As the cough and cold season continued to progress now, as we saw a little bit slow start, but we’re starting to see a pickup on that. We are at the highest level of the last years on liquid cough and cold. So if the strong season, strong cough and cold season confirms, we’re very well-positioned to capture additional volume and value versus our current estimates.
Susan Anderson: Great. And did you guys say how much of an impact to the top line the U.S. nutrition and then the branded OTC products in the Americas had?
Eduardo Bezerra: Well, to Q3, we would say two-thirds infant formula, one-third the delay on the season is what we saw in the third quarter versus the original expectations.
Susan Anderson: Okay, great. And then if I could just add one more, so you mentioned the price increases I was curious how much did you raise price and was it across all categories or what categories did you see price increases in? And then also I’m curious just how the retailers and then the consumers are responding to those price increases.
Eduardo Bezerra: Yes. So overall, we have almost 5% price increase. I would say the significant portion of that is in the infant formula business. Remember, because of the FDA guidelines and the changes in the operations that we had to do, we talked with retailers about that. And so, we implemented those actions in July, as we talked before, and we haven’t seen any pushback. Of course, we would hope to see more of that benefit, but because of the supply chain challenges to adapt to the new FDA guidelines, we haven’t been able to fulfill the volumes there. But we expect that pricing benefits continue. And also next year, we should see the leap effect into the first half of the year.
Susan Anderson: Okay, great. Thanks so much. Good luck the rest of the year.
Eduardo Bezerra: Thank you.
Operator: Our next question comes from Daniel Biolsi from Hedgeye. Well, Please go ahead with your question.
Daniel Biolsi: Hi, thank you. I wanted to follow up on the phenylephrine products. I was wondering how long it would take for you to change the production of the combination drugs, like how much of a lead time it would take to hit retail shelves?
Eduardo Bezerra: So, thank you for the question. So the first thing is today, our exposure in the overall portfolio is about 2% of the total company net sales. So, so far, the impact has been very small to all retailers. And it’s only of all single entity phenylephrine products, right? So we do not expect any action of combination of products given the safety and potential for shortage. So we are already working to reformulate our phenylephrineproducts with other active ingredients if needed. So we are pretty well on track with our plans for the next season.
Daniel Biolsi: Okay, thank you. And then, I was wondering if you could comment on the effort recently in the Senate to have the OTC birth control covered by insurance, how that would even work and what Perrigo thoughts are on that?
Patrick Taylor: Yes, hi. Good morning. This is Patrick. We are aware of those efforts. We support those efforts. We’re still in discussion to also include the FSA and HSA support. And I’ll describe it at the moment as work in progress. And hopefully we can give a favorable update soon.
Daniel Biolsi: Okay. And then finally, I can see when we’re in, I was wondering more of an open ended question, but what has been the response from your customers about the SKU rationalization efforts? What are your learnings to date? Has it been mostly one-off decisions where one decision to not produce a product has not had any sort of impact on anything else? Or have you learned that things are interconnected and a little more complicated than it seemed at first? Thank you.
