4x
Dialysis Services
DaVita HealthCare Partners Inc. $75.64 (9.7%) 1.3% $85.17 $71.50 $16,300 $9,211 $934 $24,699 $13,290 $2,415 $1,800 Jun-15 Dec-14 $13,673 $2,523 $1,897 1.9x 10.2x 1.8x 9.8x
Fresenius Medical Care AG & Co. KGAA 76.54 (10.2%) 8.4% 92.14 56.98 23,314 9,272 582 33,531 16,982 3,005 2,285 Jun-15 Dec-14 16,896 3,110 2,389 2.0x 11.2x 2.0x 10.8x
Number of Companies 2 Median: (10.0%) 4.9% Total $39,614 $58,230 $30,272 $30,569 1.9x 10.7x 1.9x 10.3x
Market Cap. Weighted Average: (10.0%) 5.5% 1.9x 10.8x 1.9x 10.4x
Home Care, Hospice, and Home Infusion
Home Care / Hospice:
Addus HomeCare Corporation $28.74 2.6% 31.2% $30.90 $17.02 $317 $4 $42 $278 $332 $25 $20 Jun-15 Dec-14 $344 $27 $22 0.8x 11.4x 0.8x 10.3x
Almost Family Inc. 44.30 15.4% 58.3% 50.48 25.01 435 47 6 479 506 37 33 Jul-15 Dec-14 535 40 35 0.9x 13.1x 0.9x 11.9x
Amedisys Inc. 38.64 24.6% 84.7% 48.34 19.03 1,301 96 33 1,364 1,204 89 65 Jun-15 Dec-14 1,243 110 79 1.1x 15.3x 1.1x 12.4x
Chemed Corp. 136.35 9.8% 29.1% 153.98 97.85 2,307 160 33 2,434 1,496 205 178 Jun-15 Dec-14 1,528 226 183 1.6x 11.9x 1.6x 10.8x
LHC Group, Inc. 43.30 17.8% 68.2% 51.83 22.37 778 41 18 815 756 72 61 Jun-15 Dec-14 795 75 64 1.1x 11.4x 1.0x 10.9x
Number of Companies 5 Median: 15.4% 58.3% Total $5,137 $5,371 $4,294 $4,444 1.1x 11.9x 1.0x 10.9x
Market Cap. Weighted Average: 14.8% 51.7% 1.3x 12.7x 1.3x 11.3x
Home Infusion:
BioScrip, Inc. $2.43 (31.5%) (71.3%) $8.75 $1.30 $167 $419 $1 $643 $1,022 ($52) ($73) Jun-15 Dec-14 $983 $20 ($265) 0.6x NM 0.7x 31.4x
Number of Companies 1 Median: (31.5%) (71.3%) Total $167 $643 $1,022 $983 0.6x NM 0.7x 31.4x
Market Cap. Weighted Average: (31.5%) (71.3%) 0.6x NM 0.7x 31.4x
Total Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
EstimateCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
TEV/ Fwd MultiplesTEV/ LTM Multiples
PAGE |
PUBLIC COMPARABLES
11
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Provider-Based Services
As of August 31, 2015.
(1) To be acquired by TeamHealth (NYSE:TMH) in a $1.6 billion transaction announced August 4, 2015.
(2) Figures are adjusted for minority interest.
