Weak Quarter; Higher Price Erosion in US Remains an Overhang Glenmark Pharmaceuticals (GNP) has delivered a weak performance in 4QFY17 due to lowerthan-expected US sales at US$149mn (vs. our estimate of US$190mn). Despite gZetia's 180days exclusivity, sales grew by just 9% YoY to Rs24.3bn owing to~15% price erosion in US base business, lower gZetia sales (~US$ 50mn vs. our estimate of ~US$ 95mn), and weak sales in India and Europe. EBITDA margin declined by 1,210bps QoQ on lower gZetia sales, ~Rs740mn forex loss and higher R&D; spend at 14.8% of sales from 10.9% in Q3FY17. Adjusting for forex loss, margin stood at 21% (vs. reported 18%), while adj. PAT stood at Rs5bn on lower tax (deferred tax on lower gZetia sales and MAT credit). Though the Management looks forward to improvement in US business in FY18 owing to new launches in dermatology segment, but it expects price...