Healthcare Sector Update - August 2015
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The document provides an analysis of the performance and valuation multiples of healthcare services, pharmaceuticals, and life sciences sectors over a three-month period, highlighting that the S&P healthcare services index increased by 12.0%, while the pharmaceuticals and life sciences index rose by 6.9%. Key performing sectors include emergency services and infection prevention devices, with distinct best and worst performers noted in each category. Additionally, it outlines median revenue and EBITDA multiples for various sectors, identifying consumer directed health & wellness and biotechnology as some of the highest valued sectors.
Healthcare Sector Update - August 2015
- 1. Duff & Phelps Inside 3 Public Trading Data Healthcare Services Companies 11 Public Trading Data Pharmaceutical, Medical Devices and Life Sciences Companies 21 Contact Us August 2015 Summary – Healthcare Services •• The SP Healthcare Services Index has increased by 12.0% over the last three months, outperforming the SP 500 (0.9% increase over the last three months). •• Over the past three months: The best performing sectors were Emergency Services (up 29.7%) and Specialty Managed Care (up 18.3%) The worst performing sectors were Diagnostic Imaging (down 20.2%) and Care Management / TPA (down 10.6%) •• The current median LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 1.7x and 12.6x, respectively. •• The sectors with the highest valuation multiples include: Consumer Directed Health and Wellness (4.2x LTM Revenue, 23.5x LTM EBITDA) HCIT (3.7x LTM Revenue, 21.7x LTM EBITDA) Emergency Services (3.5x LTM Revenue, 25.5x LTM EBITDA) Healthcare Sector Update Summary – Pharmaceutical / Medical Devices / Life Sciences •• The SP 500 – Pharmaceuticals, Biotechnology and Life Sciences Index has risen 6.9% over the last three months, outperforming the SP 500 (0.9% increase over the last three months). •• Over the past three months: The best performing sectors were Infection Prevention Devices (up 13.2%), Biotechnology (up 11.8%) and Life Science Consumables (up 11.6%) The worst performing sectors were Ophthalmology Devices (down 4.2%) and Mobility Devices (down 2.9%) •• The current median LTM revenue and LTM EBITDA multiples for the Pharmaceutical / Medical Device / Life Science industry overall are 3.6x and 15.7x, respectively. •• The sectors with the highest valuation multiples include: Biotechnology (6.9x LTM Revenue, 13.9x LTM EBITDA) Pharmaceuticals (5.7x LTM Revenue, 17.0x LTM EBITDA) Life Science Conglomerates (4.1x LTM Revenue, 19.4x LTM EBITDA)
- 2. Powering Sound Decisions for Companies, Boards and Investors Worldwide #1 Announced Fairness Opinions in the U.S. Over the Past Five Years #3 U.S. Middle-Market MA Advisor Over the Past Three Years Top 10 U.S. Restructuring Advisor Source: Fairness opinion rankings calculated by number of deals from Thomson Financial Securities full years 2010 through 2014. MA rankings calculated by number of deals from Thomson Financial Securities full years 2012 through 2014. Middle-market MA deals $200 million. Bankruptcy case ranking provided by The Deal Q4 2014 league table. Duff Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute and legal management consulting, MA, restructuring, and compliance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world. For more information, visit www.duffandphelps.com.
- 3. Healthcare Sector Update Median % Change — 3 monthsMARKET SECTOR No. of Cos. Ag. Eqty Mkt. Value Median % Change LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo Rev EBITDA LTM 2015E Acute Care Hospitals 5 $69,098 17.6% 22.7% 1.25x 8.9x 22.2x 20.8x 2.1x Assisted Living 4 7,196 (6.8%) (7.0%) 2.04x 17.7x NM NM NM Care Management / TPA 7 11,320 (10.6%) (20.7%) 1.24x 12.6x 23.3x 20.0x 1.1x Clinical Laboratories 6 31,114 0.1% 20.8% 2.36x 12.9x 24.4x 18.0x 1.5x Consumer Directed Health Wellness 10 27,244 (1.3%) (19.7%) 4.22x 23.5x 32.5x 25.0x 2.2x Contract Research Orgs 7 27,832 17.1% 39.7% 2.87x 15.2x 25.7x 23.9x 1.7x Diagnostic Imaging 3 469 (20.2%) (5.3%) 1.68x 6.3x 23.8x 13.3x 1.5x Dialysis Services 2 41,893 (2.8%) 15.0% 1.97x 11.0x 31.8x 21.9x 1.8x Distribution / Supply 7 122,886 4.3% 27.3% 0.31x 13.1x 26.6x 18.6x 1.9x Emergency Services 2 2,817 29.7% 152.7% 3.50x 25.5x 15.2x 15.0x 0.9x HCIT 18 52,897 (0.9%) 11.1% 3.70x 21.7x 31.1x 28.3x 1.9x Healthcare REITs 12 84,819 (3.2%) (1.0%) 11.77x 17.7x 22.4x 22.4x 5.6x Healthcare Staffing 5 15,925 13.3% 25.3% 1.46x 17.5x 41.5x 28.7x 1.8x Home Care / Hospice 6 6,189 18.2% 58.7% 0.99x 12.6x 25.7x 23.1x 1.8x Long Term Care 4 3,997 (5.1%) 35.1% 0.97x 10.2x 32.1x 18.2x 1.3x Managed Care – Commercial 7 265,483 9.0% 49.8% 0.75x 10.3x 19.0x 19.2x 1.4x Managed Care – Government 3 16,139 13.1% 84.7% 0.27x 8.2x 28.8x 25.1x 1.0x Other Services 4 14,632 10.5% 26.7% 2.30x 29.6x 40.4x 36.5x 2.3x Pharmacy Management 6 72,942 7.2% 31.3% 0.83x 11.3x 29.7x 22.2x 1.5x Physician Practice Mgmt 2 7,941 10.8% 11.2% 2.03x 12.6x 25.0x 23.5x 1.6x Psychiatric Hospitals 3 8,173 9.7% 36.3% 0.40x 7.0x 26.7x 37.2x 1.6x Specialty Managed Care 2 5,639 18.3% 21.3% 0.39x 7.0x 13.7x 13.2x 1.8x Surgicenters / Rehabilitation 8 13,360 1.0% 24.3% 2.38x 10.5x 24.7x 21.4x 1.3x Total / Median ($MM) 133 $910,003 7.2% 24.3% 1.68x 12.6x 25.7x 22.1x 1.7x Source: Capital IQ CAPITALIZATION PROFILE No. of Cos. Ag. Eqty Mkt. Value % Total No. of Cos. % Ag. Eqty Mkt. Value Average Stock Performance 3 mo YTD 12 mo 36 mo $5 billion 38 $776,895 28.6% 85.4% 8.0% 14.2% 29.1% 126.8% $1 billion – $5 billion 47 112,834 35.3% 12.4% 10.6% 22.3% 32.5% 110.3% $250 million – $1 billion 31 18,593 23.3% 2.0% 0.4% 3.2% 9.6% 107.9% $100 million – $250 million 6 1,109 4.5% 0.1% (11.6%) (3.7%) (5.0%) 131.3% $100 million 11 573 8.3% 0.1% (3.1%) (0.9%) (15.4%) 1.1% Total / Median ($MM) 133 $910,003 100.0% 100.0% 0.4% 3.2% 9.6% 110.3% Source: Capital IQ MARKET INDICES Value at 7/31/15 % Change 3 mo YTD 12 mo 36 mo Dow Jones Industrial Average $17,689.9 (0.8%) (0.7%) 6.8% 36.0% SP 500 Index 2,103.8 0.9% 2.2% 9.0% 52.5% NASDAQ Composite Index 5,128.3 3.8% 8.3% 17.4% 74.5% Russell 2000 Index 1,238.7 1.5% 2.8% 10.6% 57.4% AMEX Sector Index – Healthcare 100.5 (3.4%) 0.2% (0.7%) 14.1% SP Healthcare Facilities (Sub Ind) Index 486.5 12.9% 15.4% 28.7% 194.8% SP Healthcare Providers Services (Industry) Index 726.7 14.0% 20.3% 43.9% 152.3% SP Managed Healthcare (Sub Ind) Index 457.5 17.2% 24.9% 72.5% 140.5% SP Healthcare Services 478.8 12.0% 16.6% 24.3% 81.3% Source: Capital IQ Performance of Market Indices for Latest 36 months 9/30/12 12/31/12 3/31/13 9/30/136/30/13 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 Dow Jones Industrial Average SP 500 Index Russell 2000 Index SP Healthcare Services 80 100 120 140 160 180 200 6/30/12 NASDAQ Composite Index INTEREST RATES Value at 7/31/15 1 mo ago 3 mo ago 12 mo ago LIBOR – USD – 6 months 0.49% 0.44% 0.41% 0.33% U.S. Treasury – 2 years 0.67% 0.64% 0.58% 0.53% U.S. Treasury – 5 years 1.55% 1.63% 1.44% 1.76% U.S. Treasury – 10 years 2.20% 2.33% 2.05% 2.56% U.S. Treasury – 30 years 2.93% 3.10% 2.75% 2.75% U.S. Prime Rate 3.25% 3.25% 3.25% 3.25% (30%) (10%)(20%) 0% 10% 30%20% 40% Diagnostic Imaging Care Management/TPA Assisted Living Long Term Care Healthcare REITs Dialysis Services Consumer Directed Health Wellness HCIT Clinical Laboratories SP 500 Index Surgicenters/Rehabilitation Distribution/Supply Pharmacy Management Managed Care – Commercial Psychiatric Hospitals Other Services Physician Practice Mgmt Managed Care – Government Healthcare Staffing Contract Research Orgs Acute Care Hospitals Home Care/Hospice Specialty Managed Care Emergency Services Source: Capital IQ Duff Phelps 3 Source: Capital IQ Source: Capital IQ
