Pat Mackin: Yeah, I mean, we look at pricing every year and we’ve taken some pretty significant price increases where we have highly differentiated product, which again is the majority of our portfolio. So we will look at that on a case-by-case basis but clearly that is going to be another focus for us in 2024 where appropriate to take additional price increases.
John McAulay: Thanks.
Operator: Thank you. And we’ll take our next question from Suraj Kalia from Oppenheimer. Please go ahead.
Shaymus Contorno: Hey, this Shaymus on for Suraj. Congrats on the quarter and thank you for taking the questions. Just kind of looking On-X, how should we start thinking — how should — you have thought about same store — new store and same store sales in 3Q and kind of 4Q and thoughts on 2024 for that as well, if you can.
Pat Mackin: Yeah, so I mean, we’ve delivered 13% growth in On-X, for the last five years. And it’s been a combination of — it’s not just — when you think about a hospital sometimes we’ll get into a new hospital with one surgeon and other surgeons may use another valve. So it’s, to your analogy, same store, but then expanding in that store with other surgeons. So we’ve had very good penetration into accounts, we still have more to go. This expansion in Asia and Latin America, we’ve seen very nice growth in those markets. So I think that this data is just out. I mean, literally, this date is not even a month old, so our commercial teams are just getting out there and making their rounds with the clinicians, but we’re going to be very aggressive.
And we think this is the best valve on the market and there’s no reason people should be using another one because they don’t have the data. So we see this as a big opportunity for us and, like I said, we’ve guided a year and a half ago, we told people we could grow On-X 10 to 15. We’ve been growing at the higher end of that range and I think we’re looking at more of the same going forward.
Shaymus Contorno: Got it. Thank you for that. One quick one for Ashley, how should we start thinking about FX exposure as we move into 2024?
Ashley Lee: Well, as we round out the end of 2023, we certainly have a little bit of a tailwind. Again with the majority of our US business being in Europe the relationship that we pay the most attention to is the Euro USD and, again, we should have a little bit of a tailwind in the fourth quarter of this year. If you look at the forecast for 2024 and again, we just look at the consensus, we’re not FX experts, but we look at the consensus, and the consensus right now indicates that the dollar should start weakening from these levels going into 2024, which again, should create another tailwind for us if that in fact happens.
Shaymus Contorno: Got it. Thank you. Just one kind of last one, if I can sneak in. What are your kind of thoughts on these low risks TAVR signals that were presented at TCT for partners [Indiscernible] Evolut and how it relates to you guys? Thank you.
Pat Mackin: Yeah, I think, I mean, we saw a joint press release that came out from both the STS and the European Association of Cardiac Surgeons, we can make that available to you. It was pretty direct, basically saying — I can read you the comments from — this is from the press release, from the two biggest cardiac surgery societies. Given that the fastest growing operation in the STS national database over the last five years is TAVR. X plan. We advise that more follow up in time to get into the existing low risk trial, before advising this in this patient population. They also make a bunch of comments about — that they’re comparing apples and oranges, about 26% of the patients in these trials, the SAVR group, the surgical group, had a concomitant procedure done with it, whether it was a CABG or whatever, which comes with a higher risk order.
So this is again, a direct quote, we’re calling investigators for both PARTNER 3 and Evolut low risk trials to publish the results for isolated SAVR versus isolated TAVR and see what the real data is. An the final comment was, we recommend caution prior to adopting TAVR for strategy in low risk patients, particularly those patients with characteristics not specifically studied in these trials. So tell me what you think about that.
Operator: Shaymus, does that complete your question?
Shaymus Contorno: Yes, sorry. Thank you.
Operator: Okay. No worries.
Pat Mackin: Yeah, no, I would encourage you guys, look, this is from the search. These aren’t my words. This is the two most powerful cardiac surgery societies in the world that issued a joint press release after those two trials were presented.
Shaymus Contorno: Appreciate it. Thank you.
Operator: Thank you. And we’ll take our next question from Mike Matson from Needham. Please go ahead, Mike.
Joseph Stringer: Hi, this is Joseph on for Mike. Congrats on the quarter. And we do appreciate the commentary on the GLP-1 impact or I guess lack thereof. Looking at stent graph, we’ve seen like four quarters from straight acceleration, at least on a reported basis. Just kind of curious where is all the strength coming from? What’s going on with that? Do you expect — I guess, based off of the guide, it looks like they’re going to be continued acceleration into the fourth quarter, maybe not. But maybe if you could just frame 2024, especially in that segment for us, that would be helpful.
Pat Mackin: Yeah, so we talked about it in the first quarter, right. If you go back a year, we were having challenges hiring people in Germany, and we end up having to raise labor rates and we hired like 100 people in the last six months of Q4 and Q1. So we are fully staffed. We got a brand new facility; it’s operating on all cylinders. We delivered 100 — our operations team delivered 100% of what we asked them to. We have full consignment, we have full inventory, and that was, frankly, the rate limiting factor for us. We only grew 8% or 9% in the first quarter. And I told you back then, watch what happens when the supply kicks in. And we grew 19% in the second quarter and 22% in the third quarter. So we’re well-positioned and what’s driving the revenue is the products, right.
