TFX
#So, as we look at the guidance that we have outlined, I would say there's a couple things going on ---+ first of all, strong operational performance.
As mentioned, we also have some FX benefit and we're doing two things with that.
One is flowing some of that through to the bottom line to increase guidance, and the other is funding investment behind some of the new product introductions.
As we've talked throughout the call, you've heard a number of areas of investment.
One was behind Vidacare.
Additional cadaver labs are seeing great returns on those investments.
In addition we've received very, very favorable feedback from the doctors who have been trialing the Percuvance product, and we want to make sure we are out there providing the support to help that product get up and through the hospital's value analysis committees.
And so there are a number of new products that are in the pipeline that we want to make sure there is adequate funding behind.
So if that's helpful.
<UNK>, do have any other.
No, I think the reason we are putting the additional investment behind Percuvance is because of the very positive feedback.
The fact that we are ready with this next generation of product, what we've seen is that the more institutions we can get into the funnel, our hit rate getting through the value analysis committee is very high.
So we want to make sure that we are getting more and more doctors introduced to the product, more and more surgeons using the product, and more and more surgeons willing to go to the value analysis committees and take their case to use this product.
And, <UNK>, this is <UNK>.
Just to address your first question on FX, there's really a lot of puts and takes in terms of the different currencies that swung during the course of the year versus our original expectations, many of which, from a profitability standpoint, don't have still that same impact.
So while the euro was a little bit favorable compared to probably our initial thoughts, there are other currencies like the pound, the Canadian dollar, and a variety of others that we operate in that kind of went in an opposite direction, still keeping that full-year FX rate headwind assumption to revenue at about that approximately 2% type level.
Good morning, <UNK>.
<UNK> here.
You are correct, not a big piece of it is Percuvance.
LMA protector is somewhat of a contributor in the second half.
The main contributors are the ones that I outlined earlier when I was talking about our growth for the quarter.
Our Chlorag+ard pre-loaded PICC is a big driver in the second half.
Within our surgical group we have the MiniLap EFx and ISI port, and our laryngoscope blades in our surgical business unit.
So again, what we expect to see in Q3 and Q4 is an incremental improvement and a sequential improvement in our new products.
And also, <UNK>, what you want to bear in mind is, in some instances, let me take the Chlorag+ard PICC, for example, there is some cannibalization within that number.
So what we see in the first half of the year is, even if the product is not in the marketplace, we're still selling the core PICC not pre-loaded to that customer, so you'll see it represented in volume rather than in new products.
So, normally you would expect to get ---+ first of all, we're not going to change our expectations for Percuvance, <UNK>.
We're going to maintain the $300 million to $400 million as the market opportunity until we get farther down the road here and get some traction on it.
So we will maintain that.
And it was based on a US number, you are correct.
But nonetheless, to be conservative, we should maintain that number.
What we are seeing within Europe is similar to what we're seeing in the US, and it's very, very strong acceptance of the product.
The one thing you want to get from a product, <UNK>, is it needs to be intuitive.
When you put it in the hands of the surgeons, they should get it immediately.
And with this product, they do.
They get it immediately.
Similar to the US, they're not called value analysis committees overseas, but there is a pricing board, similar methodology that you go through to get the product approved, and that's what we are working through at the moment.
In Europe alone, we have over 70 surgeon trials that we've completed with this product.
And again, overwhelming enthusiasm from the surgeons.
It's just a question of working it through the system in the individual countries, and it's different country by country.
So we haven't pulled back from our enthusiasm for the product, but by the same token, we're not updating that $300 million to $400 million market opportunity, <UNK>.
We did.
So we've increased that by 50 basis points on the lower and upper end to 24% to 24.5%.
Thanks.
Thanks, operator, and thanks, everyone, for joining us on the call today.
This concludes our second-quarter 2016 earnings conference call.
Have a good day.
