Jacob Stephan: Hey guys, thanks for taking my questions. Maybe just on the restructuring initiative, could you talk about kind of the breakdown on how you see these costs coming out of the model. I know the 45 million to 55 million range, but by Q1, does that mean 60% kind of the full value quarterly or 90%? Maybe you could help us think about that.
Andrew Johnson: Yeah, I’m happy to do that, Jacob. This is Andy. So starting with kind of how you range it in terms of actual impact in ’24, our plan is, as this last phase, this current phase, somewhere between 45 and 55 to actually be realized in ’24, that’s our goal. You’ll start to see that execution this quarter, as Jeff mentioned and I mentioned in my comments. You will see, I think your estimation of somewhere north of 50% by the end of Q1’24 is accurate. We described it as significant majority, so I think that’s right in that area. And obviously when you’re talking about headcount reductions, those different geographies can be phased differently, but we’ll start on that work this quarter. You also have OpEx benefits around prioritization and integration of geographic footprint, much of which will be actioned in the, call it the first five months of the phase.
There’s certain decisions around third-party spend that we can unilaterally decide and take benefit heading into the new year, others that require some negotiation and could be phased throughout the year. And you have a continued COGS improvement. We’ve already seen that. Our gross profit margin validates the work that was done earlier this year has started to take hold and we’ll continue to see on an annualized basis even improved results from earlier phased COGS efforts. But there is continued supply chain optimization and work on the COGS side that will happen as early as this quarter and into early next year. So when you add that up, as I mentioned, it may have been sort of buried in my comments, but you’ve got somewhere around two-thirds of that total number benefiting OpEx with the remaining third in COGS.
And definitely we believe you’ll see over 50% of that is actually coming out on the next call it quarter and a half, two quarters max. So you’ll see the benefit of that for most of ’24. And that goes back to just comments and the first question that Danny raised about profitability next year. We’re going to control what we can in the P&L and when you look at costs both on the COGS and OpEx side, those are areas we can control even in this revenue environment. So we’re not going to wait around. This isn’t a December ’24 annualized takeout exercise. Jacob, this is action now, action over the next several months. You’ll start to see real benefit, we believe, to the P&L in Q1 of ’24.
Jacob Stephan: Great. That was really helpful. Thanks. Maybe just touching on the milestone payments from United Therapeutics. Obviously, this is 100% gross margin revenue, but could you just remind us on kind of when these earn-outs or the milestone payments are set to take place?
Jeffrey Graves: Yeah, I’ll take a shot at answering that, Jacob, and then Andy can supplement it as well. So, they’re geared towards technical accomplishment, and obviously we drive to a schedule on those. But we are inventing, we’re plowing a lot of new ground in that. The human lung is the most complicated object ever printed by mankind. And I don’t say that lightly. We’re driving to levels of precision and speed that have clearly never been done before with materials that are extremely new, biological materials that are very new. So it’s impossible to predict the schedule exactly. We’ve got goals and we realize payments over time. So we’re proud that we’ve achieved some of the milestones. We’re driving hard on that schedule because we want to see United Therapeutics be able to bring that product to market as soon as possible, which will help millions of people around the world.
