The Health Care Sector

1
The Health Care Sector

• Analysts Heather Hund
• and Emily Butler

2
The Health Care Sector

• Health Care companies seek to promote the
  wellness of individuals through the development
  and distribution of products or by providing
  health care services or products.
• The sector can be categorized into four major
  sub sectors according to the current Cox
  Holdings
• Biotechnology
• Health Care Services
• Supplies and Equipment and
• Medical Waste Management
• Other sub sectors exist. A sub sector that is
  not held by the Cox Portfolio would be
• Drugs and Pharmaceuticals

3
Healthcare Sub Sectors and COX Holdings
4
Biotechnology

• Sub sector - Biotechnology Companies utilize
  genomics to develop and sell drugs, therapeutic
  products, research equipment, and related
  research services
• Historic v. Future markets
• RD accounts for over 50 of companies
• Regulation by FDA
• Cox Holding - Amgen (AMGN) Global biotech
  company that discovers, develops, manufactures,
  and markets human therapeutics
• Main areas of focus oncology, nephrology,
  inflammation
• Main drugs developed in these areas
• Acquisition to expand RD capabilities

5
Healthcare Services

• Sub Sector Healthcare Services
• Provide, support, and market medical, surgical,
  or health care services
• Companies Providing health plans, home health
  services, general services to hospitals and long
  term care facilities, diagnostic and laboratory
  services, and specialized health care services
• Legislative/Demographic Impacts benefiting from
  private pay rate hikes and favorable demographic
  trends
• Cox Holding Quest Diagnostics
• leading global provider of laboratory testing
  services 30 principal laboratories in the United
  States as well as 2,000 international patient
  centers, processes over 130 million order forms
  annually
• Testing routine, esoteric, clinical trial
• detection, diagnosis, evaluation, monitoring and
  treatment of diseases and medical conditions by
  physicians, managed care organizations,
  hospitals, governmental institutions, employers,
  prisons, and independent clinical laboratories

6
Medical Equipment and Supplies

• Sub Sector Medical Equipment and Supplies
• Innovate and develop new products designed more
  efficiently and effectively
• Patent rights to technology Competition
• Specific Costs RD and the potential lag time
  for FDA approval.
• Not discretionary therefore always a market
• Trend Consolidation
• Cox Holding Medtronic
• Leading maker of implantable biomedical devices
• Key Business Cardiac Rhythm Management,
  Neurological, Spinal and ENT Surgery, Cardiac
  Surgery, and Vascular
• Strategy expand market share and product lines
  through in-house development and acquisitions
• Recent Acquisitions stent maker, spinal implant
  maker, surgical products
• Result bundled products

7
Medical Waste Management

• Sub sector - Medical Waste Management
  Companies that treat, transport, and manage
  medical waste
• Services and Clients
• Regulation OSHA and FDA
• Cox Holding Stericycle (STRL) Largest North
  American medical waste management company that
  provides waste collection, transfer and disposal,
  OSHA compliance services, and waste consulting
  services.
• Diversified Client base
• Acquisition based growth strategy
• New products
• (i.e. consulting services and waste management
  training)

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Healthcare Sector Breakdown
9
Market Outlook

• Threats and Opportunities to specific industries
• Biotechnology
• Threat Biogenerics, Growth Company Competition
• Opportunity High Price Maintenance,
  Undervaluation
• Medical Equipment and Supplies
• Threat Budgetary Pressures, Supply/Demand
  imbalance
• Opportunity Product Launches, Positive Long Term
  Fundamentals, Increased Mergers and Acquisitions
• Overall PROGNOSIS Optimistic
• Constant increased demand Demographics
• Consistent Across Sectors
• Anticipation The Long Run