And so some we are getting in earlier. We’re getting contracts signed. We’ve already started shipments. But what we’ll do is we’ll continue to share our progress on that. We’re not changing the 200 number now. And I think that was also — just keep in mind that was something that we shared to give some color as related to clearance, but for competitive reasons, I wouldn’t expect that we’ll share a specific revenue number for Aleris going forward, just like we don’t for any other product line. But we will make sure that we share color on our progress in terms of where we are relative to that absolute number. So maybe, Mike, other things to add.
Mike Garrison: Just really pleased that we were able to manufacture and ship product to the first customers ahead of schedule. We have been sort of planning for that more in Q1 of this year, but the team was able to execute to be able to ship products in end of September. And overall, I think that our discussions with the customers are going well, and we’re able to start to line up for focusing on our existing customers for remediation out in the field. The other point that I would make is that we continue to sort of make solid progress just working with the customers. And we’ve mentioned before how important interoperability was during COVID. And certainly, for a lot of our customers, that’s a key consideration in the discussions that we’re having with them. So that’s good for health care. I think that’s good for public health. And so we’re really happy that that’s a key consideration from their perspective. And we’re well positioned in that area.
Operator: Our next question comes from Matt Miksic with Barclays.
Matt Miksic: Great. So with all the swing in FX and dominating the questions around the guide here. I have one sort of follow-up on that and then a follow-up on your growth and sort of growth priorities and other sort of investment provides you’re making during the year, but out FX, the swing obviously is expecting everybody and we’re starting to get a sense of that into year-end and early next year. But if you could maybe highlight the way that, that is managed through your P&L, how it at all there’s any…
Tom Polen: Hey, Matt [indiscernible] there are slightly different than other folks in the space decisions that you make or make in terms of managing FX. And as I said, one follow-up.
Matt Miksic: That’s the first question.
Tom Polen: Yes. Matt, so a couple of things. I mean, I think no different from anyway. There’s many ways that we mitigate currency dynamics, right? One, we netting where you have crossed currencies. Two is we actually try and match sourcing location-wise, to look at our manufacturing footprint. With that — and there’s hedging that we do, of course, in particular, to preserve cash is the way we think of it, right, like anything translational has no impact to underlying economic value of the currency in the local market. It always really becomes a strategy of how do you match sources and uses of cash. And so those become some of our principles when we think of FX. At the end of the day, what we can control is the underlying business, and that’s what we presented here was an extremely strong top line growth, again, another year of margin improvement despite FX, by the way, right, 75 basis points of an FX headwind on margin.
So we’ve committed to the at least 50 basis points. So it’s really north of 100 when you think of it that way. And then again, we’re being super focused on cash, which is the ultimate thing that creates value. And we expect to have double-digit free cash flow year-over-year. What was the — was there another part of the question?
Matt Miksic: Yes. And that’s kind of actually dovetails nicely into the part 2, which is — so you’re making some choices that are impacting the margins as you talked about inventory takedowns, which are — have an absorption effect, which I think everyone would agree is those are solid fundamental cash-generative decisions. And just with the questions as I think everyone is seeing there will be some — there is some pressure here before the open, and it kind of gives the impression of a company that is under some pressure or defensive posture, but your actions obviously are saying the opposite. And I was wondering if you could talk a little bit about some of your continued efforts to either invest inorganically or highlight some of the drivers that you think are going to be significant growth leaders in the early and mid part of the year in 2024.
Chris DelOrefice: Yes, Matt, and Tom can expand on this, too, maybe on how we’re thinking of tuck-in M&A. But to your point, throughout this time frame, in addition to navigating significant complexity, absorbing outsized inflation, we’ve actually been leaning in and making bold choices that are paying off on growth and creating kind of a virtual cycle of strong growth. Margin improvement. So inventory is an example, it’s an intentional added sort of pressure that we’re putting on ourselves in terms of absorption because we know it actually creates net positive from a cash flow standpoint and yet we’re absorbing that because we know we have a strong portfolio of cost to win programs like recode, et cetera. So we’re doing that from a position of strength and actually you should view that as a sign of confidence, especially in a high interest rate environment, right?
Cash is worth a lot more. We’re also setting ourselves up from a tuck-in M&A, right? We’ve talked about the ability to execute against larger tuck-in size deals. Our net leverage is down to 2.6 times. We built strong cash throughout this year. So we feel really well positioned from that standpoint, and we’ll continue to be disciplined, but strike on opportunities as they become available.
Tom Polen: And Matt, I think, as Chris said, we just set the inventory piece aside, create awareness in that, but it’s really irrelevant at the end of the day in terms of we’re delivering right our 6% top line organic growth, and we’re delivering double-digit EPS growth organic, and then it’s really FX is what gets flowed through, right? We’re not going to cut R&D or cut other investments that we’re making to drive our strong growth profile, which is a 7% CAGR over the last couple of years. We’re not going to cut that to do FX when – particularly when we look at the cash flow, which is what we use to invest behind that growth has 0 impact from FX really that we see. We’re continuing to drive actually outsized free cash flow.
Think about in FY ’23, we grew free cash flow by $600 million in the year, right? That’s strong free cash flow growth, and we expect continued strong growth as we look at ’24 and beyond. So I think in terms of we are extremely excited by our portfolio and what we have today. And I think you’re seeing outsized performance across our different segments. I mean, if you look at BD Interventional, the strong growth in surgery with our bioabsorbable materials really taking off, and you can see there’s been several quarters of strong growth there. PI doing well and obviously, PureWick now with the mail product. You heard us in our prepared remarks actually say that’s going to be a bigger product than we thought it was going to be. When we originally put out our guide and declared which products were going to be over $50 million, we just increased PureWick mail to be one of those products that’s going to be over $50 million, quite clearly.
It’s on one of the fastest ramps of any product we’ve ever seen at the company is doing extremely well, and we’re adding capacity as fast as we can, really strong adoption by nurses in particular. In our Life Science business, great growth in Biosciences, I think you’re seeing us be a standout within maybe peers in that area. The strength of our fax Discover platform, combined with our dies has done really well. You saw that continue through Q4, and we expect continued strong growth. We see strong demand for that platform and our combination with the unique dies to allow really another level of multiplex testing as well as whole new insights into the cells that you can now visually see in addition to fluorescence. Obviously, when it comes to bid Medical that bold investment that we made in capacity right in the middle of COVID, we’re seeing pay off with another just very strong performance in farm systems, and we see just the durable trends there, whether or not it’s the GLP-1s, other biologics that we’re very well positioned from not only a portfolio offering and technology perspective, but from a capacity perspective, because of those bold investments, we’re well positioned to continue to capitalize on those.
