ff Teva captured ~35% market share since its launch in Feb-15. This led Cipla to book blockbuster sales in 1Q (30% profit sharing). However, with Mylan being the 2nd generic to enter, we expect generic substitution rates to rise through 50% by year end. Its guidance of 20% sales growth exposes the weak base business; we expect gNexium to fade in the ensuing quarters (expect US$110mn in FY16E). ff Management indicated higher R&D; expense (guided at 8% from 6% in FY15) as it intends to fast track projects in biologics, respiratory and complex generics. Combination of higher staff and R&D; costs to continue in 9MFY16E. This will lead...