And at this point, we do expect a little bit of spillover into the private sector. So, as it relates to the outcome of VBP and where we sit today, implants, it’s a national program, the bidding is complete, and it’s being currently rolled out. Envista, our brands have won in both categories as well. And so, we expect that it’s going to be reasonably favorable for us as it relates to being a selected vendor, but recognizing of course that the pricing on that side will probably be about a 50% drop. On the ortho side, much smaller so far, VBP has only impacted about 15 provinces. We think that it’s less than 10% of the collective market there. We were, as Amir said in the comments, the only multinational selected to win on the bracket and wires side.
We think that the pricing there is going to be a headwind of about 35%, roughly. And in both these cases, we’re reasonably pleased with the outcome certainly being selected there. Your next question around margins, maybe I’ll address the Spark question. Spark is currently in investment mode. Clearly, we’re seeing the momentum and are very encouraged by our growth on that business. And so, we’ll continue to invest there. For the duration of 2023, I think we’re going to continue to be in investment mode. Clearly, that business is dilutive to our margins today. We think that longer-term that we can get the margins up above fleet average, but today it is dilutive and will be likely for the duration of 2023 as well. The one thing that we have seen that certainly is very encouraging as it relates to our investments is that quarter-over-quarter sequential productivity and the automation investments are paying off.
And so, we’re continuing to see that improve quarter-over-quarter.
Jason Bednar: Okay. Thanks. Maybe just real quick. I mean, any sizing on expected deep margin impact from VBP?
Howard Yu: I think, you know if you do the math on that, I’m going to say it’s roughly about 70 basis points, maybe a little more than that, could be. And so that’s €“ take it somewhere around $20 million plus.
Jason Bednar: All right. Thanks so much. Very helpful.
Operator: Thank you. Our next question will come from Elizabeth Anderson with Evercore ISI. Your line is open.
Elizabeth Anderson: Hi, guys. Thanks so much for the question. I guess my first question is just, sort of maybe if you could talk a little bit more about the underlying trends that you’re seeing in the first quarter so far? I know that you just obviously talked about China, but maybe focusing more on North America and Europe.
Amir Aghdaei: Yes. Happy to do it. Thank you, Elizabeth. We have to talk a little bit segment-by-segment. In orthodontics, what we have seen, that continuation of expansion of our Spark business remain consistent. Quarter-to-quarter, let’s give you a little bit of a feel, Q4 versus Q3, we had about a 25% step-up. And we’re not seeing anything that changes our view so far on that continuation. Bracket and wires in North America and Europe continue to perform, but in emerging markets, specifically China and Russia, we haven’t seen yet any major trends or change in trajectory as we saw in Q4. Give you a little bit of a feel, China is a double-digit decline for us in Q4, and Russia was very volatile quarter-to-quarter and that hasn’t really changed in walking through January.
