Brandon Couillard: Carrie, in terms of the restructuring, 11% headcount reduction in nonproduction areas, were any of those positions — I mean, should we think about those as mostly non-revenue-generating positions? And when you consolidate molecular and diagnostics together, will that change how you report the segment revenues externally? And lastly, the $50 million savings, should we think about that as a gross or net number? And I think you kind of mentioned some desire to maybe reinvest some of that in growth. Is that more of a ’24 investments or should we see that sooner?
Carrie Manner: Brandon, I’m going to let Ken start on the segment reporting, and then I’ll hit the restructuring piece.
Kenneth McGrath: Yes, Brandon, we are planning on starting in Q1 of 2023, to change our reporting to one segment, recognizing the changes that we’ve made in the organization structure and how we run the business as we go forward. As far as the cost savings, the $15 million annualized cost savings that we quoted, the way to think of it is, coupled with the cash that we’ve generated from InteliSwab and are generating from InteliSwab, and then layering on the cost savings. What we are doing is building up a cash base to then further invest in the business, whether it’s organic investments or inorganic. Obviously, we can’t talk about any specific examples on this call, but that’s the approach that we’re taking is, deliver on InteliSwab, build up that cash base and then get — become more efficient with the core business and use that savings then to reinvest in the business going forward.
And again, that reinvestment will be organic areas as well as inorganic, depending on the best opportunities. Carrie, do you want to add…
Carrie Manner: And I’d say focusing on strategic partnerships where those make sense now, we’ve talked about that from the beginning, and you will see us increasingly focusing on delivering growth through strategic partnership. On the restructuring, very clearly, we have restructured to generate growth, so as to not impact that moving forward. And I’d say when you look at the cost cutting, it started with simplification, really focused around consolidating functions across the enterprise. We’re too small a business to have sort of these distinct business units. And so eliminating redundant management positions, focusing on value creation opportunities. But that consolidation of functions for a business our size, just really makes a lot of sense.
And so it’s — now that we have done a lot of the work on strengthening the foundation, it really is about elevating our core growth. And I’d just reiterate that, innovation internally plus strategic partnerships as we rebuild our cash base to be even stronger.
Kenneth McGrath: And Carrie, as you mentioned, coupled with the restructuring, there’s also a focus on process improvements within the organization to help drive our efficiency as we go forward.
Brandon Couillard: Got it. Okay. And then on InteliSwab, do you think you could give us a feel for the magnitude of the sequential gross margin improvement you may have seen just for that product? And what is the $0.40 of savings from the new packaging mean to the gross margin profile of that product?
Kenneth McGrath: I don’t think we’ve given that level of detail out in our numbers. But I’ll tell you how to think about it, right? So right now, I think we mentioned there was 46 million tests delivered through December of last year, and about 64 or-so million tests remaining going forward on the 3 contracts that we have. Now one element is, some of those contracts have lower price points than the original contract. So that’s one headwind. However, to your point, as we offset that, you can think of the $0.40 per test being implemented by the end of this quarter. And then based on the remaining volume of those tests, it’s a simple math there. Scott, I think that’s about what we’ve said publicly, correct?
