Anthony Petrone: Thank you.
Operator: Thank you. Our next question comes from Andrew Cooper with Raymond James. Your line is open.
Andrew Cooper: Hey, everybody. Thanks for the question. Maybe to start just on plasma. I think you were up on an absolute dollar basis, about 6% quarter-over-quarter in fiscal 3Q. Normal, I think, from a volume perspective in North America, you said is 3 to %, so a little bit above, but not too much. And then when we think about the guide for 4Q, I think it’s implying something maybe a little bit bigger of a step down than the normal kind of 7% or so in the fiscal fourth quarter. So just are we back to normal in this kind of catch-up and bolus that’s driving that faster growth on some of the easier comps is largely behind us? Or how do we think about where we stand relative to a world without COVID or normal and getting back to the typical seasonality that we would see. Just help me think about the trajectory in plasma please?
Roy Galvin: Thanks for the question. What we’re actually finding is that we’re seeing continued seasonality in the business. We’re doing a little bit better than we expected. It is slowing down a little bit as the growth comes through. Our customers are still impacted a lot by staffing problems and donor issues. So we’re still seeing that affecting the business overall. But we are definitely seeing slightly above normal seasonality still continuing to occur, which is a good sign. This is our fifth quarter and we were we’ve seen above seasonality in the business.
Chris Simon: The only thing I would add to that, Andrew, is we think about sub-segments within plasma, we think about new centers versus mature centers. And what’s very powerful and will be at the core of our focus as we get our plans together for FY ’24 is these new centers are – represent twice the volume they did on a percentage basis, pre-pandemic. And they continue, even in the most recent period to track almost spot on into the historic growth uptake. So that’s a really encouraging sign. What’s less clear is how fast the remaining gap on the mature centers will close. We see really good things happening on the Southern border, for example. But that’s one we’re watching for, and we’ll have the conversations I mentioned alert our customers to really dial in on that.
Andrew Cooper: Great. And if I can sneak one more in. Just on VASCADE and everything you just sort of talked about in a prior question. When we think back to the Analyst Day and the LRP, obviously, there was a little bit longer time before you expected to be in Europe. So when we think about getting into Italy really pretty soon in some countries to follow, should we view that as incremental to at least the interim growth trajectory in that LRP? And help me think about what the timing there can look like and the magnitude maybe of some of these early launches?
Chris Simon: Yes. It’s a bit too early to guide for ’24, particularly on a market like that, that is so nascent. What I would say is this is a great example of how outperformance against what we thought was a pretty ambitious LRP year-to-date in FY ’23 is allowing us to free up funds to invest in growth as it presents itself. So we didn’t have any plans in FY ’23 when we started the year for a build-out of a direct sales force in Europe this year. We’ve been doing that. You see that passing through. It’s a little bit of a challenge in terms of our operating margins, but it’s exactly the right thing to do in terms of creating momentum. So I think this is yet another example of accelerating a planned investment and maybe expanding beyond the base of the planned investment to ensure that the upside is there for us.
And as James said, it’s – these are challenging times, things are expensive. It’s expensive to be doing the hiring, but we think we’ll be better served for it, and we’ll come back as part of the FY ’24 guidance in May and give you as much detail as we can about how VASCADE is going to contribute accordingly.
Andrew Cooper: Great. I’ll stop there. Thanks.
Operator: Thank you. Our next question comes from Dave Turkaly with JMP. Your line is open.
Dave Turkaly: Hey, good morning. Chris, you mentioned the investment capacity expansion. And I’m just curious if you could give us some commentary when you look at plasma and maybe VASCADEÂ as well with CSL back and the momentum you’re seeing, do you now have what you need to be able to supply that demand. And I don’t know that I’ve asked you about VASCADE in the past, but I don’t know what facility where you’re making that. But I guess if you could give us some color on how you – when you’re looking at this LRP ’23, ’24, ’25, do you have all the capacity you need right now?
Chris Simon: Yes, Dave, thanks for the question. Look, if you ask me, like what am I most proud of, right? I am most proud of this organization’s ability to respond to unprecedented demand, and it’s exactly as you highlighted, it’s across the board, but it’s particularly on plasma disposables and on the VASCADE products. And so our teams have leaned in. We mentioned back in June, we had opened a new facility in Pittsburgh, PA. We’ve asked things of that facility that we never intended to ask at this point in the process, and they’ve responded wonderfully as has the rest of the network. So thankfully, we did OEP, we’re doing OEP. We’re on track for those savings this year and cumulatively. But the big benefit of OEP is agility and the increased capacity, the resilience to be able to deliver.
It is a challenge, and we are managing day-to-day. But I’m proud to say that as an organization, we haven’t disrupted or stocked out any of our major customers, and that’s a testament to the supply chain effort. So I feel quite good about our ability to meet the higher targets that we’ve put forward. And I think that’s part of the strength and the goodwill that we’re building with customers. I said earlier, we’re playing the long game, and we’re playing to win and being able to supply them in this environment is a huge part of it. VASCADE as we acquired that from Cardiva, it’s actually manufactured in a separate stand-alone plant down in YMS
