Matt Taylor: Okay great, thank you very much.
Stephanie Bolton: Thank you.
Bill Cozy: Thank you, Matt.
Operator: Thank you. Our next question comes from Mike Matson of Needham & Company. Your line is now open. Please go ahead.
Mike Matson: Yes, thanks, I guess just you know good to see the strong growth in ACS. So, you know, is that, do you think that’s back to kind of steady strong double-digit growth now?
Bill Cozy: Well, we continue to keep our eyes on that. When we had — let me give you just a little bit of color on the ACS side. I mentioned just briefly that we had some case volume benefit. In fairness, we had a couple of other smaller tailwind events that happened in the quarter. And that related to some backorder clearance, a few minor catch-ups in purchases in Europe, and a one-time adjustment in service revenue. And so it was the combination of those three things that kind of elevated that year-on-year growth for ACS. We’re maintaining, kind of, our full-year guidance, continuing to work closely with our ACS leadership team to look at how we can further grow and improve profitability in the year ahead. But our guidance remains pretty much what we mentioned to you last time.
Mike Matson: Okay, thanks. And then just as far as OSPREY goes, you know, good to hear that you’ve got all the sites up and running. You can use any sort of update on where enrollment is and what your expectation is in terms of when the data could be released. Is it possible? We could see in ‘24, is there really going to be more ‘25?
Bill Cozy: Yes, I’m going flip that one right to Matt.
Matthew Dodds: Sure, thanks Mike. So OSPREY, as Bill said, was on track. You know, we’ve talked about getting the enrollment completed in 24, six months follow-up. To your point, you know, it looks right now like kind of late ‘24, early ‘25, we’d get the data, you know, a little bit of time to analyze it and that’s why we’ve talked about a filing in ‘25.
Mike Matson: Okay, got it. Thank you.
Operator: Thank you. Our next question comes from Anthony Petrone of Mizuho Group. The line is now open. Please go ahead.
Anthony Petrone: Thanks. Maybe one on epilepsy and then I’ll ask a little bit about margins. Maybe just a little bit more on end of service. I know the company is actually tracking those patients. Just wondering where you guys are in terms of how many patients are still in the queue for end-of-service, and would assume that most of those would be, if they choose to upgrade, they would upgrade at SenTiva? And then I’ll have a follow-up on margins.
Bill Cozy: Hey, thanks, Anthony. I’m going to flip that one over to Steph.
Stephanie Bolton: Sure. Hi, Anthony. Nice to speak to you. So each quarter, we have an overview of our identification for both end-of-service and MPI. And I continue to be encouraged by what that looks like. And for sure, you’re absolutely right. The end-of-service patients that we have coming through now are opting to move to our SenTiva platform. So again, we’re seeing incremental improvement. And that’s the piece that you see around the mix and the change. So that’s with end-of-service patients opting to move to our latest platform.
Anthony Petrone: And again, in terms of the tailwind, I mean, is — can that last all the way through 2024 into ‘25? Or are you ending the end of the queue there on end-of-service? And then just quickly on margins, just to recap on the amount of R&D spend on recover and then under a scenario where you don’t get an ideal readout there I’m wondering will those R&D dollars be redeployed elsewhere in the business or would you let those fall to the bottom line? Thanks again. Congrats on a good quarter here.
Stephanie Bolton: I think what I’d like to say in terms of end-of-service, we keep updating our models every single quarter. So we should have more information on that towards the beginning part of next year. Due to the fact that a number of our patients are opting for SenTiva, and we launched in 2017, so we’re starting to see the first replacements of those, we’ll continue to see a slightly higher end-of-service identification, because of that reason. But we’ll keep you updated with that.
Alex Shvartsburg: And Anthony, on depression, the RECOVER study burn is approximately, call it $30 million on an annual basis. And so, you know, to answer your question about how do we think about capital deployment for next year, again, as I said, you know, we’ll update you guys, you know, early in 2024 about how we’re thinking about our budget and guidance for next year. Obviously, there’s multiple scenarios as they relate to depression.
Bill Cozy : But that depression will be fully funded throughout 2024 unless we get some kind of unexpected news in June of 2024.
Anthony Petrone: Correct. Thank you.
Bill Cozy: Hey, thanks for the question.
Operator: Thank you. Our next question comes from Matt Miksic of Barclays. Your line is now open. Please go ahead.
Matt Miksic: Thanks so much. Can you hear me okay? A – Bill Cozy We can. Good morning.
Matt Miksic: Great. Terrific. Good morning. Thanks and congrats on the quarter.
Bill Cozy: Hey, thanks.
Matt Miksic: So yes, just one question following up on some of the work that you’re doing with the — in the epilepsy business. I guess maybe Stephanie or the team. Is this something that, given the new implants in a quarter, seemed like they maybe dipped a bit? You said it was in line with your expectations. Just to get us a sense of the cadence for the year and how we should think about Q4 and how you’re entering ‘24, is that something we should expect to kind of sequentially improve or is there another quarter or two of internalizing some of the new programs and a pipeline concept that would put the improvement in trench into ‘24, then I had one follow-up.
Stephanie Bolton: Yes, hi Matt. So as I look specifically at Q3, and the reason why I say I continue to be encouraged by that sort of consistent execution is when we look back towards Q2, we had a 13% increase in our MPI for that quarter. So it is entirely in line with my expectation that we saw what we did in Q3. In fact, because I was — I continued to be encouraged due to the fact that we didn’t see a dip. Now, When we look towards the fourth quarter, I’ll refer you back to the original full-year guidance that we gave in terms of mid-single-digit for MPI and end-of-service. So we anticipate a normal run rate for the fourth quarter.
