Christopher Hite: Yes. Thanks for your question. I would just comment that we’ve obviously seen some of it being implemented and redesigned and going to be implemented now. The price negotiation, we’ll have to wait and see how that’s implemented. And if there’s any changes enacted specifically around the 9-year class. But we actually feel — I think what Pablo was highlighting is we feel we’re uniquely positioned around these types of significant changes in the industry, given the fact that we can really sort of quickly adapt changes in laws and price changes in how we make future investments. And I think that’s really the key around the uniqueness of our business model is we’re constantly deploying capital, as you’ve seen and making new investments and we can adapt quite quickly to the changes in the laws.
Pablo Legorreta: Marshall?
Marshall Urist: Great. And so Terence, on your second question, yes, thank on Lp(a). So a few comments there. I think first and foremost, the most important thing in terms of creating that market is what the outcome study show us. I think if we show if those studies, as we certainly hope that they will show a significant cardiovascular event benefit, I think that’s going to be a very strong driver of market formation there. Second important thing is — and we highlighted this in the script, is that as opposed to the PCSK9 therapies where there are lots of ways to manage LDL. Here, really the only option for meaningfully lowering Lp(a) are going to be these agents. So I think that does put them in a different category. And then lastly is, there will be some market development around testing for Lp(a) that isn’t except, I think, in some academic centers today a standard.
But there, I think the technology for the test is pretty straightforward. So once you check all the boxes in terms of having approved agents, that show a clinically compelling profile, I think the need to help these patients from physicians and patients and their families is going to be a powerful driver of that market coming together. And we have 2 great companies in cardiovascular disease between Novartis and Amgen to make all that happen.
Operator: Our next question comes from Geoff Meacham with Bank of America.
Unidentified Analyst: This is Susan on for Geoff. Our question is, how will interest rate changes affect the company’s net interest and expense income? And related to that, what are the company’s underlying assumptions for 2023 changes in interest rates?
Pablo Legorreta: Thank you for the question, Terry, you should take that one.
Terry Coyne: So as we mentioned in the prepared remarks, we are in a very fortunate position where 60% of our debt matures in 2030 and beyond and we’re currently borrowing at very low rates. So we feel very fortunate there. Our guidance does not imply any additional debt. It’s just the $7.3 billion we have outstanding at our current coupon of around 2.25%. As we look longer term, we do have a $1 billion maturity towards the end of this year. And we are in a nice position there because we have a lot of cash flow coming in particularly with the Biohaven acquisition. So we have some flexibility depending on how the pipeline plays out over the year, we could repay that debt, we could refinance. We could also use our revolver. If the rate environment is not particularly attractive at that time because the revolver is prepayable.
So I think we feel like we’re in a very good position. We have plenty of access to capital. We have a nice cash flow generation and a strong balance sheet to be opportunistic and to deploy capital in great new royalties. So we feel very good.
