Appendix A
Comparison between Medicare and Medicaid
Medicare Medicaid
Medicare is a national program administered by the Federal government, comprising:
Part A – Hospital Insurance Inpatient
hospital, inpatient skilled nursing facility, hospice, and some home health services
Part B – Medical Insurance Physician
services, outpatient care, durable medical equipment, home health services, and many preventive services
Part C – Medicare Advantage (MA)
Medicare-approved private insurance companies that provide all Part A and Part B services and may provide prescription drug coverage and other supplemental benefits
Part D – Prescription Drug Benefit
Medicare-approved private insurance companies that provide outpatient prescription drug coverage
Medicaid is a network of Statewide programs administered by State governments following broad national guidelines established by Federal statutes, regulations, and policies.
Health care coverage for:
People 65 or older
People with certain disabilities
People diagnosed with end-stage renal
disease (ESRD)
Health care coverage for:
Low-income adults Pregnant women
Children Eligibility varies from
State to State Medicare is the nation’s largest payer of
inpatient hospital services for the elderly and people with ESRD.
Medicaid is the nation’s largest payer of mental health services, long-term care services, and births. Medicaid pays for 40 percent of all births.
Source: Recreated from “Medicare and Medicaid Basics,” by the Center for Medicare & Medicaid Studies, 2018. Retrieved from https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/ MLNProducts/Downloads/ProgramBasics.pdf
Appendix B.1
Example of Event Study Regression from Excel Model
-5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% -8.00% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% f(x) = 0.933429714626098 x − 0.000430869101197 R² = 0.309119858336421
S&P 500 vs CERN Correlation Chart During Estimation
Window 7/22/2015-9/27/2016
CERN Returns S& P R et u rn sAppendix B.2
Appendix C
Company characteristics according to S&P Cap IQ, as of 1/19/2019
Company Name Exchange Ticker Market Capitalization
($USDmm, Historical rate) Primary Industry
Agilent Technologies, Inc. (NYSE:A) NYSE A $22,912.10 Life Sciences Tools and Services AbbVie Inc. (NYSE:ABBV) NYSE ABBV $134,627.40 Biotechnology
AmerisourceBergen Corporation (NYSE:ABC) NYSE ABC $16,925.00 Health Care Distributors Abbott Laboratories (NYSE:ABT) NYSE ABT $125,437.30 Health Care Equipment Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) NasdaqGS ACHC $2,558.50 Health Care Facilities Allergan plc (NYSE:AGN) NYSE AGN $54,040.00 Pharmaceuticals Align Technology, Inc. (NasdaqGS:ALGN) NasdaqGS ALGN $17,603.80 Health Care Supplies Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) NasdaqGS ALXN $26,113.50 Biotechnology Amedisys, Inc. (NasdaqGS:AMED) NasdaqGS AMED $4,053.70 Health Care Services Amgen Inc. (NasdaqGS:AMGN) NasdaqGS AMGN $129,916.30 Biotechnology Anthem, Inc. (NYSE:ANTM) NYSE ANTM $68,829.80 Managed Health Care athenahealth, Inc. (NasdaqGS:ATHN) NasdaqGS ATHN $5,510.90 Health Care Technology Baxter International Inc. (NYSE:BAX) NYSE BAX $37,585.10 Health Care Equipment Becton, Dickinson and Company (NYSE:BDX) NYSE BDX $65,229.00 Health Care Equipment Biogen Inc. (NasdaqGS:BIIB) NasdaqGS BIIB $67,984.30 Biotechnology
Bio-Rad Laboratories, Inc. (NYSE:BIO) NYSE BIO $7,172.00 Life Sciences Tools and Services Brookdale Senior Living Inc. (NYSE:BKD) NYSE BKD $1,501.90 Health Care Facilities BioMarin Pharmaceutical Inc. (NasdaqGS:BMRN) NasdaqGS BMRN $17,394.90 Biotechnology Bristol-Myers Squibb Company (NYSE:BMY) NYSE BMY $81,819.10 Pharmaceuticals Boston Scientific Corporation (NYSE:BSX) NYSE BSX $52,155.50 Health Care Equipment Cardinal Health, Inc. (NYSE:CAH) NYSE CAH $14,614.00 Health Care Distributors Celgene Corporation (NasdaqGS:CELG) NasdaqGS CELG $60,409.60 Biotechnology Cerner Corporation (NasdaqGS:CERN) NasdaqGS CERN $17,812.10 Health Care Technology Chemed Corporation (NYSE:CHE) NYSE CHE $4,547.70 Health Care Services Cigna Corporation (NYSE:CI) NYSE CI $74,186.90 Managed Health Care Centene Corporation (NYSE:CNC) NYSE CNC $26,107.00 Managed Health Care The Cooper Companies, Inc. (NYSE:COO) NYSE COO $13,274.40 Health Care Supplies CVS Health Corporation (NYSE:CVS) NYSE CVS $84,730.40 Health Care Services Quest Diagnostics Incorporated (NYSE:DGX) NYSE DGX $11,843.70 Health Care Services Danaher Corporation (NYSE:DHR) NYSE DHR $75,312.00 Health Care Equipment DaVita Inc. (NYSE:DVA) NYSE DVA $9,522.50 Health Care Services Encompass Health Corporation (NYSE:EHC) NYSE EHC $6,576.80 Health Care Facilities The Ensign Group, Inc. (NasdaqGS:ENSG) NasdaqGS ENSG $2,126.50 Health Care Facilities Evolent Health, Inc. (NYSE:EVH) NYSE EVH $1,461.90 Health Care Technology Edwards Lifesciences Corporation (NYSE:EW) NYSE EW $35,206.00 Health Care Equipment Gilead Sciences, Inc. (NasdaqGS:GILD) NasdaqGS GILD $89,492.60 Biotechnology