David Bailey: I think every major children’s hospital in the United States is a customer of ours. And then there’s some additional places that aren’t freestanding children’s, but have pediatric orthopedic surgeon more in a community setting. So, about 1400 or so surgeons. I can’t substantiate this exactly. But I would argue that there’s very, very few of those surgeons that don’t have some type of association with one of our products, where they’re using at least one of our 46 implant systems. I think the challenge for us, and I think it’s been the secret to our growth here and this consistent kind of drumbeat of 20%, has been that we are getting deeper penetration with existing people who have a solid relationship with OrthoPediatrics.
And so, moving a customer who may use one or two of our systems to four or five of our systems, or 10 or 12 of our systems, or somebody who’s using 25 of them to 35 of our system, so that’s generally the strategy here. And I think that applies also outside of the United States, particularly in developed markets in Europe where customers are generally accessing or using at least one of our products. We have that relationship and we’re just expanding that relationship. But, again, Mike, we have still fairly low share of total. We think we’re in the very early innings of this end, T&D and Scoliosis probably in the mid-teens kind of share. And so, we got a long way to go to be able to get more and more of these customers using more of our products and we think we’ve got a long growth runway there for the next several years.
Michael Matson: You mentioned international markets, emerging markets, so I wanted to ask, can you just remind us what you’re doing in some of the emerging markets like China, Brazil, et cetera? Are you in any of those markets right now? Is there an opportunity if you’re not in any of them?
David Bailey: We have a strong business in Brazil. Certainly was €“ as almost all of our markets internationally, but maybe more so than others, Brazil impacted by COVID, and really nice recovery opportunity for us there. So we do well there. We have a lot more products that we can get in and get approved in Brazil. And so, that’s a growth opportunity. But at this stage, frankly, with the volume of growth opportunities that we have right in front of us right now, it’s been difficult for us to contemplate an aggressive push into markets like China and India. There is opportunities there. We do have a lot of inbound requests, both from surgeons, as well as from distributors that would like to carry product. But I think we got our hands full with enough things that we know a lot about that are right in front of us that is our matter of execution for us to continue our growth.
But in the out years, those markets will really remain potential long term sources of growth for us.
Fred Hite: With that said, I think MDO is starting to into India. And I do think that that’s an easier entry point into some of these countries. So just starting to dabble in India on that specialty bracing side of things, but we have nothing in China right now.
Operator: Our next question comes from David Turkaly with JMP Securities.
David Turkaly: I was wondering, Fred, if you might quantify the dollar amount of the gross margin impact because I think you said that you would still expect 2023 to wind up where 2022 was, which I think has, like, gotten around 74%. So I want to make sure that that’s true. And then if you could give that dollar amount, that would be helpful.
