Matt Stanton: Okay, thanks. That’s helpful. And then maybe back over to MVE. You talked about how sales kind of remain challenging there and a gradual improvement through the year. I think prior you guys had baked in kind of flattish growth in MVE for the year. Just given kind of the slower start, should we still expect MVE to be flattish in 2024? Or is it down for the year? And I guess if it is now down in 2024, what other areas are potentially offsetting that to reiterate the guide for the full year?
Robert Stefanovich: No, Matt, I think you can expect MVE to be flattish for 2024. And so you’ll see that improvement in the last half, which will create that. And then I think we will have some progression in 2025. Look, we ran into a situation where the market pulled back in the second half of 2023 severely and that probably had to do with some extra capacity buildup from COVID plus the economics, economic situation, which caused people to pull back on budgeted and governments pulling back and so forth, but some of that’s freeing up. At some point, you have to have more capacity. So we do think it will be flattish in 2024 and improving in 2025.
Jerrell Shelton: And the driver, really, for the revenue, especially in the second half of the year, is related to our services offering and revenue.
Matt Stanton: Okay, great. And maybe just one last quick one. The Phase 3 trials dropped to 77. I know you expect some normal kind of fallout in there. Any more color you can provide on just the gross and net numbers for Phase 3 in the quarter? And did it have any impact on 1Q revenue given those programs are generally a bit more meaningful than some of the earlier phase programs? Thank you.
Mark Sawicki: Yes, we’re still seeing a lot of churn as it relates to clinical trial activity. So if you drill into the flat sequential quarter, we actually saw 42 trial terminations. And 20 of which were completed and 22 terminated. Those that were terminated in many cases were due to cash. Of those, obviously, you saw a drawdown of the phase – some of the Phase 3 trials. We also added back 42 programs. Obviously, there is a lag period associated with those as they get up and running. But we did see an impact on a couple of terminations in Phase 3 that did show some – obviously that that had an impact on where we thought we were going to see some accretive activity there that was relatively flat. But the good thing is that the new programs that are starting are really diversified and will start to contribute in the coming months.
Matt Stanton: Thanks. That’s helpful. Appreciate it.
Operator: Your next question comes from Puneet Souda from Leerink Partners. Your line is now open.
Philip Song: Hi, this is Philip on for Puneet. Thank you for taking my question. Maybe just the high level kind of question. Just coming off a softer first quarter, you got an implied ramp in the second half that’s a bit steeper. Can you just maybe give a bit more color on sort of the levers that gives you confidence to reiterate your guidance? Kind of if you expect MVE to improve sequentially in the second quarter, or if that’s still hasn’t bottomed out, or just kind of what are the different levers that will take us to the low end versus kind of like the high end of the guidance? Thank you.
Jerrell Shelton: Sure. I’ll start the answer and then Robert and Mark may want to chime in with some other thoughts, but our outlook is based on the trends that we’re currently seeing industry wide, as well as what we specifically are seeing from our cell and gene therapy clients. So if you take these factors into consider – taking those factors into consideration, and we’re confident as one can be given the current economic and the geopolitical landscape. There are a number of clients with commercial therapies that are forecasting a second – a strong second half ramp. And we also are seeing a number of new therapies approved recently, and their ramp should contribute to our revenue growth later this year. And then there is the biotech funding increasing dramatically in quarter one and then – and we should see some impact from that later this year.
And we’re having new products and services launched throughout the year, which will bring in new revenue. So all in all, we believe that each of these business – each of our businesses will grow in 2024. As highlighted in the press release, our service business should lead the way and I think Robert mentioned that a little bit earlier. So Robert, would you like to add anything?
Robert Stefanovich: No, I think you mentioned most of it. We do expect in progressive improvement and then you absolutely write specialty in the second half. And if you look at some of the core revenue drivers, commercial revenue, BioStorage/BioServices revenue, and even maybe clarification on commercial revenue, you look at the commercial revenue growing 9% year-over-year. But we all said, take a look at the trailing twelve months revenue because you have some lumpiness there in terms of timing. So you look at twelve months over twelve months for Q1 over the trailing twelve months last year it grew about 27%. So if you look at that, plus the additional BLA filings, MAA filings and expected approvals that we see this year, you’ll see continuous momentum that will keep driving the services revenue to meet or beat our revenue guidance for the year.
Mark Sawicki: Yes, let me just add to that. Obviously a lot of our commercial folks have come out with earlier line approvals. Obviously BMS and JNJ, Sarepta might have a significant expansion coming out after the end of the second quarter, all of which should contribute to increasing activities that relates to commercial. And then obviously the recent approvals for Iovance, CRISPR, Vertex, Bluebird, ImmunityBio, and Atara are also going to start to contribute in a more meaningful way.
Philip Song: Got it. That makes sense. Thank you. And then maybe just one follow up housekeeping question. I guess I know you guys don’t have too much exposure to China, but have you thought about kind of how much risk there is with the BIOSECURE Act and any retaliation to that for your business, any potential disruption there?
