And then as these new places come on board, we see that the volume, the total volume increases, which will help gross margin, especially as we bring new places online, but the ability to address these folks and have folks in these — these are 340B hospitals that never purchased EXPAREL before, and they are just starting to come online in a material way. And so we expect that, that will grow as we go through 2023. And so most of the action moving from 5% to something that approaches neutrality will be back-end loaded as we get into the second half of the year.
Oren Livnat: On gross margins. I guess some of these issues have persisted a little longer than at least I had modeled through year-end. And I guess you mentioned a little bit of spillover. Can you just characterize how conservative your 2023 gross margin guidance is on that front? Are you leaving a little room for continued batch failures that may be now that you’ve had to be a little more conservative? Or are you assuming totally smooth sailing in that guidance and it’s entirely sort of sales and volume based?
Dave Stack: Yes. No, we are not forecasting total sale, for sure. What we see, there’s a couple of things here. We mentioned this new in vitro test that we will get approved. We’ve had some issues where the current test in the soon-to-be removed test or replace test was actually causing us to reject lots that were good based on some variabilities in the test method. And then all of the things that we’re associated with our inability to access supply are not currently — we’re in good shape. We’ve got everything we need to make EXPAREL. So remember, Oren, that we bet in the late 70s before. So in our view, without some of these one-off things that were driven largely by the pandemic and the supply issues, we’re really talking about going back to something that looks more normal to where we were before the pandemic.
So we’ve been in the late 79% to 80% range before. We’re thinking that we get partway there as we go through this year and then we pick up the rest of it once we get more volume coming online.
Operator: This question comes from the line of Andreas Argyrides of Wedbush. Your line is open.
Andreas Argyrides: Congrats on the progress. Just on — a couple on the NOPAIN Act here. So what are some of the ways that the implementation of the NOPAIN Act would be pushed up to 2024 from ’25? Just trying to get a sense of the likelihood that this would occur. And then how are you thinking about this — EXPAREL being included in the act into perpetuity measures for the three years. And then I have some follow-ups.
Dave Stack: Yes. So, the original bill as it was going through Congress had a 2024 start date. And so, we’ve got patient advocacy groups that we’ve got folks that represent us on the lobby side of the aisle. And we are actively working with a number of patient advocacy groups who are the — would be the primary beneficiaries of non-opioid treatment therapy for the low socioeconomic ladder and the disadvantaged and working hard going to Congress. Now, it is possible that the House could have a technical amendment and would push the start date forward to 2024. It’s also possible that CMS, in their normal rule-making process, would take everything that has currently been approved for 2025 and move it forward to 2024, and we are actively involved in those discussions.
