Operator: The next question comes from Joseph Downing from Piper Sandler.
Joseph Downing: Sorry. I was on mute there. Hey Linda and Tom. How is it going? Appreciate you taking the question. I’m picking up off the first question there. So congrats on the 510-K clearance. Can you just talk through how you’re thinking about the uptick and the 50 ML once it’s launched next year? Wondering does it track with the prefilled uptick trajectory we’ve seen? Or does it move faster or slower for some reason?
Linda Tharby: Yes, so we think it will move much faster. Today, if I were to look at the total PID or the total patient population out there, about 30% of those are on doses of 20 ml, and lighter, and about 70% are on doses of 50, ml and greater. So what that allows for is obviously with the 50 ML, it opens up that 70% of the market that we could not reach before. In addition, what we had in the past is patients that were between, let’s say 20 ML and 50 ML or more than 50 ML that nurses were just reluctant, because they had to use both vials and prefill to switch a patient. So patients might have to use a prefilled syringe and vial in the past. And now with this approval, they can satisfy a lot more of the market. So they’re more able to switch patients.
So we see where we saw the market basically get to about 12% penetration and then kind of stabilized there, we see the 50 ML really being able to go after 70% of that market. So a much faster uptick than what we thought with 20 ML.
Joseph Downing: Okay, thanks. And then I’m curious, any margin implications we should have in mind as that long shots unfold.
Linda Tharby: Yes, so the, of course, with being the only pump out there for use with prefills, we are certainly looking to take price wherever we can. But we’re also conscious that the real game is consumable. And so connecting a specific consumable to that prefilled product is also what we’re looking to do with this launch. So we should see some appreciation in our overall ASP as well related to prefills.
Joseph Downing: Great, thanks, Linda. And then just one on the US market dynamics. So curious, what’s changed in the last few months has led to such a shift in outlook here, and how does this influence revenue growth assumptions embedded in your long term plans?
Linda Tharby: So I would say, why did we come down? We really expected that with the drug market. We saw a little bit of an uptick between Q1 and Q2. We expected that continued uptick. And we thought we’d see a couple of points of growth quarter on quarter on quarter. And that just has not happened. It’s been a little bit of a slower uptick than what we thought. And again, I’ll come back to we’re seeing what gets diagnosis going is increased infections, we’re seeing, we saw a very strong flu season last year, pneumococcal infections are at pre-pandemic levels. So although I hate to say it when people get sick, we see more diagnosis, which is fantastic. And I’m sorry, the second part of your question.
Joseph Downing: Yes, just how that outlook, just about the revenue growth assumptions embedded in your longer term plans for 2024 and I guess into ‘26.
Linda Tharby: So as I said, our revenue, sorry, our market growth assumptions are in that 3% to 4% range in the fourth quarter of this year, we would expect next year we’re setting the overall market growth somewhere in that 5% to 6% growth range for the overall market. We’re not yet discussing our ‘24 guidance numbers. But obviously, let’s hope for a strong Q4 and the overall underlying market, we’re beginning to as I said earlier, from one of the earlier questions to see signs of that recovery, relative to both script, script declined flattening out, and also seeing some rise quarter-on-quarter in overall drug market growth.
Operator: The next question comes from Frank Takkinen from Lake Street Capital.