Haemonetics Corporation (NYSE:HAE) NYSE HAE $5,216.00 Health Care Supplies HCA Healthcare, Inc. (NYSE:HCA) NYSE HCA $46,303.40 Health Care Facilities HMS Holdings Corp. (NasdaqGS:HMSY) NasdaqGS HMSY $2,482.00 Health Care Technology HealthEquity, Inc. (NasdaqGS:HQY) NasdaqGS HQY $3,819.40 Managed Health Care Henry Schein, Inc. (NasdaqGS:HSIC) NasdaqGS HSIC $12,088.30 Health Care Distributors Humana Inc. (NYSE:HUM) NYSE HUM $40,547.00 Managed Health Care ICON Public Limited Company (NasdaqGS:ICLR) NasdaqGS ICLR $7,249.80 Life Sciences Tools and Services ICU Medical, Inc. (NasdaqGS:ICUI) NasdaqGS ICUI $4,878.30 Health Care Supplies Illumina, Inc. (NasdaqGS:ILMN) NasdaqGS ILMN $45,974.30 Life Sciences Tools and Services Incyte Corporation (NasdaqGS:INCY) NasdaqGS INCY $16,688.40 Biotechnology
Inovalon Holdings, Inc. (NasdaqGS:INOV) NasdaqGS INOV $2,203.90 Health Care Technology IQVIA Holdings Inc. (NYSE:IQV) NYSE IQV $25,189.50 Life Sciences Tools and Services Intuitive Surgical, Inc. (NasdaqGS:ISRG) NasdaqGS ISRG $61,959.40 Health Care Equipment Jazz Pharmaceuticals plc (NasdaqGS:JAZZ) NasdaqGS JAZZ $7,785.70 Pharmaceuticals Johnson & Johnson (NYSE:JNJ) NYSE JNJ $350,507.70 Pharmaceuticals Laboratory Corporation of America Holdings (NYSE:LH) NYSE LH $13,893.90 Health Care Services LHC Group, Inc. (NasdaqGS:LHCG) NasdaqGS LHCG $3,237.50 Health Care Services Eli Lilly and Company (NYSE:LLY) NYSE LLY $114,588.50 Pharmaceuticals McKesson Corporation (NYSE:MCK) NYSE MCK $24,748.30 Health Care Distributors MEDNAX, Inc. (NYSE:MD) NYSE MD $3,251.50 Health Care Services Allscripts Healthcare Solutions, Inc. (NasdaqGS:MDRX) NasdaqGS MDRX $2,129.80 Health Care Technology Medidata Solutions, Inc. (NasdaqGS:MDSO) NasdaqGS MDSO $4,113.70 Health Care Technology
Appendix C (Cont.)
Company characteristics according to S&P Cap IQ, as of 1/19/2019
Company Name Exchange Ticker Market Capitalization
($USDmm, Historical rate) Primary Industry Medtronic plc (NYSE:MDT) NYSE MDT $117,247.90 Health Care Equipment Magellan Health, Inc. (NasdaqGS:MGLN) NasdaqGS MGLN $1,512.10 Managed Health Care Merit Medical Systems, Inc. (NasdaqGS:MMSI) NasdaqGS MMSI $2,939.10 Health Care Supplies Molina Healthcare, Inc. (NYSE:MOH) NYSE MOH $8,544.80 Managed Health Care Merck & Co., Inc. (NYSE:MRK) NYSE MRK $197,290.60 Pharmaceuticals
Mettler-Toledo International Inc. (NYSE:MTD) NYSE MTD $15,079.60 Life Sciences Tools and Services Mylan N.V. (NasdaqGS:MYL) NasdaqGS MYL $15,257.50 Pharmaceuticals
Neogen Corporation (NasdaqGS:NEOG) NasdaqGS NEOG $3,149.90 Health Care Supplies Nektar Therapeutics (NasdaqGS:NKTR) NasdaqGS NKTR $7,996.50 Pharmaceuticals Omnicell, Inc. (NasdaqGS:OMCL) NasdaqGS OMCL $2,679.10 Health Care Technology Patterson Companies, Inc. (NasdaqGS:PDCO) NasdaqGS PDCO $2,081.20 Health Care Distributors Pfizer Inc. (NYSE:PFE) NYSE PFE $245,843.60 Pharmaceuticals
PerkinElmer, Inc. (NYSE:PKI) NYSE PKI $9,611.10 Life Sciences Tools and Services PRA Health Sciences, Inc. (NasdaqGS:PRAH) NasdaqGS PRAH $6,604.70 Life Sciences Tools and Services Quidel Corporation (NasdaqGS:QDEL) NasdaqGS QDEL $2,084.50 Health Care Supplies Regeneron Pharmaceuticals, Inc. (NasdaqGS:REGN) NasdaqGS REGN $45,287.10 Biotechnology Select Medical Holdings Corporation (NYSE:SEM) NYSE SEM $2,032.70 Health Care Facilities Stryker Corporation (NYSE:SYK) NYSE SYK $62,695.10 Health Care Equipment Teladoc Health, Inc. (NYSE:TDOC) NYSE TDOC $4,373.20 Health Care Technology Tenet Healthcare Corporation (NYSE:THC) NYSE THC $2,253.90 Health Care Facilities Thermo Fisher Scientific Inc. (NYSE:TMO) NYSE TMO $96,884.00 Life Sciences Tools and Services Universal Health Services, Inc. (NYSE:UHS) NYSE UHS $12,208.60 Health Care Facilities UnitedHealth Group Incorporated (NYSE:UNH) NYSE UNH $255,420.10 Managed Health Care U.S. Physical Therapy, Inc. (NYSE:USPH) NYSE USPH $1,381.60 Health Care Facilities Veeva Systems Inc. (NYSE:VEEV) NYSE VEEV $15,406.30 Health Care Technology Vertex Pharmaceuticals Incorporated (NasdaqGS:VRTX) NasdaqGS VRTX $49,757.10 Biotechnology
Waters Corporation (NYSE:WAT) NYSE WAT $15,674.80 Life Sciences Tools and Services WellCare Health Plans, Inc. (NYSE:WCG) NYSE WCG $13,215.80 Managed Health Care West Pharmaceutical Services, Inc. (NYSE:WST) NYSE WST $7,796.90 Health Care Supplies DENTSPLY SIRONA Inc. (NasdaqGS:XRAY) NasdaqGS XRAY $9,086.60 Health Care Supplies Zimmer Biomet Holdings, Inc. (NYSE:ZBH) NYSE ZBH $21,486.90 Health Care Equipment Zoetis Inc. (NYSE:ZTS) NYSE ZTS $40,641.30 Pharmaceuticals
Appendix D
Cap IQ Industry Descriptions
Industry
Type Description
Healthcare Equipment
Manufacturers of healthcare equipment and devices. Includes medical instruments, drug delivery systems, cardiovascular & orthopedic devices, and diagnostic equipment
Healthcare Supplies
Manufacturers of healthcare supplies and medical products not classified elsewhere. Includes eye care products, hospital supplies, and safety needle & syringe devices.
