Healthcare Industry Group Update Healthcare team

Healthcare Holdings Update Purchase Date Buy Price Current Price % Change IQVIA (formerly QuintilesIMS): IQV 03/17/2017 $77.82 $104.38 34.1% Veeva Systems: VEEV 11/08/17 $61.06 $76.10 24.6%

Fundamentals – useful to look at multiples for re-evaluation Holding P/E EV/EBITDA EV/REVENUE Diluted EPS IQV 17.76 31.23/1.7B = 18.38x 31.23/8.06B = 3.88x 5.88 LabCorp: LH 23.63 24.16/1.98B = 12.18x 24.16/10.21B = 2.37x 12.21 VEEV 82.74 10/.16507B = 60.9x 10/.68557B = 14.67x 0.92 Salesforce: CRM n/a 90.12/.8967B = 100.51x 90.12/10.48B = 8.60x 0.17

IQVIA beyond financials CRO market slowing down after a solid run the past 20yrs IQVIA might still have some room to keep growing, but the high stock growth period is likely over Uncertainty over structure of healthcare industry right now consolidation happening so will be interesting to see what happens with CRO and data analysis companies moving forward Potential to be acquired by large pharma companies looking for synergies and to consolidate an unsteady industry with pressure to decrease drug prices

VEEV beyond financials Beat analyst estimates and raised forecast for 2018 during Q4 earnings announcement Stock price jumped about 25% after announcement Bought in at decent time before this high growth took effect Not too overvalued compared to Salesforce Stock has good momentum now, but downside would be that it is overvalued and projections are too high after strong Q4

Update conclusions IQVIA – Hold for another few months and see where we stand towards the end of the semester. If there has been little price movement over the past 6 months, could sell at that time. Major upside includes acquisition attempt, downside is uncertainty in drug pricing market could lead to drop in stock price and IQVIA’s business model Veeva – Hold for longer. Strong Q4 a few weeks ago caused the 25% jump as revenue was up over 23% for quarter and earnings beat projections. Also raised projections for coming year.