CDH’s US?based 100% subsidiary will launch mesalamine delayed?release tablets (800 mg, Asacol HD) as an authorised generic (AG) in the US, starting August 1 this year. We now estimate the product to add incremental sales of about US$ 55/105mn in FY17/18 (had earlier assumed delayed launch in H2FY17 and sales of ~US$ 40/85mn). Although we are modelling higher sales, it does not really excite us because CDH missed the opportunity of launching generic mesalamine under its own ANDA due to lack of a timely approval. If it could have launched under its own ANDA, the profit potential would have been 3?4x higher (in an exclusive?like scenario, as there were no visible filers). Nonetheless, to factor in higher sales, we upgrade our FY17/18 estimates by 2%. While the recent EIR on its Moraiya plant has certainly improved the visibility for clearance by the USFDA, a ramp up in its ANDA approval flow will be subject to final closure of the warning letter (mostly after a re?inspection). Hence, do not see a rerating for CDH anytime soon (value it at Rs 390, 20x FY18 EPS, vs. Rs 380 earlier). With limited visible upside, Phillip Capital downgrade to Neutral.Trendlyne has 11 reports on CADILAHC updated in the last year from 5 brokers with an average target of Rs 369.4. Brokers have a rating for CADILAHC with 1 downgrade,4 price downgrades,2 upgrades and 1 price upgrade in past 6 months.