So really excited. I think that description, as I’ve laid it out, fits across both generalists within practice of specialists, corporate accounts are also enthusiastic about it. I think it gets to some of the questions and the discussion we’ve had this morning around how do we continue to support the productivity of the practice, which at least addresses the dimension of staff retention and optimization. And I think this fits the bill on both the productivity and capacity front as well as the clinical medical front.
Michael Ryskin: Great. Thanks a lot guys.
Operator: We’ll go next to Erin Wright with Morgan Stanley.
Erin Wright: Great. Thanks. Can you talk a little bit about the competitive landscape? Do you think that there’s more of an opportunity to see some more meaningful market share gains, either across the smaller practices or corporate accounts as well? And there’s clearly been some disruption in terms of ownership structure in terms of distribution changes and I’m just thinking about how you can kind of take advantage of that? And if you have seen any notable kind of share gains to date? Thanks.
Jay Mazelsky: Yes, good morning, Erin. We’ve always said, and I think it’s still true now that very competitive landscape, I would say, that on a global basis, not just in our largest market, the US. And the — what we focus on, obviously, is being able to support our customers, be they independent practices or corporate with a full end-to-end suite be it at the point-of-care, patient, and reference labs and increasingly software. We’re pleased with the progress we’ve made commercially in terms of advancing the overall solutions. What customers tell us is they like the integrated nature of what we provide. They see that as a differentiator or a set of differentiators relative to our competitors and that includes being able to take software and tie it all together that supports the workflow as they want to practice within the environment.
We think that Vello, which is our client engagement application takes that really to the next level in terms of being able to help them digitally communicate in indirect with pet owners as a whole. We also are enthusiastic about new practice formation, as I’ve indicated in my remarks, where we continue to do well there, new practices, see IDEXX as a partner to be able to help them get those practices off to a strong start and it’s been an area of focus for us. So overall, I think our commercial agenda continues to advance nicely. Obviously, we’re pretty transparent in terms of placements, new and competitive and how we’re doing on that front, both within the US and internationally and we’re doing well.
Erin Wright: Okay. And then how inVue kind of fits into that strategy as well? I guess initially is the focus on existing customers or swapping out competitor equipment where you have exclusive contracts? Or can you remind us kind of on the timing too of the fine needle aspiration and that seems to be where we’re getting some of the earlier feedback and is that sort of 2025? Or how do we think about the time line there? Thanks.
Jay Mazelsky: Yes. So a couple of questions there. The inVue were from a focused standpoint, obviously, the IDEXX customers who already enjoy our VetLab suite, our obvious customers from a targeting or focus standpoint. We know it will fit right in with their workflow and already partnership they have with IDEXX. We saw that, by the way, we saw that with SediVue, where the mix of SediVue sales, at least initially, we’re more focused on existing IDEXX customers. So it was a great entree into competitive accounts and opportunity to give us a fresh look, which then we leverage down the road with chemistry and hematology and other solutions. In terms of fine needle aspirate all we’ve said at this point is it’s next. We’re working hard at it.
We know customers are very enthusiastic about fine needle aspirate and the ability to really expand a set of cancer diagnostics, which is important to their clients and great practice of medicine. And we’ll talk more about that as we get closer.
Operator: We’ll go next to Jon Block with Stifel.
Jonathan Block: Thanks, guys. Good morning. I don’t think really a shocker that I’m also going to try to hit on visits and just sort of need to because your stock is largely tethered to seeming with the data. For visits, you mentioned macro capacity constraints weighing on the overall vet visits. And some of our checks seem to tease out, call it, like a higher sensitivity from the pet owner. You’re taking price and in many cases that, that might be marking up 2, 3, 4x somewhere in there. So I’m just curious, anecdotally, are you identifying more sensitivity on the pet owner sticker shock? Just sort of a broader question. Did this industry overstep a bit on price over the past couple of years? And if so, Brian, do we think about your price getting back to that, I think it’s 3% on your LRP call it sooner rather than later?
Jay Mazelsky: Yes. Let me — Jon I’ll take that. Good morning. The — we obviously don’t control in pricing to the pet owner that’s up to practices and veterinarians. A lot of things factor into that. They’re investing in their staff. We think that’s a good thing when they retain their staff and really upscale the folks who are supporting pet owners, that’s a long-term driver and a point of stability within practices. And I think coming out of the pandemic, that was a real challenge for them. We continue to get back to when we have conversations with practices and customers, they’re optimistic. They see some of the challenges around capacity alleviating over time. They continue to invest heavily in the business. With technology, we think pricing — their pricing helps them do that.
From our standpoint, we always, from a pricing standpoint look to maintain a good equilibrium of value for what we deliver. We continue to provide parameters and biomarkers like Cystoisospora, Cystatin B no additional charge. So those are included in existing panels that obviously help them on the value end of the equation. But we acknowledge that the cumulative macro impacts at the margin may be affecting some pet owners.
Brian McKeon: Yes. And Jon, just to reinforce Jay’s point, I think we align our pricing with the value we’re delivering and the underlying inflationary dynamics that we’re seeing. And we’ll continue to factor that in. And our outlook is consistent with what we shared earlier for 2024, which is approximately 5% net price realization globally.
