Investment Research Presentation Syneos Health, Inc.

Syneos Health, Inc. INnvasedsatqmGeS:nStYRNeHsearch Presentation

MSoenctthoDr:aHy,e2a0lXthXcare Senior Analyst: Jose Grullon Junior Analysts: Garbis Chekerdjian, Ignacio

Fimbres Spring 2018

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Valuation Summary

Recommendation Summary

Company (Ticker) Current Trading Price (04-12-2018)

SYNH $ 37.60

Recommendation Target Price Upside Potential

BUY $ 57.46

52.80%

Recommendation

BUY

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Agenda

INDUSTRY DEFINITION & BREAKDOWN

REIT's COMPANY OVERVIEW

INDUSTRY TREND ANALYSIS

COMPANY TREND ANALYSIS

RISK ANALYSIS

FINANCIAL VALUATIONS

SUMMARY & RECOMMENDATION

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Industry Definition: CRO Market

Contract Research Organizations (CROs)

? Definition: firms that provide outsourced drug development services, regulatory & scientific support, and physical & human capital to help provide fully outsourced research solutions.

End Markets

Pharma & biotech industries, as well as educational & government research institutions.

Charles River Laboratories International, Inc. NYSE: CRL Mkt. Cap: $5.09 billion

ICON, plc. NasdaqGS: ICLR Mkt. Cap: $6.48 billion

PRA Health Sciences, Inc. NasdaqGS: PRAH Mkt. Cap: $5.55 billion

Syneos Health, Inc. NasdaqGS: SYNH Mkt. Cap: $3.95 billion

IQVIA Holdings, Inc. NYSE: IQV Mkt. Cap: $20.35 billion

Sources ? Capital IQ

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Industry Breakdown: CRO Market

Drivers

Increased Drug Development Spending & Pricing Pressures will drive demand for outsourced R&D and

clinical trial services

User-Friendly & Advanced Bioinformatics Tools will drive demand for CRO services as more biometric platforms and customized data systems are needed

Strong M&A Activity will continue to drive value as industry consolidates to provide more services to drug

manufacturing companies

Pharma-Emerging Economies will grow at a 7.5% CAGR, driving demand for clinical trial activity in Asia

Strong Demand for Early Stage & Late Stage Clinical Trials will drive market penetration from 30.5% to 46.5% by 2021

CRO Market Revenue Forecast (billions)

$70

$60

$50

$40

$30

$20

$10 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E

8.0% 8.0%

9.3% 0.7% 2.2%

9.9%

CRO Product Segmentation

4.9%

11.6% 10.6%

13.6%

21.2%

Preclinical Phase I Phase II Phase III Phase IV Bioanalytics HEOR Pharmacovigilance

Sources ? Capital IQ, Frost & Sullivan

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