Overview of Tier 1 Potential Partners

($ USD in Billions)
Potential Market Debt & Enterprise Leverage Strategic Ability to
Partner: Cap(1): NCI(1): Cash(1): Value(1): Ratio(1): Fit: Pay: Comments:
 Primarily < $1B acquisitions
$36.3 $8.7 $0.3 $44.7 3.6 x in the past; rumors of Actavis
and Forest Labs
 Primarily < $100 million
$84.6 $32.0 $19.8 $96.8 4.3 x acquisitions, except for $10
billion Onyx deal
 Last deals over $1 billion
$81.7 $7.7 $7.1 $82.4 1.7 x took place 2-3 years ago;
smaller recent acquisitions
 Last major deal was
$121.0 $10.1 $6.5 $124.6 1.4 x Pharmasset ($11 billion) two
years ago
 Typically does only very
$281.0 $17.3 $29.4 $268.9 0.7 x small “tuck-in” deals

 Has completed primarily

$62.9 $5.3 $5.2 $63.0 0.8 x smaller, “tuck-in” M&A deals
over the past 2-3 years
 Last major deals were 5
$160.2 $30.8 $20.5 $170.5 1.9 x years ago; rumors of interest
in Cubist Pharmaceuticals
 Mostly minor deals except
$44.0 $17.5 $0.6 $60.9 5.6 x for $8.7 billion acquisition of
Bausch & Lomb last year
 No major recent deals;
$186.1 $37.5 $33.9 $189.6 1.7 x announced $10 billion buy-
back plan last year

Goldman Stanley (1) Financial data as of May 9, 2014. 1

Company Profile: Allergan
($ USD in Billions) Business Description Management Team
Allergan plc develops, manufactures, and distributes generic, Paul Bisaro Executive Chairman
branded, biosimilar, and over-the-counter (OTC) pharmaceutical Brenton Saunders CEO
products. It operates in three segments: North American Brands, Maria Hilado CFO
North American Generics and International, and Anda Distribution. James D’Arecca CAO
A. Robert BaileyCLO
The company also develops and out-licenses generic Jonathon Kellerman EVP
Allergan pharmaceutical products primarily in Europe through its third-party John Kelly EVP
Headquarters: Parsippany, NJ business, and it sells its generic and brand pharmaceutical products Sigurd Kirk EVP, Bus. Dev.
Employees: 21,600 primarily to drug wholesalers, retailers, and distributors.
Founded: 1983

Financial Information (1) Business Segments and Product Lines Key Partners
Market Cap: $36.3  North American Brands – Provides patented and off-patent  Amgen – Biosimilar versions of
Cash: $0.3 trademarked pharmaceutical products primarily under the Herceptin, Avastin, Rituxan/Mab
Debt, Preferred & NCI: $8.7 Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Thera, and Erbitux
LTM Revenue: $9.4 Linzess, Namenda, Namenda XR, Saphris, Teflaro, Viibryd,
LTM EBITDA: $2.4 Actonel, Asacol HD, Atelvia, Delzicol, Doryx, Estrace Cream,  Ironwood Pharmaceuticals –
CY 2014E Revenue: $12.9 Enablex, Lo Loestrin Fe, and Minastrin 24 Fe brands. Commercial development of
CY 2014E EBITDA: $3.8 Linzessfor
CY 2015E Revenue: $13.5  North American Generics and International – Develops,
CY 2015E EBITDA: $4.2 manufactures, and sells generic, branded generic, and OTC  Sanofi-Aventis
pharmaceutical products.
One-Year Price History(1)  Trevena – Development of
$250.00 16 M

14 M
 Anda Distribution – Distributes generic and brand TRV027
$200.00
12 M
pharmaceutical products primarily to independent pharmacies,
Shares Traded (in Millions)

$150.00
10 M pharmacy chains and buying groups, and physician’s offices.
Share Price