Stock Price
% Change 52 Week
8/31/2015 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA
Physician Practice Management
Multispecialty / Primary Care:
IPC Healthcare, Inc.(1) 79.40 60.8% 64.3% 80.09 36.12 1,383 90 12 1,461 714 70 65 Jun-15 Dec-14 752 72 63 2.0x 20.8x 1.9x 20.3x
Number of Companies 1 Median: 60.8% 64.3% Total $1,383 $1,461 $714 $752 2.0x 20.8x 1.9x 20.3x
Market Cap. Weighted Average: 60.8% 64.3% 2.0x 20.8x 1.9x 20.3x
Specialty:
MEDNAX, Inc. 80.55 13.2% 40.7% 86.09 49.82 7,578 1,297 65 8,805 2,593 589 535 Jun-15 Dec-14 2,800 630 564 3.4x 14.9x 3.1x 14.0x
Number of Companies 1 Median: 13.2% 40.7% Total $7,578 $8,805 $2,593 $2,800 3.4x 14.9x 3.1x 14.0x
Market Cap. Weighted Average: 13.2% 40.7% 3.4x 14.9x 3.1x 14.0x
Behavioral Health / Management
AAC Holdings, Inc. 23.61 (39.2%) NM 46.60 15.09 529 76 45 557 158 31 25 Jun-15 Dec-14 190 41 26 3.5x 18.1x 2.9x 13.7x
Acadia Healthcare Company, Inc. 73.03 (1.5%) 42.6% 85.62 46.87 5,232 1,953 35 7,150 1,409 301 252 Jun-15 Dec-14 1,767 397 319 5.1x 23.8x 4.0x 18.0x
Civ itas Solutions, Inc. 24.26 9.4% NM 26.13 11.88 897 652 17 1,530 1,343 143 72 Jun-15 Sep-14 1,365 152 64 1.1x 10.7x 1.1x 10.0x
Magellan Health, Inc. 56.00 (17.2%) 0.3% 73.00 52.37 1,506 265 168 1,509 4,044 233 177 Jun-15 Dec-14 4,545 283 107 0.4x 6.5x 0.3x 5.3x
Providence Serv ice Corp. 44.83 (6.7%) (1.5%) 55.99 34.03 720 488 145 1,141 1,862 111 62 Jun-15 Dec-14 2,046 125 61 0.6x 10.3x 0.6x 9.1x
Universal Health Serv ices Inc. 137.14 5.8% 19.8% 148.57 95.63 13,580 3,035 42 16,884 8,576 1,585 1,198 Jun-15 Dec-14 9,642 1,684 1,319 2.0x 10.6x 1.8x 10.0x
Number of Companies 6 Median: (4.1%) 10.0% Total $22,464 $28,770 $17,391 $19,554 1.6x 10.7x 1.4x 10.0x
Market Cap. Weighted Average: 1.3% 21.9% 2.5x 13.6x 2.2x 11.6x
Surgicenters / Rehabilitation
Surgery Centers(2):
AmSurg Corp. 78.42 16.5% 45.8% 87.21 47.68 3,799 2,249 126 6,089 2,297 340 294 Jun-15 Dec-14 2,513 478 NA 2.7x 17.9x 2.4x 12.7x
Surgical Care Affiliates, Inc. 36.55 (3.8%) 22.8% 40.99 26.55 1,443 804 78 2,169 935 146 96 Jun-15 Dec-14 1,019 173 NA 2.3x 14.8x 2.1x 12.5x
Number of Companies 2 Median: 6.3% 34.3% Total $5,242 $8,257 $3,231 $3,532 2.5x 16.4x 2.3x 12.6x
Market Cap. Weighted Average: 10.9% 39.5% 2.6x 17.1x 2.3x 12.7x
Rehabilitation:
HEALTHSOUTH Corp. 42.70 (1.1%) 8.4% 48.37 35.84 3,905 2,126 46 6,235 2,678 622 502 Jun-15 Dec-14 3,036 677 547 2.3x 10.0x 2.1x 9.2x
Select Medical Holdings Corporation 12.90 (21.1%) (8.0%) 17.20 11.46 1,695 2,476 25 4,451 3,165 367 293 Jun-15 Dec-14 3,714 411 315 1.4x 12.1x 1.2x 10.8x
US Physical Therapy Inc. 45.95 (7.8%) 28.7% 56.37 34.00 571 43 13 638 313 53 45 Jun-15 Dec-14 329 49 48 2.0x 12.1x 1.9x 12.9x
Number of Companies 3 Median: (7.8%) 8.4% Total $6,170 $11,324 $6,156 $7,079 2.0x 12.1x 1.9x 10.8x
Market Cap. Weighted Average: (7.2%) 5.8% 2.0x 10.8x 1.8x 10.0x
TEV/ LTM Multiples TEV/ Fwd MultiplesTotal Ent.
Value
(TEV)
Latest Twelve Months
(LTM)LTM
Period
Latest
FYE Date
Forward Twelve Month
EstimateCompany Name
Equity
Mkt.
Value
Total DebtCash and
Equiv.
PAGE |
M&A TRANSACTIONS
12
Announced U.S. Healthcare & Life Sciences M&A
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Enterprise Enterprise Value / LTM Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
hoh18.75
8/31/2015 SLT® Surgical Laser Business PhotoMedex Technology, Inc. DaLian Jikang Medical Systems Import &
Export Co., LTD.
$1.5 - - - No
8/31/2015 Scioderm, LLC Morgenthaler; Technology Partners;
Redmile Group, LLC
Amicus Therapeutics, Inc.
