Number Aggr. Median TEV / Median Price / of Equity Mkt. Median % Change LTM Multiples Earnings Ratio Companies Value 3 mos. 12 mos. Revenue EBITDA 2017 2018 Aesthetics 3 $660 5.7% 53.6% 1.1x 12.5x 26.7x 20.1x Cardiovascular 10 11,874 15.8 40.3 4.3 19.6 28.7 25.7 Cardiovascular - Large Cap 2 59,123 11.8 11.8 6.1 20.7 26.1 23.1 Dental & Vision 4 35,597 10.0 32.9 5.2 17.0 21.7 19.4 Diversified 16 113,502 10.7 29.5 3.7 16.0 24.1 20.7 Diversified - Large Cap 7 232,547 16.2 25.9 4.5 14.5 22.1 19.8 Imaging & Radiology 4 9,880 (3.1) 8.6 1.6 9.2 22.5 20.3 Infusion & Respiratory 5 16,951 4.4 30.4 6.7 17.6 22.9 22.8 Orthopedics 8 12,072 12.6 25.8 2.8 12.6 24.9 21.7 Orthopedics - Large Cap 3 89,424 10.4 3.4 4.5 11.7 19.6 17.9 Patient Monitoring 4 43,970 9.6 27.3 8.8 23.4 35.4 30.9 Sterilization & Infection Control 3 16,648 7.4 (3.1) 2.9 12.6 18.5 17.6 Total / Median (unweighted) 69 $642,248 10.2% 26.6% 4.4x 15.2x 23.5x 20.5x FY2017 FY2018 Value at % Change Price / Earnings Ratio 4/30/2017 3 mos. YTD 12 mos. 36 mos. 2017 2018 Dow Jones Industrial Average 20,940.51 5.3% 5.3% 17.0% 26.5% S&P 500 2,384.20 4.6 5.6 14.5 26.6 18.3x 17.0x Nasdaq Composite 6,047.61 7.2 11.4 25.5 46.5 Russell 2000 1,400.43 2.9 2.6 22.7 24.4 23.8 N/A S&P500 Healthcare Equipment 1,132.38 9.2 16.9 15.2 55.2 S&P500 Healthcare Supplies 213.28 9.8 10.4 6.2 42.3 S&P500 Healthcare Distribution 620.80 (1.2) (1.4) (9.8) 6.6 Medical Products Composite 1,100.95 9.2% 16.6% 15.0% 54.6% Number Aggr. Equity % of Total % of Aggr. of Mkt. Value Number of Equity Mkt. Median Stock Price Performance Companies ( millions) Companies Value 3 mos. YTD 12 mos. 36 mos. >5bln 26 $584,561 37.7% 91.0% 11.5% 6.8% 23.5% 82.7 1bln - 5bln 18 45,808 26.1 7.1 10.9 15.7 33.7 60.2 250mm - 1bln 18 11,212 26.1 1.7 9.1 23.5 30.6 67.2 <250mm 7 668 10.1 0.1 (28.2) (23.3) (42.6) (94.7) Total / Median 69 $642,248 100.0% 100.0% 10.0% 11.2% 27.0% 63.7% Capitalization Profile Market Indices Sector 1 Sources: ThomsonOne, Bloomberg Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. ($ in millions) Medical Products Sector Review: Publicly-Traded Medical Products Summary
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Medical Products Sector Review: Publicly-Traded Medical ... · Market Indices Sector 1 Sources: ThomsonOne, Bloomberg Disclosure: KeyBanc Capital Markets is a trade name under which
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Number Aggr. Median TEV / Median Price /
of Equity Mkt. Median % Change LTM Multiples Earnings Ratio
Companies Value 3 mos. 12 mos. Revenue EBITDA 2017 2018
Total / Median 69 $642,248 100.0% 100.0% 10.0% 11.2% 27.0% 63.7%
Capitalization Profile
Market Indices
Sector
1
Sources: ThomsonOne, Bloomberg
Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member
NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities
representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information
contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a
complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does
not consider the specific investment objectives, financial situation and particular needs of any individual person or entity.