- 4. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Acute Care Hospitals Community Health Systems, Inc. CYH $58.51 9.0% 22.7% $65.00 $44.74 $6,906 $24,333 $19,491.0 $3,024.0 $1.32 $4.00 1.25x 8.0x 20.4x 14.6x 1.00x HCA Holdings, Inc. HCA 93.01 25.7% 42.4% 95.49 62.50 38,536 68,887 38,429.0 7,699.0 4.16 5.28 1.79x 8.9x 19.5x 17.6x 1.45x LifePoint Health, Inc. LPNT 82.86 10.7% 15.5% 88.18 62.95 3,680 5,585 4,963.0 627.5 2.69 3.99 1.13x 8.9x 28.4x 20.8x 2.76x Tenet Healthcare Corp. THC 56.30 17.6% 6.7% 63.61 41.47 5,586 18,076 17,568.0 2,187.0 0.34 2.23 1.03x 8.3x NM 25.3x 2.11x Universal Health Services Inc. UHS 145.23 24.2% 36.2% 148.28 95.63 14,389 17,693 8,575.8 1,585.3 5.42 6.96 2.06x 11.2x 23.9x 20.9x 2.06x Median 17.6% 22.7% 1.25x 8.9x 22.2x 20.8x 2.06x Assisted Living AdCare Health Systems, Inc. ADK $3.82 (5.0%) (18.9%) $5.05 $3.32 $83 $229 $193.7 $8.7 ($0.82) NM 1.18x 26.5x NM NM NM Brookdale Senior Living Inc. BKD 33.13 (8.6%) (4.4%) 39.89 30.12 6,235 12,593 4,333.9 755.2 (1.01) (1.35) 2.91x 16.7x NM NM NM Capital Senior Living Corp. CSU 22.29 (14.8%) (9.5%) 27.75 20.33 657 1,312 395.0 69.9 (0.83) 0.05 3.32x 18.8x NM NM NM Five Star Quality Care Inc. FVE 4.52 6.4% (1.1%) 5.07 3.23 221 260 1,112.5 19.8 (1.65) 0.07 0.23x 13.1x NM NM NM Median (6.8%) (7.0%) 2.04x 17.7x NM NM NM Care Management / TPA Alere Inc. ALR $48.61 2.4% 21.5% $54.58 $33.76 $4,151 $7,479 $2,543.6 $592.0 ($2.38) $2.43 2.94x 12.6x NM 20.0x 1.13x Care.com, Inc. CRCM 6.00 (6.5%) (36.8%) 9.55 5.61 192 129 136.4 (26.8) (2.77) (0.67) 0.95x NM NM NM NM CorVel Corporation CRVL 31.96 (10.6%) (20.7%) 41.79 28.08 641 616 495.2 61.7 1.49 NM 1.24x 10.0x 23.3x NM NM Crawford Company CRD.B 6.92 (15.3%) (24.8%) 11.00 6.86 370 587 1,171.5 82.4 0.55 0.65 0.50x 7.1x 14.3x 10.6x 1.06x ExamWorks Group, Inc. EXAM 35.08 (14.3%) (0.6%) 44.33 31.10 1,457 1,894 811.2 112.2 0.25 0.07 2.33x 16.9x NM NM NM Hooper Holmes Inc. HH 0.18 (62.5%) (73.9%) 0.73 0.13 14 13 26.9 (6.4) (0.08) NM 0.47x NM NM NM NM MAXIMUS, Inc. MMS 68.21 6.6% 64.9% 69.05 37.94 4,494 4,381 1,804.1 278.0 2.25 2.52 2.43x 15.8x 30.6x 27.1x 1.37x Median (10.6%) (20.7%) 1.24x 12.6x 23.3x 20.0x 1.13x Healthcare Sector Update Duff Phelps 4 Source: Capital IQ as of July 31, 2015; For definitions, see page 10
- 5. Healthcare Sector Update ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Clinical Laboratories Bio-Reference Laboratories Inc. BRLI $44.37 34.0% 41.4% $47.49 $26.32 $1,235 $1,280 $882.5 $116.0 $1.81 $2.01 1.45x 11.0x 24.4x 22.1x 1.24x Invitae Corporation NVTA 9.99 (8.8%) NM 22.35 9.68 318 137 2.7 (54.1) (56.14) (2.57) 50.37x NM NM NM NM Laboratory Corp. of America Holdings LH 127.29 6.5% 22.8% 131.19 95.61 12,805 18,990 7,055.5 1,414.2 5.91 7.88 2.69x 13.4x 27.5x 16.1x 1.39x Psychemedics Corp. PMD 12.02 (22.5%) (14.3%) 17.83 9.82 65 69 28.2 4.0 0.60 NM 2.43x 17.0x 30.5x NM NM Quest Diagnostics Inc. DGX 73.81 3.3% 20.8% 89.00 56.27 10,596 14,224 7,551.0 1,469.0 3.78 4.76 1.88x 9.7x 21.8x 15.5x 1.61x Sonic Healthcare Limited SHL 15.16 (3.2%) (10.3%) 17.41 12.10 6,095 7,558 3,297.2 584.6 0.77 0.76 2.29x 12.9x 21.9x 19.9x 2.42x Median 0.1% 20.8% 2.36x 12.9x 24.4x 18.0x 1.50x Contract Research Orgs Albany Molecular Research Inc. AMRI $21.14 17.1% 11.0% $23.95 $13.73 $747 $919 $320.4 $34.0 ($0.10) $0.86 2.87x 27.0x NM 24.6x 3.08x Charles River Laboratories International, Inc. CRL 77.62 12.2% 43.2% 84.69 52.39 3,631 4,269 1,317.1 290.5 2.70 3.64 3.24x 14.7x 26.3x 21.3x 2.25x ICON Public Limited Company ICLR 80.80 25.6% 56.0% 81.90 49.51 4,895 4,723 1,554.6 310.6 2.73 3.93 3.04x 15.2x 24.1x 20.6x 1.30x INC Research Holdings, Inc. INCR 50.03 49.2% NM 50.13 19.61 2,814 3,191 860.4 181.3 (0.51) 1.77 3.71x 17.6x NM 28.2x 1.69x PAREXEL International Corporation PRXL 68.96 8.5% 28.8% 72.69 52.19 3,804 3,891 2,003.6 298.0 2.66 2.88 1.94x 13.1x 25.2x 23.9x 1.43x PRA Health Sciences, Inc. PRAH 41.99 47.4% NM 44.02 18.47 2,526 3,410 1,312.3 186.8 (0.83) 1.82 2.60x 18.3x NM 23.1x 1.25x Quintiles Transnational Holdings Inc. Q 76.72 16.5% 39.7% 80.45 51.09 9,414 11,102 4,229.4 750.7 2.72 3.16 2.62x 14.8x 27.9x 24.3x 1.88x Median 17.1% 39.7% 2.87x 15.2x 25.7x 23.9x 1.69x Diagnostic Imaging Alliance Healthcare Services, Inc. AIQ $14.96 (29.7%) (47.6%) $31.01 $13.65 $158 $740 $440.5 $117.9 $0.98 NM 1.68x 6.3x 15.6x NM NM American Shared Hospital Services AMS 2.68 0.8% (5.3%) 3.05 1.98 14 45 15.5 8.3 (0.19) 0.24 2.90x 5.4x NM 11.1x NM RadNet, Inc. RDNT 6.69 (20.2%) 30.9% 10.35 4.71 296 898 730.0 103.4 0.03 0.43 1.23x 8.7x 32.0x 15.4x 1.54x Median (20.2%) (5.3%) 1.68x 6.3x 23.8x 13.3x 1.54x Dialysis Services DaVita HealthCare Partners Inc. DVA $79.03 (2.6%) 12.2% $85.17 $70.49 $16,987 $25,099 $13,288.0 $2,415.4 $3.33 $3.78 1.89x 10.4x 40.0x 20.9x 1.69x Fresenius Medical Care AG Co. KGAA FME 81.76 (3.0%) 17.7% 90.88 55.32 24,906 34,983 16,982.3 3,004.8 3.45 3.56 2.06x 11.6x 23.7x 23.0x 1.94x Median (2.8%) 15.0% 1.97x 11.0x 31.8x 21.9x 1.81x Duff Phelps 5 Source: Capital IQ as of July 31, 2015; For definitions, see page 10
- 6. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Distribution / Supply Aceto Corp. ACET $23.43 20.9% 39.8% $27.54 $16.52 $682 $754 $539.9 $57.7 $0.77 $1.29 1.40x 13.1x 26.6x 18.2x 0.91x AmerisourceBergen Corporation ABC 105.75 (7.5%) 37.5% 120.68 74.32 23,232 24,427 132,080.1 1,586.5 0.15 5.11 0.18x 15.4x NM 20.7x 1.43x Cardinal Health, Inc. CAH 84.98 0.8% 18.6% 91.91 68.54 28,114 28,990 102,531.0 2,642.0 3.24 4.58 0.28x 11.0x 23.5x 18.5x 1.85x Henry Schein, Inc. HSIC 147.98 7.9% 27.3% 149.95 109.34 12,341 13,600 10,418.8 890.4 5.44 5.93 1.31x 15.3x 26.7x 25.0x 2.34x McKesson Corporation MCK 220.57 (1.3%) 15.0% 243.61 178.28 51,261 56,938 183,115.0 4,237.0 7.54 12.41 0.31x 13.4x 26.6x 17.8x 1.33x Owens Minor Inc. OMI 35.16 4.3% 6.3% 36.35 31.55 2,216 2,589 9,691.3 257.9 1.06 1.89 0.27x 10.0x 34.3x 18.6x 2.62x Patterson Companies, Inc. PDCO 50.16 6.8% 28.6% 51.49 38.04 5,040 5,366 4,375.0 429.4 2.14 2.42 1.23x 12.5x 22.4x 20.7x 2.41x Median 4.3% 27.3% 0.31x 13.1x 26.6x 18.6x 1.85x Emergency Services Adeptus Health Inc. ADPT $109.89 73.1% 326.9% $113.70 $23.88 $1,271 $1,453 $298.7 $34.0 ($0.34) $1.19 4.87x 42.8x NM NM NM Air Methods Corp. AIRM 39.39 (13.8%) (21.6%) 60.74 35.00 1,547 2,171 1,022.0 264.5 2.56 2.62 2.12x 8.2x 15.2x 15.0x 0.90x Median 29.7% 152.7% 3.50x 25.5x 15.2x 15.0x 0.90x HCIT Allscripts Healthcare Solutions, Inc. MDRX $14.46 8.7% (9.2%) $15.99 $11.00 $2,723 $3,207 $1,372.6 $71.0 ($0.37) $0.44 2.34x 45.1x NM 32.7x 1.68x athenahealth, Inc. ATHN 139.96 14.1% 12.5% 153.25 107.88 5,408 5,593 834.8 61.6 (0.08) 1.22 6.70x 90.8x NM NM NM Cerner Corporation CERN 71.72 (0.1%) 29.9% 75.72 53.65 24,677 24,619 3,798.4 982.0 1.50 2.12 6.48x 25.1x 48.5x 33.9x 1.93x Computer Programs Systems Inc. CPSI 46.77 (10.6%) (28.9%) 65.25 45.01 529 492 192.9 43.4 2.94 2.15 2.55x 11.3x 19.1x 21.8x 1.94x Evolent Health, Inc. EVH 21.33 NM NM 22.00 17.54 1,258 1,330 117.9 (59.6) (51.65) (1.09) NM NM NM NM NM Healthstream Inc. HSTM 28.06 (3.0%) 12.4% 32.41 22.66 888 748 189.2 31.0 0.37 0.34 3.95x 24.1x NM 82.9x 5.18x HMS Holdings Corp. HMSY 11.52 (32.3%) (37.4%) 23.69 11.16 1,020 1,084 448.8 88.3 0.16 0.56 2.42x 12.3x NM 20.6x 1.04x Inovalon Holdings, Inc. INOV 24.16 (4.3%) NM 33.75 22.06 3,569 3,071 370.5 131.7 0.49 0.55 8.29x 23.3x NM 43.5x 1.94x MedAssets, Inc. MDAS 23.30 15.1% 9.7% 23.90 17.00 1,398 2,229 750.0 218.9 (0.34) 1.23 2.97x 10.2x NM 19.0x 1.69x Medical Transcription Billing, Corp. MTBC 2.08 (0.9%) (45.0%) 4.19 1.57 23 26 21.9 (2.6) (0.64) (0.25) 1.17x NM NM NM NM Medidata Solutions, Inc. MDSO 53.80 0.7% 20.0% 61.31 37.01 2,974 2,955 365.7 37.4 0.11 0.89 8.08x 79.1x NM 60.3x 2.65x Merge Healthcare Incorporated MRGE 5.49 10.5% 123.2% 6.20 2.04 533 783 227.6 39.5 (0.00) 0.24 3.44x 19.8x 35.1x 23.4x 1.52x National Research Corp. NRCI.B 34.78 (2.0%) (13.1%) 40.10 30.20 432 402 99.5 29.8 0.74 2.52 4.04x 13.5x NM 13.8x 1.15x Premier, Inc. PINC 35.76 (5.6%) 26.4% 39.81 27.95 1,350 5,021 975.9 320.6 17.95 1.49 5.15x 15.7x NM 23.9x 2.12x Press Ganey Holdings, Inc PGND 31.31 NM NM 32.41 0.00 1,635 2,039 291.1 93.9 0.36 0.86 7.00x 21.7x NM 36.2x 2.46x Quality Systems Inc. QSII 12.75 (18.2%) (17.8%) 18.75 12.21 769 652 494.5 52.0 0.36 0.66 1.32x 12.5x 27.1x 19.3x 1.75x Teladoc, Inc. TDOC 31.57 NM NM 32.90 0.00 1,170 1,164 50.6 (21.5) (10.25) (1.37) NM NM NM NM NM The Advisory Board Company ABCO 59.90 15.4% 19.5% 60.38 37.47 2,542 3,035 666.3 60.2 (0.07) 1.35 4.56x 50.4x NM 44.3x 2.77x Median (0.9%) 11.1% 4.00x 21.7x 31.1x 28.3x 1.93x Healthcare Sector Update Duff Phelps 6 Source: Capital IQ as of July 31, 2015; For definitions, see page 10
