Higher Price Erosion to Impact US Business Lupin (LPC) has delivered a weak performance in 4QFY17. Its revenues rose by just 1.7% YoY to Rs42.5bn, while adjusted PAT declined by 12.7% YoY to Rs7bn. Lower US sales at US$276mn (vs. our estimate of US$336mn owing to drop in gGlumetza/gFortamet sales) and lower channel filling for gMinastrin 24Fe dragged its top-line performance. However, its domestic sales grew by 13.8% YoY Rs8.8bn, while Japan business surged by 41.8% YoY Rs4.9bn. LPC booked two oneoff expenses i.e. forex loss of Rs1.7bn and Rs1.6bn provisioning towards patent litigation loss in Australia, adjusted for which its EBITDA dipped by 19% YoY to Rs11.0bn, while adjusted EBITDA margin stood at ~26%. Its R&D; spend rose to ~16% of sales in 4QFY17 vs. 12.9% and 12.5% in...