Healthcare Distributor s
Distributors and wholesalers of healthcare products not classified elsewhere.
Healthcare Services
Providers of patient healthcare services not classified elsewhere. Includes dialysis centers, lab testing services, and pharmacy management services. Also includes companies providing business support services to healthcare providers such as clerical support services, collection agency services, staffing services and
outsourced sales & marketing services. Healthcare
Facilities
Owners and operators of healthcare facilities, including hospitals, nursing homes, rehabilitation and retirement centers and animal hospitals.
Managed Health Care
Owners and operators of Health Maintenance Organizations (HMOs) and other managed plans.
Health Care
Technology
Companies providing information technology services primarily to healthcare providers. Includes companies providing application systems and/or data processing software, internet-based tools, and IT consulting services to doctors, hospitals or businesses operating primarily in the healthcare sector.
Biotechnol ogy
Companies primarily engaged in the research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Includes companies specializing in protein-based therapeutics to treat human diseases. Excludes companies manufacturing products using biotechnology but without a healthcare application.
Pharmaceu ticals
Companies engaged in the research, development or production of pharmaceuticals. Includes veterinary drugs.
Life Sciences Tools & Services
Companies enabling the drug discovery, development and production continuum by providing analytical tools, instruments, consumables & supplies, clinical trial services and contract research services. Includes firms primarily servicing the biotechnology and pharmaceutical industries.
Source: Capital IQ (2018), Retrieved from
https://www.spglobal.com/marketintelligence/en/documents/112727-gics- mapbook_2018_v3_letter_digitalspreads.pdf
Appendix E
Abnormal Returns for Supreme Court Decision, 6/28/2012
Dates T-Stat Significance
Obs. Window End (+30) 08/10/2012 1.96
Event Date (0) 06/28/2012
Obs. Window Beg (-30) 05/16/2012 R2 Minimum
Estimation Begin (-330) 03/09/2011 0.05
Company Details S&P Estimation Period Regression Stats Abnormal Returns
Name Industry Ticker Alpha Beta R2 Standar
d Error 3-Day 5-Day 11-Day
AbbVie Inc. (NYSE:ABBV) Biotechnology ABBV NA NA NA NA -- -- -- Amgen Inc. (NasdaqGS:AMGN) Biotechnology AMGN 0.001 0.611 0.402 0.010 -- -- -- Gilead Sciences, Inc. (NasdaqGS:GILD) Biotechnology GILD 0.001 0.758 0.235 0.019 -- -- -- Biogen Inc. (NasdaqGS:BIIB) Biotechnology BIIB 0.002 0.833 0.322 0.017 -- -- -- Celgene Corporation (NasdaqGS:CELG) Biotechnology CELG 0.001 0.740 0.414 0.012 -- 2.85% -4.04% Vertex Pharmaceuticals Incorporated (NasdaqGS:VRTX) Biotechnology VRTX 0.002 0.845 0.069 0.043 -16.25% -16.25% -16.25% Regeneron Pharmaceuticals, Inc. (NasdaqGS:REGN) Biotechnology REGN 0.005 0.874 0.098 0.036 -- -- -- Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) Biotechnology ALXN 0.002 0.771 0.258 0.018 -- 4.17% 4.17% BioMarin Pharmaceutical Inc. (NasdaqGS:BMRN) Biotechnology BMRN 0.002 0.884 0.334 0.017 -- 4.95% 4.95% Incyte Corporation (NasdaqGS:INCY) Biotechnology INCY 0.002 1.292 0.326 0.025 -- 8.92% 8.92% McKesson Corporation (NYSE:MCK) Health Care Distributors MCK 0.000 0.878 0.568 0.010 -- -- -- AmerisourceBergen Corporation (NYSE:ABC) Health Care Distributors ABC 0.000 0.771 0.471 0.011 -- -- -- Cardinal Health, Inc. (NYSE:CAH) Health Care Distributors CAH 0.000 0.862 0.606 0.010 -- -- -- Henry Schein, Inc. (NasdaqGS:HSIC) Health Care Distributors HSIC 0.000 0.973 0.690 0.009 -- -- -- Patterson Companies, Inc. (NasdaqGS:PDCO) Health Care Distributors PDCO 0.000 1.006 0.610 0.011 -- -- -- Abbott Laboratories (NYSE:ABT) Health Care Equipment ABT 0.001 0.554 0.531 0.007 -- -- -- Medtronic plc (NYSE:MDT) Health Care Equipment MDT 0.000 0.924 0.585 0.011 -- -- -- Danaher Corporation (NYSE:DHR) Health Care Equipment DHR 0.000 1.144 0.788 0.008 -- -- -- Becton, Dickinson and Company (NYSE:BDX) Health Care Equipment BDX 0.000 0.700 0.570 0.008 -- -- -- Stryker Corporation (NYSE:SYK) Health Care