RPG Life Sciences Limited has informed the Exchange about Investor Presentation
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Ri'Q LIFE SCIENCES
February 02, 2023
To
RPG LIFE SCIENCES LIMITED Unit No. 208-213, B Wing, Bezzola Complex, Sion-Trombay Road, Chembur, Mumbai 400071, India Tel : +91 ·22·25292152-55 Fax: +91-22-25297 423
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C-1, G- Block, Bandra - Kurla Complex, Bandra (East) Mumbai – 400 051
BSE Limited Corporate Relationship Department 25, P.J. Towers, Dalal Street, Mumbai 400 001
Symbol: RPGLIFE
Scrip Code: 532983
Dear Sirs,
Sub: Investor Presentation
Please find enclosed herewith a copy of Investor Presentation with respect to Unaudited
Financial Results of the Company for the quarter and nine months ended December 31, 2022.
Kindly take the same on record.
Thanking you,
Yours faithfully, For RPG Life Sciences Limited RAJ ESH RAMESH Digitally signed by RAJESH SHIRAMBEKAR
RAMESH SHIRAMBEKAR Date:2023.02.0212:16:33 +05'30' Rajesh Shirambekar Head – Legal & Company Secretary
Encl: As above
Registered Office : RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai 400030, India. Tel: +91 -22-2498 1650 / 66606375 Fax: +91 -22-2497 0127 Email: info@rpglifesciences.com www.rpglifesciences.com GIN: L24232MH2007PLC169354
An ~»RPG Company
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R?G LIFE SCIENCES
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Investors’ Presentation 9M FY23
Disclaimer
This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.
The company operates in the Pharmaceutical segment. Some of the historical Profit and loss numbers which are sliced in the investor presentation for certain sales divisions are purely for broader understanding for investors of the business of the company and its growth trajectory. The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.
This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of RPG Life Sciences Limited Limited (the “Company”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
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RPG Life Sciences Overview
RPG Life Sciences, part of RPG Enterprises, is an integrated research based pharmaceutical Company operating in the domestic and international markets in the branded formulations, global generics and synthetic APIs space.
Leader in Immunosuppressants
APIs 17%
Domestic Formulations (DF)
Develop, manufacture and market branded formulations in India and Nepal
6 Leading Text Book Brands
International Formulations (IF)
50+ Markets Presence
International Formulations (IF) 18%
Domestic Formulations (DF) 65%
Develop, manufacture and sell oral solid dosage formulations in the generics and branded generics space across regulated and emerging Markets
APIs
Develop, manufacture and sell high value synthetic APIs in the general therapeutic category
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3 Manufacturing Facilities
1100+ Employees
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RPG Life Sciences Product Portfolio
Key Therapies
Key Products
Existing Portfolio
New Portfolio
Domestic Formulations (DF)
Rheumatology
• Nephrology • • Oncology • Orthopaedics • Gastroenterology • Cardiology • Diabetology • Neuropsychiatry
Immunosuppressants Portfolio
Text Book Brands
Azoran· Azathioprine
Mofetyf Mycophenolate Mofetil
'Ar11im11ne ME. Cyclosporine
•1munotac Tacrolimus
Azoran· Azathioprine Mda~tflneJ Spironolactone ' Lomotif Diphenoxylate HCl .SNafM'.Q_~yn· Naproxen Serenace Haloperidol
ld·h•fil{M
Disopyramide Phosphate
Specialty lierlVlali( Trastuzumab Adlu"!~~· Adalimumab
IVZ.lJOJa~ Bevacizumab ~ tml!li Rituximab illJiD Tofacitinib !r'1lf;_ig.lj_
'i>enbrV· Denosumab
International Formulations (IF)
Key Products Generics - Azathioprine, Sodium Valproate PR, Nicorandil Branded Generics – Siloxogene, Azoran, Mofetyl, Arpimune, Dipsope
Chronic
Life Cycle Management (Existing Products)
'NuGliR!ig: Vildagliptin
A!9.ran7s GliptiN~f ~ Aldactone·~ .,.._. .......... ,___..,..,,
Teneligliptin
DPUil. Dapagliflozin
A~ilta :, Azelinidipine
'§.,Q.[i[irs f ·····• ..
