But just trying to get a better understanding of what the offsets are to kind of maintain what is, I believe, has been communicated as a likely roughly 80% gross margin. So just trying to understand why there isn’t quite a bit more of an uplift on the gross margin, given the collaboration, revenue contribution. Thanks so much.
Pascal Soriot: Thank you. Mene?
Menelas Pangalos: Yes, so we increase this study from 1,000 patients to 1,400 patients, and the dosing period from 120 weeks to 140 weeks. And the reason is, because we want to absolutely make sure we have a positive study. Now, we’re obviously looking at the event rates that we’ve had and we’re also looking at the event rates of our competitors. And so just based on those assumptions, we wanted to make sure that we don’t miss the positive mortality benefit by a few cases, because we didn’t have a study. So it’s really to make sure we have a positive study, of course, depending on event rates, and we never talk but we know we’ll be looking at the data. But the sizing of study is really to make — to ensure that we get a positive study.
Pascal Soriot: Thanks, Mene. I mean, this — one of our values is we play to win. And on this one we really want to play to win and show mortality benefit. And we potentially could have a product that might be differentiated if we are the only product that has shown a mortality benefit, and it would be a real shame to miss the mortality endpoint, if we could achieve it.
Aradhana Sarin: So to address your gross margin question, I think you were referring probably particularly to this year to 2022. And yes, there has been obviously some increase in collaboration revenue. But when you look at the total sort of amount of the collaboration revenue, as you know versus our total revenue, that’s still a very small percentage of our total revenue. That’s one element. The second element is relating to COVID medicines. So we did indicate in the middle of the year that we did expect COVID medicines, which included both Vaxzevria and Evusheld to be in line with where we were last year, which was slightly north of $4 billion. And Vaxzevria, as you know, we had a lot of initial contracts and that doesn’t really contribute much.
And we did mention also that gross margins for Evusheld were expected to be lower than the corporate gross margins. And then I would say the third major element is relating to pricing. And particularly pricing in China and some of the emerging markets where pricing is again not as high as it is in the developed markets. So those would probably be elements that contribute to the gross margins.
Seamus Fernandez: Sorry, we were specifically asking about go-forward margins, just to clarify. We were not asking about this year’s margins.
Aradhana Sarin: Yes, I did. I think there was another question relating to long-term margins, which I addressed earlier in the call. But very much sort of the same elements, I would say. Again, would be — long-term margins would be — long-term gross margins would be determined by mix. So the mix of rare disease oncology as well as the biopharma products, again, those all have different margins. The mix of biologics versus small molecules, the mix of emerging markets, China versus some of the developed markets and pricing in those markets. And then the mix of collaboration revenue versus 100% owned revenue and then the impact of inflation and cost increases that are being passed on to us that we continue to manage through our own efficiency and procurement.
