“So I think that this is going to probably start, I'd say, late Q1 and into Q2.”

In context

“from Evercore ISI. Vijay Kumar: Robert, congrats on the good print here. I had 2 questions. My first one is, could you just elaborate on this China VBP for Diagnostics. How big is Core Lab in China for you guys at this point in time? And I think I heard 20% would be impacted next year? Is the assumption or rest of Core Lab would be impacted in fiscal '25, like how do these contracts flow up? Because my understanding is you will see volume gains or those volumes and the asset price headwinds? Robert Ford: Yes. So the way this is kind of working out, right, this was announced recently, I think proposals are due within the provinces that are going to be bidding, Vijay, I'd say, in the next 30 days, right? And then there's like another 30 days, 30 to 60 days to evaluate all the proposals. So I think that this is going to probably start, I'd say, late Q1 and into Q2. Right now, the list of assays that are on VBP equate to about 20% of the market. So our annual sales are in China are about $1 billion. So -- and then if you look at the specific assays, it's infectious disease, there's some fertility assays there, et cetera. So that's where the -- that's where the VBP is kind of focused on. I haven't heard and team hasn't heard about expanding that to other areas of other areas of testing, such as oncology or hormones or other areas like that. So right now, I'd say, this is going to be our focus in 2024. If there's volume upside to begin, yes, there could be volume upside to be gained. I mean we do have good market share in some of these segments and others, we have lower market share, so it presents us an opportunity. So I think in areas where you'v”