Top takeaways from Q1FY17: Q1 results were just in?line of our expectations with 22%/19% growth in sales/profits. The US sales missed our expectations by 8% (mainly due to below expected performance in gGleevec caused by sequential price erosion) but strong double digit improvement in Emerging/ROW markets have almost neutralised the US sales miss. While US sales missed our estimates, interestingly SUNP’s US base business (excluding Taro sales, gGleevec sales and one?off sales of US$35mn in Q1) saw sequential improvemnet of 12%. This hints about improving supply from Halol plant. SUNP has completed remediation actions in its Halol plant and requested the USFDA to re?inspect the facility. Plant clearance by the USFDA could re?rate SUNP in near?term.Phillip Capital value SUNP at Rs 825 (24x FY18) vs. Rs 800 earlier. However, the clearance of the Halol plant by USFDA can re?rate the SUNP. Retain Neutral rating with revised TP of Rs 825 (Rs 800 earlier)