So we’ve got new space, incremental space and pretty well staffed. It’s a very attractive area. There’s lots of people that want to work and sell in gene therapy. I think there’s a little bit of a positive buzz around our capability and potential. So we should have nice growth rates in those businesses in fiscal 2023. The margins won’t be anywhere near we want them to be, but they will be distinctly better than the prior year. So CDMO should be accretive for sort of the manufacturing top and bottom line. And similarly, obviously, to a lesser extent given the denominator, but similarly to CRL’s top and bottom line also. So we feel good about those businesses as we’ve entered this fiscal year.
Sandy Draper: Thanks for the update, Jim.
Jim Foster: Pleasure.
Operator: Thank you. Our next question will come from Elizabeth Anderson with Evercore. Your line is open.
Elizabeth Anderson: Hi guys, thanks so much for the question. I was wondering if you could comment, it seems like you based on the guidance that you gave for the full year on NHPs that you probably have enough supply domestically to get you to this sort of fourth quarter at least between the Cambodia and non-Cambodian supply. So if that’s something you could comment on. And then secondarily, can you talk about the impact of potentially follow-on work after NHPs? It seems like maybe is that something that you guys have accounted for in the guidance? Or is that something that would maybe impact 2024 more than 2023? Thank you.
Jim Foster: Yes. So we have some supply, for sure, Elizabeth. So we have €“ we do a lot of NHP work in the U.S., but we also do €“ I mentioned Europe that we have other suppliers for European operations. We have other suppliers for the U.S. We had monkeys in countries, some of which our hands are tied at the moment, but some of which our hands aren’t tied. And I don’t want to peel it back too finely, but I think that we have a sufficient supply for a while, and then it begins to wind a little bit. We’re just going to have to have conversations with our clients about their priorities and what they really need to be done quickly and try to match their priorities and the cadence of their drug development pipelines with availability of space and NHPs. So yes, to some extent, we’ll have sufficient supply.
And to some extent, we won’t. And hopefully, as we’ve indicated in our prepared remarks today and in the numbers in our guidance that we’ll be off and running in the back half of the year. We’re continuing to take orders and book orders certainly into 2024. I don’t want to comment on what the impact is in 2024. We’re early in the first quarter of 2023 except to say that our hope would be to resolve this problem because we have sufficient supply if the U.S. Fish and Wildlife Service and the other regulatory agencies will let us use them so. And just given the importance of the work, we have to figure it out. We’re confident that they will listen. They understand the importance. We’re also confident they don’t have a lot of options. Very few of our clients have internal toxicology capacity.
And even if they did, they can’t get the NHPs either. And we have perfectly capable competitors, but they have limited infrastructures, and they have limited access to NHPs as well. So just given our scale and prominence, we have to resolve it. And we’re hopeful that people will work with us and understand that we’re doing everything in good faith and want to come up with a scientific solution that satisfies everybody’s expectations and demands.
