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NCHR Analysis of Impact of Device Excise Tax on12 Top US-Based Medical Device CompaniesNational Center for Health Research1001 Connecticut Avenue, Suite 1100Washington, DC 20036(202) 223-4000www.center4research.orgContact: Paul Brown [email protected]

2005-2015 Stock Prices and Current Net Profit Margin of Top US-Based Medical Device CompaniesNCHR Chart based on data from the NY Times (http://www.nytimes.com) and Yahoo Finance (http://finance.yahoo.com/)Device CompanyBoston Scientific(NYSE:BSX)St. Jude Medical(NYSE:STJ)Allergan(NYSE:AGN)Zimmer Holdings(NYSE:ZMH)CareFusion(NYSE:CFN)CR Hologic(NasdaqGS:HOLX)Varian Medical Systems(NYSE:VAR)Edwards Lifesciences(NYSE:EW)Intuitive Surgical(NasdaqGS:ISRG)AverageNYSE Composite IndexNASDAQ CompositeIndexClose on1/3/2005 **Close on1/2/2013Close on1/2/2015% Change inLast 2 YearsNet ProfitMargin* 34.29 5.89 13.22124%3.9% 37.88 36.61 64.9477%14.8% 38.93 94.04 212.75126%18.6% 70.07 67.70 112.5966%17.0% 29.28 59.43103%10.6% 60.18 101.83 167.4864%25.5% 41.31 41.88 71.8872%16.8% 43.69 55.88 93.9968%6.7% 6.80 20.47 26.3829%0.7% 42.74 72.47 87.0220%13.2% 20.38 92.14 127.7239%34.7% 37.78 497.52 525.576%66.2%20.8%15.3% 8,632.0110,830.9225% 3,112.26 4,726.8152%* Data from nytimes.com on 1/7/15 representing trailing 12 months of data posted by the companies.** Close price adjusted for dividends and splits (Yahoo Finance).

R & D Expenditures (in millions) - 200 400 600 800 1,000 1,200 1,400 1,600 1,800200520082010Year201120122013R & D Expenditures of Top US-BasedMedical Device Companies (in millions)Information compiled by NCHR based on SEC search.htmlIntuitive Surgical (NasdaqGS:ISRG)Edwards Lifesciences (NYSE:EW)Varian Medical Systems (NYSE:VAR)Hologic (NasdaqGS:HOLX)Stryker (NYSE:SYK)Medtronic (NYSE:MDT)CR Bard (NYSE:BCR)CareFusion (NYSE:CFN)Zimmer Holdings (NYSE:ZMH)Allergan (NYSE:AGN)St. Jude Medical (NYSE:STJ)Boston Scientific (NYSE:BSX)

Net Sales (in milllions) - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000200520082010Year201120122013Net Sales of Top US-BasedMedical Device Companies (in millions)Information compiled by NCHR based on SEC search.htmlIntuitive Surgical (NasdaqGS:ISRG)Edwards Lifesciences (NYSE:EW)Varian Medical Systems (NYSE:VAR)Hologic (NasdaqGS:HOLX)Stryker (NYSE:SYK)Medtronic (NYSE:MDT)CR Bard (NYSE:BCR)CareFusion (NYSE:CFN)Zimmer Holdings (NYSE:ZMH)Allergan (NYSE:AGN)St. Jude Medical (NYSE:STJ)Boston Scientific (NYSE:BSX)

Net Profit (in millions) (5,000) (4,000) (3,000) (2,000) (1,000) - 1,000 2,000 3,000 4,000 5,000200520082010Year201120122013Net Profit of Top US-Based MedicalDevice Companies (in millions)Information compiled by NCHR based on SEC search.htmlIntuitive Surgical (NasdaqGS:ISRG)Edwards Lifesciences (NYSE:EW)Varian Medical Systems (NYSE:VAR)Hologic (NasdaqGS:HOLX)Stryker (NYSE:SYK)Medtronic (NYSE:MDT)CR Bard (NYSE:BCR)CareFusion (NYSE:CFN)Zimmer Holdings (NYSE:ZMH)Allergan (NYSE:AGN)St. Jude Medical (NYSE:STJ)Boston Scientific (NYSE:BSX)

