Our job there, I believe, is to continue to do a great job for our customer and continue to bring the capacity online, and the rest will come pretty much as a consequence. I don’t believe personally that oral will be a significant competitor of injection for the time being. I — when you think about that, in the current form, like peptides, the bioavailability is not that high so there is a lot of API there. There are studies out there that are showing a much more API you need in the oral delivery versus injectables. So I do believe that it’s going to be, for the time being, an injectable story personally. And with regards of how we are approaching this, look, for me, the important thing is that we understand the dynamics, we understand the market, that we position ourselves a little bit in the middle of the range.
We don’t expect in our projections everything to be going in the right direction, and leaving that as an upside. We position ourselves in a, I would say, prudent way when it comes to these dynamics so that we have a good set of different options to continue to grow the company in line with expectations.
Dave Windley: That’s great. Thank you for that.
Operator: Thank you. Our next question comes from Justin Bowers of Deutsche Bank. Your line is open.
Justin Bowers: Hi. Thank you and good morning, everyone. So just wanted to get a little clarity on some of the prepared remarks. With respect to GLP-1s, I think you said $100 million this year. Is that incremental over next, sorry, over last year or is that total? And can you sort of give us a sense of what the order of magnitude was in FY 2023? And then I think you said sort of a $500 million run rate number. And is that sort of like the targeted exit rate in FY 2026? Or is that sort of the contribution from the incremental capacity coming online? And then I think you said most of that you have firm orders for. So do you have protection for that i.e. is some sort of take or pay arrangement?
Alessandro Maselli: Great questions. So first of all, yeah, look, we said that this year, it’s going to be below $100 million. We didn’t say $100 million. And this, for sure, one of the contributors of the non-COVID, non-Sarepta growth in Biologics, right? So because so far, there’s been a more tech transfer work and now it’s becoming commercial work. So first of all, it is contributing to our growth outlook. And as I said, it’s more an H2 story than an H1 story. So it’s also helping with what you see as a ramp, H2 versus H1. With regards of the long-term outlook, I said that it’s going to be well over $0.5 billion. I gave a little bit of color around the timeframe. And to be quite honest, with your question around the demand, I see for this franchise, the capacity as the constraining factor rather than the demand.
So it’s going to be really depending on our ability to bring capacity as fast as possible. We are seeing a very high level of interest and demand for these assets, and really is one where capacity is going to be the constraining factor on all the fronts. And I believe that the runway goes beyond the ’26 timeframe that we have highlighted here. So all in all, it’s a very exciting space to be in.
Justin Bowers: Thank you. And then just a quick follow-up on the gene therapy franchise. Can you talk a little bit about the dynamics ex Sarepta, i.e., are there other programs in your pipeline that are advancing through different stages? And then with respect to the top customer, are you ramping up additional production throughout the year? Or is this just sort of a conversion of things in flight with the existing outlook? Thank you.
Alessandro Maselli: Yeah. Look, first part of the question, as I said in my prepared remarks that the pipeline is healthy both with the additional program with our biggest customer but also with other customers. As I said, we signed recently another late-stage program, and the clinical data on that program looks very, very exciting. So — and impact on patients is — it could be great. So it’s also in line with our core value of patients first. So I would define the pipeline in gene therapy as healthy. And I will also tell you that, in gene therapy, the capacity, it’s easier to redeploy compared to other technologies. Normally, in gene therapy, you have suites, but you have most of the units are mobile units. So it’s very easy to reconfigure the capacity compared to other technologies, at least for the way we have designed our facility.
We make them very, very fungible across different type of products. And with regards to the profile of this. Look, we — there is the physical capacity and there is the productivity that you can achieve. We are ramping, right? So our physical capacity is fully deployed, fully staffed, fully equipped. But clearly, we are a ramp of productivity. As you know, we come from a very difficult spot during the spring because of some of the challenges we have disclosed, and now we have an exciting ramp. So I will tell you that we are ahead of the ramp that I had in mind at the beginning of this fiscal year, but there will continue to be progress as we go through the year. So the more we improve our output, the more demand we will be able to satisfy for our customers.
As we said, the visibility on this demand is pretty high at this point of the year, as Matti shared.
Justin Bowers: Thank you, Alessandro. Appreciate the time.
Operator: The next question in the queue today comes from Jack Meehan of Nephron Research. Your line is open.
