Downgrade to NEUTRAL, with a TP of Rs 420 (15x FY20E + Rs 30 for Biopharma). Unexpected price cuts by competitors in two of the key products (Potassium citrate and gLovaza) sold by Strides Shasun (STR) in the US, led to a sharp drop in US revenues in 4QFY18, which halved from US$ 42mn in 3QFY18. Management admitted that they were caught unaware on unsold stocks with distribution partners, who did not liquidate as prices cracked. With this inventory still in stock, STR is likely to report similar bad US revenues for the next two quarters. This development is totally contrary to our expectation that these two products would scale up to US$ 3-5mn/qtr each in the absence of competition.