(NasdaqGM:FOLD)
$869.5 - - - Yes
8/31/2015 Nuvon, Inc. Javelin Venture Partners Cardiopulmonary Corp. - - - - No
8/31/2015 Medina Medical Inc. Kinled Holding Limited Medtronic plc (NYSE:MDT) - - - - No
8/31/2015 Golden Age Senior Liv ing, Portland, Oregon and
The Brook of Roscommon, Roscommon, Michigan
- National Health Investors Inc. (NYSE:NHI) $12.7 - - - No
8/31/2015 Autism Treatment Solutions, LLC - Butterfly Effects, LLC - - - - No
8/28/2015 CareSouth Health System, Inc. Capitol Partners L.L.C. EHHI Holdings, Inc. $170.0 1.6x - - No
8/28/2015 Vesocclude Medical LLC - Symmetry Surgical Inc.
(NasdaqGM:SSRG)
$4.0 - - - No
8/28/2015 Akron General Health System - The Cleveland Clinic Foundation - - - - No
8/27/2015 Calibrium LLC and MB2 LLC - Novo Nordisk A/S (CPSE:NOVO B) - - - - No
8/27/2015 Anderson Orthopaedic Clinic, Inc. - Physiotherapy Corporation - - - - No
8/27/2015 Central Emergency Medical Serv ices, Inc. - Priority Ambulance Holdings, Inc. - - - - No
8/27/2015 Comprehensive Drug Enterprises Ltd. and Taihao
and Polymed Therapeutics, Inc.
- Athenex - - - - No
8/27/2015 Parkwood Senior Liv ing Community Altru Health System Edgewood Management Group, LLC - - - - No
8/26/2015 Cambridge Endoscopic Devices, Inc. - White Sand Beach LLC $3.1 - - - No
8/26/2015 Triad Medical Group - IPC Healthcare, Inc. (NasdaqGS:IPCM) - - - - No
8/26/2015 Croft Liv ing Home Inc. - Main Pulze, Inc. - - - - No
8/26/2015 Camino del Rey - Main Pulze, Inc. - - - - No
8/26/2015 Verbal Applications Inc. - Medical Specialties Distributors, LLC - - - - No
8/26/2015 Therapy Plus of Wisconsin LLC - Physiotherapy Corporation - - - - No
8/26/2015 Integra Partners Holdings, LLC Peterson Partners LP Tufts Associated Health Plans, Inc. - - - - Yes
8/26/2015 Danville Ambulance Serv ice, Inc. - West Shore Advanced Life Support
Serv ice, Inc.
- - - - No
8/25/2015 Peachstate Health Management, LLC - Authentidate Holding Corp.
(NasdaqCM:ADAT)
- - - - No
8/25/2015 Twelve, Inc. Domain Associates, L.L.C.;
Morgenthaler; Versant Ventures, Inc.;
Longitude Capital Management Co.,
LLC
Medtronic plc (NYSE:MDT) $458.0 - - - No
8/25/2015 Diversified Healthcare Resources, Inc. - Cardon Outreach, LLC - - - - No
8/25/2015 Seasons Inpatient Hospice property located at
2195 West Diehl Road
- - $5.3 - - 14.4x No
8/25/2015 Mid-Michigan Dermatology, PLLC - Advanced Dermatology & Cosmetic
Surgery Inc.
- - - - No
8/25/2015 Navihealth, Inc. Universal American Corp (NYSE:UAM) Cardinal Health, Inc. (NYSE:CAH) $408.5 - - - No
8/25/2015 Cellular Research, Inc. Decheng Capital LLC Becton, Dickinson and Company
(NYSE:BDX)
- - - - No
8/25/2015 eyecarecenter, O.D., P.A., Certain Offices in North
Carolina and South Carolina
eyecarecenter, O.D., P.A. Clarkson Eyecare, Inc. - - - - No
8/24/2015 Renal Ventures Management, LLC - DaVita HealthCare Partners Inc.
(NYSE:DVA)
$415.0 - - - No
8/24/2015 Apismellis Homecare, LLC - Cornerstone Healthcare, Inc. - - - - No
8/24/2015 Healthcare Monitoring Systems, Inc. - American Medical Alert Corp. - - - - No
8/24/2015 CAO Pharmaceuticals Inc., Exclusive Worldwide
License Right For CZ-48
CAO Pharmaceuticals Inc. NMT Pharmaceuticals Pte. Ltd. - - - - No
8/24/2015 Cytovance Biologics, Inc. Great Point Partners, LLC Hepalink USA Inc. $205.7 - - - Yes
8/24/2015 B.O.N. Clinical Laboratories, Ltd. - Schryver Medical Sales And Marketing,
Inc.
