Tasos Konidaris: Hey, Gary. Good morning. Regards to margins, so Q4 was pretty much in line with our expectations. So generic margins were 41.6%, up 250 basis points. Specialty was up 200-some basis points. I think what’s happening is the mix where we have our — and the total company margin actually at 43.4% was flat to Q4. So I think what’s happening here a little bit is a mix of business, where we have (ph) top line growth, kind of, growing double digit, much more so than the rest of the business. And that’s the lower margin gross margin business. So I think that’s kind of a little bit perhaps the weakness you may be talking about, but the real profitable segments of generics and specialty, great — terrific margin expansion in Q4.
Looking at 2023, so if you think about generic gross margins in 2022 were about low-42 is about 42.3%. My gut feel is 2023 budgets probably between 41% and 43%, something in that neighborhood. It’s all going to be a function of the cadence of new product introductions and, kind of, what happens from a competitive standpoint. Healthcare is probably going to be at about 13% versus 14% this year, just because their own distribution business is growing faster within their segment. And finally, specialty business, which are incredibly profitable, we expect them to stay at the 82%. So overall €˜23 to €˜22, not a much big difference in the overall gross margins. Hopefully, that helps.
Gary Nachman: Yes, it does. And just I — you didn’t address before, but in terms of the guidance on the spend, how much of the launch for factored in there? Yes, yes.
Tasos Konidaris: Yes. So all the spend is in there. That’s one of the reasons to your point to the — to Elliot’s previous question, right? It’s like alright guys, you keep growing top line, you keep diversifying the business, what — and you finally have created stability, right, on EBITDA, but we don’t see the growth, and big part of it is the investments we’re making to the business. So our guidance includes, as I mentioned before $30 million of incremental sales and marketing expenses. So that has all the incremental expense for the full-year commercialization of our biosimilars and the full-year commercialization expenses of IPX-203. So depending on the timing of approval, as you know, we have a PDUFA date on June 30, depending on — obviously, we intend to launch quickly as quickly after that as possible, right depending on the uptake of revenues, the incremental gross margin provides an opportunity for us.
Gary Nachman: Great. Thank you.
Operator: Our next question is from Chris Schott from JPMorgan. Chris, your line is now open. Please go ahead.
Chris Schott: Great. Thanks so much for the questions. Just a couple for me here. I guess first on the generic growth rate for this year. It seems like you’re getting a decent contribution from biosimilars and new launches. And it sounds like some of the comments you made before that you’re maybe more optimistic on the overall environment, but the growth is only low single-digits. So could you just help me balance in terms of like what headwinds we need to keep in mind for the generic business this year? And then my second question was on just, kind of, interest rate environment here. Does the higher rate environment we’re in change how you think about capital allocation or how you think about, kind of, debt pay down versus kind of incremental business development at all as maybe just start with those two and one follow-up from there.