- 7. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Consumer Directed Health Wellness Benefitfocus, Inc. BNFT $37.24 7.8% (3.4%) $47.49 $19.58 $1,070 $1,008 $159.8 ($50.4) ($2.51) ($2.12) 6.31x NM NM NM NM Castlight Health, Inc. CSLT 7.18 (4.6%) (46.5%) 15.10 6.52 673 488 53.2 (80.1) (1.16) (0.68) 9.17x NM NM NM NM Connecture, Inc. CNXR 9.43 (15.2%) NM 14.39 8.04 205 237 89.2 1.3 (10.27) (0.13) 2.65x NM NM NM NM Everyday Health, Inc. EVDY 11.87 (3.2%) (28.6%) 17.44 10.41 376 440 188.0 16.4 0.17 0.77 2.34x 26.8x NM 15.4x 0.53x Fitbit Inc. FIT 47.60 NM NM 48.98 41.70 10,054 9,975 973.4 241.6 0.63 0.61 10.25x 41.3x NM 77.8x 3.01x HealthEquity, Inc. HQY 33.66 28.4% 91.3% 34.56 16.11 1,909 1,794 97.5 25.8 0.21 0.29 18.41x 69.7x NM NM NM Healthways Inc. HWAY 12.66 (27.2%) (26.8%) 23.30 11.37 453 702 772.7 49.0 (0.16) 0.09 0.91x 14.3x NM NM NM IMS Health Holdings, Inc. IMS 33.15 20.2% 27.0% 33.52 23.58 10,852 14,697 2,708.0 730.0 (0.59) 1.47 5.43x 20.1x 27.9x 22.6x 2.22x Streamline Health Solutions, Inc. STRM 2.58 14.2% (48.4%) 5.01 1.02 48 61 26.8 (9.3) (0.71) (0.53) 2.26x NM NM NM NM WebMD Health Corp. WBMD 43.58 (1.3%) (12.5%) 50.47 34.48 1,604 1,799 597.9 122.2 0.97 1.60 3.01x 14.7x 37.1x 27.3x 2.28x Median (1.3%) (19.7%) 4.22x 23.5x 32.5x 25.0x 2.25x Healthcare REITs CareTrust REIT, Inc. CTRE $12.98 3.9% (23.9%) $18.49 $11.12 $410 $753 $63.0 $44.9 ($0.36) $0.27 11.96x 16.8x NM 48.1x NM HCP, Inc. HCP 38.64 (4.1%) (7.0%) 49.61 36.20 17,870 27,990 2,418.5 1,808.5 1.94 1.84 11.57x 15.5x 42.2x 21.0x 6.13x Health Care REIT, Inc. HCN 69.37 (3.7%) 9.0% 84.88 62.05 24,323 36,597 3,529.0 1,777.6 1.43 2.03 10.37x 20.6x 38.2x 34.1x 6.94x Healthcare Realty Trust Incorporated HR 24.04 (6.1%) (2.7%) 31.20 23.02 2,413 3,848 376.5 223.3 0.35 0.13 10.22x 17.2x NM NM NM LTC Properties Inc. LTC 43.87 0.9% 14.5% 48.85 36.75 1,559 1,908 120.5 108.0 1.99 1.96 15.84x 17.7x 22.0x 22.3x 4.30x National Health Investors Inc. NHI 65.25 (2.2%) 9.1% 76.98 56.53 2,451 3,365 189.7 179.0 3.04 3.34 17.74x 18.8x 20.9x 19.5x 3.18x Newcastle Investment Corp. NCT 4.91 (7.9%) (81.7%) 28.02 4.00 326 – 349.8 NA 1.00 0.65 – NA 7.5x 7.5x NM Omega Healthcare Investors Inc. OHI 36.26 0.5% (0.8%) 45.46 33.55 6,626 8,553 593.1 474.6 1.74 1.52 14.42x 18.0x 22.6x 23.9x 4.98x Sabra Health Care REIT, Inc. SBRA 27.35 (8.5%) (1.3%) 34.44 24.01 1,781 2,823 211.9 179.1 0.78 1.22 13.32x 15.8x 22.6x 22.4x 4.45x Senior Housing Properties Trust SNH 17.27 (15.6%) (24.5%) 23.83 16.87 4,100 6,741 882.0 498.3 0.81 0.79 7.64x 13.5x 22.2x 21.8x 6.33x Universal Health Realty Income Trust UHT 48.97 (1.4%) 16.4% 57.55 41.15 652 880 65.9 44.1 3.99 NM 13.36x 19.9x 10.7x NM NM Ventas, Inc. VTR 67.09 (2.6%) 5.7% 81.93 60.63 22,308 34,021 3,352.9 1,804.3 1.59 1.76 10.15x 18.9x 43.4x 38.2x 7.68x Median (3.2%) (1.0%) 11.77x 17.7x 22.4x 22.4x 5.56x Healthcare Sector Update Duff Phelps 7 Source: Capital IQ as of July 31, 2015; For definitions, see page 10
- 8. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Healthcare Staffing AMN Healthcare Services Inc. AHS $29.43 29.0% 124.7% $32.53 $13.09 $1,400 $1,626 $1,221.9 $108.3 $0.69 $1.03 1.33x 15.0x 37.7x 28.7x 2.05x Cross Country Healthcare, Inc. CCRN 12.07 8.7% 67.9% 13.51 6.73 388 457 685.7 21.0 (1.02) 0.30 0.67x 21.8x NM 40.9x 4.09x Envision Healthcare Holdings, Inc. EVHC 44.80 18.0% 25.3% 45.50 30.48 8,317 10,368 4,906.9 593.3 0.66 1.46 2.11x 17.5x 45.3x 30.6x 1.80x IPC Healthcare, Inc. IPCM 55.45 13.3% 12.7% 58.98 36.12 966 1,044 713.8 70.4 2.21 2.19 1.46x 14.8x 29.7x 25.4x 1.69x Team Health Holdings, Inc. TMH 67.41 13.2% 19.2% 67.79 50.83 4,855 5,660 3,221.4 322.3 1.35 2.68 1.76x 17.6x 48.1x 25.2x 1.65x Median 13.3% 25.3% 1.46x 17.5x 41.5x 28.7x 1.80x Home Care / Hospice Addus HomeCare Corporation ADUS $27.14 1.1% 22.6% $29.19 $17.02 $299 $295 $332.0 $24.5 $1.08 $1.25 0.89x 12.0x 25.7x 21.7x 1.44x Almost Family Inc. AFAM 43.76 1.1% 86.7% 49.71 23.11 430 474 506.1 30.3 1.47 2.07 0.94x 15.7x 23.2x 21.2x 1.92x Amedisys Inc. AMED 43.63 56.9% 116.2% 46.40 19.03 1,469 1,532 1,203.6 89.3 0.40 1.43 1.27x 17.1x NM 30.4x 2.25x Chemed Corp. CHE 148.46 28.8% 45.8% 150.48 97.85 2,512 2,639 1,496.4 204.9 5.57 6.73 1.76x 12.9x 24.5x 22.0x 2.20x LHC Group, Inc. LHCG 40.29 25.7% 71.6% 42.17 22.37 724 782 745.4 65.9 1.26 1.67 1.05x 11.9x 28.6x 24.1x 1.61x Providence Service Corp. PRSC 47.06 10.7% 18.8% 55.99 34.03 755 1,166 1,697.6 94.5 1.35 1.88 0.69x 12.3x 38.6x 25.1x 1.57x Median 18.2% 58.7% 0.99x 12.6x 25.7x 23.1x 1.77x Long Term Care Diversicare Healthcare Services Inc. DVCR $12.18 (24.4%) 74.5% $17.15 $6.54 $76 $129 $361.6 $21.3 $0.20 NM 0.36x 6.1x 43.5x NM NM Kindred Healthcare Inc. KND 20.63 (10.1%) (13.7%) 24.66 16.94 1,722 4,988 5,431.0 375.3 (0.24) 1.31 0.92x 13.3x NM 15.8x 1.13x National Healthcare Corp. NHC 63.20 (0.2%) 15.0% 66.42 54.33 898 902 883.6 106.3 3.14 NM 1.02x 8.5x 20.2x NM NM The Ensign Group, Inc. ENSG 51.12 21.4% 55.2% 54.08 28.00 1,301 1,236 1,155.3 103.2 1.56 2.47 1.07x 12.0x 32.1x 20.7x 1.38x Median (5.1%) 35.1% 0.97x 10.2x 32.1x 18.2x 1.25x Managed Care – Commercial Aetna Inc. AET $112.97 5.7% 45.7% $134.40 $71.81 $39,381 $46,539 $59,834.0 $5,206.3 $5.68 $7.39 0.78x 8.9x 18.7x 15.3x 1.49x Anthem, Inc. ANTM 154.27 2.2% 40.5% 173.59 106.52 40,355 57,154 76,608.3 6,587.2 8.96 10.20 0.75x 8.7x 15.1x 15.1x 1.38x Cigna Corp. CI 144.06 15.6% 60.0% 170.68 85.75 37,095 40,411 36,644.0 3,930.0 7.83 8.58 1.10x 10.3x 17.8x 16.8x 1.35x Health Net, Inc. HNT 66.86 27.0% 62.3% 76.67 40.84 5,167 4,744 15,601.8 377.7 1.80 3.34 0.30x 12.6x 36.7x 20.0x 1.16x Humana Inc. HUM 182.09 10.0% 54.8% 219.79 115.51 26,974 29,156 52,131.0 2,596.0 7.36 7.77 0.56x 11.2x 21.5x 23.4x 1.73x UnitedHealth Group Incorporated UNH 121.40 9.0% 49.8% 126.05 78.74 115,763 127,595 138,211.0 12,292.0 5.70 6.32 0.92x 10.4x 19.3x 19.2x 1.56x Universal American Corp UAM 9.27 (7.2%) 16.8% 11.16 7.76 748 756 1,975.0 (0.3) (0.35) 0.23 0.38x NM NM 40.7x NM Median 9.0% 49.8% 0.75x 10.3x 19.0x 19.2x 1.43x Healthcare Sector Update Duff Phelps 8 Source: Capital IQ as of July 31, 2015; For definitions, see page 10
