Arpa Garay: Great. Thank you for the question. So, we do anticipate that our combination vaccine will take a substantial share of the monotherapy vaccines that are available. We have seen in the pediatric vaccine market that upon availability of combinations, you see very strong uptake and conversion from monos to combinations, and we expect a similar trend in the adult market. From our market research, we have heard consistently from consumers that they prefer one shot over multiple shots. From a customer perspective, we are hearing, as Stéphane had mentioned, just with workload issues, one shot saves a lot of time and also helps them to get more patients protective. And from a broader healthcare system and government and payer perspective, we are hearing an increased need to help get greater uptake and compliance in adult vaccinations.
And our healthcare authorities believe that combinations can help actually boost the vaccination rate. So, we are very excited about our combination products in the future and think this could really be an inflection point for our mandatory vaccines.
Stéphane Bancel: Yes, it’s Stéphane. Just to add to Arpa’s comments, during COVID, we’ve been discussing to a lot of — with healthcare ministers, and the topic of vaccination combination has come a lot. And as you think, especially outside the U.S., where you have a lot of [indiscernible] taking care of people from birth to death, basically, we are very, very interested in combinations. Because they know that if a participant of a country got the vaccine, they got protection against several viruses which prevent hospitalization. As you know, we’ve done partnership with some countries like the UK, Canada, and Australia. And through those negotiations, the concept of combination was critical in their decision-making. Because as they see their population getting older, they worry that the number of hospitalizations will just go up over time and the ability to prevent that when you see shortages of healthcare workers and as you project those shortages in the future is a key determination of a decision.
So, I only think in integrated healthcare system, the drive the [good combo] (ph) will move even faster than actually in commercial markets like the U.S. market.
Jamey Mock: And, Hartaj, maybe I’ll take the cost of sales question. Thank you for it. So this provides a substantial margin expansion opportunity. So, if you think about it, our cost of sales, the smallest portion is our drug substance, so it’s our actual mMRA, and that’s a very small portion of our overall cost of sales. Everything from drug product in terms of the cost to finish the product and the presentation type, whether it’s PFS or a vial or whatever, that now gets cut in half. So, when we sell two, it’s a very limited amount of cost increase versus a single presentation. So, it does provide a significant margin expansion opportunity. So, thank you for the question.
Hartaj Singh: Thank you all.
Operator: Our next question comes from Evan Wang with Guggenheim Securities. Your line is open.
Evan Wang: Hey guys, thanks for taking the question. Appreciate you guys sharing early thoughts on ’24 and beyond. For ’24 specifically, you talked about some of the contribution from COVID and RSV in terms of split. It sounds like you plan to hit the ground running there in RSV. With international, how are you thinking about the longer-term contribution from COVID as competitor agreements expire? And with flu, with the comments on [marketing] (ph) ’25, wondering if you’ve had any recent conversations with the regulators there in terms of potential approval. Thanks.
Arpa Garay: Thank you for the question. In terms of our expectations in 2024, we have put about $1 billion across international COVID and RSV. We do anticipate a strong launch in the second half of the year with RSV. And on the international side for COVID, we are continuing to pursue multiple options across a number of countries. In Japan, we will be in a fully commercial market, is our expectation, where we will be competing for the Japanese business. In the EU, we continue to work with countries on agreements to secure our COVID-19 vaccine. As publicly disclosed, the EU has renegotiated their contract with Pfizer earlier this year. So, the EU demand has been substantially satisfied in many markets, but we are hearing from individual member states that they are looking for a second supplier for vaccines.
And we are in those discussions right now, both at a country level, but also at a European Commission level to see if a joint procurement agreement can be established in 2024.
Stephen Hoge: And thank you for the flu question. So, as you referenced, we had really strong data out of our P303 Phase 3 study for flu that we released at R&D Day. We’re excited about that. We are engaging right now with multiple regulators about the pathway to licensure. I don’t have an update about all those conversations because they’re happening as we speak, but we will, once we have clarity across all markets on the pathway licensure, provide an update.
Operator: Thank you. Ladies and gentlemen, this does conclude the Q&A portion of today’s conference — end of the call itself. You may now disconnect, and have a wonderful day.
