Try to match the 14 firms operating in the healthcare sectors named below with the 14 sets of financial data presented in Exhibit 1 and Exhibit 2. Use any approach you find helpful.

• Biotechnology (global biotechnology firm engaged in the discovery and development of breakthrough small molecule drugs for serious diseases; revenues are generated primarily through collaborative R&D, license fees, and royalties)
• Distributor (Medical) (global supplier of medical products and services, from pharmaceuticals to medical supplies)
• Durable Medical Equipment (DME) Licensee and Seller (leading licensee and manufacturer of DME, including wheelchairs, bariatric equipment, disability scooters, respiratory products, and other homecare products; recent regulation of qualification processes for Medicare, the primary payor for this DME, has adversely affected collections)
• Durable Medical Equipment (DME) Developer and Seller (leading developer and manufacturer of DME, including hospital beds, specialized mattresses, and therapy systems; development of DME requires relatively fast-depreciating/amortizing assets)
• Hospital (Diversified) (owns or leases about 50 acute care hospitalsprimarily community hospitalswith a total of almost 15,000 beds in a dozen states)
• Insurer (one of the largest health insurers in the US (HMO, PPO, POS, HSA, traditional indemnity, dental, vision, behavioral health, Medicare), which also offers life, disability, and long- term care insurance)
• Medical Device Manufacturer (leading researcher, developer, and manufacturer of highly profitable, implantable biomedical devices)
• Nursing Home Operator (provides long-term, subacute, and related health care services at about 200 managed inpatient facilities in 25 states, totaling some 23,000 beds; primarily nursing centers for seniors, but also offers assisted and independent living arrangements and behavioral health services; growth has come primarily from M&A activity, including three large recent acquisitions)
• Pharmaceuticals (Branded) (conducts intensive research to develop novel medicines for a wide variety of ailments, with sales and marketing in over 130 countries)
• Pharmaceuticals (Generic) (world-leading generic pharmaceuticals business, making generic versions of hundreds of brand-name drugs and selling them globally)
• Private Practice (private practice / multi-specialty clinic of roughly 40 doctors delivering state-of- the-art care, across most major specialties, at 8 locations within one major US metropolitan area)

1. Identify the companies listed on page 3 of the case for A, B, D, F, H, I, K, L, and M.

a. List the type of healthcare segment they represent (Biotechnology, Community Nursing, Distributor (medical), etc.)

b. Support your answers with data from each firms common size financial statements.

c. The Community Nursing, Home Care Provider, and Lab/Diagnostic firm are not any of the answers.