Equipment SYK -0.001 0.986 0.646 0.010 -- -- -- Intuitive Surgical, Inc. (NasdaqGS:ISRG) Health Care Equipment ISRG 0.002 0.937 0.451 0.014 -- -- -- Boston Scientific Corporation (NYSE:BSX) Health Care Equipment BSX -0.001 1.138 0.444 0.017 -- -- -- Baxter International Inc. (NYSE:BAX) Health Care Equipment BAX 0.000 0.869 0.613 0.009 -- -- -- Edwards Lifesciences Corporation (NYSE:EW) Health Care Equipment EW 0.000 0.864 0.281 0.019 -- -- -- Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Health Care Equipment ZBH 0.000 0.927 0.577 0.011 -- -- -- HCA Healthcare, Inc. (NYSE:HCA) Health Care Facilities HCA 0.000 1.034 0.223 0.026 10.97% 10.97% 10.97% Universal Health Services, Inc. (NYSE:UHS) Health Care Facilities UHS -0.001 1.198 0.449 0.018 8.84% 8.84% 8.84% Encompass Health Corporation (NYSE:EHC) Health Care Facilities EHC 0.000 1.391 0.489 0.019 -- -- -- Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) Health Care Facilities ACHC 0.002 0.093 0.003 0.022 -- -- -- Tenet Healthcare Corporation (NYSE:THC) Health Care Facilities THC -0.001 1.427 0.390 0.024 5.81% 12.18% 12.18% The Ensign Group, Inc. (NasdaqGS:ENSG) Health Care Facilities ENSG -0.001 1.119 0.297 0.024 -- -- -- Select Medical Holdings Corporation (NYSE:SEM) Health Care Facilities SEM 0.001 1.450 0.501 0.020 -- -- -- Brookdale Senior Living Inc. (NYSE:BKD) Health Care Facilities BKD -0.001 1.699 0.615 0.018 -- -- -- U.S. Physical Therapy, Inc. (NYSE:USPH) Health Care Facilities USPH 0.001 1.358 0.420 0.022 -- -- -- CVS Health Corporation (NYSE:CVS) Health Care Services CVS 0.001 0.774 0.558 0.009 -- 2.01% 2.01% Laboratory Corporation of America Holdings (NYSE:LH) Health Care Services LH 0.000 0.828 0.588 0.009 3.18% 3.18% 3.18% Quest Diagnostics Incorporated (NYSE:DGX) Health Care Services DGX 0.000 0.740 0.385 0.013 2.93% 2.93% 2.93% DaVita Inc. (NYSE:DVA) Health Care Services DVA 0.000 0.844 0.488 0.012 -- -- 2.39% Chemed Corporation (NYSE:CHE) Health Care Services CHE 0.000 1.017 0.446 0.016 -- -- -- Amedisys, Inc. (NasdaqGS:AMED) Health Care Services AMED -0.004 1.658 0.296 0.035 -8.43% -8.43% -8.43% MEDNAX, Inc. (NYSE:MD) Health Care Services MD 0.000 0.919 0.546 0.011 1.81% 4.14% 4.14% LHC Group, Inc. (NasdaqGS:LHCG) Health Care Services LHCG -0.001 1.078 0.224 0.027 -- -- -- Align Technology, Inc. (NasdaqGS:ALGN) Health Care Supplies ALGN 0.002 1.523 0.349 0.028 -- -- -- The Cooper Companies, Inc. (NYSE:COO) Health Care Supplies COO 0.001 1.013 0.362 0.018 -- -- -- DENTSPLY SIRONA Inc. (NasdaqGS:XRAY) Health Care Supplies XRAY 0.000 1.174 0.727 0.010 -- -- -- West Pharmaceutical Services, Inc. (NYSE:WST) Health Care Supplies WST 0.000 1.021 0.603 0.011 -- -- -- Haemonetics Corporation (NYSE:HAE) Health Care Supplies HAE 0.000 0.850 0.491 0.012 -- -- -- ICU Medical, Inc. (NasdaqGS:ICUI) Health Care Supplies ICUI 0.001 0.871 0.514 0.012 -- -- 2.97% Neogen Corporation (NasdaqGS:NEOG) Health Care Supplies NEOG 0.000 1.250 0.490 0.017 -- -- -- Merit Medical Systems, Inc. (NasdaqGS:MMSI) Health Care Supplies MMSI 0.000 1.205 0.459 0.018 -- -- -- Quidel Corporation (NasdaqGS:QDEL) Health Care Supplies QDEL 0.001 1.034 0.324 0.020 -- 4.29% 4.29% Cerner Corporation (NasdaqGS:CERN) Health Care Technology CERN 0.002 1.021 0.427 0.016 3.23% 3.23% 3.23% Veeva Systems Inc. (NYSE:VEEV) Health Care Technology VEEV 0.000 0.000 NA 0.000 -- -- -- athenahealth, Inc. (NasdaqGS:ATHN) Health Care Technology ATHN 0.002 1.257 0.346 0.024 -- -- -- Teladoc Health, Inc. (NYSE:TDOC) Health Care Technology TDOC 0.000 0.000 NA 0.000 -- -- -- Medidata Solutions, Inc. (NasdaqGS:MDSO) Health Care Technology MDSO 0.000 1.147 0.313 0.023 5.35% 5.35% 5.35% Omnicell, Inc. (NasdaqGS:OMCL) Health Care Technology OMCL 0.000 1.275 0.491 0.018 -- -- -- HMS Holdings Corp. (NasdaqGS:HMSY) Health Care Technology HMSY 0.000 1.063 0.397 0.018 14.50% 14.50% 14.50% Inovalon Holdings, Inc. (NasdaqGS:INOV) Health Care Technology INOV 0.000 0.000 NA 0.000 -- -- -- Allscripts Healthcare Solutions, Inc. (NasdaqGS:MDRX) Health Care Technology MDRX -0.002 1.154 0.240 0.028 7.15% 7.15% 7.15% Evolent Health, Inc. (NYSE:EVH) Health Care Technology EVH 0.000 0.000 NA 0.000 -- -- --
Appendix E (Cont.)
