Patrick Williams: Yeah. Just a reminder Ryan and I think Tom hit it there. We don’t get a lot of fluctuations in our ASP due to any changes in pricing across customers. Those are all set in stone pretty much for at least 12 months in advance, for the majority of our accounts there. The other thing that I would add is we do know that Aier continues to charge a premium for EVO ICL lenses, upwards of maybe even 2x of what they charge for LASIK and even SMILE now where they have seen some reduction in pricing. And so there’s been a lot of chatter out there, but one of the things they focused on is how can they make up for any lost volume by making up for perhaps switching that out to a higher ASP which is clearly what our product does. So if anything we’re seeing more of a movement towards EVO ICL, because of the higher premium that we’re able to – they’re able to garner in the end markets over there.
Ryan Zimmerman: Okay. Very helpful. And then just a follow-up in terms of introducing EVO+ in China and Tom appreciate your comments or your thoughts around either a tiered product strategy or — or what you’re doing as it relates to competition for ICLs in China and kind of what your expectation is there?
Tom Frinzi: Yeah. No appreciate the question Ryan. As we’ve said in the past I think EVO+ affords us some flexibility in that marketplace both from a pricing segmentation point of view as well as the customer segmentation or market segmentation. And again as competition comes, we think it may come at some point in the latter part of this year or early 2025. Keep in mind that competition that’s coming is only going to be spherical. They won’t have a toric offering that’s certainly going to limit their attractiveness to the marketplace. But I think what EVO+ gives us the flexibility that if we had to compete on price, we now have two products in the marketplace and one can compete when necessary on price. And we can maintain a premium price for EVO+ as we move forward.
So I think it does afford us flexibility. Again as you’ve heard me say time and time again, competition coming is a good thing. I think all boats do rise. It validates the size of the market opportunity. And we think we’re very well-positioned as a — and have first-mover advantage with nearly three million implants completed that be safety, the efficacy of our technology is very well-established particularly in that part of the world.
Operator: Thank you. And our next question today comes from Anthony Petrone with Mizuho Group. Please go ahead.
Anthony Petrone: Thanks. Maybe I’ll stay on China for a moment. And maybe anything you could share about where we are in 1Q? You do have Lunar New Year just, kind of, finishing up here about a week ago. It’s usually a little bit of a lull. But as we come out of that, how are trends shaping up in 1Q? And then just a follow-up on competition in the region there. Just to confirm that competitive lens at least as far as the company’s intelligence suggests that it’s not a collagen lens it’s a polymer lens if you will? Thanks.
Tom Frinzi: Yes. Anthony that’s correct. It is an acrylic versus our Collamer material. And as you’ve heard me say time and time again part of the secret sauce of STAAR’s technology is that material. So again I think it’s healthy that competition is coming but we’re prepared. I think in terms of the Lunar New Year and how China has been going so far again as I’ve mentioned earlier, very encouraged by the start of the year. The equally thing that encouraged me is the spending that went on in that marketplace associated with the Lunar New Year was very encouraging from an overall economy point of view. So I think we continue to feel confident that our team on China particularly now with two distribution partners, we’re well-positioned to continue to see growth in that part of the world particularly in China.
Operator: Thank you. And our next question today comes from Matthew O’Brien with Piper Sandler. Please go ahead.
Matthew O’Brien: Good afternoon. Thanks for taking the question. Just sticking on the pricing side in the US specifically, is the reduction in ASP going to be greater than 20%? Is that going to flow down? Or how do you ensure that it flows down to the patient level specifically? And maybe a little bit on the elasticity of demand as far as you can see in terms of lowering the price and what that can do in terms of growth here in the states?
Tom Frinzi: Yeah. I will tell you that any price degradation is not going to be at the 20% level. That’s for sure. And again keep in mind the end-user price to the patient is really a function of the internal mechanisms within any given practice. Setting of care does play a role. And that’s the — in a sense if you think back about the US business, we’re creating a new channel, lens-based refractive surgery and we’re changing practice patterns. That takes time and we’re beginning to see our efforts over the last 12 to 15 months begin to bear fruit. And I think as practices set themselves up for success, to become more lens-based versus corneal base, pricing plays a role, but it’s not the only role. And that entire ecosystem working together from the front receptionist back to the surgeon and everyone in between, that all has to be aligned and focused appropriately, with the right sales peak the right collateral materials, with our help from a co-marketing relationship, et cetera, et cetera.
And as that all comes together, price becomes a component, but it’s not the driving component to a successful practice.
