Joshua Waldman: Hi, good morning guys. Thanks for taking my questions. A couple for you. First, I wondered if you could provide an update on BioLegend, maybe what the business grew here in Q4. Curious if it was impacted by China lockdowns, and thus, maybe represents potential upside to the model. And then just curious, what you’re assuming for that business within that 9% non-COVID guide for ’23?
Prahlad Singh: Yes, Josh. Overall, as you know, our Life Sciences business continued to grow very well, our reagents business, and it grew double-digits for the year. We did not see any material change in the trend in 3Q or 4Q in our reagents business in China or any place else. BioLegend and our overall Life Sciences reagent business continues to do very well, and we expect it to continue to grow double-digits as we’ve said earlier.
Joshua Waldman: Got it. And then Prahlad or Max, I wondered if you could comment on what you’re seeing from maybe biotech and early-stage pharma accounts. It sounds like Pharma was up mid-teens in the Life Science segment, but applied genomics maybe a bit lighter. Just wondered if you’re seeing any indication that these accounts are slowing spend. Anything leaving you more cautious on outlook within this end market?
Max Krakowiak: Yes, I’d say, first, from just a materiality standpoint, right, I mean the biotech or smaller accounts, which I think you’re more referring to are only less than 5% of overall revenue. So even if we were to start to see some noise there, it’s not overly material to the company. I think that’s one piece of context I’d say first. Second, in terms of sort of the split between applied genomics versus the Life Sciences business, we are seeing a little bit of a slowdown in applied genomics. As we mentioned in our prepared remarks, we do think there’s a little bit of saturation just from the amount of instruments that have been placed over the past three years. That might continue a little bit here in Q1. We expect by the end of the year, applied genomics will be sort of at its normal run rate from an overall organic growth standpoint.
Joshua Waldman: Got it. Appreciate it.
Operator: Thank you. Our next question comes from Liza Garcia with UBS. Your line is now open. Please go-ahead.
Liza Garcia: Hi, guys. Good morning. Thanks for taking the question. So I guess, if we could start on talking about the informatics business, it’s just been a bit since the last DAS deep dive, I think it was like 2022. So how do you think about the right growth trajectory for that business given the 20% that you guys got to accrue this year?
Max Krakowiak: Hi, Liza, so I’d say, first, we’ve been very pleased with the performance of our informatics business, not only really in 2022, but over the last couple of years, it’s had about a mid-teens CAGR. I would say that is sort of our normal, I would expect long-term growth rate. The only point I would call out with informatics is there are some timings of renewals, et cetera. So at times, the growth rate can be lumpy. But I would say, overall, we are very pleased with the performance. I don’t think 20% is the go-forward growth rate. I do expect that to come down a little bit here in 2023, but we are very happy with the performance of that business.
Liza Garcia: Awesome. Thank you. And then I guess, just talking a little bit into like the reproductive health. I guess, a little bit softer this quarter, but – with the birth pressures, but you did have the – you’ve highlighted the FDA marketing authorization for SCID and SMA. How should we think about that? And kind of if you could provide any qualitative kind of update on Vanadis? That would be great.
Prahlad Singh: Yes, Liza. So I think on reproductive health, on birth rates, continued to unfortunately have pressure in 2022. But I think, as you pointed out, right, we continue to have new reagents going through approval. While we got the approval, there are two new indications or disorders, as you know, that got approved by the RUSP panel, which I had in my prepared remarks, MPS II and now GAMT. So our menu expansion opportunities continue to bolster the reproductive health business. The thing is that as it gets approved by the RUSP panel and the FDA, states pick them up for adoption in their menu panel on a sequential basis. So some of them might come into play in 2023, the first half, some in the second half. So the states have the mandate based on their own flexibility as to when they want to bring out.
Vanadis continues to do well. And I think as we’ve said, it grew more than 75% commercially last year and we continue to put in new installations. The value proposition that it brings to the table is gaining more and more traction with our customers now, more so in the U.S.