Abnormal Returns for Supreme Court Decision, 6/28/2012
Dates T-Stat Significance
Obs. Window End (+30) 08/10/2012 1.96
Event Date (0) 06/28/2012
Obs. Window Beg (-30) 05/16/2012 R2 Minimum
Estimation Begin (-330) 03/09/2011 0.05
Company Details S&P Estimation Period Regression Stats Abnormal Returns
Name Industry Ticker Alpha Beta R2 Standar
d Error 3-Day 5-Day 11-Day
Thermo Fisher Scientific Inc. (NYSE:TMO) Life Sciences Tools and Services TMO 0.000 1.126 0.615 0.012 -- -- -- Illumina, Inc. (NasdaqGS:ILMN) Life Sciences Tools and Services ILMN -0.001 1.065 0.122 0.039 -- -- -- IQVIA Holdings Inc. (NYSE:IQV) Life Sciences Tools and Services IQV 0.000 0.000 NA 0.000 -- -- -- Agilent Technologies, Inc. (NYSE:A) Life Sciences Tools and Services A NA NA NA NA -- -- -- Waters Corporation (NYSE:WAT) Life Sciences Tools and Services WAT 0.000 1.244 0.601 0.014 -- -- -- Mettler-Toledo International Inc. (NYSE:MTD) Life Sciences Tools and Services MTD 0.000 1.330 0.644 0.014 -- -- -- PerkinElmer, Inc. (NYSE:PKI) Life Sciences Tools and Services PKI 0.000 1.149 0.603 0.013 -- -- -- ICON Public Limited Company (NasdaqGS:ICLR) Life Sciences Tools and Services ICLR 0.000 0.647 0.191 0.018 -- -- -- Bio-Rad Laboratories, Inc. (NYSE:BIO) Life Sciences Tools and Services BIO 0.000 0.828 0.371 0.015 -- -- -- PRA Health Sciences, Inc. (NasdaqGS:PRAH) Life Sciences Tools and Services PRAH 0.000 0.000 NA 0.000 -- -- -- UnitedHealth Group Incorporated (NYSE:UNH) Managed Health Care UNH 0.001 0.963 0.516 0.013 -4.33% -8.48% -11.62% Cigna Corporation (NYSE:CI) Managed Health Care CI 0.000 1.126 0.611 0.012 -5.69% -8.30% -8.30% Anthem, Inc. (NYSE:ANTM) Managed Health Care ANTM 0.000 0.981 0.541 0.012 -10.60% -13.24% -13.24% Humana Inc. (NYSE:HUM) Managed Health Care HUM 0.001 0.876 0.381 0.015 -4.93% -4.93% -4.93% Centene Corporation (NYSE:CNC) Managed Health Care CNC 0.001 1.247 0.402 0.021 -4.59% -4.59% -0.05% WellCare Health Plans, Inc. (NYSE:WCG) Managed Health Care WCG 0.002 1.492 0.475 0.021 3.25% 3.25% 3.25% Molina Healthcare, Inc. (NYSE:MOH) Managed Health Care MOH 0.000 1.402 0.353 0.026 8.88% 8.88% 8.88% HealthEquity, Inc. (NasdaqGS:HQY) Managed Health Care HQY 0.000 0.000 NA 0.000 -- -- -- Magellan Health, Inc. (NasdaqGS:MGLN) Managed Health Care MGLN 0.000 0.960 0.548 0.012 5.29% 5.29% 5.29% Johnson & Johnson (NYSE:JNJ) Pharmaceuticals JNJ 0.000 0.579 0.639 0.006 -- -- -- Pfizer Inc. (NYSE:PFE) Pharmaceuticals PFE 0.001 0.794 0.611 0.009 -- -- -- Merck & Co., Inc. (NYSE:MRK) Pharmaceuticals MRK 0.001 0.735 0.624 0.008 -- -- 2.18% Eli Lilly and Company (NYSE:LLY) Pharmaceuticals LLY 0.001 0.592 0.487 0.008 -- -- -- Bristol-Myers Squibb Company (NYSE:BMY) Pharmaceuticals BMY 0.001 0.575 0.429 0.009 -- -- -5.32% Allergan plc (NYSE:AGN) Pharmaceuticals AGN 0.001 0.684 0.289 0.015 -- -- -- Zoetis Inc. (NYSE:ZTS) Pharmaceuticals ZTS 0.000 0.000 NA 0.000 -- -- -- Mylan N.V. (NasdaqGS:MYL) Pharmaceuticals MYL 0.000 1.283 0.671 0.012 -- -- -- Nektar Therapeutics (NasdaqGS:NKTR) Pharmaceuticals NKTR 0.000 1.369 0.361 0.025 -- -- -- Jazz Pharmaceuticals plc (NasdaqGS:JAZZ) Pharmaceuticals JAZZ 0.002 1.138 0.247 0.027 -- -- --
Appendix F
Abnormal Returns for 2016 Election, 11/9/2016
Dates T-Stat Significance
Obs. Window End (+30) 12/22/2016 1.96
Event Date (0) 11/09/2016
Obs. Window Beg (-30) 09/28/2016 R2 Minimum
Estimation Begin (-330) 07/22/2015 0.05
Company Details S&P Estimation Period Regression Stats Abnormal Returns
Name Industry Ticker Alpha Beta R2 Standard
Error 3-Day 5-Day 11-Day
AbbVie Inc. (NYSE:ABBV) Biotechnology ABBV 0.000 0.934 0.233 0.017 5.49% 5.49% 5.49% Amgen Inc. (NasdaqGS:AMGN) Biotechnology AMGN 0.000 1.246 0.545 0.012 7.60% 7.60% 7.60% Gilead Sciences, Inc. (NasdaqGS:GILD) Biotechnology GILD -0.001 1.052 0.332 0.015 4.94% 4.94% 4.94% Biogen Inc. (NasdaqGS:BIIB) Biotechnology BIIB -0.001 1.303 0.252 0.023 6.83% 6.83% 6.83% Celgene Corporation (NasdaqGS:CELG) Biotechnology CELG -0.001 1.406 0.426 0.017 9.23% 9.23% 9.23% Vertex Pharmaceuticals Incorporated (NasdaqGS:VRTX) Biotechnology VRTX -0.001 1.590 0.333 0.023 10.26% 10.26% 10.26% Regeneron Pharmaceuticals, Inc. (NasdaqGS:REGN) Biotechnology REGN -0.001 1.395 0.326 0.020 12.31% 16.32% 17.77% Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) Biotechnology ALXN -0.001 1.406 0.338 0.020 5.13% -14.89% -10.08% BioMarin Pharmaceutical Inc. (NasdaqGS:BMRN) Biotechnology BMRN -0.001 1.480 0.245 0.026 8.53% 8.53% 8.53% Incyte Corporation (NasdaqGS:INCY) Biotechnology INCY 0.000 1.700 0.262 0.029 11.15% 11.15% 11.15% McKesson Corporation (NYSE:MCK) Health Care Distributors MCK -0.001 0.907 0.273 0.015 8.47% 8.47% 10.15% AmerisourceBergen Corporation (NYSE:ABC) Health Care Distributors ABC -0.001 0.660 0.252 0.012 9.95% 9.95% 13.11% Cardinal Health, Inc. (NYSE:CAH) Health Care Distributors CAH 0.000 0.954 0.410 0.012 8.34% 8.34% 7.31% Henry Schein, Inc. (NasdaqGS:HSIC) Health Care Distributors HSIC 0.000 0.885 0.457 