Sanofi's Q1CY19 result came marginally better than our estimates, mainly on EBIDTA front which came 11% higher than our estimates. The EBIDTA margin remained flat YoY but improved 250bps sequentially on the back of lower overhead costs and marginal decline in RM. The management indicates the cost pressure on raw material is gradually subsiding. However, we expect the growth to moderate in CY19 for three reasons (a) CY18 included a small portion of non-recurring revenue from exports, (b) ~40% of exports business which have been transferred to Advent will see a limited scope of expansion, and (c) a few line extensions of legacy products have been covered under NLEM (eg. Amryl MV), thus affecting...