“I think we think now and we saw 50 here in '20 in Q4. So probably 200 all-up, but 200 in two years instead of the three that we thought.”

In context

“k - can you just talk through those both pretty quickly? One is, what changed in the VBP? Sound like it changed a little bit in the fourth quarter, as well and just how you think VBP headwinds come through in 2025 and '26? And then for Cepheid respiratory, why is $1.7 billion the right number? I mean, we've talked about this for a while. It's sort of like, at what point do you say, okay, this is the new endemic. So you did $1.95 billion in 2024. Why isn't that just the new normal going forward where we're four years post-COVID, it feels like respiratory sort of like settled down a little bit. So what are you seeing in January that's making you revise that? Matt McGrew: Yes. Mike, let me see if I can capture all that. So first, VBP 150 versus the 50 that we thought before, that is correct. I think we think now and we saw 50 here in '20 in Q4. So probably 200 all-up, but 200 in two years instead of the three that we thought. So I think that's right. As far as why did, that and how did it accelerated in Q4, I mean, we just saw in Q4 a lot more aggressive stance in China. Particularly from the central government, to sort of really get after VBP and do some other things outside of just straight VBP, also going and doing some reimbursement cuts. And so, I think the combination of the tenders that we saw come through, the reimbursement cuts really accelerated here late in the quarter, frankly. This was kind of a November, almost in December phenomenon. So that kind of came through and informed our guide, as we think about going forward. From a respiratory perspective, you're right, we are here $1.7 billion. We've always thought that was about the normal range for a normal respiratory season in an endemic state. In”