0.010 -2.00% -2.00% 4.70% Patterson Companies, Inc. (NasdaqGS:PDCO) Health Care Distributors PDCO 0.000 0.872 0.371 0.012 -- -- 3.77% Abbott Laboratories (NYSE:ABT) Health Care Equipment ABT 0.000 1.138 0.529 0.011 -- -- -2.28% Medtronic plc (NYSE:MDT) Health Care Equipment MDT 0.000 0.838 0.479 0.009 -2.73% -2.73% -6.81% Danaher Corporation (NYSE:DHR) Health Care Equipment DHR 0.000 0.868 0.649 0.007 -- -- -2.31% Becton, Dickinson and Company (NYSE:BDX) Health Care Equipment BDX 0.001 0.842 0.522 0.008 -3.18% -6.12% -4.79% Stryker Corporation (NYSE:SYK) Health Care Equipment SYK 0.001 0.797 0.439 0.009 -6.88% -10.04% -11.22% Intuitive Surgical, Inc. (NasdaqGS:ISRG) Health Care Equipment ISRG 0.001 0.740 0.291 0.012 -8.56% -8.56% -8.56% Boston Scientific Corporation (NYSE:BSX) Health Care Equipment BSX 0.001 1.053 0.392 0.013 -3.11% -3.11% -6.50% Baxter International Inc. (NYSE:BAX) Health Care Equipment BAX 0.001 0.852 0.396 0.011 -1.69% -1.69% -5.60% Edwards Lifesciences Corporation (NYSE:EW) Health Care Equipment EW 0.002 1.015 0.272 0.017 -- -- -5.00% Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Health Care Equipment ZBH 0.001 0.845 0.433 0.010 -2.89% -5.46% -2.62% HCA Healthcare, Inc. (NYSE:HCA) Health Care Facilities HCA -0.001 0.912 0.281 0.015 -11.73% -11.25% -7.78% Universal Health Services, Inc. (NYSE:UHS) Health Care Facilities UHS 0.000 0.981 0.287 0.016 -7.92% -7.92% -7.92% Encompass Health Corporation (NYSE:EHC) Health Care Facilities EHC 0.000 0.839 0.203 0.017 -6.46% -6.46% -1.23% Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) Health Care Facilities ACHC -0.001 1.194 0.225 0.023 -- -- 6.00% Tenet Healthcare Corporation (NYSE:THC) Health Care Facilities THC -0.003 1.543 0.237 0.028 -26.38% -17.86% -10.93% The Ensign Group, Inc. (NasdaqGS:ENSG) Health Care Facilities ENSG -0.001 0.948 0.192 0.020 4.80% 4.80% 9.79% Select Medical Holdings Corporation (NYSE:SEM) Health Care Facilities SEM 0.000 1.376 0.253 0.024 -- -- -6.01% Brookdale Senior Living Inc. (NYSE:BKD) Health Care Facilities BKD -0.002 1.307 0.217 0.025 -- -- -- U.S. Physical Therapy, Inc. (NYSE:USPH) Health Care Facilities USPH 0.001 0.757 0.175 0.017 -- 3.94% 3.36% CVS Health Corporation (NYSE:CVS) Health Care Services CVS -0.001 0.767 0.373 0.010 -8.72% -11.39% -13.82% Laboratory Corporation of America Holdings (NYSE:LH) Health Care Services LH 0.000 0.830 0.382 0.011 -0.92% -0.92% 1.19% Quest Diagnostics Incorporated (NYSE:DGX) Health Care Services DGX 0.001 0.944 0.492 0.010 -4.82% -4.82% -0.40% DaVita Inc. (NYSE:DVA) Health Care Services DVA -0.001 0.764 0.420 0.009 -- -2.96% -1.11% Chemed Corporation (NYSE:CHE) Health Care Services CHE 0.000 0.772 0.210 0.015 3.50% 3.50% 3.50% Amedisys, Inc. (NasdaqGS:AMED) Health Care Services AMED 0.001 1.031 0.153 0.025 -- -- -12.63% MEDNAX, Inc. (NYSE:MD) Health Care Services MD -0.001 0.756 0.228 0.014 -0.17% -0.17% -0.17% LHC Group, Inc. (NasdaqGS:LHCG) Health Care Services LHCG 0.000 0.696 0.105 0.021 -- -- 23.53% Align Technology, Inc. (NasdaqGS:ALGN) Health Care Supplies ALGN 0.001 1.117 0.329 0.016 -- -- -- The Cooper Companies, Inc. (NYSE:COO) Health Care Supplies COO 0.000 0.692 0.216 0.013 -- -- -4.03% DENTSPLY SIRONA Inc. (NasdaqGS:XRAY) Health Care Supplies XRAY 0.000 0.821 0.377 0.011 -- -- 0.19% West Pharmaceutical Services, Inc. (NYSE:WST) Health Care Supplies WST 0.001 0.843 0.338 0.012 -- -- -- Haemonetics Corporation (NYSE:HAE) Health Care Supplies HAE 0.000 0.720 0.155 0.017 -- 5.97% 5.97% ICU Medical, Inc. (NasdaqGS:ICUI) Health Care Supplies ICUI 0.001 0.759 0.148 0.019 -- -- -- Neogen Corporation (NasdaqGS:NEOG) Health Care Supplies NEOG 0.000 1.062 0.271 0.018 4.56% 8.23% 8.23% Merit Medical Systems, Inc. (NasdaqGS:MMSI) Health Care Supplies MMSI 0.000 0.665 0.073 0.024 -- -- -- Quidel Corporation (NasdaqGS:QDEL) Health Care Supplies QDEL 0.000 0.920 0.128 0.025 5.45% 5.45% 5.45% Cerner Corporation (NasdaqGS:CERN) Health Care Technology CERN 0.000 0.933 0.309 0.014 -4.50% -4.50% -11.16% Veeva Systems Inc. (NYSE:VEEV) Health Care Technology VEEV 0.001 1.178 0.314 0.018 -- -- -- athenahealth, Inc. (NasdaqGS:ATHN) Health Care Technology ATHN 0.000 0.938 0.130 0.025 -- -- -- Teladoc Health, Inc. (NYSE:TDOC) Health Care Technology TDOC -0.001 1.117 0.075 0.040 -- -- -- Medidata Solutions, Inc. (NasdaqGS:MDSO) Health Care Technology MDSO 0.000 1.162 0.233 0.021 -- -- -- Omnicell, Inc. (NasdaqGS:OMCL) Health Care Technology OMCL 0.000 0.845 0.197 0.017 -- -- -- HMS Holdings Corp. (NasdaqGS:HMSY) Health Care Technology HMSY 0.002 0.881 0.090 0.029 -22.75% -22.75% -22.75% Inovalon Holdings, Inc. (NasdaqGS:INOV) Health Care Technology INOV -0.001 0.850 0.066 0.033 -- -- 7.56% Allscripts Healthcare Solutions, Inc. (NasdaqGS:MDRX) Health Care Technology MDRX 0.000 1.007 0.360 0.014 -2.71% -2.71% -14.24% Evolent Health, Inc. (NYSE:EVH) Health Care Technology EVH 0.001 1.106 0.086 0.037 -- -7.25% -7.25%
Appendix F (Cont.)
