Prahlad Singh: Sure, Derik. Let me talk about BioLegend. BioLegend did better than our overall reagents business that we talked about and they did quite good. I think, obviously, it also has seen some softening. And primarily, that is what it is seeing, especially as we look at China. We’ve given the CRO business depression in that marketplace. I think on the Horizon side, we get a lot of service business that comes there from pharma/biotech, which has seen softening. So on the Horizon side, on the reagent side, while it’s okay, but the service revenue that comes from Horizon, because of the cell line development work, et cetera, that they do, that has seen softening. So any spending coming out of pharma/biotech has seen softening, which is the general trend that we have observed.
Derik De Bruin: Got it. And services in general being more so than just than the consumables?
Prahlad Singh: Yes, absolutely.
Derik De Bruin: Got it. Thank you very much.
Prahlad Singh: You bet.
Operator: Thank you. Our next question comes from Andrew Cooper of Raymond James. Your line is now open. Please go ahead.
Andrew Cooper: Hi, everybody. Thanks for the questions. Maybe first, just on some of the cost actions you called out, I think it was $60 million up to $80 million now with the $20 million coming. Just can you clarify, are those annualized numbers or for the year? And then how much should we think about that being a tailwind as we think about moving into 2024, some of what you pulled out this year that continues to benefit even if you don’t necessarily pull out incremental dollars?
Max Krakowiak: Yeah. Hey, Andrew. So the way I would think about the cost of the $80 million number is the reduction that we have in our P&L and financials for this year. As you think about it for next year, we mentioned a little bit in the prepared remarks, we will have some costs that were a tailwind for us this year that are going to come back into our financials for next year, which is kind of getting offset by some of the annualization of the cost actions we have taken this year. And so that is kind of balance each other out. And then, again, as I mentioned in one of the previous Q&A, it’s going to ultimately depend on what our organic growth looks like for next year as well.
Andrew Cooper: Okay. Helpful. And then, maybe just can you give us a sense for a little bit of the sizing of how you might break up the end market within the Diagnostics business really with kind of the intent of how much of that business is more exposed to pharma/biotech versus what is sort of true clinical and probably not impacted by the same end-market headwinds that we talked about for pharma/biotech?
Max Krakowiak: Yeah, it’s a great question. And so, I think you’ve heard about us talk about the Diagnostics business being impacted by pharma/biotech and really 2 of our business signs. The first is the applied genomics business, which as a reminder, is roughly $250 million of revenue per year, about 60% of that business goes into the pharma/biotech customer base. And then, you’ve got the second piece is our Revvity Omics business, which is last year that was roughly an $80 million business for us. I would say more than half of that business is related to the pharma/biotech customers as well.
Andrew Cooper: Okay. Great. I’ll stop there. Thanks.
Operator: Thank you. Our next question comes from Eve Burstein of Bernstein Research. Your line is now open. Please go ahead.
Eve Burstein: Great. Good morning. Thanks a lot for the question. So as part of your portfolio transformation, you’ve talked a lot about how the new portfolio should allow you to grow well above market average. I know that you’re going to revisit your midterm outlook, and we’ll wait to hear specific numbers on 2024 and longer-term from you. But 2 questions. One is just, do you expect to be more resilient than your peers on average next year? And do you expect to grow significantly above market growth next year, whatever that average is?
Prahlad Singh: Yeah. Hey, good morning, Eve. I think there are 2 ways to look at it, right? We definitely feel very confident that our portfolio continues to remain differentiated. As we even in this tough market environment, let me point out to a couple of things that we feel are bright spots. Our immunodiagnostics business globally grew in the high teens, especially in China, it has continued to grow in the high teens and will grow 10%. China performance, we had low-double-digits growth there. For the full year, we will expect mid-single-digits growth there. So, I think if you look at China, if you look at our immunodiagnostics business, that continues to be resilient. Our neonatal business despite pressure from both rate continues to do very well.
Even on the Life Sciences side, despite the depression that we saw in 3Q, our reagents business will still grow mid-single-digits for the year even when you include the licensing comp headwinds that we have for this year. And going forward also, we expect our reagents business to be resilient and continue to do very well. At the end of the day, what it comes down to is the pressure from pharma/biotech on CapEx spending, which is on the Life Sciences instrument side and also on some on the software renewal side that we had. So that pressure, we expect, as I pointed out, to sort of elongate into the first half of next year. But from a portfolio perspective, we feel very confident that we will be differentiated.
Eve Burstein: Got it. And then maybe just one follow-up. You talked about immunodiagnostics in China being quite strong and a high point for your portfolio. Some of your peers have also had positive things to say about the market environment for Diagnostics in China, volumes being up, being spared by anti-corruption crackdown. Has there been any signs of weakness or of the crackdown scope expanding to include Diagnostics or from where you’re standing today, does it just look like smooth sailing?
Prahlad Singh: From our business perspective, we have seen no to very minimal impact in our business. If anything, it’s just more delays versus any cancellation. I think in the longer-term, Eve, this will probably benefit multinationals more given the anti-corruption initiative that the government has going on.
Eve Burstein: Great. Thank you.
Operator: Thank you. Our next question comes from Jack Meehan of Nephron Research. Your line is now open. Please go ahead.
Jack Meehan: Thank you. Good morning. I wanted to ask the Diagnostics business, Max, I think I heard down low-single-digits forecast for the fourth quarter. I just want to confirm that’s on a non-COVID basis. And then if you compare it versus the third quarter results, it’s a bit of a moderation. Just talk about what’s changing kind of in the year-end?
Max Krakowiak: Yeah, sure. Hey, Jack. So actually, for the fourth quarter guidance for our Diagnostics business will be roughly flat for the fourth quarter. And so, when you then look at it versus the third quarter, really the drop versus the mid-single-digits growth in the third quarter was driven by the fact that our applied genomics business, as I previously mentioned, continues to face increased headwinds from the pharma/biotech. That is really the only thing that I would say is changing dramatically from the third quarter to the fourth quarter. The other 2 pieces of it, albeit they’re smaller is: one, we have a heavier CapEx instrumentation comp in our reproductive health business in the fourth quarter; and the second is, immunodiagnostics China does have a tougher comp in the fourth quarter.
