I think when you think about what has to happen in 2024, there’s two probably key activities that our team has to execute against. One is to drive adoption more broadly by ECPs. We have order of magnitude tens of thousands of new targets that the team has to reach this year and drive adoption of Miebo. And that’s theme of what they’re talking about in Orlando today. The whole field force has been there this week, and that’s one of the key themes. And the second, Larry, you hit it right on the nail on the head is to drive managed care adoption. That is a big priority for 2024. Just the normal cycle, remember, this is a new drug and new drugs take some time, but given the demand we’ve seen in the market, managed care is much more open to working with us than they were just a quarter ago.
So, really positive momentum there. I suspect by the back half of 2024, commercial coverage will be really, really strong. There’ll be more work to do in 2025, but 2024 will be ahead of our expectations on commercial coverage. Now, Medicare has the longest lead time or lag time to drive coverage, but I’m optimistic we’ll do a strong performance in 2024. But 2025, it will catch up to commercial coverage. And so, I think those two areas are really important for execution. And when I look at the $350 million peak number, I’m actually pretty optimistic we can exceed that. I think, given the investment we’re making in the early KPIs, I think we do better than that.
Larry Biegelsen: That’s awesome. Thanks. Hey, just a quick one for Sam. The margin cadence, any help on the phasing of margins in 2024? Thanks for taking the question.
Sam Eldessouky: Good morning, Larry. So, it’s a good question, and seasonality is a very important part of our business, and that’s why I highlighted my prepared remarks. So, if you think about 2024 for us, we’ll follow a similar trend as we saw in 2023, with our first quarter being the lowest in terms of contribution and fourth quarters is the highest. So, I just use that as an example. Last year in Q1, last year 2022 in Q1 for revenue, we contributed roughly about 22% of the full-year results. And for EBITDA was contribution roughly about 19% of the full-year EBITDA numbers that we had for 2023. So, if you follow a similar trend and use the midpoint of our guidance that we provide this morning, that should give you a pretty good sense of our phasing as we think about it in 2024, and it builds on from Q1 onwards as you go through to Q4.
Larry Biegelsen: Thank you.
Operator: Your next question for today is coming from Robbie Marcus with J.P. Morgan.
Robbie Marcus: Oh, great. Thanks for taking the questions and congrats on a good quarter. Maybe to follow up on Larry’s question, Xiidra, I wanted to spend a minute here. You talked about $400 million for the year. That’s basically – if you back out the one time in fourth quarter, it’s basically just roughly $100 million a quarter, and I realize there’s seasonality. So, maybe just speak to why $400 million, given such a strong fourth quarter here, and how we think about what Xiidra is adding down the P&L in terms of adjusted EBITDA.
Brent Saunders: Yes, so, so great question, Robbie. Unfortunately, you can’t just take the 400 and divide by four, as I said earlier. There’s a lot of seasonality in prescription coverage, right? And particularly in this category. I think putting up about 13% growth on Xiidra in 2024, which is what we’re guiding towards, would be a very impressive performance by our team, particularly when we announced the deal, we said it was going to be a mid-single digit grower. So, this is more than doubling our expected growth. Now, some of that is just returning Xiidra back to where it belonged through tactical execution. And keep in mind, I’ve said this multiple times, dry eye is a very promotionally sensitive category, right? And so, in fairness, in 2024, we’re investing a little bit more in Xiidra than we would have if it hadn’t been given to us in a bit of a kind of left behind or neglected state from Novartis.
But we’re very confident that Xiidra, once we get it back on path, can be a very strong contributor or margin via product mix. And so, yes, we’re making a stronger investment, but I think the data from Q4 proves that it’s a smart investment for us. We’re tracking the KPIs on this one very closely as well, and investing only when we hit certain stage gates of performance. But right now, there’s a lot of reasons to believe our team can execute against it. And keep in mind, having Xiidra with Miebo, right, we’ve integrated the field force, is a win-win. It is absolutely one plus one equals something greater than three, right? Having our field force be able to promote two differentiated, mechanistically different drugs for dry eye therapy, really positions us as the company in dry eye and our representatives with the greatest portfolio of the best products.
