We believe FY19 may see a gradualcomebackfor large cap pharma companies, driven by (1) Actual and likely regulatory resolutions, (2) Moderating price erosion and (3) Several product launches across generic and specialty categories in 2HFY19. For the first time after six consecutive quarters, the pharma companies under our coverage will report double digit YoY growth (~13%) in revenues. EBITDA and PAT will grow at 25% and 28% YoY respectively. However, this growth is on the favorable base of 1QFY18, which was affected by GST disruption. Sequentially, revenues, EBITDA and PAT are likely to remain flat due to lack of lucrative approvals in the US and continued investment for specialty business. Within the sector, depreciated rupee is likely to benefit CRAMS companies like DIVIS and DCAL. Most of the US focused companies will report flat sequential growth and steady EBITDA margin