Robbie Marcus: Yeah. Great. Thank you. Maybe just one more on margins. Margin expansion or the upside in the quarter came from gross margin. SG&A, I know you had some reductions in the head count. So as we just try and think about operating margins for this year and going forward, how should we think about how much more there is to come out of SG&A and how much more upside there is in gross margin moving back towards where we were pre-COVID? Thanks a lot.
Karen Parkhill: Yeah. Thanks for the question, Robbie. Clearly, we’re focused on driving margin expansion and ultimately on the gross margin getting back to pre-COVID levels over time. We saw improved margins this quarter, and we’re increasing our full year guidance on gross margin expectations given some of that outperformance. But in Q1, we did have some better-than-expected currency and pricing. And some of that was due to timing with some provincial tenders in China being delayed a bit and some of the FX improvement that we saw this quarter, we expect to — FX to impact us a little bit more in the back half of the year. So as we think about margins, we are making investments in our global operations and supply chain to drive cost out of the organization.
And I mentioned a couple of examples where we’re consolidating our suppliers and focused on improvements in our manufacturing operations to drive continued improvement. And over time, we’re focused on stabilizing and improving our margins. And so that will continue to impact us on the operating margin line. And on SG&A, as you mentioned, we’re focused on continuing to drive leverage in our SG&A line, as you’ve seen us do for a long period of time.
Ryan Weispfenning: Okay. Thank you, Robbie. We’ll take the next question please, Brad.
Brad Welnick: The next question comes from Larry Biegelsen at Wells Fargo Securities. Larry, please go ahead.
Larry Biegelsen: Good morning. Thanks for taking the question. I guess two for Sean, given the upcoming events here with the Symplicity adcom and then the Affera pulse data this weekend. Sean, how are you feeling about the Simplicity panel tomorrow? And if we see a positive recommendation, help us think about timelines for approval and the ramp in the US for renal denervation. And second, we’re going to see the Affera pulse data this weekend as well. You guys are growing mid-single digits, looks like a little bit below the market right now. What should we be looking for in the Affera pulse data? And how are you feeling about being able to grow your AFib business at or above the market going forward? Thank you.
Sean Salmon: Thanks for the question, Larry. So I guess starting with the adcom panel. Obviously, we’ve been very confident about the prospects of US approval, and we’re exclusively well prepared for that panel. I’m not going to handicap the timing, but typically, it’s three to four months post panel recommendation, you tend to see things. Let’s say, an approval in the second half of fiscal year ’24 is certainly in order with that kind of timing. And the ramp itself, of course, is going to be dictated by the pace of reimbursement and we’re well prepared on that front as well. As far as our pulse field ablation, we’re looking forward to seeing the results like everyone else’s. This is a randomized trial, as you know. So that comparative efficacy compared to both cryo and RF ablation for the populations being studied and will be of interest to us.
And I think our distinction really in pulse field is that we are the only player that has both a focal solution as well as an anatomic solution in the bag. The anatomic solution or single-shot market is about 15% of the market. And the other 85% is what the point-by-point ablation will bring to us. So certainly very confident in both technologies, both the PulseSelect and Affera mapping and Sphere-9 catheter system, which is very different than everything else that’s out there, and we look forward to bringing those to customers all around the world.
Larry Biegelsen: All right. Thank you.
Ryan Weispfenning: Thanks, Larry. Next question please, Brad.
Brad Welnick: The next question comes from Danielle Antalffy at UBS. Danielle, please go ahead.
Danielle Antalffy: Hey, good morning, everyone. Thanks so much for taking the question. And congrats, this was quite a good quarter. Just a quick question on GLP-1s, Geoff. I know this is probably an annoying question for you, but this is something that’s been impacting the market broadly. And just curious, you guys touched on many, many areas within medical devices. How are you guys thinking about the impact of GLP-1s over the next — I would say even a few years, but maybe let’s focus on more the next year as these drugs get more readily adopted.
Geoff Martha: Sure. Thanks, Danielle, for the comments and the question. And yeah, it is interesting. First of all, I’d say it’s an important class of drugs and like you were monitoring to see how the GLP-1 therapy is being adopted. That said, our initial work indicates minimal impact to our business. When you — bariatric — the one area we’ve seen some modest impact is bariatric, but this is really a small impact and this is a relatively small part of our Surgery business. And we are hearing from — the work we do is our internal analysis plus dialogue that we’re having with physicians around the world. We actually operate obesity clinics in Europe as well. And they’re talking about, longer term, this could actually bring in the bariatric space more patients into the funnel.
Short term, we’ve seen some impact, again, modest and bariatric is a relatively small part of our surgery business. Longer term, we’ll see how it plays out. There’s a bit of optimism there though. No impact in Type 1 diabetes, which is the vast majority of our Diabetes business. And this is overall, I just don’t see GLP-1s having a material impact on our business and medical device therapies at large. That’s what our work is showing us at this point.
Danielle Antalffy: And then I guess just one quick follow-up to that, thinking about, again, the diabetes business. Type 2 is a big growth area. You guys have an AID pen. So what are your thoughts specifically on the Type 2 diabetes side of things? Thanks so much.
Geoff Martha: Thanks. Look, I think this is AID for insulin-dependent patients, whether they’re Type 2 or Type 1 is pretty under-penetrated. And we see way more upside there than headwinds.
Ryan Weispfenning: Thanks, Danielle. We’ll take the next question please, Brad.
Brad Welnick: The next question comes from Travis Steed at Bank of America. Travis, please go ahead.
Travis Steed: Hey, congrats on a good quarter. I guess I’ll ask about TAVR, double-digit growth this quarter. And curious how much success you’ve had with the new valve versus the five-year data. I know your competitor is going to have five-year data pretty soon. And then the 21% Japan growth really stood out. Just curious if that’s sustainable or that was more of a one-off in the quarter?