- - - - No
8/24/2015 Physicians Immediate Med P.C. - CRH Healthcare, LLC - - - - No
8/24/2015 Pfizer Inc., Four Pharmaceutical Products Pfizer Inc. (NYSE:PFE) Alvogen, Inc. - - - - No
8/24/2015 Caverna Memorial Hospital, Inc. - Bowling Green-Warren County
Community Hospital Corporation
- - - - No
8/23/2015 Healix Infusion Therapy, Inc., 503B Compounding
Pharmacy Serv ices Div ision
Healix Infusion Therapy, Inc. QuVa Pharma, Inc. - - - - No
8/23/2015 Avalere Health LLC ABS Capital Partners, Inc. Inovalon Holdings, Inc.
(NasdaqGS:INOV)
$139.9 3.0x - - Yes
8/22/2015 Dialysis Newco, Inc. Frazier Healthcare Ventures; New
Enterprise Associates; Kaiser
Permanente Ventures
U.S. Renal Care Inc. - - - - No
8/21/2015 BioMarin Pharmaceutical Inc., All Worldwide
Rights to Talazoparib
BioMarin Pharmaceutical Inc.
(NasdaqGS:BMRN)
Medivation, Inc. (NasdaqGS:MDVN) $570.0 - - - No
8/21/2015 Prairie Community Health, Inc. - Horizon Health Care, Inc. - - - - No
8/21/2015 Monte Nido & Affiliates, LLC Centre Partners Management LLC Levine Leichtman Capital Partners - - - - Yes
8/20/2015 Millennium Anesthesia Care - MEDNAX, Inc. (NYSE:MD) - - - - No
PAGE |
M&A TRANSACTIONS
13
Announced U.S. Healthcare & Life Sciences M&A cont.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Enterprise Enterprise Value / LTM Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
8/20/2015 Millennium Anesthesia Care - MEDNAX, Inc. (NYSE:MD) - - - - No
8/20/2015 Sprout Pharmaceuticals, Inc. - Valeant Pharmaceuticals International,
Inc. (TSX:VRX)
$1,000.0 - - - No
8/20/2015 HurryCane LLC Marketing Architects, Inc. Medical Depot, Inc. - - - - No
8/20/2015 Sports and Spinal Physical Therapy, Inc. - Orthology, Inc. - - - - No
8/20/2015 Tripex Pharmaceuticals, Quinsair Tripex Pharmaceuticals Raptor Pharmaceuticals Corp.
(NasdaqGM:RPTP)
- - - - No
8/20/2015 Killdeer Medical Clinic - Coal Country Community Health Center - - - - No
8/20/2015 High Country Health Care, P.C. - Centura Health Physician Group - - - - No
8/19/2015 Medical Lasers Manufacturer Inc. - Medifirst Solutions, Inc (OTCPK:MFST) - - - - No
8/19/2015 Animal Emergency & Specialty Center of
Chattanooga
- Innovetive Petcare Holdings, LLC - - - - No
8/19/2015 Kapa Biosystems, Inc. - Roche Holding AG (SWX:ROG) - - - - No
8/19/2015 The Regional Medical Center of Acadiana HCA MidAmerica Div ision Lafayette General Health System, Inc. - - - - No
8/18/2015 ALS Biopharma, LLC, Worldwide Intellectual
Property Rights for Portfolio of Prodrugs
ALS Biopharma, LLC Biohaven Pharmaceutical Holding
Company Limited
- - - - No
8/18/2015 Bridge Design Inc. - Ximedica, LLC - - - - No
8/18/2015 Associates of Digestive Health, LLC, GI Anesthesia
Business
Associates in Digestive Health, LLC CRH Medical Corporation (TSX:CRH) - - - - No
8/17/2015 Amber BioLife, Inc. - Zheng Yang Biomedical Technology Co.,
Ltd. (GTSM:4734)
$0.7 - - - No
8/17/2015 Bristol-Myers Squibb, IXEMPRA Bristol-Myers Squibb Company
(NYSE:BMY)
R-Pharm-US LLC - - - - No
8/17/2015 Gateway Rehabilitation Hospital and Highlands
Regional Rehabilitation Hospital
Elmcroft Assisted Liv ing LLC Vibra Healthcare, LLC - - - - No
