Sam Eldessouky: Yes, And Vijay, it’s a similar sort of comments that we made before. When you think about the launches, and especially Miebo being one of the most important launches for us, we’re playing the long game here in terms of the investment. And when I think about it from a margin contribution, I would probably step back and look at everything we put on the table from sort of a P&L, full P&L. So, when you think about our guidance for 2024, we expect margin to expand anywhere between 50 basis points to up to 110 basis points. If you take the midpoint of that, of our guidance, that’s about 80 basis points of expansion, while we’re still investing for the long -term benefit by investing behind Miebo and other launches as well. Just keep in mind that next year is one of our highest number of launches that we’re seeing – in 2024. Yes, 2024.
Brent Saunders: Yes. I mean, look, I think Vijay, we have been, and I said this at J.P. Morgan when I was interviewed by Robbie, I think that we’ve been very deliberate, right? We want to drive margin expansion, but we want it to be sustainable margin expansion. And we have said countless amount of times, 2024 was a massive investment year in the launches. Despite that, and despite the fact that we are investing heavily in Miebo and pretty heavily in Xiidra, well as several other launches, like INFUSE globally and Aspire, we are still going to drive margin improvement in 2024. We hope it’s towards the top end of that range, as we talked about upside earlier. But in 2025, we’re going to have margin improvement. 2026, we’re going to have nice margin improvement.
2027 is going to be even greater. We are really committed to driving long-term margin improvement. And if you look at it over the next three to five years, it will be meaningful, but it’s going to take time because the way to get there is to do the right thing and investing in these very important launches.
Vijay Kumar: That’s helpful, Brent, and if I may, one follow-up to Miebo, the $95 million that contributes 200 basis points to organic. Just given your comments, your bullishness on this product, is that a sustainable number contribution to growth? When you look at 2025, 2026, could Miebo continue to add in like $50 million to $100 million range? And what is the guidance you made for Prolensa loss of exclusivity in fiscal 2024?
Brent Saunders: Yes, so yes, I mean, I think you could see Miebo continuing to be a very nice contributor. We had mentioned $350 million peak sales. You tend to hit your peak sales in year four or five on a product like this. And so, if you model that out, and then I did put in some optimism that we could do better than that. Not ready to call the number yet, but I did put in some optimism. So, that’s where we’re going to watch very carefully this year. As we see execution, we’ll guide appropriately based on performance, which is the responsible way to do it. But again, a lot of optimism there. Prolensa did go generic. The generics entered in January. The impact is around $40 million to $50 million this year. That’s a very high margin product, end of life product or very high margin.
And so, when you think about – and you didn’t ask this question, but I’ll just use the opportunity. When you think about our guidance for 2024, we’re covering a significant amount of headwind. And despite that, still having really nice guidance. You’re covering $50-ish million in Prolensa. You’re covering currency. And I think I mentioned this at the J.P. Morgan conference, on the webcast, we’re covering another $40 million, $50 million of SKU reduction that we did and are doing this year to focus on the higher margin products. So, there’s a lot of headwind there that’s meaningful to us, and we’re jumping right over that and still growing very nicely. So, that’s why I have a lot of optimism for the business in 2024, but start to get really excited in the coming years as we finish the hard work that we’re doing here to reorganize the company, to simplify the company and to invest in strategic areas that will drive growth.
Vijay Kumar: That’s very helpful. Thanks guys.
George Gadkowski: I think we’ll take one more question, Holly,
Operator: Your final question for today is from Joanne Wuensch with Citibank.
Joanne Wuensch: Thank you for taking the question and good morning. And I’ll say upfront, I hope your shoulder heals quickly. Two quick questions. What percentage of your contact lenses are silicone hydrogel today versus a year ago? And I’ll toss my second one in now. Where are you feeling, or how are you feeling about M&A at this stage? Thank you.
Brent Saunders: Yes, so let me take the second part first and then Sam will give you some guidance on the first part. When I think about M&A, I’ve said this when we did the Xiidra, our priority is to digest and delever the Novartis assets, namely Xiidra. That is our plan for 2024. That being said, I mentioned in the prepared remarks, investing in R&D capabilities and BD capabilities. We are actively involved in numerous discussions around smaller products, R&D assets and the like. And I expect us to use 2024 to build our pipeline in pharma and surgical and consumer and the like. And there’s some really exciting science and there’s some really exciting early stage products that could be meaningful contributors to us if we make the investment. So, long-winded way to say nothing significant in 2024 for us, but look for us to be very strategic, adding smaller products or mid to late stage R&D products for all of our businesses. Sam, you want to take that?
Sam Eldessouky: Yes. And Joanne, in terms of the SiHy, it is seeing right now as we think about 2022, it is roughly about 10%, but it is growing fast. So, we’ve seen it growing really fast between 2022 into 2023. And as Brent mentioned, it is growing in the high single – it’s growing in the double digits. We saw Q4 was about 31% growth, just in SiHy.
