Eric Coldwell: Okay. And then on second topic on the gummy award. Just hoping we could get a little more on the nature of the award. Was that an expansion with an existing customer? A new relationship with a new customer? Was it a competitive takeaway from external or internal manufacturing? And finally, are these new launches from the partner? Or maybe that ties back to where this production is coming from that you have been awarded. Any additional details on timing or sizing? I know you said 3Q start, but it sounds like a pretty substantial deal for a segment that’s been challenged. So I’m surprised it hasn’t gotten a little more attention today.
Matti Masanovich: Yeah. The gummy market has been down and continues to trend down, the markets continue down. This is a share gain. This is a new business for us from this customer. It’s an already existing product and it’s going to fit in perfectly into our network. We don’t know have to add any SG&A per se on top of it, and it fits into the existing gummy network that we have and the open capacity that we have. So it’s a kind of what I’d say is a no-brainer. it’s got reasonably good margins. From a business perspective, it’s got a very quick payback. So I think overall, it’s a big win. Doesn’t require much CapEx either to go in. So it’s pretty impressive.
Eric Coldwell: Thank you.
Operator: Our next question comes from Rachel Vatnsdal of JP Morgan. Please go ahead.
Rachel Vatnsdal: Great. Good morning. Thanks for fitting me in. Just one for me on PCH. So last year you continuously flagged some of the inventory destocking consumer discretionary spending headwinds. So can you walk us through are you still seeing some of those headwinds impacting that business? And then just to follow up on the earlier question around that commercial win on the gummy side, if we exclude that commercial win, how should we think about growth in consumer this year? Thank you.
Alessandro Maselli: So look, let me cover the first part of the question in terms of the headwinds. As we said in the prepared remarks, some of the macro environment that we have highlighted in November last year are still present and we continue to see some prudent spend on the side of our — of especially early stage, right, the early-stage customers are very prudent in progressing assets through the pipeline, given the biotech funding environment. The consumer environment is still not as it was before. But the reason why we have in our own shop, excitement about the way we going to continue to grow the company on an ex-COVID basis is twofold really Right. So first of all, is the pipeline, right, in PCH? We had a lot of products been approved, some very recently, which will drive a lot of growth in our pharmaceutical commercial business and share gain.
Right. We knew that over time, our existing relationship with the large consumer company, which were not necessarily the natural market for Sarepta, those customers, because of the relationship we had with Catalent and our brand will end up coming with us. So we have a little bit of a trend that is better than the market because of these main dynamics in PCH. And that’s why we are confident about the ramp and the profile of the business as we go through the fiscal ’24.
Operator: Our last question today comes from Sean Dodge of RBC Capital Markets. Please go ahead, your line is open.
Thomas Kelliher: Hey, good morning. This is Thomas Kelliher on for Sean. And apologies if these were covered, I got disconnected earlier. But I wanted to go back to the just tech transfers in Bloomington. Should we just consider these complete, or are there still some hurdles you need to clear to get these into full production? Any more detail there would be helpful. Thanks.
Alessandro Maselli: Well, first of all, I never said Bloomington, right? So it’s — and we already said in previous calls that some of those relationships are extended and expanded. So I would say that now this is something that is really touching all our network when it comes to sterile product. And we feel pretty good about it because it’s really the way we want to serve our customers, with a network approach, not a site approach, which gives us a lot of flexibility and a lot of optionality for customers. So first of all, it’s across the network. And yes, I do believe that those tech transfer activities could be deemed largely done. Of course on the first lines, so there will be more coming on the additional lines. But as I said, it’s much easier because these are like-for-like assets to the current ones. And so yes, we’re now going to start in the second half of the year in ramping up commercial volumes and really giving more supply to our customers.
Operator: Thank you. We have no further questions in the queue. So I will turn the call-back over to CEO, Alessandro Maselli for any closing remarks.
Alessandro Maselli: Thank you, everyone, for taking the time to join our call today. We are pleased to have delivered the solid financial performance this quarter while making operational improvement. At the same time, the strength of our pipeline and new commercial wins increase our confidence in fiscal ’24 guidance, which we have reaffirmed. We remain focused on restoring Catalent’s historical margins while driving the sustainable and profitable growth, increasing shareholder value and executing on our mission to improve the lives of patients every day. Thank you.
Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.