Abnormal Returns for 2016 Election, 11/9/2016
Dates T-Stat Significance
Obs. Window End (+30) 12/22/2016 1.96
Event Date (0) 11/09/2016
Obs. Window Beg (-30) 09/28/2016 R2 Minimum
Estimation Begin (-330) 07/22/2015 0.05
Company Details S&P Estimation Period Regression Stats Abnormal Returns
Name Industry Ticker Alpha Beta R2 Standard
Error 3-Day 5-Day 11-Day
Thermo Fisher Scientific Inc. (NYSE:TMO) Life Sciences Tools and Services TMO 0.000 1.116 0.632 0.009 -- -1.90% -4.07% Illumina, Inc. (NasdaqGS:ILMN) Life Sciences Tools and Services ILMN -0.001 1.304 0.212 0.026 -- -- -- IQVIA Holdings Inc. (NYSE:IQV) Life Sciences Tools and Services IQV 0.000 0.897 0.350 0.012 -- -- -- Agilent Technologies, Inc. (NYSE:A) Life Sciences Tools and Services A 0.001 1.214 0.643 0.009 2.08% 2.08% 1.65% Waters Corporation (NYSE:WAT) Life Sciences Tools and Services WAT 0.001 0.980 0.535 0.009 -- -- -- Mettler-Toledo International Inc. (NYSE:MTD) Life Sciences Tools and Services MTD 0.001 1.044 0.524 0.010 -2.12% -2.12% 3.65% PerkinElmer, Inc. (NYSE:PKI) Life Sciences Tools and Services PKI 0.000 1.162 0.546 0.011 -2.68% -2.68% -2.68% ICON Public Limited Company (NasdaqGS:ICLR) Life Sciences Tools and Services ICLR 0.001 0.922 0.197 0.019 4.44% 4.44% 4.44% Bio-Rad Laboratories, Inc. (NYSE:BIO) Life Sciences Tools and Services BIO 0.000 0.711 0.273 0.012 -- -- 3.23% PRA Health Sciences, Inc. (NasdaqGS:PRAH) Life Sciences Tools and Services PRAH 0.001 1.025 0.164 0.024 -- -5.49% -5.49% UnitedHealth Group Incorporated (NYSE:UNH) Managed Health Care UNH 0.001 0.880 0.416 0.011 2.75% 2.75% 6.71% Cigna Corporation (NYSE:CI) Managed Health Care CI 0.000 0.701 0.179 0.015 4.72% 4.72% 8.58% Anthem, Inc. (NYSE:ANTM) Managed Health Care ANTM -0.001 0.881 0.292 0.014 3.86% 3.86% 12.98% Humana Inc. (NYSE:HUM) Managed Health Care HUM 0.000 0.735 0.194 0.015 6.65% 6.65% 6.65% Centene Corporation (NYSE:CNC) Managed Health Care CNC 0.000 1.178 0.264 0.020 -20.39% -28.80% -23.51% WellCare Health Plans, Inc. (NYSE:WCG) Managed Health Care WCG 0.001 1.014 0.211 0.020 -9.81% -9.81% -4.84% Molina Healthcare, Inc. (NYSE:MOH) Managed Health Care MOH -0.001 1.043 0.163 0.024 -16.88% -22.34% -17.23% HealthEquity, Inc. (NasdaqGS:HQY) Managed Health Care HQY 0.001 1.115 0.182 0.024 20.18% 24.91% 19.83% Magellan Health, Inc. (NasdaqGS:MGLN) Managed Health Care MGLN -0.001 0.940 0.183 0.020 21.12% 21.12% 21.12% Johnson & Johnson (NYSE:JNJ) Pharmaceuticals JNJ 0.001 0.676 0.520 0.007 1.97% 1.97% 0.33% Pfizer Inc. (NYSE:PFE) Pharmaceuticals PFE 0.000 0.829 0.425 0.010 10.25% 7.68% 5.63% Merck & Co., Inc. (NYSE:MRK) Pharmaceuticals MRK 0.000 0.978 0.480 0.010 4.95% 4.95% 4.95% Eli Lilly and Company (NYSE:LLY) Pharmaceuticals LLY 0.000 0.876 0.291 0.014 4.94% 4.94% 4.94% Bristol-Myers Squibb Company (NYSE:BMY) Pharmaceuticals BMY -0.001 0.916 0.277 0.015 4.95% 4.95% 4.95% Allergan plc (NYSE:AGN) Pharmaceuticals AGN -0.001 1.022 0.213 0.020 7.68% 7.68% -0.78% Zoetis Inc. (NYSE:ZTS) Pharmaceuticals ZTS 0.000 0.996 0.412 0.012 -- -- 3.41% Mylan N.V. (NasdaqGS:MYL) Pharmaceuticals MYL -0.001 1.280 0.232 0.024 -- -- -6.19% Nektar Therapeutics (NasdaqGS:NKTR) Pharmaceuticals NKTR 0.001 1.683 0.273 0.028 -- -- -- Jazz Pharmaceuticals plc (NasdaqGS:JAZZ) Pharmaceuticals JAZZ -0.001 1.415 0.377 0.019 4.57% 4.57% 2.65%
Appendix G
BCRA and Drug Pricing Discussion Releases, 6/22/2017
Dates T-Stat Significance
Obs. Window End (+30) 08/04/2017 1.96
Event Date (0) 06/22/2017
Obs. Window Beg (-30) 05/10/2017 R2 Minimum
Estimation Begin (-330) 03/02/2016 0.05
Company Details S&P Estimation Period Regression Stats Abnormal Returns
Name Industry Ticker Alpha Beta R2 Standard
Error 3-Day 5-Day 11-Day
