Domestic formulations, chronic therapies to drive Pharma Q1; US generics remain drag

Indian pharma companies are expected to report a mixed Q1, with domestic formulations and chronic therapies driving growth while US generics remain a drag due to absence of meaningful gRevlimid sales. Sun Pharma, Aurobindo, Lupin, Torrent, Divi's Labs and Apollo Hospitals are likely to post healthy revenue growth, whereas Dr. Reddy's and Cipla face weak quarters on declining US sales. Margins are expected to come under pressure across most companies due to higher costs and new facility ramp-ups.