8/14/2015 Learner's Digest International LLC Housatonic Partners Wolters Kluwer Health, Inc. $150.0 3.9x - - Yes
8/14/2015 Neurotech NA, Inc. Bio-Medical Research Limited Theragen LLC - - - - No
8/14/2015 Heart Hospital of BK, LLC Cardiovascular Care Group, Inc. United Surgical Partners International
Inc.; Dignity Health
- - - - No
8/13/2015 HASCO Medical, Inc. (OTCPK:HASC) Hasco Holdings, LLC WMK Inc. $48.8 0.5x 9.3x 11.1x No
8/13/2015 GeneWEAVE Biosciences Inc. X/Seed Capital Management Roche Molecular Systems Inc. $425.0 - - - No
8/13/2015 Sommerset Assisted Liv ing and Memory Care
Center located in Oklahoma City, Oklahoma
- Haverland Carter Lifestyle Group - - - - No
8/12/2015 Smith Premier Serv ices, Inc. J M Smith Corporation MedTrak Serv ices LLC - - - - No
8/11/2015 Stephen B. Meisel, M.D., A Medical Corporation - One Call Care Management, Inc. - - - - No
8/11/2015 AdeptBio LLC - Asterand Bioscience, Inc. - - - - No
8/10/2015 National Center on Institutions and Alternatives,
Inc.
- Woods Resources, Inc. - - - - No
8/10/2015 InSite Vision Incorporated (OTCPK:INSV) PTV Healthcare Capital; Coliseum
Capital Management, LLC; Broadfin
Capital, LLC; Ayer Capital
Management, LP
Sun Pharmaceutical Industries Limited
(NSEI :SUNPHARMA)
$55.7 12.4x NM - No
8/10/2015 Victory Medical Center Beaumont, LP Victory Parent Company, LLC The Medical Center of Southeast Texas,
LP
$21.0 - - - No
8/10/2015 North American Dental Group, LLC - ABRY Partners, LLC; The Riverside
Company
- - - - Yes
8/9/2015 Therakos, Inc. The Gores Group LLC Mallinckrodt Enterprises LLC $1,325.0 7.6x - - Yes
8/9/2015 Bioscrip PBM Serv ices, LLC, PBM Business Bioscrip PBM Serv ices, LLC ProCare Pharmacy Benefit Manager,
Inc.
$25.6 - - - No
8/9/2015 Response Genetics, Inc, Substantially All Assets
and Operations
Response Genetics, Inc
(OTCPK:RGDX.Q)
Cancer Genetics, Inc.
(NasdaqCM:CGIX)
$13.8 - - - No
8/7/2015 4.17% in Cytolumina Technologies Corp and
Fetolumina Technologies Corp
- TNK Therapeutics, Inc. $119.9 - - - No
8/7/2015 Practices of Ronald Stauber, Andres Cowley,
Monroe Scheiner
- Gastro Health, PL - - - - No
8/7/2015 RadNet, Inc., 10 New Jersey Imaging Centers RadNet, Inc. (NasdaqGM:RDNT) The New Jersey Imaging Network, LLC $35.5 - - - No
8/7/2015 Barnabas Health, Inc., Outpatient Imaging Center
in West Orange
Barnabas Health, Inc. The New Jersey Imaging Network, LLC - - - - No
8/6/2015 Tea Leaves Health - Everyday Health, Inc. (NYSE:EVDY) $50.0 - - - No
8/6/2015 nSpire Health, Inc., Clinical Trial Div ision nSpire Health, Inc. iCardiac Technologies, Inc. - - - - No
8/6/2015 Merge Healthcare Incorporated
(NasdaqGS:MRGE)
Prescott Group Capital Management
L.L.C.; Guggenheim Partners
Investment Management LLC; Nzc
Guggenheim Fund LLC; Verger Capital
Management, LLC
International Business Machines
Corporation (NYSE:IBM)
$975.3 4.3x 24.7x 32.6x No
8/6/2015 Newell Rubbermaid Inc., Rubbermaid Medical
Cart Business
Newell Rubbermaid Inc. (NYSE:NWL) Capsa Solutions, LLC - - - - No
8/6/2015 ADP AdvancedMD, Inc. Automatic Data Processing, Inc.
(NasdaqGS:ADP)
Marlin Equity Partners, LLC - - - - Yes
8/6/2015 North Bay Bioscience, LLC - Mesa Laboratories Inc.
