Unidentified Analyst: Okay. That’s helpful. And then, going back to capital allocation, no debt, $235 million of cash exiting the year, does the potential litigation payout, which is sizable. But as you talked about in the prepared remarks, it could be a multi-year process. you repurchased about $25 million of shares here in ’23. How should we think about your capital allocation plans going forward? Is more of the buyback on the table? Just how you’re thinking about cash usage here in ’24 and beyond? Thanks.
Abhishek Jain: No, absolutely. And from the contact standpoint, you picked it up pretty well that we bought actually 2.9 million shares for like $27 million in ’23 and most of those purchases were actually in the fourth quarter. So we were like pretty confident with the $235 million in cash. And based on the fact that we have taken a lot of cost out of our system and based on the needs that you’re projecting for cash we feel very comfortable in actually pursuing the share buyback program. But with this IP litigation jury award, even if there are like multiple steps that we have to go through, starting with the district code, and then possible appeals, multi-step, multi-year process. We are taking a stance here to pass the share buyback program for now. And we will assess as to how some of these other pieces will play out. And at that time, we will bring the discussion or the decision on the share buyback program back onto the table.
Unidentified Analyst: Thank you.
Operator: Our next question comes from Alex Nowak with Craig-Hallum. Please proceed with your question.
Alex Nowak: Okay. Great. Good afternoon everyone. If you look at the normal revenue for 2023, I’m basically taking what you did in Q4 here and annualizing it. The guide for 2024 comes in at basically about 4% growth, I think give or take a little bit. I guess the question is, what level of growth can the company ultimately achieve in 2025, 2026 pick a time point in the future without necessarily more reimbursement?
Abhishek Jain: So I would basically say that there are multiple paths for the testing services to grow. And of course, there’s a secular market growth where we are seeing a good momentum in our transplant volumes. Specifically, if you look at the hard side, they have been growing on a low double-digit basis in the last year. And also kidney kind of growing at a high-single digit. My sense is that if we going to receive that kind of a growth pattern, the secular organic growth, that’s basically the first piece. And then we heard from some of our shop same-space company like Transmedics, all the things that they are doing in this particular space to be able to kind of grow the usage of the old and so on and so forth. So we feel very good that this particular space can actually grow in high-single digit to a low double-digit kind of scenario.
But absolutely, let me have Alex kind of add further. But my sense is that there’s a lot of opportunity in this space to grow at a much more higher rate.
Alexander Johnson: Yes, Alex. And you mentioned without reimbursement. And obviously, that’s a nice tailwind for us as well because that will apply to a broad swath of our business as different commercial payers come on. And certainly, there’s upside with the Medicare as well. I think Abhishek covered it well. One of the interesting data points is that when you look at heart, kidney, which is really the bulwark of our transplant testing services volume, right? Back in 2020, there are 25,000 combined transplanted organs between heart and kidney. Last year, it was 30,000, right? So you get really significant growth even during the pandemic, even when living donor volumes had basically flatlined for quite a while. And they’re coming back.
And I think you saw that last year. And when you look at utilization and other tailwinds here, you really start to see a model where when you have 8% transplant volume, just overall market growth in 2023, I think that’s not wrong to think how long can that last for. And when you look at all the different avenues, whether it’s not just better utilization, but also the opportunity for living donation to increase, you really see that tailwind on our business. So thanks for leaving out the reimbursement piece, I think it does let us take apart the story piece by piece because there are significant areas where our revenue can increase in the long and middle-term areas. Thanks for that question, Alex.
Alex Nowak: It makes sense if we’re transplanting higher-risk organs, they just need to be tested. So make your answer makes total sense there. I just want to be crystal clear around the moves with reimbursement. Again, someone has transpired over this last year. So as we enter right now, based on everything you’re seeing with your conversations with CMS and the like, is it fair to say we’re the reimbursement that sits today is pretty much set in stone. And the only view that you have is things can only go higher from here? Like there’s nothing as you’re looking at that could say add that could be another shoe to drop.
Alexander Johnson: I mean I think set in stone is really probably not the way we would look at it. There’s certainly an LCD process that’s going on now as well as significant public pressure and outcry to bring back coverage for these Medicare patient transplant tests. So I think certainly, there’s an ongoing process that will play out certainly in the — in 2024 that we’ll see. We are currently in our base case, we’re assuming that nothing does change, which will be very unfortunate for patients — but that’s where we’ll live with and that’s what we’ll execute on if things don’t change. But I think there is a significant processes going on right now that could potentially change. And I think as more data comes out, not just in ’24, but in future years around surveillance, for example, for Medicare, which is really the area that was pulled back on for patients.
