ICU Medical, Inc. (NASDAQ:ICUI) Q1 2024 Earnings Call Transcript

Vivek Jain: I mean, I think that — Larry it’s Vivek. I think the bigger picture is Brian was trying to say as simply as you could in the script, which was last year we had just a little less revenues than we had this quarter and look how much more money we made and then I talked about all this manufacturing consolidation, et cetera and other things to drive gross margin synergies, right? The difference between Q1 this year and Q1 last year was a little bit of investment in SG&A, but it was the difference in gross margin. Obviously, the perception of the situation is very different in those moments. So, we understand the value of getting the gross margin where it needs to be.

Larry Solow: Just lastly. I know price pressure and solutions could be somewhat of a driver to — not this year but going forward. When do we — when those contracts I think that some of them will come more of your contracts up for grabs or coming up for renewal I think in the back half of this year? When will that be some better than [indiscernible].

Vivek Jain: I mean the contracts are only part of the equation. They’ll get done first in the process and then it’s really getting individual systems and members to absorb, whatever you may have been contracted, which is its own set of challenges to work through. All of that probably doesn’t become effective until some point in Q1 of next year.

Larry Solow: Okay. Got it. Okay. Thanks. I appreciate it.

Vivek Jain: Thanks, Larry.

Operator: And speakers, we don’t have any questions over the phone. I would like to hand over the call to Mr. Vivek Jain, Chairman and Chief Executive Officer. Please continue.

Vivek Jain: Thanks, Franzi [ph]. Look, we hope today’s call was direct into the point, a little bit shorter. We look forward to speaking to everybody on our Q2 call and we’ll update everybody on these various items, we’re working to make the company more valuable and drive innovation for patients. Thanks very much, everyone. Appreciate it. Bye

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.