- 9. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Managed Care – Government Centene Corp. CNC $70.13 13.1% 94.6% $83.00 $35.49 $8,352 $7,689 $18,548.0 $732.0 $2.23 $2.80 0.41x 10.5x 25.2x 25.1x 1.48x Molina Healthcare, Inc. MOH 75.43 27.4% 84.7% 76.97 39.65 4,228 3,134 11,618.8 415.9 1.30 2.60 0.27x 7.5x 32.4x 29.0x 0.69x WellCare Health Plans, Inc. WCG 80.80 4.4% 29.5% 95.09 55.43 3,559 3,286 13,774.7 401.7 1.44 3.34 0.24x 8.2x NM 24.2x 1.03x Median 13.1% 84.7% 0.27x 8.2x 28.8x 25.1x 1.03x Other Services Healthcare Services Group Inc. HCSG $34.91 15.3% 33.6% $35.46 $25.51 $2,510 $2,412 $1,372.3 $81.6 $0.31 $0.96 1.76x 29.6x NM 36.5x 2.28x PDI, Inc. PDII 2.13 67.7% (40.7%) 4.02 1.00 35 44 126.4 (10.9) (0.63) (1.35) 0.35x NM NM NM NM Sharps Compliance Corp. SMED 6.41 1.9% 39.0% 7.03 4.00 99 82 29.0 1.2 0.08 0.07 2.84x 68.9x NM 95.0x 3.56x Stericycle, Inc. SRCL 140.97 5.7% 19.8% 142.69 114.26 11,989 13,643 2,723.8 709.5 3.79 4.67 5.01x 19.2x 40.4x 30.2x 2.03x Median 10.5% 26.7% 2.30x 29.6x 40.4x 36.5x 2.28x Pharmacy Management BioScrip, Inc. BIOS $2.51 (46.6%) (66.5%) $8.75 $2.36 $172 $622 $1,006.4 ($44.6) ($2.09) ($0.22) 0.62x NM NM NM NM Character Group plc CCT 7.70 22.3% 127.0% 7.93 2.86 160 154 168.7 20.6 0.57 NM 0.91x 7.5x 10.2x NM NM Express Scripts Holding Company ESRX 90.07 4.2% 29.3% 94.61 68.78 60,863 76,884 102,444.9 6,819.8 2.64 5.50 0.75x 11.3x 29.7x 16.4x 1.37x Omnicare Inc. OCR 96.85 10.1% 55.0% 97.00 59.85 9,384 11,173 6,629.2 770.0 1.74 4.14 1.69x 14.5x NM 23.4x NM Omnicell, Inc. OMCL 36.52 2.8% 33.3% 40.80 26.00 1,324 1,236 463.1 66.0 0.83 1.34 2.67x 18.7x 42.5x 27.3x 1.54x PharMerica Corporation PMC 34.17 19.2% 26.6% 36.96 19.42 1,038 1,339 1,953.9 131.1 0.22 1.63 0.69x 10.2x NM 21.0x 1.68x Median 7.2% 31.3% 0.83x 11.3x 29.7x 22.2x 1.54x Physician Practice Mgmt Birner Dental Management Services Inc. BDMS $13.50 2.0% (20.6%) $17.37 $12.05 $25 $35 $64.9 $3.6 ($0.50) NM 0.54x 9.8x NM NM NM MEDNAX, Inc. MD 84.64 19.6% 43.0% 85.22 49.82 7,916 9,144 2,593.0 589.4 3.18 3.61 3.53x 15.5x 25.0x 23.5x 1.60x Median 10.8% 11.2% 2.03x 12.6x 25.0x 23.5x 1.60x Healthcare Sector Update Duff Phelps 9 Source: Capital IQ as of July 31, 2015; For definitions, see page 10
- 10. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Psychiatric Hospitals AAC Holdings, Inc. AAC $38.01 9.7% NM $46.60 $17.91 $830 $858 $157.7 $30.9 $0.41 $0.79 NM NM NM 48.1x 2.41x Acadia Healthcare Company, Inc. ACHC 79.78 16.5% 67.4% 81.76 46.48 5,713 7,729 1,408.8 300.9 1.50 2.15 NM NM NM 37.2x 1.62x Magellan Health, Inc. MGLN 60.59 (4.3%) 5.2% 73.00 52.37 1,630 1,633 4,044.2 232.7 2.90 3.49 0.40x 7.0x 26.7x 17.4x 0.87x Median 9.7% 36.3% 0.40x 7.0x 26.7x 37.2x 1.62x Specialty Managed Care Assurant Inc. AIZ $74.60 21.4% 17.7% $76.25 $59.73 $5,067 $6,238 $10,568.7 $629.3 $6.44 $6.76 0.59x 9.9x 19.5x 11.0x 1.55x Triple-S Management Corporation GTS 21.58 15.3% 24.9% 26.92 17.02 572 460 2,317.0 112.6 2.41 1.40 0.20x 4.1x 7.9x 15.4x 1.96x Median 18.3% 21.3% 0.39x 7.0x 13.7x 13.2x 1.76x Surgicenters / Rehabilitation AmSurg Corp. AMSG $71.74 14.4% 50.2% $72.85 $45.19 $3,473 $6,401 $2,296.6 $601.2 $1.27 $3.36 2.79x 10.6x NM 21.4x 1.33x Civitas Solutions, Inc. CIVI 22.49 19.9% NM 24.40 11.88 831 1,484 1,315.3 138.6 (0.71) 0.69 1.13x 10.7x NM 32.4x NM Hanger, Inc. HGR 21.64 (3.1%) (31.6%) 32.71 18.25 743 1,278 1,060.7 156.2 1.61 1.89 1.20x 8.2x 13.1x 11.5x 0.79x HEALTHSOUTH Corp. HLS 45.70 1.1% 19.2% 48.32 35.84 4,179 6,509 2,678.0 621.6 2.24 2.21 2.43x 10.5x 24.7x 20.4x 1.81x The Joint Corp. JYNT 9.49 (5.2%) NM 12.99 6.00 91 75 8.1 (3.1) (0.56) (0.92) 9.19x NM NM NM NM Select Medical Holdings Corporation SEM 14.43 (0.8%) (7.1%) 17.20 11.46 1,892 3,538 3,051.5 354.8 0.91 0.91 1.16x 10.0x 15.4x 15.8x 1.27x Surgical Care Affiliates, Inc. SCAI 38.02 0.8% 29.4% 40.99 26.55 1,495 2,545 934.8 242.7 1.03 1.74 2.72x 10.5x 45.7x 21.9x NM US Physical Therapy Inc. USPH 52.86 12.1% 51.3% 56.37 33.81 655 717 308.4 52.8 1.62 1.87 2.33x 13.6x 32.9x 28.3x 1.77x Median 1.0% 24.3% 2.38x 10.5x 24.7x 21.4x 1.33x Definitions PEG Ratio: Price Earnings to Growth EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization EPS: Earnings Per Share Enterprise Value: Market Capitalization + Total Debt + Preferred Equity + Minority Interest – Cash and Short-Term Investments LTM: Last Twelve Months Healthcare Sector Update Duff Phelps 10 Source: Capital IQ as of July 31, 2015
- 11. Median % Change — 3 months Performance of Market Indices for Latest 36 months 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 6/30/15 80 100 120 140 160 180 220 200 Dow Jones Industrial Average SP 500 Index NASDAQ Composite Index Russell 2000 Index SP 500 – Pharmaceuticals, Biotechnology Life Sciences (Industry Group) INTEREST RATES Value at 7/31/15 1 mo ago 3 mo ago 12 mo ago LIBOR – USD – 6 months 0.49% 0.44% 0.41% 0.33% U.S. Treasury – 2 years 0.67% 0.64% 0.58% 0.53% U.S. Treasury – 5 years 1.55% 1.63% 1.44% 1.76% U.S. Treasury – 10 years 2.20% 2.33% 2.05% 2.56% U.S. Treasury – 30 years 2.93% 3.10% 2.75% 2.75% U.S. Prime Rate 3.25% 3.25% 3.25% 3.25% CAPITALIZATION PROFILE No. of Cos. Ag. Eqty Mkt. Value % Total No. of Cos. % Ag. Eqty Mkt. Value Average Stock Performance 3 mo YTD 12 mo 36 mo $5 billion 47 $2,442,096 19.7% 93.4% 6.5% 13.5% 29.0% 133.0% $1 billion – $5 billion 56 129,639 23.4% 5.0% 22.4% 44.7% 85.3% 211.7% $250 million – $1 billion 70 36,025 29.3% 1.4% 15.1% 23.1% 30.2% 93.2% $100 million – $250 million 30 5,304 12.6% 0.2% 18.2% 5.1% 27.2% 89.1% $100 million 36 2,093 15.1% 0.1% (18.6%) (9.6%) (20.0%) 70.0% Total / Median ($MM) 239 $2,615,158 100.0% 100.0% 15.1% 13.5% 29.0% 93.2% Source: Capital IQ MARKET SECTOR No. of Cos. Ag. Eqty Mkt. Value Median % Change LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo Rev EBITDA LTM 2015E Biotechnology 77 $704,671 11.8% 42.2% 6.85x 13.9x 27.2x 28.4x 1.6x Cardiology Devices 19 183,508 (2.7%) 10.3% 4.00x 15.7x 32.5x 25.2x 2.1x Conglomerates 5 459,424 1.0% 7.4% 3.20x 11.2x 26.1x 19.9x 2.0x Dental Devices 7 21,271 5.0% 22.6% 3.33x 23.7x 30.4x 28.5x 2.2x Diagnostic Imaging Devices 4 12,890 (0.4%) 22.2% 1.40x 12.8x 27.3x 21.9x 2.0x Diversified Medical Devices 24 90,349 2.4% 20.3% 4.04x 15.7x 31.8x 28.3x 2.0x Infection Prevention Devices 2 6,417 13.2% 49.8% 3.40x 17.8x 40.8x 29.5x 2.0x Lab Equipment 2 9,486 5.8% 11.8% 2.24x 12.6x 20.3x 26.3x 2.0x Lab Instrumentation Devices 4 14,767 (2.6%) 5.8% 1.73x 16.7x 44.9x 22.8x 2.2x Large-Cap Pharmaceuticals 6 787,564 7.3% 31.7% 5.23x 17.4x 43.8x 19.8x 2.1x Life Science Conglomerates 3 93,324 11.0% 14.8% 4.09x 19.4x 36.5x 20.5x 1.9x Life Science Consumables 7 15,509 11.6% 27.4% 2.50x 13.1x 30.9x 29.2x 1.9x Mobility Devices 4 3,898 (2.9%) 29.5% 1.66x 14.8x 43.0x 22.3x 1.9x Neural Implant Devices 2 3,723 5.0% 19.2% 3.86x 13.3x 40.6x 22.4x 1.8x Ophthalmology Devices 7 10,744 (4.2%) 5.1% 1.52x 17.0x 19.4x 22.5x 1.2x Orthopedics Devices 6 64,837 1.9% 4.0% 4.26x 15.8x 47.4x 18.5x 1.9x Pharmaceuticals 53 110,507 11.5% 48.8% 5.74x 17.0x 27.8x 24.2x 1.5x Surgical Devices 7 22,269 1.6% 6.8% 6.95x 14.4x 39.7x 30.9x 2.0x Total / Median ($MM) 239 $2,615,158 3.7% 19.8% 3.63x 15.7x 32.2x 23.5x 2.0x (6%) (2%) 0% 6% 10% 14% Ophthalmology Devices Mobility Devices Cardiology Devices Lab Instrumentation Devices Diagnostic Imaging Devices SP 500 Index Conglomerates Surgical Devices Orthopedics Devices Diversified Medical Devices Neural Implant Devices Dental Devices Lab Equipment Large-Cap Pharmaceuticals Life Science Conglomerates Pharmaceuticals Life Science Consumables Biotechnology Infection Prevention Devices (4%) 2% 4% 6% 12% Source: Capital IQ MARKET INDICES Value at 7/31/15 % Change 3 mo YTD 12 mo 36 mo Dow Jones Industrial Average $17,689.9 (0.8%) (0.7%) 6.8% 36.0% SP 500 Index 2,103.8 0.9% 2.2% 9.0% 52.5% NASDAQ Composite Index 5,128.3 3.8% 8.3% 17.4% 74.5% Russell 2000 Index 1,238.7 1.5% 2.8% 10.6% 57.4% SP Life Science Tools Services (Industry) Index 328.9 7.8% 10.8% 14.2% 105.9% SP 500 Pharmaceuticals (Industry) Index 636.8 4.9% 9.2% 20.9% 71.6% Dow Jones U.S. Pharmaceuticals Biotechnology Index 767.3 7.3% 12.4% 26.6% 102.5% SP 500 Biotechnology (Industry) Index 4,255.3 11.3% 14.5% 31.6% 192.4% Dow Jones U.S. Medical Equipment Index 1,023.9 7.7% 10.8% 23.1% 98.8% SP 500 – Pharmaceuticals, Biotechnology Life Sciences (Industry Group) 846.5 6.9% 10.8% 23.6% 97.7% Source: Capital IQ Healthcare Sector Update Duff Phelps 11 Source: Capital IQ Source: Capital IQ Source: Capital IQ
