Jack Meehan: Thank you, good morning. First, I was wondering if you could just elaborate on the factors that are leading the strategic review to take a bit longer, at least versus what I was expecting? Last quarter, the word urgent was used multiple times, and I was expecting some sort of update here. Can you just maybe talk about anything you can share? Thank you.
John Greisch: Yeah, Jack, this is John. So if you think about the committee that we formed a couple of months ago, and we’ve got two new Directors and two of our legacy Directors plus myself on it. And I’d say the three top priorities of the activities of the committee have been to focus on operational improvements, along with Alessandro and the team, focus on cash flow improvements and focus on capital structure improvements over time. As you saw and heard in the comments, Alessandro and the team continue to drive operational performance and cash flow improvements in a way that gives us a lot of confidence for the rest of this year. So I think the first two priorities were to get the company back on track out of the surprise mode which we’ve been in for the last several quarters and deliver on the commitments that the team’s laid out.
I think they’ve done a heck of a job doing that as we start fiscal ’24. The committee, along with our partners at Elliott, are evaluating several strategic options to address the capital structure improvements over time with a sense of urgency. We spent a heck of a lot of time getting everybody up to speed on where we are. It’s an area where we don’t want a ready, fire, aim. And with the operational improvements and the cash flow improvements, we’re out of what may have been perceived by some as crisis mode and in a position where we can thoughtfully evaluate those options going forward. In addition to the committee and the full Board, Alessandro and I spend a lot of time with our partners at Elliott evaluating those options and we don’t have anything to announce today.
But as noted, we’ll provide updates if and once specific decisions are made by the Board. So I think that the near-term operational improvements, cash flow improvements you heard from Matti, we’ve improved our free cash flow outlook for the full year and then made some great moves along those lines as well as well as the operational improvements you heard from Alessandro, those are on track. Capital structure over time, we’ll address it. But we’re not ready to announce any decisions today, but we’ll do so once the Board and Alessandro and team make those decisions.
Jack Meehan: Okay. I appreciate that feedback. And a question for Matti. On the GLP-1s, can you talk about the returns you’re expecting on this additional prefilled syringe fill/finish capacity you’re adding? I’m having investors e-mail me for a little bit more detail on that. I know you said it would be attractive, but just any context would be great.
Matti Masanovich: I really can’t. I mean, I think Alessandro laid it out, we’re in the stage of trying to book that business. And so I think it wouldn’t be a good idea for me to disclose the returns and what we’re looking at from a pricing perspective. So — but I can tell you that it will be very attractive for Catalent overall.
Alessandro Maselli: I would also say that we have configured this franchise with lines which are twin of each other. So our ability to continue to deploy the product across multiple lines is on an accelerated fashion because we’re just going to somewhat copy and paste what we have learned in the first [drug] (ph) transfers. So you can expect that the ramp to revenues on the new assets are coming online is going to be faster. And that’s the number on factor that affects your return and the margin. But as Matti said, we expect the margin to be attractive.
Matti Masanovich: Something thing I’d say is, from a ramp-up perspective, I think the company has proven itself. You look at what it did with COVID and the ramp-up of COVID and meeting the COVID demand. The company has a proven track record to ramp up quickly and ramp up its facilities quickly to deliver. And I think leveraging that experience of the company into the GLP-1 opportunity is significant.
Paul Surdez: Next question, Operator.
Operator: The next question comes from John Sourbeer of UBS. Please go ahead, your line is open.
John Sourbeer: Good morning, and thanks for taking the question. Two questions here. First one on COVID. Just any way to quantify what the COVID margin contribution was in the quarter? And COVID came in quite a bit ahead of our expectations. You raised the guidance there. Any color on just the pacing there for the remainder of the year?
Matti Masanovich: Yeah, COVID will have a somewhat negligible impact in the back half of the year. So I think it’s going to come down. The first half of the year is when we’ll experience most of the COVID demand. There is some demand in the back half of the year. And as for margins, that’s not something that we’ve disclosed historically, and so we wouldn’t want to disclose the margins on the COVID business. But — so I’d say that — that’s about as far as I can go from a COVID perspective. But COVID is becoming a less and less important part of the business for us.