($ in millions)
Medical Products Sector Review: Publicly-Traded Medical Products Summary
2
Source: ThomsonOne
Medical Products Sector Review: Publicly-Traded Medical Products Summary
Performance of Market Indices for Latest 36 Months (%)
Mean $38.5 $421.3 6.739 (20.5%) (15.3%) (2.1%) (2.7%) (2.5%)
Median $25.0 $101.0 5.175 (17.4%) (12.3%) 0.0% 0.1% (4.6%)
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Source: Dealogic
Medical Products Follow-On Offering
Equity Capital Markets: Year-to-Date Medical Products Pricings
Medical Products Initial Public Offerings
None
Filing Pricing Convert Rule Deal Market Years to Call
Date Date Issuer Ticker Type 144a Value Cap Coupon Premium Rank Maturity Provision Healthcare Sector
9/20/16 1/18/17 EnteroMedics Inc ETRM Preferred N $13.0 $52.0 NA (40.340%) NA 5.0 NA Healthcare-Biomed/Genetics
Mean $13.0 $52.0 NA (40.340%)
Median $13.0 $52.0 NA (40.340%)
Medical Products Convertible Offerings
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Source: Dealogic
Equity Capital Markets: Year-to-Date Medical Products Pricings
Medical Products IPO Backlog
Filing Expected Expected
Date Date Issuer Ticker Value Sector Issuer Description
11/21/16 TBA Endra Life Sciences Inc NDRA 10.0 Healthcare-Instruments Ultrasound technology company for the pre-clinical research market
6/30/16 TBA Bioventus Inc BIOV 150.0 Healthcare-Instruments Develops and markets orthobiologic products for musculoskeletal conditions
6/16/16 TBA OrthoPediatrics Corp KIDS 75.0 Healthcare-Instruments Designs, develops and sells orthopedic implants for children
Announcement Date Target(s) Buyer(s) Target Business DescriptionDeal Value
($mm)
04/28/17 SEBRA Machine Solutions Inc.Manufactures tube sealing equipment for blood and plasma centers, including Radio-Frequency Tube
sealers that are used to seal and segment parts of the consumables used in blood collectionNA
04/26/17 Wound Care Technologies, Inc. Baxter International Inc. Develops and markets medical technology specializing in external tissue expansion devices for the
wound care marketNA
04/23/17 C. R. Bard, Inc. Becton, Dickinson and Company Designs, manufactures, packages, distributes and sells medical, surgical, diagnostic and patient care
devices $25,601.7
04/21/17 Beaver-Visitec International, Inc. Malosa LimitedDesigns, manufactures and supplies single-use surgical instruments for ophthalmology and aesthetic
surgeryNA
04/20/17 Fotona d.d. AGIC CapitalDesigns, manufactures and supports advanced solid-state laser systems for medicine, dentistry and
defense applicationsNA
04/18/17
Medtronic plc, Patient Care, Deep Vein
Thrombosis and Nutritional Insufficiency
Businesses
Cardinal Health, Inc.Manufactures compression systems and anti-embolism stockings to reduce the incidence of Deep Vein
Thrombosis and Pulmonary Embolism6,059.1
04/13/17 Carestream Dental Llc
Clayton, Dubilier & Rice, Inc.; Hillhouse
Capital Management, Ltd.; CareCapital
Advisors
Develops digital radiology products and dental systems for dental professionals NA
04/13/17 Spinal Elements, Inc. Amendia, Inc.Manufactures surgical, motion preservation and spinal fusion systems including, stand-alone anterior
lumbar interbody fusion devices, cervical lumber cage systems and facet implant systemsNA
04/12/17Dose Medical Corporation, IOP Sensor
SystemGlaukos Corporation
Manufacturers an intraocular pressure sensor system, a micro-invasive ocular implant that is designed to
capture and store a glaucoma patient’s short-interval IOP measurements15.0
04/12/17 Genii, Inc. Steris Plc Develops and markets electrosurgical products, including electrosurgery generators, ArC Smart argon
probes and argon gas canistersNA
04/12/17 Halt Medical, Inc. NADevelops, manufactures and commercializes the Acessa system for the treatment of symptomatic uterine
fibroidsNA
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Source: Capital IQ
M&A Activity
November 2016 May 2016 April 2016 March 2016 February 2016 November 2015 October 2015 October 2015