HAE
#Yes, speaking very candidly, the footprint of Haemonetics is a tale of two very different businesses, and we have our growth businesses with increased capacity requirements.
We are facing into those realities and optimizing the network, and will add as appropriate, our plans as discussed, include the capacity expansion necessary to make that happen.
The other parts of our business are struggling more, and in that part of the network, we're actually more in a retrenchment mode.
We'll face into the realities of that.
I think we've begun to do so already.
But I want to be crystal clear about the three broad phases of the restructuring as articulated, and the first phase is stabilization.
One of the things that's caused us problems in the recent past is the transfer of products between sites, and our strong intent is to stabilize, and avoid further disruptions associated with that TEG transfer.
It's certainly been part of my listening and learning.
I've had occasion, unfortunately also through the recall, to talk to pretty much all the leading, or all of our leading customers in the blood center business.
So certainly, as part of that discussion, we talk about the state of blood collection, the frequency of transfusion, and where we see that going.
As you know, it's hard to get pinpoint data around this.
Our strong belief, as theirs is, is that the long-term systemic reduction in transfusion rates will continue.
We saw some abatement of that earlier this summer.
But our sense is, that's situational and at a point in time that, over the longer haul, we will see the rates continue to go down.
And as a result of such, need to face into that reality.
Thanks.
So just for clarity's sake, the bottom line and ROIC and cash flow, to the extent I've spoken with them, are really focused on our organic plans, and very modest acquisitions that would just augment and offset, as the inevitable puts and takes in our own portfolio play forward.
Acquisitions will be something separate.
We'll talk about that over time.
It's not lost upon me, the challenges the Company's had in the past, executing M&A effectively.
So it's not part of our near-term plan.
It is something, we'll consider as opportunities present, but over time.
In terms of the top line, we're still working through that.
As I said, I'll be more comfortable with Bill on board, and having gone through the details of this together with our franchise leaders, to give you more clarity, perhaps, at the end of second quarter.
But what I can say is right now, the plan is very much focused on driving both hemostasis and plasma as discussed, making sure that we have a proper answer.
We're excited about the upcoming launches in cell salvage and transfusion management.
If they deliver fully against their opportunity, I think we'll have a much more exciting story to talk about on the top line, as well as the bottom line going forward.
Yes.
So I'm not prepared to talk about peak sales.
But I can tell you we're excited, and I think it's very much contingent upon the breadth of indications, and the rate at which we can penetrate the top 10 or so markets around the world.
In terms of our specific guidance, we remain convinced, and are on track to deliver a full year performance, as we guided to back on our May 10 Investor Day.
The setback, and of the ---+kind of where we stand with FDA, we still expect approval.
We have approval for cardiovascular.
We expect the trauma indication approval later this fiscal year.
What I'm most excited by, is that given where we are today, the performance disproportionately driven with disposables on the TEG 5000, both in the US and in China.
Yes, we hear you, <UNK>.
We're very much contingent upon the indications that we're approved for, as you can appreciate, <UNK>.
At this point, we have the approval in markets outside the US, and it'll vary by account and by country, depending on our placements.
We are excited to continue to drive the 5000 in parallel.
The 6s gives us some degrees of freedom, and particularly with the four different cartridges that we'll be able to work into the treatment regime, we expect that to be a pretty robust part of our rollout.
It does vary meaningfully, from one account to the next, from one country to the next, and ultimately contingent upon the approvals that we receive.
That is what the increase in spending was related to.
In fact, our whole blood spend on R&D or our blood center spending on R&D was reduced significantly in Q1, to about a third of what it was in Q4.
I think it will probably stay about this level, as we continue to develop further technologies to support the products that we are launching in our growth franchises, and it will stay disproportionately focused on those products that we believe have growth in solid end markets.
