Brendan Brennan: No, I think just reflecting on it, one of the things that we talked about at the start of our call was, we have actually seen pretty decent traction from the large pharma group and probably more on the full service side of the house as well as we’ve come into 2024. And that’s been heartening. But you also see in our statistics that we continue to diversify as a customer base. The customer base continues to diversify. And so that large concentration, it’s always going to be there as part of our piece. It’s always part of how the CROs are built, but it continues to diversify. And to Steve’s point, some go up, some go down. What we’re focused on as an organization is that in holistic terms, we’re moving in the right direction. And I feel we have a market both in pharma and biotech that really does support that. So, yeah, that’s what we want to see continuing, is that diversification increasing over time.
Michael Ryskin: Okay. That’s helpful. And I appreciate that. If I could squeeze in a quick follow up, going back to the CFO transition, sounds like you never know, but you might not be able to announce a successor until later in the year. But you’ve got the Analyst Day coming up in May. So, anything you can say in terms of what we should look forward to from the event? Thanks.
Steve Cutler: Well, you can look forward to our plans for the next few years, Mike, and where we are and what our innovation is and how we’re going to move the organization forward in terms of the Investor Day anyway. But we will — certainly we will provide an update on our CFO transition at the Investor Day. We’ll have some further information on it, I think, at that time, although it’s still relatively early days. Having said that, we’re moving fairly quickly. We’ve engaged a global recruitment firm. We already have interests from some very good candidates. No one, of course, who’s going to approach Brendan’s abilities.
Brendan Brennan: Thank you. Thank you, Steve.
Steve Cutler: But unless we can call clone him in the next six months, well, we do have to replace him. And, of course, as I mentioned, we wish him all the best. But we have already some interest with some very good candidates, candidates who run public companies. And so, we feel good about the position we’re in. And, as I say, we’ll — the Investor Day is not far away. It’s only, what is it, a month away or so. So, we won’t have any sort of definitive announcement for you at that point, but I’ll certainly give you an update on where we are. And we have, as I say, some fairly tight timelines in terms of long lists and short lists and making appointments. And we do anticipate that we’ll have somebody on board within the course of this year. That’s the expectation. And I do hope they’d be able to overlap with Brendan and learn a little from him as he heads out the door. So, that’s where we are. We feel that we’re in a reasonable place given fairly early on in the search.
Michael Ryskin: That’s great. Thanks. Appreciate all the color.
Operator: Please standby for your next question. The next question comes from Eric Coldwell at Baird. Your line is open. Please go ahead.
Eric Coldwell: Thanks very much. I wanted to go back to the biotech rebranding and the improved win rate and your double down focus there. I’m curious if you could share with us the number of small biotechs that you work with, whether you want to call that emerging biopharma pre-revenue clients, however you wish to define them, and then how that number has changed? And then also what that is as a percent of revenue and/or backlog. I think a couple of years ago it was laid out as somewhere around, if I remember, about 16% of revenue, the way you used to define it. So, if you could give us an update on that? And then with this focus, is it on the really small, really early stage biotech clients, or is it more mid and large biotech where you’re just looking to further penetrate a more mature biotech segment. I’m curious on how broad the focus is, how deep you’re going in terms of the nascency of some of these clients, their size, et cetera? Thank you.
Steve Cutler: Okay. I mean, there’s a lot in that question, Eric, so I’ll try to unpick it a little bit. The biotech rebrand, we think of biotechs overall, as I indicated, sort of low 30% of our revenues in that sort of number. The number I think we’ve talked about a few years ago was on our capital market dependent type biotechs, the ones that really require to go out and raise money, and that’s around 15%. So, we work with a variety of biotechs in the vicinity of, I’m not even sure exactly how many, but it’s around the 500 sort of number. It’s a lot. And we do anything from small consulting projects with them to very, very large scale Phase 3s in the hundreds of millions of dollars with some of them. They’re an entity in themselves.
They work in a different way to large pharma and hence having a different focus on them, or having a group of people who focus on them differently in terms of their ability to engage, in terms of our opportunity to input on their trial design, on their development programs. It’s a very different market, quite frankly, and one that our people, I think, are increasingly working in extremely well. And I think, as I said, with the rebrand, the customers are understanding that and appreciating that. And also while they recognize our expertise and resources, they also recognize our financial viability and stability, which I think is something that’s very important when these customers want to take a drug right through the market, rather than just to partner up with a large pharma.
So, we offer them a different strategic option, these companies, going forward, and that’s, I think, extremely valuable to them and we’ve been able to sort of communicate that to them and market that to them. I hope that gives you a little bit of a flavor for what that group of customers is.
Eric Coldwell: Thank you. If I could just throw one more in and then I’ll jump off. Headcount’s been flat over the last year. You are growing in the mid-single-digits. I’m just curious what your thoughts are on labor productivity, retention and then also hiring demands as 2024 progresses and maybe moving into 2025 if current trends continue?
