And they deserve to get the opposite side of that. If currency moves in our favor, that will flow through the P&L and we’ll post some strong quarters. I think EPS was up 26% this quarter. I’d love to see currency move in our favor and post some more really strong quarters. So that’s what I would tell you, is we run this business to drive constant currency leverage and growth. We plan on delivering that and hopefully, fingers crossed, we get some positive currency that helps us drive that. And then on top of that, I guess maybe one other add would be generating cash flow, paying down some debt, reducing interest expense.
Robbie Marcus: Great. Thanks for taking the question.
Operator: Our next question comes from the line of Steven Lichtman with Oppenheimer. Please go ahead.
Steven Lichtman: Thank you. Al, you mentioned expected price increases for the industry here near term at about the same year-over-year level as we saw over the last 12 months. What is your confidence in the sustainability of price increases for you and the industry as year-over-year inflation moderates? I think you’ve said that 2% to 3% is maybe a point, point and a half above historical levels.
Albert White: Yes. We’re a little early probably this year compared to some other years in terms of our price increases, so we’ll see what other people do. But I’ve talked a little bit about some of the constraints we have here in capacity. We have competitors who have similar challenges. We don’t have some of the other supply chain challenges some of them have been working through. But at the end of the day, the core contact lens industry is growing nicely. It’s growing for a number of different reasons. Trade-ups, growth in Torics, growth in multifocals, growth in wearers, geographic expansion. One of the things that’s happening as we move to this kind of happy oligopoly, because remember, ourselves, J&J and Alcon are close to 90% of global revenues for contact lenses, is you’re seeing a lot of demand for contact lenses, and that’s creating an environment where all of us are struggling to keep up with that demand.
And it takes a lot of time to get new manufacturing lines in a ramp-up capacity and manage through all the logistics that you have to do with this growth. So that’s a long way of saying that I believe for the foreseeable future, the contact lens industry is going to have very strong demand. Anytime you have strong demand and you have capacity-related issues associated with demand challenges, you normally have an environment where you have pricing. Companies are able to take pricing in that to offset some of those challenges. And then I would also add any inflationary pressures that are potentially out there. So I happen to believe you’re going to see pricing trend at a higher level here for a number of years in front of us.
Steven Lichtman: Got it. Thanks, Al. And Brian, just a follow-up on the tax rate for FY24 here. Does that contemplate Pillar 2 or based on your fiscal year, it doesn’t? And if it doesn’t, how should we be thinking about that over the medium term?
Brian Andrews: I see. Yes, that does contemplate Pillar 2. Our expectations are incorporated in guidance. And I’ll just restate, we expect our ETR to be around 15% pre-decrease.
Steven Lichtman: Got it. Thank you.
Operator: Our next question comes from a line of David Saxon with Needham. Please go ahead.
David Saxon: Great. Good afternoon. Thanks for taking my questions. Maybe one on CBI, one on CSI. For CooperVision, just wanted to ask on MiSight, what inning are we in in terms of MiSight coverage? And for the payers that are covering it, like Aetna and Kaiser, what portion of the cost do they actually reimburse?
Albert White: We’re in the first inning on that. And we’re probably, I don’t even know if there’s one out in the game. It’s very early in that. So Aetna just started coverage of that. Kaiser has some coverage on that. But in terms of insurance reimbursement and getting that through the industry to optometrists and so forth, it is very, very early in that process. So there’s some very significant potential upside associated with that. But I do not want to get in front of that because we’re very, very early in that game.
David Saxon: Okay. And just I guess how much they’re reimbursing. And then I’ll just ask my second question on PARAGARD. I mean, volumes, obviously, have been kind of flat to down, especially this past quarter. So just wanted to get your updated thoughts on that product. Is there anything you can do to drive recovery in volumes? Or is PARAGARD growth going to be primarily driven by pricing over the long term? And if so, I guess at what point does that ability to drive growth through pricing kind of go away? Thanks so much.
Albert White: Yes, sure. Yes, the amounts vary depending upon who it is and how it’s covered and what plans people have for MiSight. I mean, some of the coverage gets fairly high, as high as 50 or as high as 80%. So I think a lot of that coverage would be half up to 80% coverage. But again, I just want to caveat that by saying it’s very early in the process of how it’s defined and how it’s reimbursed. So a lot of work there. On PARAGARD, yes, we’re guiding to a flat to maybe down year. The challenge is around volume. There’s access to other birth control options that are out there, be it easier access to birth control pills, as an example, or other areas. I think the IUD market is going to continue to be pressured from a volume perspective.
We do take price, as do other people in that space, and that kind of offsets it. But I think as you look at IUDs, at least for this year, and I don’t know if I want to forecast too much farther out, but we’re going to be looking at flat to declining volume. So that’s just the world that we live in right now with respect to IUDs.
David Saxon: Great. Thank you.
Operator: Our next question comes from the line of Navann Ty with BNP Paribas. Please go ahead.
Navann Ty: Hi, good afternoon. Thanks for taking my questions and the callers so far. So will the 2024 share gains be in contact lenses and CooperSurgical as well, and will they be driven by innovation? And can I also please ask about your capital allocation priorities after the maternal health acquisition?
