Drew Hykes: Yeah. So no update other than we are continuing to cooperate, and we’ve not seen any impact commercially from the investigation from the CID, nor do we anticipate seeing any impact commercially. So we’re continuing to cooperate, but I think to your point, if you look at the precedent examples here, this is likely a process that’s going to be measured in quarters and quarters, if not years.
Operator: The next question comes from Bill Plovanic with Canaccord. Please go ahead.
William Plovanic: Yeah, great. Thanks, and thanks for taking my questions. I’d like to kind of shift the topic to LimFlow. Just help us understand, how do you think about commercialization? When do you go beyond trial centers? How does NTAP going into effect in October at the proposed rate? How would that impact your commercial strategy, and kind of how much of a contribution was it to the quarter?
Drew Hykes: Yeah, great. Thanks for all those, Bill. I’ll try and remember each of them. I think, in general, so far so good with LimFlow. We feel really good, first and foremost, on the work that we’ve completed on the integration. We’re well over half of the way completed with the integration. We’ve wrestled to the ground some of the most complicated parts of that process and feel really good about the progress we’ve made in integrating LimFlow into Inari. We’ve got the team now defined and established, and we feel good about the remaining work ahead to complete the integration. On the commercial side, we’re also seeing some really nice initial traction with LimFlow. As you’ve heard us describe in the past, this is a year focused on foundation building as opposed to significant revenue contributions.
We’re focused on training and in-servicing, on navigating back approvals, on strengthening and stabilizing the supply chain, on getting the NTAP established. And we hit an important milestone recently with CMS including the NTAP in their proposed rule. Every expectation we have is that that will come online as anticipated in October and will provide up to $16,000 in incremental reimbursement. That will certainly support a broader economic value proposition for LimFlow and will certainly be a key part of the foundation that we’re going to build off of as we move into 2025. I think that’s the timeframe for us really beginning to flex the commercial effort on LimFlow and really begin to ramp with significant expansion in accounts and cases that go along with it.
Last point I’d make, keep in mind this is going to be a more focused commercial effort than what we’ve had to undertake in VTE, focused on a smaller number of sites and as a result a much more narrowly scoped commercial infrastructure that we’re going to need to build to service these patients compared to what we’ve had to undertake in VTE.
William Plovanic: And then if I could, I know the commentary on the guidance for especially the direction on Q2 of flat to up. Looking back, you haven’t been flat to up since COVID in 2020. Is there something specifically you’re seeing that you’re concerned about? Is there anything changes in pricing? Is there any changes in any part of your business? Was there a lot of stocking internationally? I’m just kind of curious of the conservatism and given the strength of the quarter and the guide for the year, but the second quarter, that’s not a historical pattern for you. Thanks for taking my questions.
Drew Hykes: Sure, Bill. I can get started on that. Mitch may want to pile on as well. As you heard Mitch describe, we have seen some seasonality in Q2 the last couple years. We’re not sure we fully understand all the dynamics at play, but there appears to be some underlying seasonality to the incidence of VTE in Q2. If you go back in time, we’ve certainly been transparent about talking about that in previous years. We wanted to be thoughtful about that dynamic as we signal the cadence of revenue build for the remaining three quarters here in 2024. There’s nothing else at play other than that consideration. I think as you look into Q3 and Q4, we do see some really nice catalysts shaping up across all three different parts of the business that we believe are going to lead to an acceleration as we exit the second half of the year.
Mitch Hill: Bill, just to quickly add, even a flat quarter in Q2 would be 20%-plus growth year-over-year. So we’re pleased that continues to be consistent in reinforcing of the guide for the year as a whole, which with our revised numbers is 20% to 22%.
Operator: The next question comes from Chris Pasquale with Nephron Research. Please go ahead.
Chris Pasquale: Thanks for taking the questions. I wanted to start with emerging therapies. I was hoping you could talk a little bit about the VenaCore product, what that adds to that business, and how it differs from the use case for RevCore.
Tom Tu: Thanks for the question, Chris. This is Tom here. So very excited about VenaCore. It is the second element in our purpose-built toolkit for chronic venous disease. This is a very large population with unmet need whose standard-of-care right now is really just compression stockings and watchful waiting. We’re really excited about the performance of this product in its early limited market release. And as always, we’ll have a lot more to share about the product and the go-to-market strategy once we move into full market release, which will be in Q3.
Chris Pasquale: Okay. I guess we’ll wait for details then. And then, Mitch, just a detail on the income statement. There was a large tax provision this quarter. Was that a cash charge? Was that part of the burn here in 1Q? And what was the reason for that?
Mitch Hill: Yeah. The cash burn issue, Chris, is more a function of working capital changes. If you look at the cash flow statement, you’ll see some increase in our accounts receivable and some increase in inventories. So that was really more what was going on there. The tax expense item wasn’t a current cash issue, but it is reflective of the fact that the U.S. business is something that is — I think as I’ve said before the U.S. business at this point is profitable and growing. And what comes along with that, unfortunately, is taxes. So we’re dealing with it, and we’re doing our best to sort of plan for those. But that wasn’t a current cash issue for us in Q1.
Operator: The next question comes from David Rescott with Baird. Please go ahead.
David Rescott: Great. Thanks. Hi, guys, and congrats to the strong start to the year. Thanks for taking the questions. Mitch, I wanted to follow up on some of your comments about the second half of the strong performance in the back half of the year. I’m just trying to reconcile if you said whether or not there’s acceleration in the back half. And when we specifically look at this, and the U.S. VTE number, I’m kind of getting to up mid-teens in Q1, or so a little bit above mid-teens. Does that number kind of hold steady into the back half, or is more of the better guide of stronger growth in the back half more based on emerging therapies and the international segment?
