Dave Turkaly: Got it.
Michael Greiner: Thank you.
Operator: The next question comes from Matthew Mishan with KeyBanc. Please go ahead.
Matthew Mishan: Thank you. Just one follow-up. I just wanted you
Joe Woody: Hi, Matt.
Matthew Mishan: Hi. I just wanted you guys the opportunity to talk a little bit about NeoMed and ENFit. Just kind of, how — is it a 40% again, I mean, this product has grown like significantly for you over the last year to two years, kind of where are you at in this conversion cycle, how much more like is there? And then are some of the initiatives that you are doing going to help improve the profitability of this product as well?
Joe Woody: Yeah. I mean, yeah, all of the above. And I will say that, I think, we had a line in the script about the double-digit growth of the acquisitions that we have made and we see another strong year for NeoMed with continued ENFit across the globe being converted. I think, ultimately, it becomes a strong high single-digit type of growth for us and it’s opened up our aperture to looking at and why we are focusing more on Digestive Health and NeoMed type of targets, where we think we can build get strong synergies, get good gross margins in our organization where we have a right to win and where we can get deals and really pay fair reasonable prices for those deals. So it’s been a home run. Obviously, CORTRAK was strong for us.
We are benefiting even with ambIT moving into the Ambulatory Surgical Center and replacing sort of what was ON-Q. But there’s no doubt that the NeoMed acquisition has been an absolute home run for us. And again, it does have — there’s opportunities everywhere, including NeoMed around both our manufacturing efficiencies and transportation and just all the ways that we are going to market. I don’t know if you want to add anything, no, Michael with that. But thanks for pointing that out, Matt.
Matthew Mishan: And what inning do you think you are in that conversion, like how much is kind of…
Joe Woody: I like
Matthew Mishan: Yeah.
Joe Woody: I like transitioning from the seventh to the eighth inning, but then just remember, we still think we will be north of our mid-single-digit for quite some time beyond that. It’s just that you can’t grow at 30%, 40% forever.
Matthew Mishan: Okay. All right. Thank you.
Joe Woody: Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Joe Woody for any closing remarks.
Joe Woody: I’d like to just basically thank everybody for the continued interest in Avanos and as you are hearing from us, the demand for our products does remain strong. We try — the fundamentals across the business are strong. We are focused on what we can control and manage and we think 2022 results — 2022 results have built the foundation, as we said back in January to deliver on the commitment that we are confident priorities we detailed in this transformation program, combined with our market leading portfolio and the markets we are in to position us for sales growth margin expansion and meaningful free cash flow generation in 2023. We look forward to sharing a lot more detail about the transformation program at our June 20 Investor Day in New York City. Thanks for your time today.
Operator: The conference is concluded. Thank you for attending today’s presentation. You may now disconnect.
