Anthony Petrone: That’s helpful. And then just one quick one and I’ll get back in queue, just the phasing of that, is it gradual or are there certain sort of features of that wind down that can happen sooner or should we just be thinking this is all back-end loaded, just in terms of phasing it out through calendar 2024? Thanks again.
William Cozy: It’s going to be — it’s going to be — it’s not fully back end loaded, but it’s going to happen in the last three quarters of the year.
Anthony Petrone: Thanks again.
William Cozy: Sure.
Operator: Our next question comes from Michael Polark with Wolfe. Please go ahead.
Michael Polark: Hey, good morning. Question on the cardiopulmonary guidance for 2024, 6% to 7% growth. Can you confirm Alex is that — that’s apples to apples, it has no benefit from the cannula and accessories from ACS?
Alex Shvartsburg: That’s correct, Mike. The cannula business, we will recast all the results at the end of Q1. So we’ll have apples to apples comparisons. This guide is assuming an apples to apples comparison, the growth profile of that line of products is roughly the same as the broader cardiopulmonary portfolio. So from a growth perspective, it’s apples to apples.
Michael Polark: And ACS was 40 million last year, if I look at how you guided did this year, it kind of implies 20 million of ACS is being exited, the 2% give or take. Does that mean the cannula and accessories in total on a full year basis last year was about 20 million?
Alex Shvartsburg: It’s I’ll — give you the exact number, it’s 15 million.
Michael Polark: Okay. Okay. I think that was my first topic. The second is just this. The step up in CAPEX, I heard critical investments in innovation, growth infrastructure, those are fairly generic terms. What exactly does it mean, it sounds like oxygenator capacity definitely, is there anything else and I’m thinking specifically about depression and/or sleep readiness investments? Thanks for taking the questions.
William Cozy: Hey, Mike, it’s Bill. Let me grab that one. You hit the first one perfectly. Yes, it’s oxy capacity and significant planning going on right now and particularly in the main facility in [indiscernible] to address that. Additionally, we already had some commitment to improve our IT infrastructure. The event, the cyber event really encouraged us in a very, very serious way okay, to look even more broadly at our systems. So you will see an uptick in our IT investment, as a percent of sales for LivaNova, you will see us moving a couple of basis points north of where we have always operated as we number one, strengthened our security position and number two, modernized a number of targeted systems which were natural entry points for others that were active. Those are high priorities for us.
Alex Shvartsburg: Yeah, I would just add to that Mike, we are really focused on modernizing our ERP systems as well. We had that in kind of our long range, three-year plan. We are also accelerating those efforts into 2024.
Michael Polark: Thank you.
William Cozy: Okay, thanks Mike.
Operator: The next question comes from Matt Taylor with Jeffries. Please go ahead.
Matt Taylor : Hi, thanks for taking the question. I just wanted to clarify on your comments on the depression study. You mentioned that you’ll get the results in June. Are we still going to see the results in June or might we have to wait till July? So that’s the first question. And then I guess just thinking about the different scenarios, can you talk about what you might do in kind of middle of the road or less good scenarios, we know what you’ll do if the trial is successful and build behind that, but what are you going to do if you have kind of a mixed result or a poor result, can we see savings like we’ve seen with heart failure and ACS or what’s the middle of the road scenario mean for spending?
Matthew Dodds: So yeah, so let me start Matt, it’s Matt. So for the timing, as Bill said, we’ll get the data in June. Our plan is to release the top line data, but we still have to get confirmation from other critical parties, including those publishing at CMS before we can confirm that. So worst case, again, as we’ve said, you’ll see it when the publication comes out likely at the end of the year, but the hope is we can release it in a timely manner. In terms of the way to think about the trial, there’s a lot of data points, right. So we talked about the primary endpoint, timely response. There’s multiple other endpoints, multiple other things we’re looking at. CMS cares about several other endpoints. So it’s really hard to say right now, how we can, what we would do with the data until we see it. I don’t know, Bill, if you want to comment on, if the data doesn’t read out in a favorable way at all, if there’s a different path.
William Cozy: Yeah, the only thing we’d add to that, this as everybody knows the whole way that this was a high bar set by CMS and the number of endpoints in a randomized clinical trial of this type, again, confirms the high expectations that were there. We’ve already had Jonathan and his team taking the time to just take a look at scenarios that might depict the data outcome. And of course, you could say well, we’re going to hit every endpoint. And by the way, that’s a possible scenario, but let’s wait and see. You may not hit a couple of those and then you’re into that ambiguity situation, which I think you were starting to get at. That’s the work that we’ve still got to do, but without the data and without some specific direction from CMS, it’s really hard for us to say exactly what’s going to happen because we want to do the work once we’ve seen the data too.