Liza Garcia: Okay. Thank you.
Operator: Thank you. Our next question comes from Dan Arias from Stifel. Dan, your line is now open. Please go ahead.
Dan Arias: Good morning, guys. Thanks a bunch. Prahlad or Max, I hate to put too fine of a point on it, but the return to normalization for EUROIMMUN in the second half of the year, is that to say getting there by year-end or is that more like you think you’d improve through midyear and you can get back to normalization at some point in 3Q or 4Q? I’m sure you’re not interested in giving growth rates by quarter, but it would just be helpful to get a sense for the shape of the curve, sort of to Derek and Patrick’s point, just given that it does seem like that’s the biggest swing factor here for growth in 2023.
Max Krakowiak: Yes. Hi, Dan. So the way I would think about it is when we look at the EUROIMMUN business in China and the ramp throughout the year, as we mentioned in the prepared remarks here, Q1 will be still a little bit of a headwind. We do expect it to be potentially even worse from a growth rate perspective than what we saw in Q4, which is approximately high single-digits. And so as you think about the ramp over the course of next year, I would think – or this year, excuse me, I would think about it in the context of the two-year average stack should continue to get better each and every quarter, so Q1 to Q4 and I think we’ve given all those prior year comps in previous calls here throughout 2022. And then I would expect sort of that the full year growth rate of that EUROIMMUN business to be in the low double-digits, low-teens, which is sort of the historical growth rate we’ve seen from that business.
Dan Arias: Yes. Okay. That is helpful. And then maybe on margins and M&A, you’ve been pretty upfront here about having this extra dry powder that you think you can deploy for M&A later in the year 2024. So it feels like you’re active there, but you’ve also made op margin improvement in one of the key selling points of the spin. So I guess, I’m just curious to what extent do you have an appetite for something that might be strategically positive, but dilutive to margins.
Prahlad Singh: It depends on the opportunity, Dan. So it’s tough to give a specific response to the question because it depends. As I’ve said earlier, we continue to be very active. We continue to look at opportunities that are in our sweet spot, which is more founder, entrepreneur-owned companies. Depends on what the opportunity is, is probably the best way to respond to the question. Let me give you an example. If it’s a breakthrough technology like Vanadis, we would do it. But generally, if you look at the deals we’ve done, that should be a pretty good precursor of the deals we will do.
Dan Arias: Do you think that the – if the revenue trajectory one that Vanadis has right now, that would still be something you’d be interested in?
Prahlad Singh: Yes, it depends on the technology. So that’s why I said that. Probably the shortest answer would have been, it depends.
Dan Arias: Okay. Thanks, Prahlad.
Prahlad Singh: Yes.
Operator: Thank you. Our next question for today comes from Jack Meehan of Nephron Research. Jack, your line is now open. Please go ahead.
Jack Meehan: Thank you. Good morning. Wanted to ask, so the $5.05 EPS guide for continuing ops, just trying to bridge this to newco. Can you provide latest thoughts on potential for trap cost versus the costs that are going to get allocated to spin? I guess, how close is this $5.05 to what newco EPS looks like?
Max Krakowiak: Yes, Jack, the way I would think about it is the $5.05 guidance includes the impact of continuing ops accounting headwinds that we’re going to have in the first quarter or really the first couple of months until the divestiture closes. And then for the remainder of the year, yes, that – cont ops accounting will more or less turn into stranded costs, but that will be partially offset also by the TSAs that we will have. So sort of net-net, it all more or less washes out over the course of the year. We think $5.05 is a very good indication of what sort of the true LSDx performance is once you kind of put all that together.
Jack Meehan: Okay. That’s helpful. And then one business question. Within Diagnostics, the applied genomics business, so understand the COVID headwind there, but I guess, the non-COVID also down low single-digit in the quarter. Can you just talk about what you’re seeing, I guess, from like – there’s obviously been a lot of instruments placed throughout the pandemic. Do you think there could be some hangover to start 2023?