- 12. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Biotechnology Acceleron Pharma, Inc. XLRN $28.64 3.6% (3.3%) $48.50 $23.61 $940 $839 $17.4 ($52.9) ($1.63) ($1.35) NM NM NM NM NM Acorda Therapeutics, Inc. ACOR 34.36 14.3% 17.4% 45.45 28.26 1,470 1,461 437.4 59.6 0.42 0.76 3.34x 24.5x NM 45.5x 1.57x Adamas Pharmaceuticals, Inc. ADMS 24.76 43.4% 55.6% 30.86 13.60 469 355 55.9 12.2 0.53 (2.99) 6.35x 29.1x NM NM NM Aduro BioTech, Inc. ADRO 26.22 3.2% NM 49.25 24.68 1,632 1,665 22.9 (20.0) (0.70) 0.22 NM NM NM NM NM Affimed N.V. ADMS 16.41 107.7% NM 24.20 3.55 476 441 8.2 (17.0) (0.02) (0.62) NM NM 22.1x NM NM Akebia Therapeutics, Inc. AKBA 9.40 22.6% (57.5%) 26.77 7.27 271 171 – (38.7) (8.04) (2.11) NA NM NM NM NM Alexion Pharmaceuticals, Inc. ALXN 197.44 16.7% 24.2% 208.88 150.06 44,652 46,787 2,391.2 880.0 3.26 4.85 19.57x NM 67.4x 40.7x 1.83x Alkermes plc ALKS 70.02 26.5% 63.8% 75.17 38.49 10,461 10,039 647.7 (34.5) (0.21) (0.41) 15.50x NM NM NM NM Amarin Corporation plc AMRN 2.26 17.7% 25.6% 3.33 0.78 400 493 59.2 (96.6) (0.36) (0.46) 8.33x NM NM NM NM Amgen Inc. AMGN 176.59 11.8% 38.6% 181.81 124.76 134,032 135,991 20,765.0 9,773.0 6.70 9.74 6.55x 13.9x 23.4x 18.1x 1.84x Ascendis Pharma A/S ASND 20.03 17.6% NM 23.81 14.75 477 313 13.0 (20.0) (9.04) (1.74) 24.11x NM NM NM NM Atara Biotherapeutics, Inc. ATRA 56.14 35.4% NM 65.56 10.10 1,368 1,201 – (40.9) (5.62) (1.96) NA NM NM NM NM Athersys, Inc. ATHX 1.05 (12.5%) (34.8%) 3.43 0.90 87 52 1.6 (28.2) (0.31) (0.35) NM NM NM NM NM aTyr Pharma Inc. LIFE 18.75 NM NM 28.29 0.00 443 539 – (25.7) (29.69) (2.37) NA NM NM NM NM Avalanche Biotechnologies, Inc. AAVL 14.72 (53.8%) NM 62.48 14.01 376 86 0.7 (32.1) (2.46) (1.57) NM NM NM NM NM Bellicum Pharmaceuticals, Inc. BLCM 20.35 (15.1%) NM 33.63 17.46 537 353 1.3 (19.5) (34.04) (1.15) NM NM NM NM NM Bio Blast Pharma Ltd. ORPN 6.48 13.7% NM 10.00 4.50 92 63 – (9.8) (0.57) (1.27) NA NM NM NM NM Biogen Inc. BIIB 318.78 (14.7%) (4.7%) 480.18 290.85 74,967 73,178 10,295.7 5,243.4 12.37 15.90 7.11x 14.0x 21.6x 20.1x 1.32x BioSpecifics Technologies Corp. BSTC 68.72 79.4% 162.9% 71.59 25.77 463 439 16.9 9.7 0.66 1.89 25.96x 45.3x 78.9x 36.4x NM Calithera Biosciences, Inc. CALA 7.40 (26.1%) NM 33.48 6.51 133 44 – (25.0) (4.67) (1.90) NA NM NM NM NM Cara Therapeutics Inc. CARA 21.31 98.2% 67.1% 21.71 7.53 567 519 3.5 (18.6) (0.85) (1.08) NM NM NM NM NM Celgene Corporation CELG 131.25 21.5% 50.6% 140.72 83.16 103,758 103,896 8,426.3 3,205.4 2.39 4.80 12.33x 32.4x 49.7x 27.4x 1.22x Cepheid CPHD 55.59 (0.9%) 47.7% 63.69 37.12 3,991 3,974 511.8 22.7 (0.72) 0.19 7.76x NM NM NM NM Coherus Biosciences, Inc. CHRS 35.08 61.1% NM 38.10 12.27 1,327 1,212 33.3 (86.7) (10.64) (3.12) NM NM NM NM NM ContraFect Corporation CFRX 4.91 (6.8%) NM 6.24 2.50 100 77 – (16.2) (3.86) (0.92) NA NM NM NM NM Curis, Inc. CRIS 3.14 22.2% 61.9% 3.75 1.09 403 330 7.5 (47.8) (0.22) (0.45) NM NM NM NM NM Dicerna Pharmaceuticals, Inc. DRNA 12.22 (39.1%) (18.6%) 27.33 8.00 251 164 – (50.4) (3.00) (2.73) NA NM NM NM NM Dyadic International, Inc. DYAI 0.99 (25.0%) (41.8%) 1.87 0.80 31 37 13.6 (3.3) (0.18) NM 2.74x NM NM NM NM Emergent BioSolutions, Inc. EBS 32.83 10.6% 49.2% 34.50 19.31 1,259 1,294 475.7 110.1 0.80 1.16 2.72x 11.8x 42.8x 28.4x 1.13x Exelixis, Inc. EXEL 5.73 123.0% 42.2% 6.38 1.26 1,123 1,384 29.6 (172.9) (1.38) (0.85) NM NM NM NM NM FibroGen, Inc. FGEN 23.25 0.0% NM 40.59 16.95 1,378 1,366 136.0 (75.7) (3.17) (1.23) 10.04x NM NM NM NM Forward Pharma A/S FWP 32.46 6.1% NM 43.34 17.50 1,510 1,428 – (23.8) (1.79) (1.02) NA NM NM NM NM Genomic Health Inc. GHDX 27.08 0.0% 6.3% 37.75 25.06 874 746 277.0 (30.5) (0.78) (0.72) 2.69x NM NM NM NM Gilead Sciences Inc. GILD 117.86 17.3% 28.7% 123.37 85.95 173,608 172,542 29,194.0 20,316.1 7.35 11.65 5.91x 8.5x 12.4x 10.1x 1.12x Healthcare Sector Update Duff Phelps 12 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 13. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Biotechnology (cont.) GlycoMimetics, Inc. GLYC $7.66 (7.6%) (6.5%) $9.68 $6.18 $146 $99 $15.0 ($ 13.0) ($ 0.60) ($ 0.64) 6.59x NM NM NM NM Histogenics Corporation HSGX 6.38 (21.9%) NM 12.97 5.87 84 33 – (34.4) (6.85) (1.86) NA NM NM NM NM Immunomedics Inc. IMMU 2.05 (43.1%) (36.7%) 5.48 1.83 192 181 4.4 (46.4) (0.51) (0.54) NM NM NM NM NM Immune Design Corp. IMDZ 19.36 (13.7%) 61.3% 40.13 11.55 387 327 8.3 (33.5) (4.56) (2.03) NM NM NM NM NM INSYS Therapeutics, Inc. INSY 44.92 70.9% 232.4% 45.90 11.26 3,208 3,107 273.2 73.8 0.52 0.92 11.37x 42.1x 86.4x 48.9x 1.61x Juno Therapeutics Inc. JUNO 48.92 14.5% NM 69.28 34.71 4,470 4,084 – (280.7) (36.82) (1.50) NA NM NM NM NM Ligand Pharmaceuticals Incorporated LGND 108.26 39.4% 120.2% 109.95 41.99 2,129 2,148 71.0 24.7 0.56 1.90 NM NM NM 57.1x 1.57x Loxo Oncology, Inc. LOXO 20.25 78.3% NM 21.74 9.90 338 240 – – (3.06) (1.79) NA NA NM NM NM Macrocure Ltd. MCUR 13.58 40.7% NM 16.10 6.82 227 185 – (26.1) (2.15) (1.38) NA NM NM NM NM Momenta Pharmaceuticals Inc. MNTA 21.74 24.6% 104.3% 25.56 9.38 1,453 1,254 84.0 (60.9) (1.91) (0.33) 14.94x NM NM NM NM Myriad Genetics Inc. MYGN 34.12 3.3% (5.5%) 39.95 31.34 2,370 2,235 722.0 196.1 1.45 1.67 3.10x 11.4x 27.2x 20.4x 1.30x NantKwest, Inc. NK 30.60 NM NM 37.50 30.16 2,415 2,365 0.5 (36.7) (0.75) NM NM NM NM NM NM Neothetics, Inc. NEOT 14.13 99.9% NM 14.20 5.92 193 132 – (13.7) (5.36) (4.00) NA NM NM NM NM Neurocrine Biosciences Inc. NBIX 50.12 47.0% 269.1% 56.18 13.18 4,304 3,919 19.8 (64.0) (0.81) (0.96) NM NM NM NM NM Nexvet Biopharma Public Limited Company NVET 3.66 (57.7%) NM 11.00 3.54 42 (13.9) 0.0 (15.2) (8.79) (1.53) NM 0.9x NM NM NM Ocular Therapeutix, Inc. OCUL 23.09 5.2% 79.5% 44.19 12.20 570 518 1.2 (26.8) (2.69) (1.38) NM NM NM NM NM Osiris Therapeutics, Inc. OSIR 21.33 40.6% 44.1% 23.67 11.87 734 688 81.2 7.0 (0.01) 0.41 8.47x NM NM 52.7x NM Otonomy, Inc. OTIC 25.77 (1.8%) NM 41.99 15.19 622 398 – (41.0) (5.46) (2.93) NA NM NM NM NM Paratek Pharmaceuticals, Inc. PRTK 25.16 3.4% NM 39.80 16.00 442 349 4.0 (29.3) (7.82) (3.09) NM NM NM NM NM PDL BioPharma, Inc. PDLI 5.82 (12.7%) (38.0%) 10.26 5.71 955 1,068 543.6 493.8 1.86 2.07 1.96x 2.2x 3.0x 2.8x NM Pfenex Inc. PFNX 21.19 58.7% 262.2% 24.41 5.59 490 402 10.1 (13.2) (1.04) (1.62) NM NM NM NM NM ProMetic Life Sciences Inc. PLI 1.74 (12.0%) 53.6% 2.21 0.90 1,008 1,035 15.1 (30.2) 0.01 (0.05) NM NM NM NM NM ProQR Therapeutics N.V. PRQR 16.04 (15.4%) NM 27.60 11.00 374 255 0.7 (22.7) (1.32) (2.26) NM NM NM NM NM Proteon Therapeutics Inc PRTO 17.28 43.3% NM 20.00 8.57 284 205 2.9 (10.2) (3.16) (1.23) NM NM NM NM NM Regeneron Pharmaceuticals, Inc. REGN 553.66 21.0% 75.1% 569.91 314.00 58,272 58,003 3,396.3 1,106.7 3.07 11.16 17.08x NM NM 49.6x 2.00x Roka Bioscience, Inc. ROKA 3.12 6.5% (68.9%) 12.99 2.38 56 22 5.7 (27.5) (2.93) (2.01) 3.77x NM NM NM NM Sage Therapeutics, Inc. SAGE 68.36 29.0% 142.2% 89.04 25.46 1,939 1,826 – (44.9) (1.67) (2.84) NA NM NM NM NM Spark Therapeutics, Inc. ONCE 61.44 7.3% NM 79.50 40.16 1,508 1,274 4.2 (38.3) (4.64) (1.31) NM NM NM NM NM Spectrum Pharmaceuticals, Inc. SPPI 6.92 22.4% (1.8%) 8.50 5.45 463 434 185.3 (14.8) (0.71) (1.09) 2.34x NM NM NM NM T2 Biosystems, Inc. TTOO 14.41 (6.9%) NM 24.50 13.40 292 247 0.9 (36.3) (4.15) (2.27) NM NM NM NM NM Targacept, Inc. TRGT 2.46 7.0% (11.8%) 3.23 2.15 84 (15.4) 0.2 (17.0) (0.97) NM NM 0.9x NM NM NM Theravance Inc. THRX 15.32 (5.7%) (29.4%) 23.84 10.58 1,790 2,300 25.8 (3.4) (0.66) (0.17) NM NM NM NM NM Tokai Pharmaceuticals, Inc. TKAI 13.04 30.4% NM 30.00 9.67 292 198 – (31.8) (3.60) (2.01) NA NM NM NM NM Healthcare Sector Update Duff Phelps 13 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 14. