Q: Can you provide an update on the gross margin headwinds related to the risk assessment business? A: Kenneth McGrath, CFO: We have opportunities to improve gross margins over time. For Q4, the headwinds are due to the risk assessment business and international mix. We are leveraging automation and consolidating manufacturing to improve efficiency. We expect to return to gross margins in the 50% range in the future.
Q: Could you provide more details on the Saphris partnership and its timeline? A: Carrie Eglinton Manner, CEO: The Saphris partnership is progressing well. We remain in the regulatory process, with revenue expected in 2025. We are planning for a 2025 launch and are optimistic about the partnership's potential.
Q: Is the 5% year-over-year growth in core revenues for Q4 a reasonable starting point for modeling 2025? A: Kenneth McGrath, CFO: We expect moderate growth in 2025, driven by investments and partnerships, including Diagnostics Direct and Saphris. More details will be provided in February.
Q: How do you plan to deploy the $280 million in cash? A: Carrie Eglinton Manner, CEO: We are focused on innovation and accelerating growth through our product roadmap. We are considering internal development, partnerships, and acquisitions that align with our strengths and offer growth opportunities.
Q: What drove the 13% growth in diagnostics, and can you break it down by product and region? A: Kenneth McGrath, CFO: The growth was primarily driven by international sales, particularly in HIV diagnostics. We saw positive growth both year-over-year and sequentially, with international markets being the main contributor.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.