DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.4January2019Americas/UnitedStatesEquityResearchHealthcareTechnology&DistributionHealthcareTechnology&DistributionSECTORFORECASTResearchAnalystsErinWilsonWright2125384080erin.wright@credit-suisse.comCharlesLederer,CPA2125381822charles.lederer@credit-suisse.comKatieTryhane2123252713katie.tryhane@credit-suisse.comGeorgeEngroff2123252289george.engroff@credit-suisse.comYearAheadOutlook2019–TopHCT&DIdeasWhilevariablesremainacrossanevolvinghealthcarecontinuum,withachallengingdrugutilizationenvironment,compoundedbyuncertaintyaroundpotentialinitiativesoutofWashington,weviewopportunitiesacrossourHealthcareTechnology&Distributionuniverse,particularlywithmeaningfulrecentvaluationcontractionacrossthegroup.Ourfocusisoncompany-specificdriversinancillarybusinessunitsandstrategicpositioningeffortsforourtraditionalPharmaceuticalSupplyChaincompanies.WealsocontinuetoviewlessconventionalhealthcarenamesasattractivesuchasAnimalHealthwherefundamentalsremainstrong,andforCROswefavorcompaniesthatcanleverageglobaldataassetsinwhatweviewasarobustbackdrop.NewstrategicfocusforDentalcompaniesisinspiringinaglaciallyrecoveringdemandenvironment.Wealsorecognizeopportunitieswithrecentcommercialcontractshiftsinaconsolidatingclinicallablandscape.Belowwesummarizeourbestideasacrossourbroadcoverageuniverseheadinginto2019:■CVSHealth(CVS,Outperform):TherecentlycompletedAetnadealoffersmeaningfulgrowthopportunitiesforCVS,particularlyasitgainsdeeperaccesstotherapidlygrowingMedicareAdvantagebusiness,aswellasanintegratedmedical-pharmacy-retailsolution.WefinditsstatedNTsynergyopportunity($750M+...