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Biotechnology (cont.) TRACON Pharmaceuticals, Inc. TCON $13.62 24.8% NM $21.00 $9.02 $165 $107 $7.5 ($10.3) ($4.40) ($1.74) 14.31x NM NM NM NM Ultragenyx Pharmaceutical Inc. RARE 120.93 114.3% 176.7% 137.05 38.01 4,573 4,230 – (67.2) (2.25) (2.71) NA NM NM NM NM United Therapeutics Corporation UTHR 169.36 6.1% 86.2% 190.29 86.04 7,713 7,305 1,351.0 337.0 6.28 6.48 5.41x 21.7x 51.8x 26.1x 2.27x Vanda Pharmaceuticals, Inc. VNDA 12.24 33.8% (16.7%) 15.51 8.34 518 371 79.9 (15.8) 0.55 (0.52) 4.64x NM 9.5x NM NM Vascular Biogenics Ltd. VBLT 6.00 63.5% NM 17.02 3.09 119 85 – (14.6) (3.09) (0.80) NA NM NM NM NM Versartis, Inc. VSAR 18.10 6.0% (11.3%) 24.00 14.13 530 299 – (69.2) (4.39) (3.25) NA NM NM NM NM Vertex Pharmaceuticals Incorporated VRTX 135.00 9.5% 51.8% 137.50 84.41 32,986 32,794 628.1 (532.6) (3.14) (1.31) NM NM NM NM NM Vital Therapies, Inc. VTL 16.22 (33.3%) (29.2%) 29.67 12.59 389 318 – (55.6) (3.54) (2.61) NA NM NM NM NM XBiotech, Inc. XBIT 18.65 2.2% NM 32.50 15.01 597 544 – (24.8) (0.90) NM NA NM NM NM NM Zafgen, Inc. ZFGN 37.97 22.0% 117.0% 55.36 16.01 1,021 795 – (44.2) (3.00) (2.98) NA NM NM NM NM Median 11.8% 42.2% 6.85x 13.9x 27.2x 28.4x 1.57x Cardiology Devices ABIOMED, Inc. ABMD $77.46 22.5% 202.6% $79.37 $21.84 $3,257 $3,125 $254.9 $49.7 $0.44 $0.63 12.26x NM 29.2x NM NM AngioDynamics Inc. ANGO 15.50 (7.1%) 6.2% 19.80 13.13 557 674 352.8 47.9 0.14 0.52 1.91x 14.1x NM 29.7x 1.98x Bellerophon Therapeutics LLC BLPH 3.47 (61.4%) NM 12.92 2.75 45 (18) 0.0 (57.8) (7.56) (5.00) NA 0.3x NM NM NM Boston Scientific Corporation BSX 17.34 (2.7%) 35.7% 18.62 11.10 23,247 27,456 7,272.0 1,746.0 (0.09) 0.90 3.78x 15.7x NM 19.2x 1.88x Cardiovascular Systems Inc. CSII 29.84 (4.7%) 10.5% 41.28 23.15 946 853 181.5 (30.7) (1.07) (1.10) 4.70x NM NM NM NM CareDx, Inc CDNA 6.54 30.8% (32.6%) 10.89 4.60 77 54 28.6 (0.8) 0.10 (0.78) 1.89x NM NM NM NM Edwards Lifesciences Corp. EW 152.16 20.1% 68.6% 159.00 89.42 16,360 15,551 2,432.5 663.3 7.48 4.35 6.39x 23.4x 37.9x 35.0x 2.46x Greatbatch, Inc. GB 54.53 1.1% 10.1% 58.18 42.23 1,391 1,502 677.6 121.5 2.14 2.64 2.22x 12.4x 31.4x 20.6x 1.88x Heartware International Inc. HTWR 90.71 19.8% 7.7% 95.59 69.05 1,565 1,501 285.4 (6.2) (1.14) (2.17) 5.26x NM NM NM NM LeMaitre Vascular, Inc. LMAT 14.24 57.2% 75.6% 14.60 6.48 250 230 74.3 13.3 0.23 0.33 3.10x 17.3x 43.6x 43.4x 3.62x Lombard Medical, Inc. EVAR 4.09 (11.1%) (32.1%) 7.78 3.26 66 31 17.0 (34.4) (2.39) (2.19) 1.82x NM NM NM NM Medtronic plc MDT 78.39 5.3% 27.0% 79.50 59.83 110,858 127,625 20,126.0 6,264.0 3.11 4.32 6.34x 20.4x 32.5x 18.2x 2.27x Neovasc Inc. NVC 6.09 (24.5%) 0.3% 9.80 3.84 405 327 11.3 (21.4) (0.31) (0.28) 28.98x NM NM NM NM REVA Medical, Inc. RVA 0.37 (10.5%) 146.5% 0.43 0.08 124 151 0.0 (18.3) (0.15) (0.08) NA NM NM NM NM St. Jude Medical Inc. STJ 73.82 5.4% 13.2% 80.84 54.80 20,679 23,510 5,566.0 1,693.0 3.46 3.97 4.22x 13.9x 20.6x 18.6x 1.77x Stereotaxis Inc. STXS 1.44 (24.2%) (56.4%) 3.61 1.32 30 44 37.8 (3.4) (0.26) NM 1.17x NM NM NM NM Sunshine Heart Inc. SSH 3.11 (29.5%) (37.6%) 6.90 2.41 57 26 0.3 (25.8) (1.51) (1.60) NM NM NM NM NM Thoratec Corp. THOR 63.29 57.8% 94.7% 63.51 22.50 3,463 3,223 483.8 70.8 0.89 1.30 6.66x 45.5x 82.5x 48.7x 4.82x TriVascular Technologies, Inc. TRIV 6.36 (12.9%) (53.7%) 16.62 5.08 130 119 34.7 (50.5) (3.95) (2.91) 3.43x NM NM NM NM Median (2.7%) 10.3% 4.00x 15.7x 32.5x 25.2x 2.13x Healthcare Sector Update Duff Phelps 14 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 15. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Conglomerates 3M Company MMM $151.34 (3.2%) 7.4% $170.50 $130.60 $94,549 $99,618 $31,120.0 $8,516.0 $7.49 $7.85 3.20x 11.7x 19.8x 19.3x 1.86x Agilent Technologies Inc. A 40.95 (1.0%) (27.0%) 59.40 37.68 13,644 13,106 6,974.0 1,221.0 1.43 1.75 1.88x 10.7x 26.1x 23.3x 2.02x Becton, Dickinson and Company BDX 152.15 8.0% 30.9% 152.88 112.15 31,858 43,728 9,410.0 1,982.0 5.82 7.51 4.65x 22.1x 27.9x 20.3x 1.76x Johnson Johnson JNJ 100.21 1.0% 0.1% 109.49 95.10 277,492 262,845 71,882.0 23,498.0 5.70 6.18 3.66x 11.2x 17.7x 16.2x 2.89x Kimberly-Clark Corporation KMB 114.97 4.8% 10.7% 119.01 103.50 41,881 49,177 19,218.0 4,375.0 3.91 5.77 2.56x 11.2x 65.0x 19.9x 3.01x Median 1.0% 7.4% 3.20x 11.2x 26.1x 19.9x 2.02x Dental Devices COLTENE Holding AG CLTN $72.27 (17.5%) 20.1% $87.93 $52.03 $305 $308 $163.5 $27.7 $3.73 $4.03 1.88x 11.1x 18.7x 17.9x 1.49x DENTSPLY International Inc. XRAY 56.91 11.6% 22.6% 57.14 43.83 7,956 8,907 2,781.6 572.7 2.24 2.59 3.20x 15.6x 30.4x 22.0x 2.25x Orthofix International N.V. OFIX 33.36 3.2% 0.9% 38.94 26.96 626 596 392.0 18.8 (0.20) 0.60 1.52x 31.7x NM 55.6x 2.80x Osstem Implant Co., Ltd. A048260 51.62 18.3% 54.5% 61.27 23.74 737 735 220.5 31.0 1.01 1.43 3.33x 23.7x 53.8x 36.1x NM Sirona Dental Systems Inc. SIRO 103.78 11.9% 29.4% 105.37 74.38 5,765 5,446 1,140.0 267.2 3.16 4.10 4.78x 20.4x 33.1x 25.3x 1.87x Straumann Holding AG STMN 297.63 5.0% 25.9% 299.71 199.80 4,661 4,388 715.0 172.6 10.10 9.41 6.14x 25.4x 28.5x 31.6x 2.77x Tornier N.V. TRNX 24.89 (3.8%) 20.1% 28.53 19.28 1,220 1,278 340.4 27.6 (0.60) (0.43) 3.75x 46.3x NM NM NM Median 5.0% 22.6% 3.33x 23.7x 30.4x 28.5x 2.25x Orthopedics Devices ConforMIS, Inc. CFMS $23.08 NM NM $26.00 $17.69 $902 $890 $51.3 ($44.7) ($10.78) ($2.24) 17.35x NM NM NM NM Exactech Inc. EXAC 19.98 (8.6%) (12.1%) 26.20 19.30 279 286 244.1 44.1 1.18 1.18 1.17x 6.5x 17.7x 16.9x 1.45x NuVasive, Inc. NUVA 55.01 23.0% 47.2% 55.66 33.33 2,692 2,790 789.5 150.1 (0.36) 1.19 3.53x 18.6x 57.5x 46.2x 3.29x Stryker Corporation SYK 102.27 10.9% 28.2% 103.99 77.87 38,511 37,700 9,818.0 2,623.0 1.34 5.11 3.84x 14.4x 41.9x 20.0x 2.38x Wright Medical Group Inc. WMGI 25.84 1.9% (16.2%) 32.65 23.56 1,315 1,447 309.5 (55.9) (4.83) (1.74) 4.68x NM NM NM NM Zimmer Biomet Holdings, Inc. ZMH 104.07 (5.3%) 4.0% 121.84 94.73 21,137 31,303 4,630.9 1,812.0 4.19 6.76 6.76x 17.3x 52.8x 15.4x 1.43x Median 1.9% 4.0% 4.26x 15.8x 47.4x 18.5x 1.92x Diagnostic Imaging Devices Analogic Corporation ALOG $80.55 (4.7%) 12.0% $92.31 $63.28 $1,002 $882 $527.8 $64.0 $2.56 $4.21 1.67x 13.8x 30.2x 19.1x 1.42x Digirad Corporation DRAD 4.37 3.8% 32.4% 5.48 3.11 84 63 56.5 5.4 0.13 0.20 1.12x 11.8x 24.4x 21.9x NM Fonar Corp. DRAD 9.71 (14.2%) (5.5%) 14.44 9.32 64 79 81.6 15.6 1.70 NM 0.97x 5.1x 5.6x NM NM Hologic Inc. HOLX 41.66 23.5% 59.8% 42.35 22.70 11,740 14,796 2,640.9 964.0 0.18 1.70 5.60x 15.3x 89.5x 24.5x 2.55x Median (0.4%) 22.2% 1.40x 12.8x 27.3x 21.9x 1.98x Healthcare Sector Update Duff Phelps 15 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 16. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Mobility Devices Hill-Rom Holdings, Inc. HRC $56.03 12.2% 42.2% $57.95 $38.85 $3,175 $3,639 $1,817.2 $272.1 $1.03 $2.62 2.00x 13.4x 36.6x 21.4x 1.85x Invacare Corporation IVC 17.05 (15.0%) 13.9% 23.59 11.65 552 577 1,214.0 1.6 (2.15) (0.67) 0.48x NM NM NM NM Prism Medical Ltd. PM 9.26 (1.6%) 29.5% 10.83 5.61 46 53 40.2 3.3 2.55 0.40 1.31x 16.2x 49.4x 23.2x NM ReWalk Robotics Ltd. RWLK 10.52 (4.1%) NM 43.71 8.76 126 89 4.3 (23.9) (6.34) (1.64) 20.95x NM NM NM NM Median (2.9%) 29.5% 1.66x 14.8x 43.0x 22.3x 1.85x Infection Prevention Devices Cantel Medical Corp. CMN $54.88 22.5% 63.7% $56.23 $33.36 $2,280 $2,347 $540.9 $104.2 $1.03 $1.46 4.34x 22.5x 50.8x 37.6x 2.09x Steris Corp. STE 69.13 4.0% 35.9% 71.39 49.78 4,137 4,594 1,869.6 348.7 2.21 3.22 2.46x 13.2x 30.7x 21.5x 1.84x Median 13.2% 49.8% 3.40x 17.8x 40.8x 29.5x 1.96x Neural Implant Devices Cyberonics Inc. CYBX $61.40 0.8% 3.2% $76.48 $48.19 $1,596 $1,445 $291.6 $104.6 $2.45 $2.57 4.96x 13.8x 28.3x 23.9x 1.62x Integra LifeSciences Holdings Corporation IART 64.13 9.1% 35.2% 70.32 46.55 2,127 2,650 959.6 206.6 1.03 3.07 2.76x 12.8x 52.8x 20.9x 2.02x Median 5.0% 19.2% 3.86x 13.3x 40.6x 22.4x 1.82x