6 February 2020 LPC is focused on building a niche pipeline for the US market and in process to resolve regulatory issues at its manufacturing sites. LPC intends to grow in the branded domestic formulation (DF) segment by (a) introducing new products, and (b) increasing reach. 3QFY20 has been the weakest quarter in terms of margin, impacted by muted US sales and elevated operational expense. We cut our EPS estimate by 7%/11%/5% to factor in delay of (a) potential launches, and (b) realization of benefits due to cost cutting initiatives. We remain positive on LPC based on its healthy ANDA pipeline and improving growth outlook in the branded DF segment. Maintain 3QFY20 revenues were down 4.5% to INR37.7b. US sales were down 3% YoY to USD186m (37% of sales). API sales declined 12% YoY to INR3.2b.