Matthew Miksic: Okay. So this was maybe — what was — by the end of the quarter, later in the quarter, kind of expectations? And on that basis, you’re still comfortable? And then obviously, heading into next year with supply coming and to support the launch? It sounds like…
John Sheridan: Yes, I think that we’re expecting that as we progress through this quarter, we will be moving to general availability, and it will be available for all who want to use the product in that system going forward.
Matthew Miksic: That’s great. And then I guess, I should have mentioned also, just like the Libre side, any sort of nuances in your updated guidance related to prior expectations there?
John Sheridan: Do you want to get that, Leigh?
Leigh Vosseller: And so in fact, when we think about 2023, we didn’t factor in any new product opportunities into the guidance that we laid out. And so anything that would have occurred this year is going to be upside to the numbers that we have in terms of new product launches.
Matthew Miksic: Okay. That’s clear. Then the 1 follow-up just into next year. Not to move the process of sales of t:slim with sort of, call it, an option for Mobi. As we get into the first quarter and we started thinking about what kind of demand and growth that could show in terms of units and uptake. Is there — how — what — how should we be thinking about sort of the cross currents or the offsets to that, that might — not in terms of revenues, but in terms of like new Mobi some of that’s going to be sort of Mobi, I guess, conversions and some of that’s going to be new mobile users. Any way that you can sort of sketch out the various puts and takes to that early I’m thinking first quarter, maybe first half performance metrics that can help us maybe set our expectations properly.
Leigh Vosseller: Sure. And so I think I’m understanding your question correctly. It’s really — probably we’d be discussing the business next year when we have these moving parts related to Tandem Choice as well as selling pumps to people for the first time, if you will. And so as we’ve talked about Tandem Choice all along, it’s an opportunity for people to switch. And so for example, if we have a person who buys a t:slim here in the fourth quarter, and they become a switcher to Mobi. We won’t be reporting that as a sale, a unit for sale. We will take that out of the numbers. And what we will share with you would be information related to people that are actually purchasing pumps with insurance value attached to it. And so we won’t be co-mingling switchers with — and switchers being people from a tandem pump to a Mobi pump.
If they’re truly a renewal and out of warranty, that would be a different situation, that’s a normal sale. So we’ll be talking about metrics that would be very comparable to what we’ve discussed this year and what we would be discussing in the future for the business.
Operator: Our next question comes from the line of Dane Reinhardt of Baird.
Dane Reinhardt: I guess the first one, could you just help clarify maybe the Francis a little bit? I know going into that market or with the recent study you’re kind of expecting premium reimbursement and now kind of based on the disclosure in the 10-K, it’s talking about potentially affecting your ability to generate revenues there with the rebates. So can you just kind of help us flesh that issue out a little bit and get a better understanding there?
Leigh Vosseller: Sure. I can give you a bit more color. So as you know, any time you bring the rebate conversation into — it rebates into a conversation, it actually means complexity. And what we’re talking about that we have the potential to see coming up here in the fourth quarter is really thinking about our installed base that we already have. So think about, if you want to call it pumps in the channel where people already on pump. It’s assessing how many people already have Control-IQ, how many people can update to Control-IQ, the timing of when they might the length of time they have left in their warranty to be eligible for that opportunity and just how the value gets allocated across the entire selling chain here. And so there’s a lot of complexities that come into it.
And what we wanted to do is make you aware that you can think of it as almost like an implementation type activity that we have to assess what is the impact today on day 1 of what that rebate structure looks like on our business. And so there’s a wide range of possibilities here. And so we’re giving you it could be up to $10 million, but we will have that worked out by end of the year and be able to better clarify the impact of that on our business.
Dane Reinhardt: Okay. And then the second one, kind of going back to that 10% baseline for next year. And I know it’s kind of a baseline or even maybe flower for that. But I think you could almost probably get to that 10% just based on renewals that’s growing, you’ll even have potentially some international renewals and then with supply revenue growth. So can you just help us understand in that 10% as a baseline, would that even kind of take into consideration new users in the U.S. being down year-over-year? And then if you do get growth, that’s kind of all upside from there. What does that imply just on a new user perspective?
Leigh Vosseller: Yes. Thank you. I mean actually, you spelled it out perfectly well there. it’s really predicated very heavily on the recurring pieces of our revenue, which are supplies that have been very predictable. It’s the step up in renewal opportunities growing from 50,000-ish warranty expirations this year to 70,000 plus next year in the U.S. alone. And to your point, we’ll start to see renewal opportunities for the OUS markets become available to us. And so in order to achieve that 10%, you don’t have to believe that new pumpers even grow next year. And that was the point, as you said, of setting the baseline because we have — we’re very convicted that with our new products, we will turn that trajectory around. But just as a starting point, it’s that we want to put this out there as a number that people could see a line of sight to pretty easily.
Operator: Our next question comes from the line of Joshua Jennings of TD Cowen.
Joshua Jennings: Wanted to discuss the pharmacy channel and just learned if are there any updates on discussions or negotiations with payers on opening that door for Mobi and Slgi any change to the team’s optimism or confidence that door can be opened and is what are next steps for that process.
Leigh Vosseller: Yes, thank you. It’s a great question. We’ve talked about the possibility of moving into the pharmacy channel with movie, which is something that people see as a challenge potentially because it’s a durable pump much like the t:slim. But as we’ve been starting these conversations now that we have approval for Mobi and can really talk about in earnest with the different payer and PBM organizations, our confidence builds every single day in terms of the opportunity for us to make that sort of transition. And so all I can share today is we’re still in the early phases, but we’re actively engaged in conversations. We’re building out the organizational capabilities making sure that we’re ready and make this a reality. And so no specific updates I can offer today, stay tuned on that, but our optimism is really high.
John Sheridan: Yes, I just underlined– it’s one of our key strategic initiatives for the business. And we have a lot of resources focused on it.
Operator: Thank you. As there are no further questions in queue, that does conclude the Q&A portion and our call for today. Thank you for participating. You may now disconnect.
