Operator: Our next question comes from Chris Schott from JPMorgan. Chris, your line is open.
Chris Schott: Great. Thanks very much. I think you mentioned that you are looking to review share repo and it does seem like maybe, Rob, some of your recent business development commentary has been skewed towards smaller deals or collaboration. So can you just put into context what you view as an appropriate level of leverage for Merck and should we be thinking about kind of the cash generation beyond that level as maybe going towards repo going forward? And I just have really quick second one, just help me on FX. I think you are talking about a 2% headwind, most of your peers aren’t seeing much given the recent weakening of the dollar. Are there any currencies that stand out we should be keeping in mind there? Thanks so much.
Caroline Litchfield: Yeah. Chris, this is Caroline. First to talk to share repurchase, as we have stated previously, it’s our goal as a company to deploy our cash, first and foremost, behind the business opportunities we have within the company, as well as augment that with business development. We have turned on the share repurchase program, given the strength of our business and our balance sheet, but we will be ensuring we have ample capacity to pursue business development, which is the highest priority and is a better generator of growth and value creation. We have a portfolio of BD that we are reviewing and we will continue to do some test have news that we will be sharing in future. So priority remains really investing in the business, but to the extent, there is excess cash, we will return that to shareholders through the share buyback.
We will maintain an appropriate leverage for our company. We are very comfortable operating at the credit rating we are at and we would expect to sustain that kind of level as we go forward. From a foreign exchange perspective, in 2022, we were extremely successful as a company in blunting the impact of foreign exchange with our revenue hedging program. The underlying impact of foreign exchange to our business in 2022 was approximately 6% on the topline, 10% on the bottomline, but with our expected hedging program, which brought revenue on the other revenue line of approximately $800 million that blunted the impact to 4% on the top and 4% on the bottom. As you rightly note, as we look at 2023, we expect the underlying impact of foreign exchange to be around 1 percentage point on the top and the bottomline.
What is impacting the guidance that we have given is we obviously don’t expect as significant hedge gains in 2023, which means that the overall impact from foreign exchange year-over-year is expected to be 2% on the top and 4% on the bottom.
Rob Davis: Great. Thank you, Chris. Next question please, Kelly.
Operator: Our next question comes from Terence Flynn from Morgan Stanley. Terence, your line is open.
Terence Flynn: Great. Thanks so much for taking the question. I know you guys typically don’t give product level guidance, Caroline. But I was wondering if you can speak at a high level about your Vaccine franchise this year. Obviously, you have new capacity coming on for GARDASIL, but you also talked about the pediatric opportunity for VAXNEUVANCE. So just wondering how we should think about those this year. And then one follow-up for Dean on sotatercept, I know you are talking to the FDA now. Are you still confident that, that single trial will be sufficient for approval or is there a possibility you could need data from the other ongoing studies? Thank you.