(NasdaqGS:MLAB)
$11.3 - - - No
PAGE |
M&A TRANSACTIONS
14
Announced U.S. Healthcare & Life Sciences M&A cont.
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
Enterprise Enterprise Value / LTM Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
8/6/2015 Theorem Clinical Research Inc. Nautic Partners, LLC Chiltern International Limited - - - - Yes
8/6/2015 Care Communications, Inc. - IOD Incorporated - - - - No
8/6/2015 World of Weed, Inc. - Med-Cannabis Pharma, Inc.
(OTCBB:MCPI)
- - - - No
8/5/2015 HerbalScience Group, Portfolio of 10 OTC Drug
Products & 8 Disease-specific Pharmaceutical
Products
HerbalScience Group LLC HSRx Group, LLC - - - - No
8/5/2015 Society43 LLC - - - - - - No
8/5/2015 Anesthesia Staffing Consultants, Inc. - NorthStar Anesthesia P.A. - - - - No
8/5/2015 Beloit Regional Hospice, Inc. - Beloit Health System, Inc. - - - - No
8/4/2015 ProTom International, LLC and ProTom
International, Inc.
- Imperium Partners Group $15.7 - - - No
8/4/2015 Citrus Hills Assisted Liv ing and Whittier Glen
Assisted Liv ing
- The Ensign Group, Inc.
(NasdaqGS:ENSG)
- - - - No
8/4/2015 Diffinity Genomics, Inc. Excell Partners, Inc.; LaunchCapital
LLC; Mass Medical Angels
Chiral Technologies, Inc. - - - - No
8/4/2015 IPC Healthcare, Inc. (NasdaqGS:IPCM) BlackRock Fund Advisors; Riverbridge
Partners, LLC; Clifton Park Capital
Management, LLC
Team Health Holdings, Inc. (NYSE:TMH) $1,476.1 2.1x 21.0x 22.8x Yes
8/4/2015 Hospital Physician Partners, Inc. Beecken Petty O'Keefe & Company Schumacher Group - - - - Yes
8/4/2015 Bay Area Anesthesia, LLC - AmSurg Corp. (NasdaqGS:AMSG) - - - - No
8/4/2015 Capital Senior Liv ing Corp., Community in Kansas Capital Senior Liv ing Corp. (NYSE:CSU) CPF Liv ing Communities $14.8 - - - No
8/4/2015 Lifeline Cryogenics, LLC - California Cryobank Stem Cell Serv ices
LLC
- - - - No
8/3/2015 Florida Pharmacy Solutions, Inc. - FPS Pharma Inc. (OTCPK:FPSU.F) $2.7 0.1x - - No
8/3/2015 Applied Strategies Consulting, LLC - Strategic Decisions Group International
LLC
- - - - No
8/3/2015 Foresight Biotherapeutics, Inc. MHR Fund Management LLC Shire plc (LSE:SHP) $300.0 - - - No
8/3/2015 Immuneering Corporation - Teva Pharmaceutical Industries Limited
(NYSE:TEVA)
- - - - No
8/3/2015 Integral Health Plan, Inc., Certain assets of
Medicaid Business
Integral Health Plan, Inc. Molina Healthcare of Florida, Inc. - - - - No
8/3/2015 Fleming County Hospital District - LifePoint Health, Inc. (NasdaqGS:LPNT) - - - - No
8/3/2015 Wilmot Cancer Institute University of Rochester Medical
Center, Endowment Arm
OmniSeq, LLC - - - - No
8/3/2015 Fifteen Assisted Liv ing Operations In Wisconsin - Bridgestone Liv ing, Inc. - - - - No
8/3/2015 Interface Associates, Inc. Telegraph Hill Partners Nitinol Devices & Components, Inc. - - - - Yes
8/3/2015 Forte Senior Liv ing Group - The Point Group, Inc. - - - - No
8/3/2015 Harmony Liv ing Centers, LLC - The Ensign Group, Inc.
(NasdaqGS:ENSG)
- - - - No
8/1/2015 Premier Physical Therapy & Wellness, LLC - Professional Orthopedic and Sports
Physical Therapy, P.C.
- - - - No
8/1/2015 River Oaks HCR ManorCare, Inc. Stonerise Healthcare LLC - - - - No
Energy, Power& Infrastructure
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
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HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015
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DISCLOSURES
HEALTHCARE & LIFE SCIENCES
INDUSTRY UPDATE │ SEPTEMBER 2015