Jamie Samath: Yeah. What we saw in Q2 was that growth rate slowed. We have some input from customers that the level of patient interest is such that patients are now considering drugs versus surgery. It’s unclear yet based on that set of inputs from customers, the duration of that evaluation by parents — patients and obviously it’s layered. So what we did for our guidance was we just said at the high end, for the remainder of the year, the bariatric growth rate in the US is consistent with what we saw in Q2. And at the low end, we said the growth rate continues to slow a little bit over the course of the year as patients become increasingly educated about the weight loss drugs. And obviously, there’s a number of factors that patients have to consider with respect to those drugs, cost, side effects, what happens if they come off the drugs and regain weight, et cetera.
But I think from our perspective, we’re early in understanding what the longer-term impact will be. Customers have said that they have confidence that there is a role for surgery in weight loss and that that will endure over kind of the longer term. What happens in for the rest of the year, I think we’ll see.
Larry Biegelsen: Thank you.
Operator: And we’ll go to the next question. Go to the line of Travis Steed, Bank of America. Please go ahead.
Travis Steed: I did want to ask about China and the China quota and how you think the opportunity is now that there’s more local players, but you also have the local version of Xi. And on the bariatrics, just a quick follow-up on that too. Is that around 100,000 procedures, just trying to think about sizing that bariatric surgery opportunity or impact?
Jamie Samath: We’ve said the market size in the US is about 200,000 procedures annually for what we think is a good match for robotics. And in terms of where we are in penetration, what kind of the — if I put it in quartiles, we are in the beginning of the second quartile. What was your first question, Travis?
Travis Steed: It was on China and the China quota and how you think about that opportunity there versus last quarter, given there’s more local players, but now you have the local version of Xi?
Jamie Samath: Yeah. I mean, obviously, there’s increased opportunity in the sense that this quota is 559 systems relative to the prior quota of 225 systems, but you also have now five local players. There will be government interest in success of local players. We do believe that surgeons cared about capability and feature set. And so to the extent to which da Vinci continues to be differentiated I think is to our advantage. In the — and we are seeing those local players increasingly participate in tenders. With respect to how that quota will be allocated, so it gets allocated from the central government to the provinces and then it goes through tender processes. So there is some time before that results in placements. And that’s why we said in our prepared remarks we think the bulk of — the subset of that quota, our JV wins will be in ’24 through ‘27.
I also describe some dynamics that create greater variability with respect to pricing pressure and increasing competition. So I think for us that’s something that we’re going to watch carefully over the next year or so.
Travis Steed: Great. And a question for Gary. I heard the comment on hospitals leasing more to preserve the upgrade option for the next-gen system. So maybe just talk high level, the pipeline comments on the FDA and kind of supply chain bottlenecks that you saw last year and then — and how you’re thinking about incremental upgrades to the Gen 4 versus some of new platforms?
