They were obviously growing much faster in 2022 and you’re expecting them to in 2023. And I’m mindful of the incredible expansion of R&D that you’re doing, all of which costs money and you do have new products that need a lot of marketing support. So are you going to be — are you fully confident that you can provide all the support that you need in ’23 with only mid-single-digit growth of your operating expenses?
Pascal Soriot: The last 2 question are questions you love, Aradhana, for you. And then the first one, maybe, Dave, you can start with this one, Tagrisso.
David Fredrickson: So Joe, on this, as you know, CMS is still in the midst of rulemaking to determine exactly how both the list of the first 10 which come out later this year, will be determined. And then also how the exclusions are going to be managed. In terms of the list of the first 10 million, we’ll see exactly how rulemaking goes through. My sense is that on a gross sales basis that Tagrisso would not likely make the first in in the first go through. But obviously, we’ll have to see that. I do think that it would be likely to come in as you move through over the course of the years which gets to the next question. And I think that there is absolutely an orphan drug designation exemption that’s clear within the law. And I think that we certainly are minded that, that is one that could very well be applied to Tagrisso and that’s work that we’ll be continuing to advance.
Aradhana Sarin: Thanks, Jo, for your questions. So in terms of COVID contribution in 2022. Again, I won’t give specific numbers but I can give you some color that may help you. So if you look at our total COVID medicines in 2022, that was about $4 billion. Split almost half and half between Vaxzevria and Eucal. Vaxzevria was — majority of that, as you know, was initial contracts. So it was not really major contributor. And for we had guided, as you know, in 2022 that the gross margin for that is lower than our corporate gross margins. And then you also saw from today’s results that we did take a charge for the bushels inventory and contract. So I think you can piece all of that together to see what that contributed in 2022.
As it relates to your question on operating cost management, that is always an ongoing give and take and push and pull within the company. We are committed to our investment in R&D. And while you can see, obviously, the 30 clinical Phase III that we expect to start this year, we also had 34 approvals last year. So there are some trials that are sort of coming off their main phase of investment and other trials that are starting this year. That being said, we’re constantly doing portfolio prioritization to make sure we are able to fund the most promising and the most value-generating assets in our portfolio. Also with those, for example, the 34 regulatory approvals, many of them were already in areas that we’re in. So again, we try to get operating leverage in those areas.
Some of them are in new areas. So for example, with Himalaya and Topaz, we’re building more in spaces that we were not in. But in the case of breast cancer, for example, we are leveraging infrastructure and sales force where we already are present. So again, we have operating leverage and in areas that we’re new and entering we build as needed.