122013R & D Expenditures as percentage of Net Salesof Top US-Based Medical Device Companies2014Information compiled by NCHR based on SEC search.htmlIntuitive Surgical (NasdaqGS:ISRG)Edwards Lifesciences (NYSE:EW)Varian Medical Systems (NYSE:VAR)Hologic (NasdaqGS:HOLX)Stryker (NYSE:SYK)Medtronic (NYSE:MDT)CR Bard (NYSE:BCR)CareFusion (NYSE:CFN)Zimmer Holdings (NYSE:ZMH)Allergan (NYSE:AGN)St. Jude Medical (NYSE:STJ)Boston Scientific (NYSE:BSX)

200520052008115 - Allergan (NYSE:AGN)Zimmer Holdings (NYSE:ZMH)CareFusion (NYSE:CFN)CR Bard (NYSE:BCR)Medtronic (NYSE:MDT)6,283 1,771 -3,286 2,319 2,915 99 17 Varian Medical Systems (NYSE:VAR)Edwards Lifesciences (NYSE:EW)Intuitive Surgical (NasdaqGS:ISRG)192 998 1,162 229 4,872 628 94 79 207 28 675 1,804 337 733 404 393 20102,452 4,518 4,121 4,340 79 139 136 81 368 6,718 748 1,238 1,690 1,502 204 129 279 (386) 1,148 2,138 419 663 849 563 353 8,050 (2,036) 4,363 1,275 13,515 199 162 192 798 532 1,006 2010369 391 115 280 19 - CareFusion (NYSE:CFN)CR Bard (NYSE:BCR)Medtronic (NYSE:MDT)Stryker (NYSE:SYK)6,2831,7713,2862,3192,91599 17 Edwards Lifesciences (NYSE:EW)Intuitive Surgical (NasdaqGS:ISRG)82 Hologic (NasdaqGS:HOLX)Varian Medical Systems (NYSE:VAR)1929981,1622294,872951 10,055176 Allergan (NYSE:AGN)Zimmer Holdings (NYSE:ZMH)680 Boston Scientific (NYSE:BSX)St. Jude Medical (NYSE:STJ)200520052008-9% 10% 7% 8% 6% 9% 6% 5% 17% 13% 11% 2,720 3,377 4,220 4,820 394 116 204 157 104 7,320 1,189 1,447 1,814 1,415 2008200820108,0502,4524,5184,1214,3404,36379 139 136 81 368 7481,2381,6901,5026,7181,275 13,515199 162 192 798 532 12% 11% 11% 8% 5% 5% 9% 8% 4% 5% 18% 12% 20112010939 7,8062,7203,3774,2204,8205,165116 204 157 104 394 1,1891,4471,8141,4157,3201,424 15,392185 148 220 805 631 12% 10% 14% 9% 7% 5% 9% 7% 4% 5% 17% 12% 2011895 7,622 2,896 3,440 4,452 5,144 5,612 20128,307 20111,479 1,679 1,970 1,478 441 2011495 237 399 157 1,345 3,096 328 249 761 935 826 895 7,6222,8963,4404,4525,1445,612140 246 171 117 462 1,4791,6791,9701,4788,3071,472 15,508185 146 238 872 705 12% 9% 15% 9% 8% 6% 9% 6% 4% 5% 17% 13% 2012886 2,958 3,598 4,472 5,549 471 8,657 20121,836 1,900 2,004 1,658 03170 291 186 131 471 1,8361,9002,0041,6588,6571,490 16,184203 164 226 977 676 886 9%15%9%8%5%9%7%5%5%18%12%12%Net Sales R&D/Net(millions) Sales (%)170 291 186 131 3,6175302937551,0997527,249 (4,068)5,503 1,490 16,184 203 164 226 977 20122012Net Sales Net Profit(millions) (millions)676 Net Sales R&D/Net R&D(millions) Sales (%) (millions)140 246 171 117 462 1,472 15,508 185 146 238 872 20112011Net Sales Net Profit R&D(millions) (millions) (millions)705 Net Sales R&D/Net R&D(millions) Sales (%) (millions)2010382 218 360 (63) 1,273 3,099 510 194 597 1 907 7,806 (1,065) 5,165 1,424 15,392 185 148 220 805 631 Net Sales R&D/Net R&D(millions) Sales (%) (millions)1,006 Net Sales R&D/Net R&D(millions) Sales (%) (millions)R&D(millions)Device Company2005NCHR Chart based on data from the SEC, h.html2010Net Sales Net Profit R&D(millions) (millions) (millions)939 Net Sales Net Profit R&D(millions) (millions) (millions)2008R & D Expenditures as a percentage of Net Sales for Top US-Based Medical Device Companies82 19 Hologic (NasdaqGS:HOLX)280 Stryker (NYSE:SYK)951 10,055 176 391 369 680 Boston Scientific (NYSE:BSX)Net Sales Net Profit R&D(millions) (millions) (millions)St. Jude Medical (NYSE:STJ)R&D(millions)Device Company20052008R & D Expenditures, Net Sales and Net Profits of Top US-Based Medical Device CompaniesNCHR Chart based on data from the SEC, h.html

