Robert Ford: Sure. Well, I mean, I guess on Libre, to your question on how to get to $10 billion by 2028, I mean, the math will say 15%, right. How do you get 15%. I mean there are real three key areas, and I talked a little bit about them. But I’d say, first of all, it’s to continue to have a dominant share heavy insulin user segment. We have that today with the non-pumpers with the MDI both in the U.S. and globally, internationally. So the real focus there becomes, okay, how do we focus now on the pumper segment and the connectivity over there. And like I said, I think we will do that with a little bit of catch-up with Libre 2 in terms of what is currently offered in the market. But then to leapfrog that, I think the combined sensor glucose ketone sensor is ultimately the way we will play.
And we will see what pump company is going to want to line up to be first on that connectivity if and once we get that approval because again, I continue to hear from KOLs the importance of that product for the pumper segment. So the second part is the Basel expansion. And like I said, you can look at the Basel population globally, assume a certain rate globally, a certain utilization rate, and that adds a significant amount of growth to that number. And then the third piece of that is really expanding Libre beyond just diabetes and looking at the lingo platform. So the adding up and the execution of those strategies are what ultimately gives us confidence that we can get there and we can sustain that 15% growth rate over the next kind of 5 years.
Regarding your questions on pumps, listen, I think that it’s an important segment. It’s one that benefits quite significantly from a combined system. We’re now €“ we’re focusing more aggressively on that. As it relates to an all in one, I think the market has spoken in terms of the pumpers want choice. They want to be able to choose what is the best sensor pump combination. And so I think right now, my view on that is the consumers have spoken, the market has spoken, the regulators spoken, they want that interchangeability. And I think that our focus will be on providing the best sensor for the pump systems that are out there. So that’s €“ I think I covered your Libre questions. I think you had a question on Navitor. Listen, we’re excited about this.
It’s a large market. It’s a large segment here in the U.S., it’s about $3 billion. Our label is about 50% €“ sorry, it’s about 50% of the market because we’re only approved right now for the high-risk patients. But it’s got a strong clinical profile. I mean we will be sharing data at CRP specifically to this, but I mean we’ve already released some data on it last year comparing it to other valve systems. So I think that we’ve been very intentional about wanting to enter this market and to do it in a way that is sustainable. Expectations, I mean, I talked a little bit about this. There is obviously two pretty well entrenched players in the U.S. market. do I think that we can be a leader in 3, 4, 5 years, I think that might be difficult. But I think that we can come into this market and offer another choice, another opportunity that provides additional benefits differentiated benefits versus other systems that allow us to pick up share.
If I look at where we are in Europe, we launched this in Europe, and we have high single-digit share in Europe. And we’re not in all centers we’re in about half of the market, in the centers that we are implanted and available, our shares in the mid-teens. So you put that together, we’re high single, but where we’re competing, we’re in the mid-teens. So I think this will be a ramp. I think we’ve got the sales force in place. We want to roll this out in a way that allows us to sustainable in that strategy of being able to be a double-digit share gain over the next couple of years.
Josh Jennings: Appreciated it. Thank you.
Operator: Thank you. And our next question will come from Joanne Wuensch from Citibank. Your line is open.
Joanne Wuensch: Good morning. And thank you for taking the questions. I have two. The first one has to do with Nutrition. And if you could outline where the company is in terms of the recovery and when do you think it will return to growth? And then the second question has to do with the use of cash, what are your thoughts on it and where you are on share repurchases? Thank you.
Robert Ford: Sure. Well, on Nutrition, as I said in the opening statements, production at Sturgis is up and running. The team is working around the clock, nonstop, very hard. Number one focus here, as I said, was to serve the customers, get product back on shelves. We started with WIC with the inventory levels on our WIC contracts are very good as we entered into Q4, and we then started to focus on our non-WIC brands, and that’s progressed very well in the fourth quarter and as we go into this year, looking very good. So I would say, if you look at our growth rate, obviously, you’ve got this year-over-year comp. You’re going to see the growth already in Q1, Joanne, right, because we were impacted last year in February. But I guess the right way to look at this is, okay, strip away the comp, strip away where this year-over-year effect of coming back on the market, etcetera, I expect our business €“ our overall nutrition business to be growing at that pre-pandemic level between 4% and 6%.
Our market shares in WIC have largely recovered and we are seeing a nice cadence of recovery in the non-WIC share here in the U.S. So, I think you will start to see that growth rate already on the print in Q1, obviously, in Q2 and Q3. But the important thing here is we are looking at our share and the share recovery is very much in line with our forecast that we have set for the full year. I would like to see our market share get back to pre-pandemic levels by the end of the year. I am sorry, what was your other question?
Joanne Wuensch: Thank you. Use of cash and whether €“ where would you stand on share repurchases? Thank you.
Robert Ford: Sure. While use of cash, talked about this. We have taken this balanced approach. I would say if I were to kind of rank it in terms of use of cash, we are committed to growing a dividend, a strong and growing dividend. So, that’s probably number one use of cash. We announced that increase of about 9% in our dividend last year. So, that’s I will say is priority number one. Number two is obviously ensuring that all of these new products that we have got launching are appropriately resourced in terms of manufacturing and a lot of our CapEx investments. On the buybacks, we did throughout the first nine months of last year we had about $3 billion of buybacks. And I would say, we probably did a little bit of catch-up there, Joanne, in terms of catching up to some of the dilution as we were focusing on getting our leverage down post acquisitions.
So, we do a little bit of catch-up there. And I would say in terms of buybacks going forward, we will be contemplating them and they will be largely focused on offsetting any kind of dilution that we had this year. I would say the other kind of key use here for us this year is going to be debt. We have some debt towers coming up and we are not going to be renegotiating those just given interest rates. We want to move those off. So, that’s probably where you see the use of cash. On the M&A side, which I know is always a question, so I will preempt anybody over there who has got that on their list. I have talked about it where €“ on several calls, we are interested. We are actively assessing the opportunities, whether it’s tuck-in on up. Clearly, the valuations here have come down somehow and I think they need to stabilize a little bit.
But we cast a pretty wide net. Diagnostics devices are the areas where we have most interest. And again, if it financially makes sense for our shareholders, and it fits strategically, then we will €“ we have got that strategic flexibility in our balance sheet to do that. And we are going to be looking at businesses where we can bring value, whether it’s €“ whether we can accelerate sales, whether we can enhance an R&D program or enhance its probably success, a growth area that we can build and have a path to building a position or even if it’s just to augment our own existing pipeline. I think when we have taken that approach, our track record shows that when we have taken that approach, it’s largely been very successful for our shareholders.
