Unidentified Analyst: Thank you. And then can you talk about your constant currency growth expectations for the US versus internationally for the core injection business ex contract manufacturing for the year, and in particular, thinking about growth in China, actually in the quarter and then just your outlook for the fiscal 2024? Thank you.
Jake Elguicze: Yeah. So I think the growth outside of the US is really expected to exceed the growth in the US, right? And that’s been a trend, I think largely that we’ve seen over the past several years, essentially the US market being relatively flattish, and the international markets, particularly in the emerging markets for us, growing somewhere in that, let’s call it, mid-single-digit, 4-ish plus percent type range. And that’s sort of our thoughts right now for 2024, is that the US market were developed in nature still has sort of a flattish type constant currency revenue growth rate. And if we were to see more positive growth, that’s going to come from sort of the international markets.
Dev Kurdikar: And if I can just add to that, just to connect the dots here, we commented that the Suzhou entity, the demerger process is complete. We plan to start production for the domestic China market in this quarter, that plant was already producing product for export markets, but primarily emerging markets. So from a manufacturing standpoint, we are really glad to get some of this separation work done [to us] (ph) and really strengthens our foundation to capitalize, if you will, on the growth that we expect over the continued long term in the emerging markets.
Unidentified Analyst: Thank you.
Operator: Thank you. Our next question comes from Marie Thibault with BTIG. Your line is open.
Marie Thibault: Good morning, Dev and Jake. Thanks for taking the questions and nice quarter. I wanted to ask here a follow-up on the patch pump. Are you planning to broadly launch or broadly commercialize the open-loop patch pump? And as a follow-up on that, now that you’ve got that submitted, should we expect R&D investments to step up, to stay flat? How are you thinking about the investment needed to get the closed loop pump to FDA submission?
Dev Kurdikar: Thanks, Marie. Good morning. Yes, we do plan at the right time to commercialize the open loop. Our view is that we will do a limited market release of the open loop pump. All the work that we’ve done so far indicates to us that there is a segment of the market that would benefit and be interested in an open-loop pump. But obviously, the timing of that is all dependent upon the review and eventual approval of the process. With respect to R&D expenses for the year, I mean I’ll let Jake comment some more, but certainly, we’ve included our anticipated expenses for fiscal 2024 in the guidance, and it’s a little too early to sort of comment long term beyond ’24 at this point, but I’ll let Jake add additional color.
Jake Elguicze: Sure. Marie, I think R&D spending in the first quarter was probably actually a little bit lower than what we had sort of originally internally expected it to be just due to some timing issues. And we certainly expect that to pick up in terms of R&D spending as we move throughout the remaining quarters of the year. And I think continue to expect that R&D as a percentage of revenue is most likely going to exceed a 7%-ish type level for fiscal 2024.
Marie Thibault: Okay. That’s very helpful. Let me ask my follow-up on the ERP systems in that transition. I think I heard you say that the sales result this quarter benefited from the timing of customer orders related to that transition. Can you help clarify what that means? Were they ordering ahead of time to avoid disruption during the transition? And then as part of the ERP transition, what exactly remains to be done? And is there a risk around the IRS letter for extension, do you have any control? What’s the plan if that doesn’t come through? Thanks for taking the questions.
Dev Kurdikar: Sure, Marie. I’ll take that. So with respect to ordering patterns during an ERP implementation, in this case, it’s an ERP implementation, plus we are standing up our own shared services capabilities, and we are standing up our own distribution network. It’s quite typical in transitions like this that you have a pause in taking new orders, as you’re moving inventory from old distribution centers to new distribution centers. And so in circumstances like these, customers will often place orders in advance because certainly, we don’t want and they don’t want any stock-outs to occur. And so it’s quite typical to get some lumpiness during an ERP transition. And so the timing effect that Jake referred to, because we were implementing in US and Canada, certainly, we had some timing benefit.
And I think as I said in my prepared remarks, we are going to do a phased implementation around the world as we continue. There will be some atypical ordering patterns that might actually go from quarter to quarter as we complete these implementations. With regard to the private letter ruling that you’re referring to, as you remember, BD agreed in principle to grant us a limited extension conditioned upon obtaining an acceptable supplemental private letter ruling from the IRS, and that would allow us to extend some of these TSAs until early fiscal 2025. And that, again, the reason for that is so that we can phase out these implementations and potentially reduce some of the implementation risk that is inherent in complex implementations like these.
