Aided by forex gain (4% of sales) and subdued R&D spend (6% of sales), Sun Pharma (SUNP) beat our earnings estimates by 40% with PAT at Rs 12bn in 3QFY19. Adjusted for forex, PAT was at ~Rs 9bn (+12/- 1% YoY/QoQ). Similarly, EBITDA margin came in at 24% post forex adjustment, still ~200bps above our expectation owing to normalized specialty spend. Revenue at Rs 77bn grew 16/12% YoY/QoQ led by improved traction in India and RoW segments (up 7/18% YoY and 20/11% QoQ). Although SUNP reported improved performance in 3Q, it continues to be in investment mode for its US specialty business owing to a ramp up in field force and heightened marketing activities for new product launches like Ilumya, Xelpros and Cequa. This is eroding overall business margins by 300-400bps, in our view. Driven by steady ramp up over the next two years, we believe this segment will break-even at the EBITDA level by FY21E. With ~12% revenue CAGR in the India business and US$ 1.8bn revenues in the US by FY21E, we model ~13% revenue CAGR over FY19-21E. The steady generic business, improved traction in the US specialty