And I think the pipeline and the productivity is another kind of key aspect in our quarter, a lot of product approvals and that’s going to drive it. It’s probably little bit early to kind of go through a specific guidance for 2024. But I think if you look at this COVID decline, this anticipated COVID decline that we had this year, I think it’s kind of overshadowed a little bit about the strong and the strength and the performance in the base business. And you are starting to see as that number comes down in COVID, you are starting to see really the strength of the base business. So if you look at the base business, it’s contributing about $4.10 of earnings for the full year this year. That’s about $0.15 higher to what we originally guided back in January.
And I think that’s pretty significant growth even at $4.10 on the base business. And that’s really been driven by top line. So you look at the leverage in the P&L, the investments we made during COVID were able to drive a lot of growth there. So pipeline is delivering pretty significantly. And I believe that, that is the sustainability going into 2024 that top line. Of course, gross margin is a constant area of focus for us, whether it was the impact of FX or the impact of inflation. But I’m already seeing three out of our four major businesses here showing improved gross margin profiles versus the end of last year. So we’re seeing good momentum over there. So if I put this all into account, I think we’re achieving a lot of growth, top and bottom line, the new product contributions, strong pipeline and then the opportunity that we will have for gross margin expansion.
So I think we’re well set up as we go into the second half of this year and as we go into 2024.
Joshua Jennings: Excellent. Thanks so much.
Operator: Thank you. And our next question will come from Larry Biegelsen from Wells Fargo. Your line is open.
Larry Biegelsen: Good morning, thanks for taking the question. And congrats on the nice quarter here. Just one for me. Robert, I’d like to hear your thoughts on the med-tech Fab 5 and the pipeline, specifically how you’re thinking about Aveir and the dual chamber approval and TriClip you mentioned earlier, and just the sustainability of that 11% cardio Neuromod growth we saw this quarter? Thanks so much.
Robert Ford: Sure. Well, that group of products, they did pretty well in the quarter. Combined those products, they grew about 40%, Larry, if you take the Q2 run rate and annualize it, it’s annualizing to about a little over $650 million. I expect to do better than that in the year as the next quarters progress. Regarding your question on all these products, I can go through some of them here in the Aveir side. We saw a lot of positive developments this quarter for leadless. If you remember, we received FDA approval for the single chamber last year. And if you look at some of the claims data, at least the claims data that we’re looking at, showing that we’d be able to capture about third of that market. So that’s doing really well.
But what’s really exciting for us, and quite frankly, all the KOLs that I’ve spoken to, especially at HRS this year, was the approval for the dual chamber, which is a much larger segment of that makes up at least 80% of that $3 billion worldwide PACE market. And it’s the first ever technology, right, where you’ve got two implanted devices communicating with each other. So it’s a huge opportunity for us, I think, to really change a paradigm here. It’s a little bit of a different implant than what EPs have been accustomed to doing with pacemakers that have leads. So our focus here at the beginning, I think, is really to look at the bigger part of the market and make sure that we do a really good job at creating a real-world kind of strong clinical results, making sure that the implant technique gets well understood, and so we will focus a lot on training and training physicians.
