Katy Grissom: Great. We’ll take the next question.
Operator: Your next question comes from the line of Balaji Prasad from Barclays. Your line is open.
Unidentified Analyst: Good morning, everyone. This is [Mikaela] (ph) on for Balaji. Thanks for taking our questions. Jeff, could you provide a bit more detail around how you’re thinking about Credelio Quattro [when compared to] (ph) Experior and NexGard Plus? And just really any further details on how it is going to be a differentiator? Thanks.
Jeff Simmons: Yes. Thank you for the question. Yes, very much so. So look, I think a lot has happened over the last few months in the parasiticide business. Again, the largest market globally, over $5 billion. And I would just say, look at Credelio Quattro, it’s the next evolution in our Credelio franchise, with building off from Credelio Dog, Credelio Cat, Credelio Plus, which is really our broad spectrum outside of the U.S. doing very well and very competitive. This will be, I believe, the first product in canine with four active ingredients and the differentiated coverage I just would want to emphasize is fleas and ticks, but also heartworm, round warm and tape warm. Additionally, that would be new information here on this call.
And then I think if approved, we are focused on 100% heartworm prevention after one month. I think that’s important, and active during that first month, and I think that would be additional. Again, all of these, this is relative to products. It’s still under subject to approval. But again, we believe differentiated coverage will be key. It will play with a broad parasiticide portfolio that we have, and it will be also kind of in sequence with a derm portfolio that will be coming as well, which we believe will be a factor in our adoption rates and our competitiveness as we enter into the market in 2024.
Katy Grissom: Great. Thanks. We’ll take the next caller.
Operator: And your next question comes from the line of David Westenberg from Piper Sandler. Your line is open.
David Westenberg: Hi. Thank you for taking the question and great job executing this quarter. Can you talk about some of the assumptions on the — pretty fast growth assumptions for parvo, whether it be maybe a prophylactic indication, maybe what outside the U.S. might look like in that indication? Just any kind of color on what you — why you think that could be a blockbuster or the assumptions needed? And then, just I’ll ask the second question upfront. I think you highlighted, if I [misunderheard] (ph) some new marketing strategies with Seresto and Advantage, just give a little bit more color on to what those are? Thank you very much.
Jeff Simmons: Yes, thank you for the questions. On parvo, we’re off to a great start, as we mentioned, launching the product in July, early reports and some amazing stories. Again, the product is working extremely well. The supply chain is solidified, being able to move a frozen product, and that’s going well. So again, our first monoclonal antibody, I would focus first and foremost on our U.S. market. So, 330,000 cases we are seeing on an annual basis, that doesn’t include shelters. We’re building a market here while we’re doing this. And early efficacy is really important, and we’re seeing that. We’re seeing quicker treatments. So, if you think about the value proposition of this product, what you’re seeing is a quicker response rate to recovery and a higher rate.
At this point in time, every dog that’s been treated, to our knowledge, the puppies have survived. But what may take four to five days in a vet clinic and a very burdensome treatment regime, this can be 24 to 48 hours and a much higher success rate. I think the other thing for us is we’re seeing a carryover with parvo, more access to more clinics, because all clinics want to talk about and have the ability to have this product. So that’s also fared well. So, our focus right now is on the U.S. Our focus is on increasing manufacturing capacity 10x. We’re expecting $5 million to $7 million of sales this year, but a very big step-up in manufacturing capacity as we go into 2024, and that will help us as we head forward. And then, yes, global approvals give us a path to a blockbuster product.
