And so, I’m really optimistic on Xiidra, but perhaps we can do better than 400. We’ll have to see. It’s mid-February, and the team is at their sales meeting right now. I think there’ll be a lot of momentum coming out of this week and throughout the year as seasonality builds, as the investment and marketing builds, and the focus on execution in the field.
Robbie Marcus: Great. appreciate that. And maybe just as a follow up on free cash flow generation in 2024, I realize you have a lot of integration activities here, but how should we think about free cash flow in 2024 and any phasing through the year we should consider? Thanks.
Sam Eldessouky: Sure, Ravi, it’s a good question. When you think about cash, listen, cash is a very important element for us. It’s part of our DNA. So, we call it, cash is cultural, right? So, it’s something we spend a lot of time talking about it. We’re focused on it. So, when you think about – and maybe before I talk to 2024, I want to step back and just talk 2022 because it sets the base for how we think about 2024. So, when you think about 2023, cash played out exactly as we anticipated. The first half of the year, we were in a growth mode with our topline and gaining market share, and that was a use on working capital, and we see that in the first half of the year. Expecting that will turn positive in the second half of the year.
So, you think of a second half cash flow for us in the year was generating roughly about $95 million in Q3 and Q4. Keep in mind that was all happening as we were building up inventory. So, we built roughly about $250 million of inventory throughout 2023 that helped us as we were working through our supply chain challenges that we’ve talked about. So, that’s a very important background for us to set the stage on for 2023. Now, when you reflect to 2024, we expect cash to – we don’t expect the level of inventory buildup that we’ve seen in 2023, does not repeat again into 2024 at that same level. So, we expect that to be a more of a short-term element. We’ll stay probably at a higher elevated level, but we don’t expect that step up in inventory again.
So, with that, I expect our cash for 2024 to be roughly about – conversion rate from EBITDA to midpoint of guidance, roughly about anywhere between 30% to 35% conversion rate for cash flow. The phasing will follow a similar phasing as we think about the P&L. To the phasing that I highlighted to Larry, that probably will be something you will have to keep in mind as well as you think about from our cash flow generation throughout the year. We start low and we’ll build up high as we get into Q4.
Robbie Marcus: Great. I appreciate the color. Thank you.
Operator: Your next question is from Vijay Kumar with Evercore ISI.
Vijay Kumar: Hey, guys, congrats and nice print here, and thanks for taking my question. I guess my first one here, Brent, I just want to clarify, did you say the investments in Miebo are well above the $95 million? So, how much of a drag is Miebo on margins right now? And I’m curious, when do you think those margins will be accretive to corporate?
Brent Saunders: Yes, I did say it is significant, and I chose the word significant on purpose more than the $95 million, right? And that is very typical of the first year of a very promising pharmaceutical launch. In fact, when you look at the history of pharmaceutical launches, you tend to see the first two to three years in investment mode. And so, I see this being a margin contributor in a more meaningful way in 2026 and becoming a significant contributor in 2027 and for years to come. And so, that’s the right way to launch the drug. And as I said earlier to Larry, I do think we can exceed our targets on peak sales. I’m not ready to set a number on it. We need more experience, but I’m very optimistic. This is a great drug and the acceptance is great.
We need to execute. We need to expand the prescribers. We need to get the managed care coverage. So, a lot of work to do, but we are – our team is killing it, and we are set up for what could become a very promising product and margin contributor on a significant basis over the mid to long term. Sam, any comment to add?