192 296 Boston Scientific (NYSE:BSX)St. Jude Medical (NYSE:STJ)Allergan (NYSE:AGN)Zimmer Holdings (NYSE:ZMH)323 168 Medtronic (NYSE:MDT)Stryker (NYSE:SYK)Hologic (NasdaqGS:HOLX)Varian Medical Systems (NYSE:VAR)Edwards Lifesciences (NYSE:EW)Intuitive Surgical (NasdaqGS:ISRG)1,0063,467 690385 7619857231,868 2,046 2,056 671392438 2,101 (1,173) 9,021 16,590 3,050 3,550 4,623 6,198 5,501 3,842 235 203 2,084 2,095 1,477 17,005 190 "Net Earnings of Zimmer Holdings, Inc.""Product Net Sales", "Net Earnings attributable to Allergan Inc.""Net Earnings""Net Income"Notes"Revenues due to "Products"","Net Income""Net Income"404 FY ends in Sept, "Revenues due to "Products"", "Net Earnings"17 FY ends in Sept, "Revenues due to "Products"", "Net Income""Net Earnings"3,065 FY ends in April "Net Earnings"417 FY ends in Jun, "Revenue", "Net Income"Net Sales Net Profit(millions) (millions)2014192 296 323 168 Boston Scientific (NYSE:BSX)St. Jude Medical (NYSE:STJ)Allergan (NYSE:AGN)Zimmer Holdings (NYSE:ZMH)CareFusion (NYSE:CFN)CR Bard (NYSE:BCR)Medtronic (NYSE:MDT)Stryker (NYSE:SYK)Hologic (NasdaqGS:HOLX)Varian Medical Systems (NYSE:VAR)Edwards Lifesciences (NYSE:EW)Intuitive Surgical (NasdaqGS:ISRG)208 198 536 1,557 204 1,042 691 85,5017,143Net Sales(millions)R&D(millions)Device Company861 2013201320149%16%10% 9% 6%9% 10%5% 4%17%13%12%20142014235 203 2,0842,0951,477 17,0053,84211%10%9%5%Net Sales R&D/Net(millions) Sales (%)190 R&D/Net R&DSales (%) (millions)2013NCHR Chart based on data from the SEC, h.htmlR & D Expenditures as a percentage of Net Sales for Top US-Based Medical Device Companies, con.208 198 536 1,557 CareFusion (NYSE:CFN)CR Bard (NYSE:BCR)204 1,042 691 2014Net Profit R&D(millions) (millions)20137,143 (121.00)Net Sales(millions)R&D(millions)Device Company861 201320132014R & D Expenditures, Net Sales and Net Profits of Top US-Based Medical Device Companies, con.NCHR Chart based on data from the SEC, h.html

Quarterly Profit Margins of the Top US-Based Device anIntuitiveSt. rganHoldings CareFusionCR Bard Medtronic*Stryker (NasdaqGS:Systems Lifesciences (NasdaqGS:(NYSE:STJ) (NYSE:AGN) (NYSE:ZMH) (NYSE:CFN) (NYSE:BCR) (NYSE:MDT) (NYSE:SYK)HOLX) (NYSE:VAR) 1.51%4.79% 86%2.69%17.55% R Chart based on data from Ycharts, http://ycharts.com

VarianIntuitiveSt. rganHoldings CareFusionCR Bard Medtronic*Stryker (NasdaqGS:Systems Lifesciences (NasdaqGS:(NYSE:STJ) (NYSE:AGN) (NYSE:ZMH) (NYSE:CFN) (NYSE:BCR) (NYSE:MDT) (NYSE:SYK)HOLX) (NYSE:VAR) -13.90%14.16%13.36%19.35%*Medtronic quarters are reported 1 month 1-Dec-0330-Sep-0330-Jun-0331-Mar-0331-Dec-0230-