611-043 -3- Balance Sheet and Income Statement Percentages for Unidentified Healthcare Sector Companies Exhibit 1 Balance Sheet Percentages (%) D 13 E G L A 9 K 11 20 18 Cash and Marketable Securities B 7 8 9 1. 66 6 16 14 Accounts Receivable Inventories Other Current Assets Net Property, Plant, & Equipment Goodwill Intangibles Other Assets Total Assets 14 13 10 2. 3 0 29 33 15 10 15 20 12 5 14 4 14 10 13 3. 0 0 0 0 0 5 8 3 5 4 4 1 1 1 4 1 4 10 59 40 2b 5. 3 5 3 54 10 10 30 9 40 1 11 6. 13 27 55 13 67 37 9 5 30 41 44 7 2 2 12 3 10 0 9 1 1 6 16 10 0 3 2 3 2 20 17 66 6 100 100 100 9 100 100 100 100 100 100 100 100 100 100 100 10. Notes & Current Debt Payable Accounts Payable Accrued Expenses Other Current Liabil ities Long-Term Debt Other Liabilities Equity (Common+ Preferred Stock) Retained Earnings 2 0 0 4 3 0 0 0 9 9 1 4 4 21 11 12 2 47 8 3 9 2 1 11 4 1 14 10 13 12 9 9 7 7 3 8 6 6 6 11 13. 5 2 0 17 0 4 1 6 1 6 34 27 14 15 42 10 8 15 13 54 20 39 24 25 6 13 42 -13 23 3 15 7 17 0 44 & 16. 17 18 31 9 138 53 31 194 35 43 13 20 0 1 1 23 100 138 26 32 21 100 -34 38 38 15 52 1 100 100 Total Liabilities and Net Worth 100 100 100 100 100 100 100 100 100 100 Income Statement Percentages (%) 19 m 20. m 21. 22 23 m 24 25 100 100 -48 52 100 -66 10 58 42 Revenue 100 100 100 100 100 100 100 100 100 100 75 25 COGS or Cost of Sales -14 86 95 -47 60 -71 -19 81 49 -69 -46 24 Gross Profit Research and Develop ment (R&D) Sales, General, & Admin (SG&A) Depreciation & Amortization Non-Operating Income 31 5 53 34 40 29 54 76 51 540 0 0 0 0 -5 -20 9 0 -6 -35 -25 -25 1 -17 -119 -3 -23 -30 -22 -21 20 -26 37 -24 -29 0 7 2 3 -6 5 1 -4 -1 0 -20 0 0 0 0 0 0 1 0 -4 15 EBIT 7 622 5 2 17 7 5 21 25 27 26 18. 27 28. Interest Expense -8 0 4 2 2 5 -1 -2 1 1 -1 -1 Income Taxes -2 0 5 -5 -1 -1 -4 -1/ 29. Net Income -630 15 3 3 10 20 20 25 4 1 11 2% 8% 30. 5-Year Revenue Grow th (CAGR) 32% 20% 9% 5% 21% 1% 6% 11% 7% 1%, 9% -7% * document is authorized for use only by STEVEN CASPER in 2019. Exhibit 2 Selected Financial Information for Unidentified Healthcare Sector Companies Selected Financial Data N 119 0.97 0.59 047 6.97 1.76 3.27 5.74 A D E F G K L M 1.59 0.81 0.35 0.32 0.87 0.09 2.13 0.19 2.65 098 0.95 0.85 0.18 0.22 1.29 0.12 1.59 0.19 1.67 0 79 045 113 1,20 0,02 3.50 0.09 4.59 0.99 31. Current Assets / Current Liabilities Cash & Equivalent / Current Liabilities Total Debt Total Assets Long-Term Debt / Capitalization Revenue / Total Assets Net Profit/Total Assets Total Assets/ Net Worth Net Profit /Net Worth 0.81 1.26 1.60 1.39 0.75 1.82 1.95 190 1.92 32 0.79 0.55 0.60 0.58 0.80 0.67 0.72 33. 0.11 0.08 0 0.08 0.17 0.54 0.20 0.43 0.24 0.34 34. 0.30 0.02 0 0.13 0.08 2.08 0.31 0.45 0.16 0.17 144 006 118 007 35. 0.90 0.05 3.86 0.41 1.13 1.25 0.66 0.80 0.56 36. 0.03 -0.33 0.04 0.06 0.03 11.41 0.03 0.08 0.16 0.11 37 2.88 2.58 4.06 1.78 3.74 1.76 1.94 1.92 38 0.13 -0.59 0.17 0.10 0.37 0.06 0.19 0.45 0.21 Days of Inventory Receivables Collection Period (Days) 48 39 33 186 52 245 142 27 40. CO 13 34 46 27 36 132 43 47 57 41 78 64 77 611-043 -3- Balance Sheet and Income Statement Percentages for Unidentified Healthcare Sector Companies Exhibit 1 Balance Sheet Percentages (%) D 13 E G L A 9 K 11 20 18 Cash and Marketable Securities B 7 8 9 1. 