We are talking here about 20 years of public health, medical education and publications. Third, for the product itself, we continue to invest in R&D. As you have seen, for example, over the last three years, we moved from the QuantiFERON third generation to the fourth generation by adding CD8, which seriously increased the sensitivity of the test. This is what explains the success of QuantiFERON, continuous organic and nonorganic investment to expand its market penetration and where do we see the main potential for market penetration is still on the skin test. We believe that the skin test market, even in the U.S. is between still, let’s say, 30% to 40% penetration. So, there is a significant room to grow. So we are not complacent despite being the number one.
We continue to invest. We continue to push QuantiFERON in many countries. You have seen two years ago, the guidance in Brazil in favor of QuantiFERON. You have seen some emerging countries in Asia Pacific adopting also QuantiFERON. So, there is no complacency, but there is a strong leadership, sustained by R&D investment partnership, and this is what is fueling once again, the 25% growth of Q3. We are confident that we can maintain a double-digit growth for this product.
Operator: The next question comes from Matt Sykes of Goldman Sachs. Your line is open. Please go ahead.
Matt Sykes: Congrats on the quarter in a tough environment. Just two quick questions. I’ll ask both upfront. But just first on R&D., that 10% level, if we kind of look at what it could end up for ’23, probably be about 100 basis points above where you were for ’22 and probably 200 above the year before. Just wondering, is that 10% sort of the level we should be thinking about R&D investments in terms of percentage of sales as we think into ’24? And then secondly, the spread in non-COVID product growth in Europe versus the Americas. Is there anything we can read into that from a customer type or a product or segment that accounted for that difference in growth?
Thierry Bernard: Yes, thanks for the question. You can go ahead, Roland, if you want.
Roland Sackers: Probably can take the R&D question. And Matt, I think it’s very straightforward. We clearly right now see good opportunities to drive some R&D activities, given also our overall profitability and that thing is going quite well along even in a more difficult environment. I would assume now looking into next year that we are probably next year, rather between somewhere, let’s say, 9% and 10%. I don’t think that we will have next year, any need for staying, let’s say, 10-plus percent. So, I do think there is some leverage here. Nevertheless, we continue, of course, to invest and expand our menu.
Thierry Bernard: Thank you, Roland. And on the spread on the non-COVID growth, I don’t think that there are major differences between American and European customers, but we have also a difference in our portfolio at the moment. So, the non-COVID in North America is very much driven by QuantiFERON by digital PCR, especially in the biopharma. This is where we have the main concentration of biopharma customers, and this is where we are taking significant market shares, but also UNGS. Whether in Europe, where you have compared to the U.S., a greater revenue for non-COVID on QIAstat, for example, you have a great harmony for non-COVID on NeuMoDx. You have also had this impact. Obviously, we are also growing our market shares for QuantiFERON Europe year-on-year to a lower level than the U.S. We are also growing our market share in digital PCR.
So, it’s rather basically adjusting the status of our portfolio rather than differences of customers. I would end up saying that we focus now at QIAGEN, as you know, since 2021, clearly, on the non-COVID. This is our core business. We know that we have a range of products available, if COVID surge again anytime, but the focus is really on the non-COVID.
Operator: The next question comes from Casey Woodring of JPMorgan. Please go ahead.
Casey Woodring: Maybe one for Roland, just can you walk through the debt repayment schedule, how you’re thinking about that and implications for interest income and interest expense, maybe give us a level set for 2024 that we can model?