Ophthalmology Devices Glaukos Corporation GKOS $31.79 NM NM $33.44 $27.04 $965 $973 $52.0 ($6.1) ($0.51) ($1.50) 18.72x NM NM NM NM IRIDEX Corporation IRIX 7.16 (27.2%) (7.1%) 11.28 6.41 72 59 43.0 2.8 0.97 NM 1.37x 20.8x 7.6x NM NM Lumenis Ltd. LMNS 13.86 23.3% 56.1% 13.89 8.19 500 446 292.4 29.4 0.36 0.62 1.52x 15.1x 28.8x 22.2x 1.03x Opt Sciences Corporation OPST 17.52 (7.8%) 0.1% 20.50 15.71 14 1 7.6 1.9 1.62 NM 0.20x 0.8x 10.0x NM NM Presbia PLC LENS 7.03 (12.0%) NM 9.38 0.00 94 59 0.2 (15.5) (1.71) (1.18) NM NM NM NM NM Second Sight Medical Products, Inc. EYES 14.11 21.4% NM 24.02 8.05 499 470 6.5 (20.4) (1.41) (0.54) NM NM NM NM NM The Cooper Companies Inc. COO 177.00 (0.6%) 10.0% 190.00 143.62 8,600 9,936 1,780.3 529.3 5.29 7.78 5.58x 18.8x 36.1x 22.8x 1.46x Median (4.2%) 5.1% 1.52x 17.0x 19.4x 22.5x 1.24x Surgical Devices Alphatec Holdings, Inc. ATEC $1.36 (4.2%) (2.9%) $1.92 $1.23 $136 $227 $199.9 $23.0 ($0.16) ($0.06) 1.14x 9.9x NM NM NM Avinger, Inc. AVGR 16.21 47.6% NM 16.84 9.35 198 168 10.8 (30.3) (132.63) (3.72) 15.47x NM NM NM NM Bovie Medical Corporation BVX 2.31 (25.4%) (41.1%) 4.57 2.10 55 43 27.3 (7.3) (1.03) (0.34) 1.58x NM 13.9x NM NM CONMED Corporation CNMD 56.72 12.9% 45.4% 60.66 35.85 1,571 1,769 723.3 122.5 1.16 1.83 2.45x 14.4x 58.5x 31.0x 1.88x Entellus Medical, Inc. ENTL 22.50 (18.2%) NM 28.81 19.00 421 363 52.1 (5.8) (4.62) (0.98) 6.95x NM NM NM NM Intuitive Surgical, Inc. ISRG 533.17 7.5% 16.5% 564.86 438.50 19,737 18,176 2,257.3 750.1 11.11 17.31 8.05x 24.2x 39.7x 30.8x 2.11x Invuity, Inc. IVTY 11.78 NM NM 15.59 10.26 150 139 15.4 (22.8) (31.63) (2.91) 9.01x NM NM NM NM Median 1.6% 6.8% 6.95x 14.4x 39.7x 30.9x 1.99x Healthcare Sector Update Duff Phelps 16 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 17. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Diversified Medical Devices Abaxis, Inc. ABAX $50.06 (21.8%) 5.6% $66.89 $44.87 $1,135 $1,006 $211.6 $44.2 $0.87 $1.12 4.75x 22.8x 50.6x 44.7x 2.44x AtriCure, Inc. ATRC 27.79 26.3% 68.7% 28.10 13.19 793 739 117.9 (18.1) (0.61) (0.82) 6.27x NM NM NM NM Baxter International Inc. BAX 40.08 (41.7%) (46.3%) 76.34 36.40 21,785 29,346 16,326.0 4,046.0 3.56 1.28 1.80x 7.3x 12.7x 31.3x 2.98x Capnia, Inc. CAPN 2.19 (65.3%) NM 9.90 1.02 17 8 0.0 (6.9) (10.42) (0.76) NM NM NM NM NM CR Bard Inc. BCR 196.65 18.1% 31.8% 201.73 141.49 14,591 14,888 3,376.7 1,047.6 3.76 8.07 4.41x 14.2x 43.4x 24.4x 2.49x CryoLife Inc. CRY 10.95 7.4% 11.2% 12.29 9.17 311 276 143.6 10.5 0.25 NM 1.92x 26.2x 96.3x NM NM EndoChoice Holdings, Inc. GI 16.20 NM NM 19.69 0.00 408 415 67.9 (43.3) (4.30) (2.77) 6.11x NM NM NM NM Hospira Inc. HSP 89.45 2.5% 61.3% 89.68 46.56 15,469 16,399 4,635.6 916.2 1.95 3.44 3.54x 17.9x 37.4x 26.0x NM HTG Molecular Diagnostics, Inc. HTGM 8.78 NM NM 19.75 8.73 60 129 3.5 (13.6) (175.03) (2.99) NM NM NM NM NM IDEXX Laboratories, Inc. IDXX 72.73 16.0% 16.9% 84.26 56.75 6,692 7,445 1,531.3 331.8 3.58 2.10 4.86x 22.4x 18.5x 34.6x 2.47x InfuSystem Holdings, Inc. INFU 3.14 2.3% 12.9% 4.50 2.43 70 101 61.1 16.5 0.15 NM 1.65x 6.1x 31.2x NM NM Masimo Corporation MASI 41.68 23.5% 73.1% 42.48 19.30 2,178 2,169 609.2 122.0 1.30 1.35 3.56x 17.8x 32.4x 30.8x 1.87x Medovex Corp. MDVX 3.20 (21.7%) NM 5.80 3.11 35 30 0.0 (3.8) (0.37) NM NA NM NM NM NM Misonix, Inc. MSON 9.25 (29.0%) 38.1% 14.90 6.01 71 62 21.0 (0.2) 0.36 NM 2.97x NM 26.2x NM NM Natera, Inc. NTRA 18.09 NM NM 24.36 17.61 876 824 179.4 7.4 (1.07) (1.78) 4.59x NM NM NM NM Natus Medical Inc. BABY 45.16 19.8% 57.0% 46.98 27.00 1,462 1,389 365.2 70.4 1.00 1.51 3.80x 19.7x 40.4x 30.0x 1.62x Nevro Corp. NVRO 50.77 12.8% NM 58.87 24.35 1,354 1,214 35.6 (33.3) (6.94) (3.08) NM NM NM NM NM OpGen, Inc. OPGN 3.33 NM NM 5.44 3.12 36 44 3.5 (6.4) (1.20) NM 12.45x NM NM NM NM PhotoMedex, Inc. PHMD 1.11 (46.1%) (89.7%) 11.08 0.93 25 59 141.6 (15.8) (3.26) (1.48) 0.42x NM NM NM NM ResMed Inc. RMD 57.95 (9.4%) 12.0% 75.33 45.58 8,166 7,750 1,678.9 493.3 2.46 2.57 4.62x 15.7x 23.5x 22.5x 1.78x Sientra, Inc. SIEN 23.25 33.0% NM 26.67 12.53 347 279 46.9 (6.6) (2.28) (1.22) 5.94x NM NM NM NM SurModics, Inc. SRDX 23.49 (6.9%) 23.7% 27.36 18.00 306 256 59.9 23.0 0.89 0.83 4.28x 11.2x 25.0x 28.3x 1.89x Teleflex Incorporated TFX 133.99 9.0% 24.4% 140.50 101.95 5,574 6,363 1,801.6 409.9 4.10 6.22 3.53x 15.5x 33.2x 21.5x 1.98x Varian Medical Systems, Inc. VAR 86.07 (3.1%) 4.8% 96.67 76.73 8,590 8,075 3,093.4 644.3 3.84 4.34 2.61x 12.5x 20.9x 19.8x 1.99x Median 2.4% 20.3% 4.04x 15.7x 31.8x 28.3x 1.99x Life Science Conglomerates Illumina Inc. ILMN $219.30 19.0% 37.1% $242.37 $145.12 $31,733 $31,526 $2,071.0 $742.0 $2.37 $3.46 15.22x 42.5x 66.9x 63.4x 3.01x PerkinElmer Inc. PKI 52.92 3.2% 14.5% 54.45 38.96 5,990 6,786 2,241.2 350.1 1.42 2.59 3.03x 19.4x 36.5x 20.5x 1.90x Thermo Fisher Scientific, Inc. TMO 139.53 11.0% 14.8% 141.25 14.00 55,601 68,858 16,853.9 4,025.7 4.71 7.38 4.09x 17.1x 28.5x 18.9x 1.57x Median 11.0% 14.8% 4.09x 19.4x 36.5x 20.5x 1.90x Lab Instrumentation Devices Bruker Corporation BRKR $21.05 11.0% (7.4%) $23.13 $17.26 $3,547 $3,415 $1,677.3 $203.9 $0.33 $0.75 2.04x 16.7x 65.8x 27.9x 2.05x Great Basin Scientific, Inc. GBSN 2.79 (34.0%) NM 9.08 1.48 18 1 1.7 (12.3) (17.32) (15.69) 0.64x NM NM NM NM Healthcare Sector Update Duff Phelps 17 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 18. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Lab Instrumentation Devices (cont.) Harvard Bioscience Inc. HBIO $4.89 (11.9%) 5.8% $6.84 $4.07 $164 $156 $110.4 $6.7 $0.07 $0.22 1.41x 23.5x NM 22.2x NM Waters Corporation WAT 133.49 6.6% 29.1% 137.39 93.56 11,039 10,390 2,032.2 670.3 5.07 5.84 5.11x 15.5x 24.1x 22.8x 2.39x Median (2.6%) 5.8% 1.73x 16.7x 44.9x 22.8x 2.22x Lab Equipment Kewaunee Scientific Corp. KEQU $16.62 5.2% (7.8%) $19.00 $15.30 $44 $50 $118.8 $7.8 $1.47 NM 0.42x 6.4x 12.5x NM NM Mettler-Toledo International Inc. MTD 337.60 6.5% 31.3% 350.11 228.30 9,442 9,921 2,444.3 528.9 11.44 12.84 4.06x 18.8x 28.1x 26.3x 2.00x Median 5.8% 11.8% 2.24x 12.6x 20.3x 26.3x 2.00x Life Science Consumables Affymetrix Inc. AFFX $10.96 (9.6%) 27.4% $13.11 $7.00 $875 $881 $358.3 $47.3 ($0.05) $0.37 2.46x 18.6x 43.6x 29.2x 1.86x Bio-Rad Laboratories, Inc. BIO 150.74 12.1% 31.1% 152.38 102.71 4,388 4,114 2,138.5 314.4 3.05 3.45 1.92x 13.1x 44.0x 43.7x 4.37x Cambrex Corporation. CBM 49.25 28.0% 133.7% 51.75 15.76 1,545 1,543 394.9 105.6 1.84 1.99 3.91x 14.6x 24.3x 24.7x 1.40x Lantheus Holdings, Inc. LNTH 7.37 NM NM 7.68 6.02 374 753 300.8 62.4 (0.20) 0.29 2.50x 12.1x NM 27.0x 2.25x Luminex Corporation LMNX 17.23 11.0% (5.3%) 21.69 15.05 743 648 231.4 49.6 0.93 0.59 2.80x 13.1x 17.8x 29.3x 1.40x Bio-Techne Corp. TECH 109.38 14.0% 17.2% 111.55 86.01 4,064 4,059 452.2 184.0 3.12 3.52 8.97x 22.1x 37.5x 31.1x 2.49x VWR Corporation VWR 26.79 0.9% NM 28.83 20.60 3,519 5,484 4,348.3 452.6 2.49 1.46 1.26x 12.1x 11.6x 18.3x 1.56x Median 11.6% 27.4% 2.50x 13.1x 30.9x 29.2x 1.86x Large-Cap Pharmaceuticals AbbVie Inc. ABBV $70.01 8.3% 33.8% $71.60 $51.37 $111,531 $118,939 $20,986.0 $7,423.0 $1.10 $4.26 5.67x 16.0x 54.4x 16.5x 1.14x Bristol-Myers Squibb Company BMY 65.64 3.0% 29.7% 70.54 47.55 109,455 111,517 16,383.0 4,634.0 1.20 1.82 6.81x 24.1x 61.3x 36.0x 2.17x Eli Lilly and Company LLY 84.51 17.6% 38.4% 90.18 60.14 89,634 93,439 19,620.3 4,960.2 2.23 3.26 4.76x 18.8x 43.8x 26.0x 1.94x Merck Co. Inc. MRK 58.96 (1.0%) 3.9% 63.62 52.49 166,575 181,374 40,249.0 14,547.0 4.07 3.48 4.51x 12.5x 17.2x 16.9x 2.17x Pfizer Inc. PFE 36.06 6.3% 25.6% 36.46 27.51 222,046 230,645 48,196.0 19,683.0 1.41 2.07 4.79x 11.7x 25.5x 17.5x 2.38x Valeant Pharmaceuticals International, Inc. VRX 257.66 19.3% 119.3% 262.04 89.14 88,323 117,106 9,253.5 4,373.6 2.67 11.62 12.66x 26.8x NM 22.2x 1.02x Median 7.3% 31.7% 5.23x 17.4x 43.8x 19.8x 2.06x Pharmaceuticals Adaptammune Therapeutics plc ADAP $15.05 NM NM $21.57 $13.75 $1,065 $939 $4.4 ($15.3) ($1.67) ($0.41) NM NM NM NM NM Akorn, Inc. AKRX 46.11 10.7% 35.9% 57.10 31.85 5,277 6,323 593.1 208.3 0.34 1.96 10.66x 30.4x NM 23.5x 1.30x Amphastar Pharmaceuticals, Inc. AMPH 16.26 12.4% 83.1% 18.30 8.32 727 707 221.5 (8.7) (0.26) (0.38) 3.19x NM NM NM NM Aratana Therapeutics, Inc. PETX 17.62 36.5% 52.8% 20.63 9.20 615 543 0.7 (41.3) (1.30) (1.64) NM NM NM NM NM Auris Medical Holding AG EARS 5.07 3.5% NM 7.58 3.30 174 123 0.0 (24.1) (0.66) (1.01) NA NM NM NM NM Axovant Sciences Ltd. AXON 14.01 NM NM 28.00 13.82 1,389 0 0.0 0.0 NM (0.37) NA NA NM NM NM BioDelivery Sciences International, Inc. BDSI 8.15 1.1% (36.1%) 18.48 7.17 427 374 31.3 (46.1) (1.12) (0.23) 11.95x NM NM NM NM BioSyent Inc. RX 5.34 (22.1%) (26.6%) 9.85 5.09 74 69 10.3 3.9 0.19 0.22 6.71x 17.9x 27.8x 24.8x NM Blueprint Medicines Corporation BPMC 27.02 43.2% NM 37.17 18.00 733 806 0.7 (43.4) (3.07) (2.06) NM NM NM NM NM Healthcare Sector Update Duff Phelps 18 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 19. ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Pharmaceuticals (cont.) Carbylan Therapeutics, Inc. CBYL $6.91 37.1% NM $9.22 $4.68 $181 $228 $0.0 ($14.6) ($1.46) ($1.16) NM NM NM NM NM Catabasis Pharmaceuticals, Inc. CATB 13.00 NM NM 16.96 11.51 189 174 0.0 (23.3) (51.56) (2.83) NA NM NM NM NM Catalent, Inc. CTLT 34.08 18.5% 70.5% 34.14 19.34 4,236 6,006 1,840.3 433.5 0.64 1.70 3.26x 13.9x 43.5x 20.0x 2.21x Chiasma, Inc. CHMA 23.57 NM NM 24.86 19.00 542 471 8.6 (8.4) (66.21) NM NM NM NM NM NM Cidara Therapeutics, Inc. CDTX 13.98 (4.4%) NM 17.21 13.00 189 205 0.0 0.0 (3.88) (4.44) NA NA NM NM NM Cipher Pharmaceuticals Inc. CPH 8.17 (21.1%) (1.8%) 15.00 6.77 212 175 26.5 16.8 0.68 0.29 6.61x 10.5x 14.0x 28.3x NM Collegium Pharmaceutical, Inc. COLL 20.03 NM NM 20.62 0.00 414 496 0.0 (17.4) (2.84) (1.51) NA NM NM NM NM CoLucid Pharmaceuticals, Inc CLCD 8.15 NM NM 9.46 7.56 123 180 0.0 (4.6) (0.31) (1.13) NA NM NM NM NM Cumberland Pharmaceuticals, Inc. CPIX 6.23 (5.0%) 34.3% 7.78 4.45 105 52 36.7 4.9 0.14 NM 1.42x 10.5x 50.4x NM NM Dermira, Inc. DERM 22.58 53.1% NM 25.24 12.68 558 438 7.3 (37.4) (4.96) (3.26) NM NM NM NM NM DURECT Corporation DRRX 2.35 19.3% 58.8% 3.42 0.68 281 272 17.7 (20.8) (0.20) (0.24) 15.32x NM NM NM NM Endo International plc ENDP 87.54 4.1% 30.5% 96.58 57.14 18,226 23,395 3,120.5 742.8 (4.95) 4.53 7.50x 31.5x NM 19.3x 1.54x Flex Pharma, Inc. FLKS 15.59 (6.8%) NM 24.82 12.55 280 169 0.0 (20.4) (5.48) (1.70) NA NM NM NM NM Foamix Pharmaceuticals Ltd. FOMX 10.64 7.3% NM 14.00 4.75 320 279 4.5 (5.1) (0.79) (0.75) NM NM NM NM NM Heska Corporation HSKA 33.75 20.1% 157.6% 34.55 11.89 219 230 92.9 9.1 0.41 0.53 2.48x 25.4x 71.7x 63.7x 2.54x Impax Laboratories Inc. IPXL 48.46 7.1% 107.2% 52.10 22.12 3,475 3,729 620.4 123.5 0.81 1.40 6.01x 30.2x 76.3x 34.6x 1.42x Inotek Pharmaceuticals Corporation ITEK 12.99 114.4% NM 19.45 4.68 212 168 0.0 0.0 (13.52) (1.44) NA NA NM NM NM Jaguar Animal Health, Inc. JAGX 3.56 NM NM 7.06 3.18 29 38 0.1 0.0 (2.02) NM NM NA NM NM NM KemPharm, Inc. KMPH 16.82 52.4% NM 20.08 10.90 239 290 0.0 (17.9) (3.13) (2.08) NA NM NM NM NM Kite Pharma, Inc. KITE 72.77 44.4% 209.7% 89.21 21.01 3,133 2,705 2.9 (48.5) (1.91) (1.01) NM NM NM NM NM Lannett Company, Inc. LCI 59.60 3.7% 77.3% 72.44 33.56 2,160 1,936 388.2 221.0 3.42 3.76 4.99x 8.8x 15.8x 15.8x 0.91x Marinus Pharmaceuticals, Inc. MRNS 16.49 85.7% NM 17.60 5.49 235 196 0.0 (18.1) (2.17) (2.00) NA NM NM NM NM MediWound Ltd. MDWD 7.01 18.8% (19.4%) 9.15 4.60 151 91 0.4 (20.8) (0.95) (1.12) NM NM NM NM NM Merus Labs International Inc. MSL 2.51 14.5% 2.8% 2.69 0.99 254 302 28.8 17.6 (0.09) 0.09 10.47x 17.1x NM 28.3x NM Mylan N.V. MYL 55.99 (22.5%) 13.4% 76.69 44.80 27,437 35,766 8,410.1 2,132.5 2.34 4.13 4.25x 16.8x 26.3x 13.6x 1.06x Neos Therapeutics, Inc. NEOS 20.01 NM NM 21.86 18.75 290 399 0.9 (18.7) (27.56) NM NM NM NM NM NM NeuroDerm Ltd. NDRM 18.99 62.9% NM 20.26 5.67 397 359 0.0 (15.2) (12.97) (1.28) NA NM NM NM NM Nivalis Therapeutics, Inc. NVLS 16.97 NM NM 19.60 14.07 248 267 0.0 (16.3) (20.27) (1.84) NA NM NM NM NM ProNAi Therapeutics, Inc. DNAI 27.40 NM NM 33.75 25.16 790 756 0.0 (27.0) (69.08) NM NA NM NM NM NM Radius Health, Inc. RDUS 78.32 118.5% 778.0% 84.64 8.08 3,285 3,075 0.0 (72.3) (4.04) (2.11) NA NM NM NM NM Revance Therapeutics, Inc. RVNC 31.03 57.7% 1.1% 35.72 14.02 743 590 0.3 (53.6) (3.24) (3.37) NM NM NM NM NM Ritter Pharmaceuticals, Inc. RTTR 3.67 NM NM 5.50 3.02 29 43 0.0 (3.4) (6.79) NM NA NM NM NM NM Seres Therapeutics, Inc. MCRB 37.85 NM NM 51.40 28.11 1,432 1,330 0.0 (31.0) (2.67) (1.41) NA NM NM NM NM Healthcare Sector Update Duff Phelps 19 Source: Capital IQ as of July 31, 2015; For definitions, see page 20
- 20. Duff Phelps 20 Definitions PEG Ratio: Price Earnings to Growth EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization EPS: Earnings Per Share Enterprise Value: Market Capitalization + Total Debt + Preferred Equity + Minority Interest – Cash and Short-Term Investments LTM: Last Twelve Months Source: Capital IQ as of July 31, 2015 Healthcare Sector Update ($ in millions, except per share amounts) Company Name Ticker Price 7/31/15 % Change 52-Week Market Cap Ent Val (TEV) LTM EPS LTM Multiples Earnings Ratio PEG Ratio 2015E3 mo 12 mo High Low Rev EBITDA 2014 2015E Rev EBITDA LTM 2015E Pharmaceuticals (cont.) SciClone Pharmaceuticals, Inc. SCLN $9.11 11.5% 89.0% $11.71 $4.74 $452 $356 $141.8 $31.7 $0.48 $0.58 2.51x 11.2x 16.0x 15.7x NM SteadyMed Ltd. STDY 5.55 (42.7%) NM 11.14 4.63 75 27 0.0 (18.2) (2.82) (2.32) NA NM NM NM NM The Medicines Company MDCO 31.39 22.6% 34.3% 34.70 19.92 2,079 2,034 580.4 (83.2) (0.50) (1.88) 3.50x NM NM NM NM Tobira Therapeutics, Inc. TBRA 14.36 NM NM 24.31 10.70 250 357 0.0 (25.2) (85.41) (1.68) NA NM NM NM NM Viking Therapeutics, Inc. VKTX 6.09 (30.8%) NM 10.23 5.72 60 61 0.0 0.0 (5.08) (1.49) NA NA NM NM NM Vitae Pharmaceuticals, Inc. VTAE 10.11 (24.2%) NM 23.35 5.41 221 149 6.7 (28.0) (3.61) (1.66) 22.45x NM NM NM NM vTv Therapeutics Inc. VTVT 10.00 NM NM 14.00 9.20 78 613 1.6 (28.3) (7.01) NM NM NM NM NM NM Xenon Pharmaceuticals Inc. XENE 10.89 (17.8%) NM 23.50 8.59 155 80 27.4 9.6 3.28 (1.08) 2.91x 8.3x 8.9x NM NM Zoetis Inc. ZTS 48.98 10.3% 48.8% 55.38 31.67 24,458 27,571 4,807.0 1,388.0 1.16 1.66 5.74x 19.9x 41.5x 29.5x 2.23x Zosano Pharma Corporation ZSAN 7.81 (15.7%) NM 12.40 7.01 93 52 1.5 (11.3) (2.78) (2.13) NM NM NM NM NM ZS Pharma, Inc. ZSPH 59.73 56.9% 113.2% 64.99 25.51 1,493 1,244 0.0 (71.4) (5.47) (3.78) NA NM NM NM NM Median 11.5% 48.8% 5.74x 17.0x 27.8x 24.2x 1.48x
- 21. Healthcare Sector Update For more information, visit www.duffandphelps.com About Duff Phelps Duff Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute and legal management consulting, MA, restructuring, and compliance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world. MA advisory and capital raising services in the United States are provided by Duff Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff Phelps Securities, LLC. MA advisory and capital raising services in the United Kingdom and Germany are provided by Duff Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority. Duff Phelps Copyright © 2015 Duff Phelps LLC. All rights reserved. Brooks Dexter Managing Director T: +1 424 249 1646 10100 Santa Monica Boulevard Suite 1100 Los Angeles, CA 90067 [email protected] Paul Kacik Managing Director T: +1 424 249 1652 10100 Santa Monica Boulevard Suite 1100 Los Angeles, CA 90067 [email protected] Laca Wong-Hammond Managing Director T: +1 212 871 3915 55 East 52nd Street Floor 31 New York, NY 10055 [email protected] Contact Us: