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COWEN COLLABORATIVE INSIGHTS February 25, 2019 Background On Separations Technology And Market Liquid Chromatography And Gas Chromatography - How Does It Work? 2 LC instrumentation is generally composed of: (1) solvent delivery system, (2) sample injector, (3) separation column, (4) detector, and (5) data acquisition unit. The solvent delivery unit pumps the solvent through the LC system while the sample injector introduces the sample into the solvent flow (known as the mobile phase). The chromatography column then separates the sample into its components for analysis by the detector, which measures the presence and amount of constituents. The data acquisition unit then records and stores the information from the detector. The underlying principles of GC are similar to those of LC, with the key difference being that the mobile phase is a gas instead of a liquid. LC Is Often Combined With Mass Spec To obtain the mass spectrum of a single compound in a mixture, the individual components must be separated prior to MS analysis. Separation is necessary for unambiguous identification because multiple compounds present simultaneously create an overlapping or mixed spectrum. The most common separation techniques used in combination with MS are gas chromatography (GC) and liquid chromatography (LC). LC and MS from different vendors can be combined. LC is more commonly used as high temperatures required for GC make it incompatible with the compounds under analysis - this is a key reason why some cannabis testing labs prefer testing THC using liquid chromatography (to be clear, analysis using gas chromatography requires heating THC which changes its properties). Chromatography Market Estimates Figure 14 Overall Chromatography Market (SMM) Figure 15 Chromatography Market Shares $9,400 $9,200 $9,000 $8,800 ww“ g $8,600 - = $8,400 - $8,200 - $8,000 | $7,800 $7,600 2014 2015 2016 2017 2018E Agilent, 17% Other, 36% Waters, 16% Shimadzu, 8% Thermo Fisher, Merck KGaA/ 13% Sigma Aldrich, 10% Source: Company reports and Cowen and Company Source: Company reports and Cowen and Company Figure 16 Chromatography Market by Configuration H/UPLC GC IC LPLC Flash Other Growth Rate Market Leaders WAT A TMO GE Teledyne A Shimadzu Metrohm BIO Biotage Source: Company reports and Cowen and Company COWEN.COM 23 HOUSE_OVERSIGHT_024839