Mirasinart·s "'7~.~!..,.•,·"" Mm-, Sm#lrt..,Mt1l'I' Effi~iMtJ
'Naprosyn·:: +
'ROMILAST:BL . .. mf@ .. a .. Tricame·A
Lomofen®LB ,.,_,. . ..,,~.cu~~.,..- ,_..
APIs
Key Products APIs - Quinfamide, Azathioprine, Haloperidol, Risperidone, Propantheline Bromide, Nicorandil, Pantoprazole, Diphenoxylate
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Key Financials, Business Highlights & Strategy
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Key Highlights of 9M FY23
RPGLS continues to grow faster than the market at 19%* vs 6.5% (IPM)**
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PBT continues to grow healthy double digit (+25%) despite inflationary pressures and rising costs due to geo-political situations
Profit margins’ upward trajectory continues – EBITDA margin reaches record 22.8% & PBT margin record 19.7%. Margin expansion across Domestic Formulations and API
Robust performance of Domestic Formulations, contributing to 2/3rd of Company business - driven by diligent execution of our 5 strategic priorities - Product portfolio augmentation, Building strategic brands/ assets, Productivity enhancement, Deepening customer coverage and Profitability improvement
While some of the RPGLS iconic brands, being built into strategic assets through diligent life cycle management strategy, are recording consistent growth, New Products and New Therapies continue to contribute significantly (>20%)***
International Formulations business also being strengthened by continuous thrust on New Products/Customers/Markets
Company continues to remain debt free with healthy net cashflow generated from operations
Sales health/ hygiene parameters continue to be in healthy zone and consistently improving
People initiatives driving performance culture with focus on happiness
Company wins the Prestigious “CFBP Jamnalal Bajaj Award” for the first time recognizing our value driven business practices
* Domestic Formulations internal growth (9M FY23)|**Source: IQVIA TSA MAT Dec’22 An <.>» R?G Company
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***Launched FY19 onwards
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Company Financial Performance – Profit Margins Upward y-o-y Record setting Trajectory continues – EBITDA Margin reaches 22.8% & PBT Margin 19.7%
EBITDA% 22.8% PBT% 19.7%
20%
17%
18%
14%
16%
10%
10%
4%
10%
5%
12%
11%
6%
4%
9%
1%
8%
4%
6%
0%
4%
0%
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Key Financials: 9M FY23
(All figures in Rs. Crores except EPS in Rs.)
Revenue from Operations
- - - - f - - - f __ f
EBITDA & EBITDA Margin
PBT & PBT Margin
336.4
394.3
89.7
74.6
22.2%
22.8%
fY
77.9
19.7%
62.2
r1
18.5%
9M FY22
9M FY22
9M FY23
9M FY22
9M FY23
9M FY23
PAT & PAT Margin
- - f
57.3
14.5%
44.0
13.1%
_f
EPS
34.6
26.6
Figures in circle are Margins
9M FY22
9M FY23
9M FY22
9M FY23
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Key Financials’ Trends
Revenue from Operations
EBITDA & EBITDA Margin
PBT & PBT Margin
(All figures in Rs. Crores except EPS in Rs.)
375.6
330.2
389.1
440.2
394.3
1111 1 □~
FY22 9M FY23
FY20
FY19
FY21
FY19
FY20
10.4%
15.9%
59.9
34.4
FY21
18.2%
70.8
89.4
89.7
20.3%
22.8%
FY22
9M FY23
73.2
77.9
53.6
41.8
15.1
uC~
13.8%
11.1%
4.6%
FY19
FY20
FY21
16.6%
19.7%
FY22
9M FY23
PAT & PAT Margin
57.3
51.5
40.0
10.8
29.0
LJ~~~
10.3%
11.7%
7.7%
3.3%
FY19
FY20
FY21
FY22
9M FY23
14.5%
EPS
34.6
31.1
17.5
24.2
.111 1
FY22 9M FY23
FY19
FY20
FY21
6.5
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Figures in circle are Margins
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Key Financials’ Trends
_f
ROCE%
_f
ROE%
Debt/Equity Ratio
- - !
