So we still have a lot of growth in front of us with TREMFYA, as we do also in ERLEADA, in which we will present data in localized high-risk prostate cancer. We also, you know, we’re also going to be able to present some data of Nipocalimab in Myasthenia Gravis end of this year. So all in all, very good news for our pipeline in 2024 and 2025. Certainly, the entrance of the biosimilars in 2025 in the U.S. is another factor that builds our confidence that we are going to be able to meet the $57 billion. For me the most important thing now is to look forward and to think about the growth profile of our innovative medicine group into the second-half of the decade. We have a number of growth drivers that are already there that I described, but also the strength of our pipeline both in immunology, in oncology, and in neuroscience profiles us as a strong company, as a strong growth profile into the second-half of the decade.
And that’s part of what we will be looking forward to discussing with you in our upcoming enterprise with review, focusing on what is going to be the growth profile in the second-half of the decade.
Operator: Thank you. Next question is coming from Chris Schott from JPMorgan. Your line is now live.
Chris Schott: Great. Thanks so much for the question. Maybe Joe, just a little bit more color on 2024. Appreciate the details you provided. Seems like a year of another healthy top line growth. But can you just give us some directional color on margins next year? I know there are some dis-synergies with Kenvue this year. I was trying to get a sense of how you think about margin progression here as you kind of balance some of these, you know, kind of, the pipeline opportunities and some of these top line growth initiatives versus, kind of, dropping that to the bottom line. So if there’s any directional color, it would be appreciated. Thanks.
Joe Wolk: Yes, sure, Chris. Thanks for the question. So first off, we’re very pleased with the margin progress that we’ve been able to make in 2023. I think we started the year to roughly flat to now improving by 50 basis points. A lot of that has really gone, is it directly attributable to the efforts of many people in the organization, who really took the opportunity to look at our infrastructure as a two segment company versus a three segment company. So dis-synergies that we warned about and talked about early on in the Kenvue separation process really haven’t come to manifest. In fact, as we look out to 2024, we see minimal to almost no impact from dis-synergies from the separation. We are in the process of finalizing our business plans for 2024.
I’d like to get a little bit better assessment of how the clinical development pipeline is shaping up, what the investments are required there. But we’re a larger company. We take the opportunity to look each and every year at efficiencies. So we’re not in a position to give you margin guidance right now, but I would expect that something similar to where we started this year would not be a bad starting point for next year. Again, it’s going depend on the investments that the R&D teams from both MedTech and Innovative Medicines can bring forth, and we’ll obviously look to accelerate bringing some of these great products to patients sooner if we have that opportunity.
Operator: Thank you. Next question is coming from Larry Biegelsen from Wells Fargo. Your line is now live.
Larry Biegelsen: Good morning. Thanks for taking the question. Joe, just — could you just clarify what you meant by flat procedures in ‘24 MedTech? Are you assuming, does that mean flat MedTech growth? And just for my question, can you talk about what you’re seeing with bariatrics, if for GLP-1s this is, and how you’re thinking about the potential impact of GLP-1s across your device business, you know, long-term, you know, especially in Cardio and Ortho. Thank you.
Joe Wolk: So I’ll give the second half of that question to Joaquin, but thanks for the clarifying question with respect to market growth. We are not suggesting flat market, or a flat market in MedTech next year. What we do is, are foreseeing right now, based on what we know today, is the elevated levels, the market overall being 5% to 7% versus what traditionally has been maybe 4% to 6%. We see that same 5% to 7% next year. Joaquin?
Joaquin Duato: Thank you, and thank you Larry. And taking a step back, we see the evolution of our MedTech business in a very positive way. One of our key goals for us is to be a top tier grower in MedTech. When I look at the results of MedTech this year, we are delivering on that. Our growth in the quarter pro forma was 6.4% when you compare with Abiomed as a standalone company. And when you look at our pro forma growth year-to-date in MedTech is 7.9%. So very pleased with the performance of our MedTech business. And we have expectations to continue our progression into 2024, in part fueled by the procedural growth that we see and also, but our continued improvement in our execution and the launch of new products. Some of them we can discuss later.
For example, you know, we will be launching our first PFA catheter in Europe into 2024. When it comes to GLP-1s, it’s good for patients to have new options for treatment, especially in obesity, which at times has been a stigmatized disease in which patients were not looking for treatment due to the stigmatization of that. Certainly, as you commented, we’re seeing some impact in our bariatric business in the short-term. Some patients are reconsidering surgery, expecting to get treatment. But overall, when we talk to surgeons, bariatric surgeons, what they see is a complementary role of surgery and GLP-1s, and many of them comment on the fact that they could see a tailwind for bariatric surgery down the road, given this complementary nature, the increased awareness about obesity, more patients seeking treatment, and many of the patients, about 30% of them, are not going to be tolerating this medication.
