Below?expected sales across US, Europe, emerging markets and PSAI segment caused a 16% miss in our revenue estimates. 8 Incremental expenses such as remediation spend, NDA launching expenses in the US, higher R&D (15% of sales), and lower sales from the US (better margin) led to a negative surprise in profit 8 DRRD guides for expiry of a supply contract (with ~50% profit margin) in the US starting Q1 – this would have an annual negative PAT impact of ~US$ 25mn 8 Considering visible delay in plant clearance by the USFDA, no major product launches in the near future, and weak profit outlook, we downgrade our rating from Buy to SELL with a lower TP of Rs 2,750 – 20x FY18 (earlier Rs 3,700).we downgrade our rating from Buy to SELL with lower TP of Rs 2,750 – 20x FY18 (earlier Rs 3,700).Trendlyne has 24 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3339.2 . Brokers have a rating for DRREDDY with 1 downgrade,6 price downgrades,1 upgrade,2 price upgrades in past 6 months and 3 downgrades,8 price downgrades,2 upgrades,8 price upgrades in past 1 Year.