We saw particular strength on EBP, and we see that continuing this year. So not like we’re on hold and thinking about when are we back to business. That’s perhaps a question we were asking ourselves on the TAS segment, and that we are in the middle of, and we see some sign of green shoots as Elizabeth told us before, or Anne, I think, was the one used that expression, some green shoots on the commercial side to the back end of the year. But on the R&DS side, we are experiencing the pressure, the more difficult environment with respect to pricing and negotiation and so on. We are in those conversations. But no one is saying, I’m going to hold, and I’m not doing anything. Again, the numbers showed numbers of RFPs, the pipeline at an all-time high, the qualified pipeline up strong double-digits and are going across the board.
It’s not like there’s one segment or another. So I would say quite the opposite. I think the number of opportunities, the environment is very fertile in terms of chasing opportunities and responding to request for proposals, we are very, very busy.
David Windley: Okay. So if I could follow up then. To go the next step and ask perhaps what might be the factors that are influencing the disconnect between a high single-digit to double-digit RFP award pace with a below mid-single-digit revenue growth. So I understand part of that is TAS, I’m going to try to head off a little bit in the past. Part of that is TAS. I know that. So, we’ll set that aside. And I know you also attribute some to COVID, but COVID is now small enough that it is like any other big project that you would see come to a conclusion in any given year and ramp transition those people to a new project and ramp that up. So, it would seem that you’re to a point where the backlog growth should be translating to R&DS revenue growth, and there’s a disconnect there. So to what would you attribute that?
Ari Bousbib: Yes. So again, if you take R&DS, it’s not — COVID, it’s not like one project like any other. It’s not the case. We really have a COVID is very specific. It took specific resources, it’s specific projects. And in 2024, it’s coming down by $300 million. That represents a direct headwind to growth of 350 basis points to R&DS growth, 350 basis points. In addition, and this is more of a mix issue I mentioned in my introductory remarks, a number of wins, and we continue to win in the oncology area. We’re happy about that because that’s the fastest-growing therapeutic area, hands down all around. It has been for a while and will continue to be. And we are winning in oncology. The issue with that therapeutic area is that the burn rate is much lower.
It takes time. It’s more difficult to recruit patients. It’s more complex. And therefore, it transfers into revenue slower than anything else. And we have a disproportionate share in that market. Third reason in the mix, we do have — we happen to be, and that’s just a consequence. It’s hard to explain, but some years, we’ve got tailwinds from pass-throughs and some years, we have headwind from pass-throughs. As you know, pass-throughs are — I’m not going to say irrelevant, but they come with no profit. They come with — it’s just an artificial accounting add to our — but the fact our buildup forecast for 2024, pass-throughs will be a headwind to R&DS growth, and that represents 100 basis points approximately of headwind to top line growth of R&DS, again, inclusive of pass-throughs.
So, if you add 350 basis points of headwind from COVID from the step down in COVID and 100 basis points of headwind from the pass-through mix, that’s 450 basis points. So, you’re right. But if you add back this and you normalize our underlying business is growing high single-digits, very high single-digits on the R&DS side. So, I think that’s the reconciliation. You’re right, Dave, you’re smart analysts and you point to the apparent disconnect between the strong growth of our bookings and the reported growth in 2024, which, again, we hope to be out of that in 2025. It certainly bodes well. 2025 should be a sweet year. I don’t want to put actions for 2025 here. We’re barely talking about 2024. But I think based on everything we’re seeing, we should certainly be behind all of those issues.
But thank you Dave, I think that was the last question. Thank you.
David Windley: Thank you.
Operator: This ends our question-and-answer session. Mr. Childs, I turn the call back over to you.
Nicholas Childs: Thank you very much, and thank you, everyone, for joining us today. We look forward to speaking to you again on our first quarter earnings call in April. The team and I will be available the rest of the day to answer any follow-up questions you have. Thank you. Thank you very much.
Operator: This concludes today’s conference call. You may now disconnect.
