BDX
#In terms of the R&D spend you should assume that we will continue to spend the Medical Device Tax as it is suspended and think about that going into next year.
You don't start a program and finish it in one quarter.
These things will continue.
As I was mentioning, this is an acceleration of the strategy that we have and we've seen some really attractive opportunities to accelerate that strategy both on the Life Sciences and on the Medical side.
You were mentioning microbiology in your question and we said that is one of the areas in terms of the automation that we felt with the opportunity that we're seeing for that platform globally that we could extend that platform.
We had finished the technology feasibility, so we felt really good about it and so <UNK> took the opportunity to do that.
On the other side, <UNK> had a series of opportunities in the Medication Management area where he could accelerate his programs around Medication Management including the informatics piece of that strategy.
There was some opportunity to get some technology from the outside which we took advantage of.
So we were very happy that these things came together in that way.
We think it positions us well going forward.
I just want to be clear, <UNK>.
I referenced the fourth-quarter margin or the investment as about 7.5%.
That's not the new normal.
I think going forward you would still think about R&D as a percentage of revenue in the 6% to 6.5%.
But fourth quarter is a bit of an anomaly that it's a bit of a catch-up.
It's a bit of a catch-up and there's a little bit of one-time in there is what I was indicating with my opportunistic comment.
Sure.
When we think about emerging markets obviously we start with Asia and within Asia we start with China and we're looking at healthcare spending in China and how that is unfolding.
What we're seeing is consistent spending in China.
We break that down then to look at business by business, what's happening on the capital side of things, as they are purchasing that's more of an impact obviously on the Life Sciences side than on the Medical side.
And then we go back and look at the Medical piece in two ways, of course, what's the opportunity for core growrh and then as <UNK> was talking about earlier all the product registrations that we have for China and other marketplaces from the CareFusion acquisition.
So that's China number one.
Number two, we're looking at India as a growth driver.
And that has, the last two years that has picked up and been a good growth driver for us.
Now there's pluses and minuses in India.
We're seeing good fundamental demand there with the burgeoning middle class.
We're expanding our distribution in India, so we will take that into account.
There are some headwinds in India in terms of tariffs that have been put in place.
So we make sure that that's not any significant impact.
So I would say we still find it as a very attractive marketplace for us.
In Middle East and Africa, of course, we're much more careful about what's going on in Saudi Arabia.
We follow what the government funding is.
In this case, of course, the funding was not just in healthcare but it was a significant change linked to the price of oil that we saw.
So the way we're thinking about that is price of oil staying where it is, which means on the low side which says that they are going to fund their healthcare but it's not a big expansion of healthcare.
That was going on in the first half of the year.
That's not happening now.
But they have to continue to provide care.
That's what we're thinking about there.
In Africa we talked about the CD4 business and some of the shift in the guidelines we've seen.
We believe we've seen the majority of that impact that's really driven by PEPFAR, not the entire marketplace, so it's a segment of that market.
So we will watch how that evolves as <UNK> said.
Then Latin America is, you know, is a mixture for us.
Mexico is doing well.
Brazil is doing okay, is what we would say, and we watch the economy there and what's happening from an inflationary standpoint and, of course, funding.
But the other countries in Latin America are contributing quite nicely.
So that's how we build it up.
Sure.
<UNK> will take that.
Hi, <UNK>, this is <UNK>.
So I wouldn't say this is the bolus of them.
The numbers that we cited are certainly less than half of the products that we intend to have registered outside.
We obviously started with those products that we have the data available for that didn't need to have additional data generated.
And we're in existing formats that those markets would accept.
Take, for example, as we think about pumps, in some cases we need to do translation and get the language done first and that's an R&D program to get that ready.
Some of the markets require infusion sets to be adapted a bit for local practices.
And so what you saw come through first are obviously those products that meet the needs of specific geographies.
We have the data ready and we move forward and submit right away.
So most of those also tend to be on the consumable side as I shared earlier, which as why as you think about FY17 we would expect those synergies to really be focused within our MPS business because that's where those more simple medical devices that are more universal in nature in terms of how they fit in with the healthcare system, that's where they tend to be focused.
As <UNK> mentioned, we think about it in 10s of bps, not in dramatically higher than that.
Again just to put things in perspective we are really pleased with the performance and outlook.
Even that we've gotten as early as in FY16, of course, as we had said CareFusion was a 3, 3.5 at best growth business as a standalone.
We're holding at our 4.5% to 5% growth for the segment overall.
and as you know when you take a 3% grower and a nearly 5% grower you don't get within the range that we're sharing.
And so we're already we see some good performance this year already as a result of the two companies coming together.
We think some incremental improvements on that in FY17, specifically within the MPS business in that 10s of bps as <UNK> described.
The other thing is also to keep in mind is that some geographies take a lot longer.
So China, although it's a market that we are filing registrations in, once you file a registration in China it's a three-year process.
You can't get into certain markets that fast.
Typically more of the European, Latin America, Southeast Asia markets are those geographies that you can actually get into within an 18-month window.
So that's where you will see us enter in first.
Those aren't necessarily as large as some of the markets like China which will be later on in our three-year outlook horizon.
Okay, this is <UNK>.
Listen, thank you all for your questions and comments on the call.
We look forward to briefing you at the end of next quarter.
Thanks very much.
Thanks everyone.
Thank you.
