A View of The Public Ophthalmology Market & Exit Trends at OIS@AAO 2016. Presenter: Joe Gilliam, Managing Director, Healthcare Investment Banking - J.P. Morgan Securities Powered by: Healthegy For more ophthalmology innovation Visit us at www.ois.net

1. a
A View of the Public Markets & Exit Trends
Joe Gilliam, Managing Director
Healthcare Investment Banking
J.P. Morgan

2. 10%
15%
39%
23%
5%
2%
2011 2012 2013 2014 2015 2016
Healthcare
Healthcare sector performance 2016YTD
#1 #2 #1 #1 #2 #5
Sector
performance
Source: FactSet as of 09/23/16
1
Healthcare sector returns have been exceptional…

3. … until the late 2015-2016 pullback…
16.0%
13.8%
13.1%
11.1%
9.6%
8.9%
7.6%
5.4%
2.4%
0.1%
(0.3%)
6.1%
Energy
Telecom
Utilities
Info. Technology
Materials
Industrials
Transportation
Consumer Staples
Consumer Disc.
Healthcare
Financials
S&P 500
25.7%
10.9%
1.9%
3.5%
(6.9%)
(13.0%)
(11.4%)
HMOMedtechS&P HCCROFacilitiesPharmaBiotech
(NBI)
2016YTD healthcare subsector performance2016YTD S&P sector performance
2
Source: FactSet, as of 09/30/16

4. Source: EPFR Global as of 10/04/2016
3
$5
($1)
($13)
($11)
($3)
(20)
0
20
Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
Healthcare fund flows ($bn)
… leading to fund outflows

5. 50.5
32.5
22.3
27.1
33.6
31.4
48.4
50.3
14.4
25.1
28.9
31.6
29.8
47.5
64.4
97.1
20.4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
As a result healthcare public equity offerings have slowed significantly
since peaking in 2015…
Equity offering volume ($bn)
26.4% 4.7% 20.5% 15.9% 15.1% 5.6% 43.4% 18.6% 30.0% 14.3%% IPOs 21.8% 10.5% 15.7%26.5%32.6%22.7%22.5%
Source: Dealogic
4

6. …and a substantial revaluing of biotech IPOs has occurred…
Post-money market cap at IPO ($mm) Proceeds raised ($mm) Valuation step-up at IPO
$81mm
$61mm
$159mm
$92mm
$117mm
$75mm
1.5x
0.8x
2.8x
1.2x
1.8x
1.0x
25th
percentile
75th
percentile
Median
January – August 2015 (n = 24) September 2015 – August 2016 (n = 29)
(39%) (47%)
$210mm $198mm
$557mm
$449mm
$390mm
$293mm
(25%)
Source: Company filings, Dealogic, Pitchbook as of 09/30/2016 for biotech IPOs >$50mm
5

7. 32% 32%
18%
29% 27%
59%
33% 36%
15%
39%
62%
41%
44%
31%
36%
67% 60%
70%
29%
5%
41%
27%
42%
5% 4%
15%
2015 2016 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
Below
Within
Above
… but after the sustained lull, IPO activity & performance levels have
begun to pick up
Above/Below/Within filing range1
6
Source: Dealogic, Bloomberg and FactSet as of 09/16/16. Excludes deals <$50mm, CLEFS, SPACs. Median Offer/30-day represents offer/current for those IPOs that have not reached 30 days
1 By number of deals. Note: 6 SPAC IPOs have priced in 2016YTD for $2.0bn in total proceeds
Offer/30-day
% above offer
41% 82% 32% 40% 31% 64% 100% 80% 77%
13% 5% 9% 15% 10% 16% 16% 1% 25%

8. Putting the pullback in context for biotech…
Biotech indices (BTK and NBI) vs S&P 500 since 1997
Source: FactSet as of 09/19/2016
Stagnation
The Genomics
revolution
A volatile
market
Biotech needs
to deliver
Gaining
momentum
Innovation
rewarded
A volatile
market
BTK NBI S&P500
7
Feb. trough
(40%) / 209
1978%

9. … and Medtech
10.1x 10.3x
5.0x
12.9x
12.1x
4.6x
14.0x
13.1x
4.3x
FV / EBITDA FV / EBITDA FV / Revenue
Historical (2011-2015 avg) 2015 Avg Current (Last 1-month avg)
Median forward multiplesStock price performance since Aug 2015
Large cap Mid cap Small cap
Source: J.P. Morgan; Dealogic and FactSet as of 08/19/2016
Large-cap medtech index includes JNJ, MDT, ABT, SYK, BDX, BSX, BAX, ISRG, ZMH, EW, SN-GB, BCR, HOLX;
Mid-cap medtech index includes XRAY, TFX, STE, HRC, CMN, GMED, IART, NUVA, MASI, HAE, HYH, CNMD, MMSI;
High-growth medtech index includes PODD, WMGI, NVRO, NXTM, ELGX, SPNC, INGN, MDXG, XENT, GKOS, NVDQ, KTWO, CFMS, TNDM, ENTL, GI
8

10. 2 year performance of ophthalmic sector participants
Relative stock price performance
+8% +118% +25% +15% +14%
Source: FactSet as of 10/06/16
1 Ophth index includes Aerie, Alimera, Avalanche, Clearside, Cooper, Eleven, Glaukos, Inotek, Ocular, Ophthotech, QLT, Santen, Spark, STAAR and ThromboGenics
2 Diversified / Ophth includes Abbott, Allergan, Bayer, Merck, Novartis, Pfizer, Regeneron, Shire and Valeant
3 Return since June 2015 IPO
3
9
1
2
12%
10%
(9%)
2

11. Ophthalmology IPO activity
2006 2008 2010 2014 2016
(withdrawn)
04/21/10
$72 / $342
07/06/06
€35 / €103
2012
74
93
9
31
65
50 39
83
157 144
66
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
Healthcare IPOs priced / year (2006 to present)1
Source: Dealogic, FactSet, Company filings
1 Includes global healthcare IPOs >$15mm
Date priced / Size / Market value at IPO (in $ millions):
(withdrawn)
09/24/13
$192 / $687
10/25/13
$67 / $228
07/24/14
$75 / $267
07/30/14
$117 / $363
02/05/14
$57 / $154
06/24/15
$124 / $563
01/29/15
$185 / $540
02/17/15
$40 / $95
10
06/01/16
$50 / $150

12. M&A has remained the primary exit path for Medtech while biopharma M&A
activity has picked up with cooling IPO market
M&A transactions 2006 – 2016YTD
Source: Dealogic, EvaluatePharma, press releases, public filings
Note: Based on US targets only and excludes deals <$50mm
34
27 27
23 25
28
17
21
18
36
25
49 51
32
36
53 52
45 46
50
46
31
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
Biopharma Medtech
2015 – 2016YTD ophthalmology M&A
September ‘15 $300mm + undisclosed contingent
11
September ‘16 $4,325mm
$225mm + undisclosed contingentJuly ‘16
February ‘16 Undisclosed terms