Dr. Reddy?s Labs (DRRD) failed to maintain the recovery (albeit slow) shown in the last two quarters in 4QFY17. A 19% sequential drop in North American sales led to a 7% miss on the top line, and a lower EBITDA margin at 17%. With no substantial launches lined up over the next few quarters and lingering regulatory issues, we expect only ~12% CAGR in the US business, and 11% CAGR in the overall top line over FY17-19E.