23.6% 24.3%
27.9%
18.5% 20.1%
16.4%
0.22
11.0%
6.7%
FY19
FY20
FY21
FY22
■
FY19
FY20
FY21
FY22
FY19
Company continues to remain Debt-free
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0.06
-
FY20
0.01
FY21
0.00
FY22
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Business Segment-wise Performance: 9M FY23
Domestic Formulations (DF)
• Domestic Formulations contributed 65% to total sales of 9M FY23 • • • New products* contribution improving consistently (currently >20%) on account of new
19% sales growth majorly driven by legacy products Better than market growth
launches in Specialty & Chronic segments and line extensions of legacy products Salesforce productivity improved to >5.0 Lakhs versus 3.4 Lakhs in earlier years
•
International Formulations (IF)
International Formulations contributed 18% to total sales of 9M FY23 Robust sales growth of 20%
• • • New Products/Customers/Markets contribution continues to improve (currently ~30%)
Sales (Rs Crs)
214.2
254.1
9M FY22
9M FY23
59.9
71.8
9M FY22
9M FY23
59.7
65.9
API
• • •
API contributed 17% to total sales of 9M FY23 10% sales growth majorly driven by niche products Continuous thrust on new customer development
*Launched FY19 onwards
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9M FY22
9M FY23
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Key Financials: Q3 FY23
(All figures in Rs. Crores except EPS in Rs.)
- - - f - - - f __ f
Revenue from Operations
EBITDA & EBITDA Margin
PBT & PBT Margin
115.6
130.6
29.7
22.8%
24.7
21.4%
25.7
19.7%
20.6
17.8%
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
PAT & PAT Margin
- - f
19.1
14.6%
14.6
12.7%
_f
EPS
11.6
8.8
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
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RPG Life Sciences ICRA Rating Reaffirmed in FY22
Long term rating reaffirmed at A Short term rating reaffirmed at A1
Outlook on long term rating has been retained as Stable
The rating reaffirmation factors:
Strong brands in the Indian Pharmaceutical Industry Considerable improvement in the operating performance backed by:
• •
Improvement in sales hygiene Cost rationalisation measures adopted since FY20
A robust capital structure and strong coverage indicators based on
• Decline in the company’s debt levels • Healthy cash flows • No major debt-funded capital expenditure (capex)
Expansion of product portfolio and geographical presence augur well for growth prospects
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Domestic Formulations (DF)
• Operating in Mass/Mass-specialty and Specialty segments • Presence in both Acute & Chronic therapy areas • • • Good Customer Coverage - Cardiologists, Diabetologists, Urologists, Nephrologists, Rheumatologists, Oncologists • New Product Launches in New Category – Biosimilars as well as Chronic and Specialty segments
Leading Text Book Brands – Azoran, Aldactone, Lomotil, Naprosyn, Serenace, Norpace Leading player in Immunosuppressant category
Business Strategy
5 pillars of profitable Domestic business growth
1
2
3
4
5
Product portfolio rejuvenation by building Chronic & Specialty portfolio with new launches
Strategic brand assets building through life cycle management (new line extensions, customer segments, disease segments, etc.)