66 6 16 14 Accounts Receivable Inventories Other Current Assets Net Property, Plant, & Equipment Goodwill Intangibles Other Assets Total Assets 14 13 10 2. 3 0 29 33 15 10 15 20 12 5 14 4 14 10 13 3. 0 0 0 0 0 5 8 3 5 4 4 1 1 1 4 1 4 10 59 40 2b 5. 3 5 3 54 10 10 30 9 40 1 11 6. 13 27 55 13 67 37 9 5 30 41 44 7 2 2 12 3 10 0 9 1 1 6 16 10 0 3 2 3 2 20 17 66 6 100 100 100 9 100 100 100 100 100 100 100 100 100 100 100 10. Notes & Current Debt Payable Accounts Payable Accrued Expenses Other Current Liabil ities Long-Term Debt Other Liabilities Equity (Common+ Preferred Stock) Retained Earnings 2 0 0 4 3 0 0 0 9 9 1 4 4 21 11 12 2 47 8 3 9 2 1 11 4 1 14 10 13 12 9 9 7 7 3 8 6 6 6 11 13. 5 2 0 17 0 4 1 6 1 6 34 27 14 15 42 10 8 15 13 54 20 39 24 25 6 13 42 -13 23 3 15 7 17 0 44 & 16. 17 18 31 9 138 53 31 194 35 43 13 20 0 1 1 23 100 138 26 32 21 100 -34 38 38 15 52 1 100 100 Total Liabilities and Net Worth 100 100 100 100 100 100 100 100 100 100 Income Statement Percentages (%) 19 m 20. m 21. 22 23 m 24 25 100 100 -48 52 100 -66 10 58 42 Revenue 100 100 100 100 100 100 100 100 100 100 75 25 COGS or Cost of Sales -14 86 95 -47 60 -71 -19 81 49 -69 -46 24 Gross Profit Research and Develop ment (R&D) Sales, General, & Admin (SG&A) Depreciation & Amortization Non-Operating Income 31 5 53 34 40 29 54 76 51 540 0 0 0 0 -5 -20 9 0 -6 -35 -25 -25 1 -17 -119 -3 -23 -30 -22 -21 20 -26 37 -24 -29 0 7 2 3 -6 5 1 -4 -1 0 -20 0 0 0 0 0 0 1 0 -4 15 EBIT 7 622 5 2 17 7 5 21 25 27 26 18. 27 28. Interest Expense -8 0 4 2 2 5 -1 -2 1 1 -1 -1 Income Taxes -2 0 5 -5 -1 -1 -4 -1/ 29. Net Income -630 15 3 3 10 20 20 25 4 1 11 2% 8% 30. 5-Year Revenue Grow th (CAGR) 32% 20% 9% 5% 21% 1% 6% 11% 7% 1%, 9% -7% * document is authorized for use only by STEVEN CASPER in 2019. Exhibit 2 Selected Financial Information for Unidentified Healthcare Sector Companies Selected Financial Data N 119 0.97 0.59 047 6.97 1.76 3.27 5.74 A D E F G K L M 1.59 0.81 0.35 0.32 0.87 0.09 2.13 0.19 2.65 098 0.95 0.85 0.18 0.22 1.29 0.12 1.59 0.19 1.67 0 79 045 113 1,20 0,02 3.50 0.09 4.59 0.99 31. Current Assets / Current Liabilities Cash & Equivalent / Current Liabilities Total Debt Total Assets Long-Term Debt / Capitalization Revenue / Total Assets Net Profit/Total Assets Total Assets/ Net Worth Net Profit /Net Worth 0.81 1.26 1.60 1.39 0.75 1.82 1.95 190 1.92 32 0.79 0.55 0.60 0.58 0.80 0.67 0.72 33. 0.11 0.08 0 0.08 0.17 0.54 0.20 0.43 0.24 0.34 34. 0.30 0.02 0 0.13 0.08 2.08 0.31 0.45 0.16 0.17 144 006 118 007 35. 0.90 0.05 3.86 0.41 1.13 1.25 0.66 0.80 0.56 36. 0.03 -0.33 0.04 0.06 0.03 11.41 0.03 0.08 0.16 0.11 37 2.88 2.58 4.06 1.78 3.74 1.76 1.94 1.92 38 0.13 -0.59 0.17 0.10 0.37 0.06 0.19 0.45 0.21 Days of Inventory Receivables Collection Period (Days) 48 39 33 186 52 245 142 27 40. CO 13 34 46 27 36 132 43 47 57 41 78 64 77