AbbVie Inc. (NYSE:ABBV) Biotechnology ABBV 0.000 0.963 0.205 0.012 7.72% 7.72% 7.72% Amgen Inc. (NasdaqGS:AMGN) Biotechnology AMGN 0.000 1.234 0.293 0.012 4.85% 4.85% 4.85% Gilead Sciences, Inc. (NasdaqGS:GILD) Biotechnology GILD -0.001 1.045 0.173 0.014 5.32% 5.32% 5.32% Biogen Inc. (NasdaqGS:BIIB) Biotechnology BIIB 0.000 1.202 0.144 0.018 6.82% 6.82% 6.82% Celgene Corporation (NasdaqGS:CELG) Biotechnology CELG 0.000 1.156 0.185 0.015 5.53% 11.58% 11.58% Vertex Pharmaceuticals Incorporated (NasdaqGS:VRTX) Biotechnology VRTX 0.000 1.730 0.162 0.024 -- -- -- Regeneron Pharmaceuticals, Inc. (NasdaqGS:REGN) Biotechnology REGN -0.001 1.463 0.147 0.021 7.14% 7.14% 7.14% Alexion Pharmaceuticals, Inc. (NasdaqGS:ALXN) Biotechnology ALXN -0.001 1.301 0.099 0.024 7.57% 7.57% 7.57% BioMarin Pharmaceutical Inc. (NasdaqGS:BMRN) Biotechnology BMRN -0.001 1.558 0.150 0.023 -- -- -- Incyte Corporation (NasdaqGS:INCY) Biotechnology INCY 0.001 1.665 0.149 0.024 -- -- -- McKesson Corporation (NYSE:MCK) Health Care Distributors MCK -0.001 1.352 0.149 0.020 -- -- -- AmerisourceBergen Corporation (NYSE:ABC) Health Care Distributors ABC 0.000 0.937 0.099 0.017 -- -- -- Cardinal Health, Inc. (NYSE:CAH) Health Care Distributors CAH -0.001 1.210 0.210 0.014 -- -- -- Henry Schein, Inc. (NasdaqGS:HSIC) Health Care Distributors HSIC 0.000 0.961 0.240 0.010 -- -- -- Patterson Companies, Inc. (NasdaqGS:PDCO) Health Care Distributors PDCO 0.000 1.052 0.171 0.014 -- -- -- Abbott Laboratories (NYSE:ABT) Health Care Equipment ABT 0.000 1.212 0.369 0.010 -- -- -- Medtronic plc (NYSE:MDT) Health Care Equipment MDT 0.000 0.803 0.215 0.009 -- -- -- Danaher Corporation (NYSE:DHR) Health Care Equipment DHR 0.000 0.764 0.279 0.007 -- -- -- Becton, Dickinson and Company (NYSE:BDX) Health Care Equipment BDX 0.000 0.802 0.218 0.009 -- -- -- Stryker Corporation (NYSE:SYK) Health Care Equipment SYK 0.001 0.816 0.236 0.009 -- -- -- Intuitive Surgical, Inc. (NasdaqGS:ISRG) Health Care Equipment ISRG 0.001 0.788 0.152 0.011 -- -- 2.00% Boston Scientific Corporation (NYSE:BSX) Health Care Equipment BSX 0.001 1.010 0.209 0.012 -- -- -- Baxter International Inc. (NYSE:BAX) Health Care Equipment BAX 0.001 0.879 0.223 0.010 -- -- -- Edwards Lifesciences Corporation (NYSE:EW) Health Care Equipment EW 0.000 1.046 0.088 0.021 -- -- -- Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Health Care Equipment ZBH 0.000 1.083 0.205 0.013 -- -- -- HCA Healthcare, Inc. (NYSE:HCA) Health Care Facilities HCA 0.000 0.962 0.158 0.014 3.06% 3.06% 3.06% Universal Health Services, Inc. (NYSE:UHS) Health Care Facilities UHS 0.000 0.866 0.104 0.015 5.02% 5.02% 5.02% Encompass Health Corporation (NYSE:EHC) Health Care Facilities EHC 0.000 0.989 0.162 0.014 7.18% 7.18% 7.18% Acadia Healthcare Company, Inc. (NasdaqGS:ACHC) Health Care Facilities ACHC -0.002 1.598 0.168 0.022 -- -- -- Tenet Healthcare Corporation (NYSE:THC) Health Care Facilities THC -0.002 1.913 0.101 0.035 -- -- -- The Ensign Group, Inc. (NasdaqGS:ENSG) Health Care Facilities ENSG -0.001 1.206 0.131 0.019 -- -- -- Select Medical Holdings Corporation (NYSE:SEM) Health Care Facilities SEM 0.000 1.837 0.220 0.021 -- -- -4.97% Brookdale Senior Living Inc. (NYSE:BKD) Health Care Facilities BKD -0.001 1.864 0.183 0.024 -- 3.56% -0.15% U.S. Physical Therapy, Inc. (NYSE:USPH) Health Care Facilities USPH 0.001 0.894 0.115 0.015 2.84% 5.25% 5.25% CVS Health Corporation (NYSE:CVS) Health Care Services CVS -0.001 0.487 0.053 0.013 -- -- -- Laboratory Corporation of America Holdings (NYSE:LH) Health Care Services LH 0.000 0.947 0.239 0.010 -- -- -- Quest Diagnostics Incorporated (NYSE:DGX) Health Care Services DGX 0.001 0.931 0.304 0.009 -- -- --