Customer coverage deepening in targeted therapies by expanding field force and deploying digital
Sales force effectiveness augmentation by competencies building and productivity enhancement initiatives
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Profitability improvement by opex control, efficient manufacturing operations, sales hygiene as well as profitable product mix
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International Formulations (IF)
• Strong presence in immunosuppressant segment (Azathioprine) • Footprints across Regulated and Emerging Markets - Canada, UK, Germany, France, Australia, South East Asia, Africa •
Long lasting, impeccable supply track record and business relationship with some of the leading generic players of the world
• High quality and process orientation making us a preferred partner •
Investments in plant upgradation and capacity expansion
Business Strategy
3 pillars of step-wise Global business build up
1
2
3
Build immunosuppressant portfolio
Focus on products with specific/ competitive advantage e.g. Nicorandil (special manufacturing conditions like low RH), Sodium Valproate PR (complex generic product)
Expand footprints in emerging markets like Myanmar, Vietnam, Philippines, Sri Lanka, Egypt, Sudan
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APIs
• High value, low volume, niche APIs • Mature stable molecules • Provides backward integration to International Formulations business • Footprints across geographies - LATAM, Iran, Germany, China, South Korea, Bangladesh, Egypt, India, etc. • Strong customer focus - long lasting relationship with big pharma and leading generic firms.
Business Strategy
Business continuity
1
2
3
Backward integration and efficiency enhancement
Niche Product / Portfolio focus
Market / Customer expansion
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Infrastructure & Backend Capabilities
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Manufacturing Facilities
Formulations Unit 1, Ankleshwar
Formulations Unit 2, Ankleshwar
API Unit, Navi Mumbai
F1 unit caters to the domestic and emerging markets
• • Multipurpose plant with dedicated product lines for oral dosage forms including tablets,
liquids and powder
• WHO, Kenya, Nigeria approved
F2 unit caters to the regulated markets
• • Dedicated product lines for oral dosage (capsules & tablets) • • WHO, EUGMP (from Hamburg Health authority), Canada, Ethiopia, Kenya, Sudan, Nigeria
Equipped to handle low RH and low temperature conditions products
approved
• MF1: Multipurpose unit catering to emerging markets including India • MF2: Dedicated immunosuppressant facility catering to regulated and emerging markets
including India
• MF3: Multipurpose unit catering to regulated and emerging markets including India • WHO, TGA Australia approved & Written Confirmation (WC) received from CDSCO
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Strong Backend Capabilities
Quality
9 - - -
•
• All critical SOPs harmonized through CQA • Quarterly internal audit of all plants by CQA • All critical deviations, change controls and market
complaints investigation approved by CQA
Formulations R&D In addition to Formulations Development of IR, have capabilities to develop modified release & complex generics
• Dossiers gap analysis and fulfilment • Tech transfer/site transfer activities • GLP compliant analytical lab for Development and
Validation of Analytical Methods
®-
Regulatory
• Well established & evolved Regulatory function catering to Canada, UK, EU, Australia and emerging markets Expertise of eCTD submissions Integrated project management activities
• •
Digitalisation Focus Areas
• Quality Management systems : e-QMS, e-DMS, e-LMS. • Access to critical manufacturing equipment through IRIS
scanner
• All QC instruments attached with dedicated software
and server
• All stability chambers with software control •
Secondary packing Complies with EUFMD requirement for Track and Trace.
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Operational Highlights
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Digitalization Initiatives to Transform Business
Game Changer Customer Connect Initiative
Employee Connect Initiatives
Anytime, Anywhere Doctor Support Initiative
Industry First Initiative
~
2 .0
Digital Platform for comprehensive Salesforce Operations tracking: #Customer visits, customer engagement activities, sales performance analytics etc
C rica
HR Chatbot for quick resolution of queries related to HR process and company policies
A digital platform for Salesforce Grievance Redressal
Initiatives in Plant Operations
Range of Services
>80,000 Key Opinion Leaders
e-QMS: Digital platform to track all 6 quality parameters
e-DMS: Digital platform to manage all manufacturing/quality documents
e-LMS: Digital platform to track training sessions on CGMP
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C0VID·19 One Source
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PATIENT EDUCATION MATERIAL
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All above represent Illustrative list of the initiatives
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e- Access: Retina scanning for machine access
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People Initiatives to build Performance Culture with focus on Happiness
I Live a Purposeful & Balanced Life Identify with Company Purpose, Work- Life balance, Altruism, Physical Wellness, Financial Wellness, Emotional Wellness, Spiritual Wellness
Initiatives
‘RPGLS Values Champions’
I Feel Valued Fair Appraisal, Fair Rewards & