Business
`
`Business Oct 9, 2013 @ 10:58 AM 110,504 views The Little Black Book of Billionaire Secrets
`
`America's Best Small Public Companies
`
`.
`
`share
`
`Share
`.
`a Tweet
`0
`Share
`
`0
`
`Share on g+
`Fjorbes .com’siI
`
`O K
`
`urt Badenhausen ,
`
`Forbes Staff
`
`Gallery
`
`The Top 25 Small Companies In America
`
`Launch Gallery
`_.-. C'- ims get:
`
`The last five years have been a traumatic one for American businesses, which lived through the
`Great Recession that kicked off at the end of 2007. Companies have dealt with sluggish GDP growth
`and rising unemployment. But the most nimble companies have thrived during this time, and they
`
`hI[p5:-':‘mvw.l'orbcs.coni"silcs‘kurlbadcnhauscn 2013' I U.-'fl9.-'a|11cri cas-bcsI-snialI-public-companics-‘t-‘T34b001b2d | 1
`
`WATSON LABORATORIES v. UNITED THERAPEUTICS, |PR2017-01621
`
`UNITED THERAPEUTICS, EX. 2062
`
`Page 1 of2
`
`

`

`span all sectors of the economy from aerospace to auto parts to retail. The companies that met the
`challenge qualified for Forbes’ 35'I1 annual list of America’s Best Small Companies.
`
`Our top 100 highlights public companies with sales under $1 billion. They are ranked based on
`return on equity, sales growth and earnings growth over the past year, as well as the past five
`years. We also factored in stock performance versus each company’s peer group during the last 12
`months (click here for a detailed methodology).
`
`Eleven health care companies made the cut, led by No. 1 ranked Questcor Pharmaceuticals QCOR
`+%. The company’s main drug, Acthar, accounted for most of its $621 million in sales. The drug
`came to market in 1952 and today is FDA-approved for 19 conditions including multiple sclerosis,
`infantile spasms and rheumatic disorders.
`
`Complete Coverage: America's Best Small Companies
`
`Questcor, headquartered in Anaheim Hills, Calif, ranked first in 2011, as well, and continues to
`generate remarkable growth. Sales were up 81% in the latest lZ-months and 51% annually over the
`past five years. The company has increased its size (by sales) eight- fold since 2009. The company
`was also the top-performing stock on our list, up 219% in the 12 months ending Oct. 1.
`
`Questcor is putting its money to work with clinical trials in the works for Acthar relating to Lupus
`and Idiopathic Membranous Nephropathy in the works. The company is also planning an
`international expansion for the first time. Analysts expect EPS to hit $5.50 next year, resulting in a
`2014 price-earnings multiple of 10 based on a recent stock price of $55.
`
`The top-ranked newcomer on the list is No. 3 ranked Proto Labs PRLB +1.81%, which is a
`technology enabled quick turn manufacturer of custom parts for its customers. "Real Parts, Really
`Fast" is its slogan. The Maple Plain, Minn-based firm went public in April, 2012—making it
`eligible for our 100 Best for the first time. Earnings per share are up 51% annually the past five years
`and sales have jumped 30% per year. (see "Meet The Freshman" for more of this year’s newcomers )
`
`The stocks of last year’s best 100 companies rose 32% on average, or three percentage points better
`than the Russell 2000 small cap index. Top performers included Fleetcor Technologies, Lumber
`Liquidators LL +% and Boston Beer SAM +0.38%, which all returned at least 125%. The endgame
`and financial upside for many of these companies is a buyout at the hands of a bigger firm or private
`equity shop. Five of the 2012 Best Small Companies were acquired including True Religion Apparel
`TRLG +% and Ancestrycom ACOM +%. Mortgage software company Ellie Mae ELLI 41.49%
`went public in 2011, but is already looking for an exit. It ranks No. 34 this year and recently hired
`Morgan Stanley to sell the company, according to Reuters. The company would not comment on the
`report.
`
`11‘ not a buyout, the goal I“or these companies should be to grow off our small companies list. Seven
`companies, including Buffalo Wild Wings BWLD +0.68%, took the step last year and crossed the $1
`billion-in—sales threshold (see more on the drop-offs here). They can look to a regular on our list
`from the early 19905 for inspiration. Cisco Systems CSCO -0.81% made three straight appearances
`before outgrowing the Forbes list on its way to its current sales of $49 billion.
`
`Complete Coverage: America's Best Small Companies
`
`WATSON LABORATORIES v. UNITED THERAPEUTICS, |PR201T-01621
`
`UNITED THERAPEUTICS, EX. 2062
`
`Page 2 of2
`
`