8M

$100.00
6M

4M
$50.0 0
2M

$0.00 0M

Goldman Stanley (1) Financial data as of May 9, 2014. 2

Company Profile: Allergan
($ USD in Billions) Business Description Management & Board
Allergan plc develops, manufactures, and distributes generic, Paul Bisaro Executive Chairman
branded, biosimilar, and over-the-counter (OTC) pharmaceutical Brenton Saunders CEO
products. It operates in three segments: North American Brands, Maria Hilado CFO
North American Generics and International, and Anda Distribution. James D’Arecca CAO
A. Robert BaileyCLO
The company also develops and out-licenses generic Jonathon Kellerman EVP
Allergan pharmaceutical products primarily in Europe through its third-party John Kelly EVP
Headquarters: Parsippany, NJ business, and it sells its generic and brand pharmaceutical products Sigurd Kirk EVP, Bus. Dev.
Employees: 21,600 primarily to drug wholesalers, retailers, and distributors.
Founded: 1983 Chris Bodine NewSpring Capital
Allergan provides products in areas including women's health, Ronald Taylor Cardinal Health 301
gastroenterology, urology, and dermatology. Key products include Fred Weiss FGW Associates
the Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Michael Gallagher Playtex
Linzess, Namenda, and Saphris brands. James Bloem Humana
Financial Information (1) Business Segments and Product Lines Key Partners
Market Cap: $36.3  North American Brands – Provides patented and off-patent  Amgen – Biosimilar versions of
Cash: $0.3 trademarked pharmaceutical products primarily under the Herceptin, Avastin, Rituxan/Mab
Debt, Preferred & NCI: $8.7 Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Thera, and Erbitux
Enterprise Value: $44.7 Linzess, Namenda, Namenda XR, Saphris, Teflaro, Viibryd,
Leverage Ratio: 3.6 x Actonel, Asacol HD, Atelvia, Delzicol, Doryx, Estrace Cream,  Ironwood Pharmaceuticals –
Enablex, Lo Loestrin Fe, and Minastrin 24 Fe brands. Commercial development of
LTM Revenue: $9.4 Linzessfor
CY 2014E Revenue: $12.9  North American Generics and International – Develops,
CY 2015E Revenue: $13.5 manufactures, and sells generic, branded generic, and OTC  Sanofi-Aventis
pharmaceutical products.
LTM EBITDA: $2.4  Trevena – Development of
CY 2014E EBITDA: $3.8  Anda Distribution – Distributes generic and brand TRV027
CY 2015E EBITDA: $4.2 pharmaceutical products primarily to independent pharmacies,
pharmacy chains and buying groups, and physician’s offices.
LTM Net Income: ($0.5)
CY 2014E Net Income: ($1.6)
CY 2015E Net Income: ($1.0)

Goldman Stanley (1) Financial data as of May 9, 2014. 3

Company Profile: Allergan (cont’d)
(Acquisition Prices in Millions $ USD) One-Year Price History: May 9, 2013 – May 9, 2014 Valuation Multiples(1)
$250.00 16 M
LTM EV / Revenue: 4.8 x
14 M CY 2014E EV / Revenue: 3.5 x
$200.00
12 M
CY 2015E EV / Revenue: 3.3 x

Shares Traded (in Millions)

10 M
$150.00 LTM EV / EBITDA: 18.6 x

Share Price
8M CY 2014E EV / EBITDA: 11.8
Pipeline Summary $100.00 x
6M
 # Pipeline Drugs (FY 2013): 195 CY 2015E EV / EBITDA: 10.6
$50.00
4M
x
 # Pipeline Drugs (FY 2012): 185 2M
LTM P / E: NM
$0.00 0M
 # Pipeline Drugs (FY 2011): 130 CY 2014E P / E: NM

9 0
CY 2015E P / E: NM

5-
-0
14
20
FY 2013 Revenue and Operating Income by
Acquisition Strategy Recent Acquisitions
Segment
 Primarily < $1B acquisitions in Revenue Operating Income  TARIS BioMedical – LiRIS (2014 –
the past by Segment: by Segment: $588 million)
• Development Milestone: $295
Anda Distribution North American Anda Distribution
 Rumors of interest in Actavis and 14% 3%
million
Forest Labs Brands North American • Commercial Milestone: $225
12% Brands million
 Possible merger interest from 11%
Actavis  MAP Pharmaceuticals (2013 –
$963 million)
 May be interested in spinning off • 100% cash offer for $25 / share
portions of its generics business
 SkinMedica (2012 – $375 million)
 Interested in both clinical-stage North American North American • 100% cash offer
and commercial-stage Generics and Generics and • Commercial Milestone: $25
companies International International million
74% 86%

Goldman Stanley (1) Financial data as of May 9, 2014. 4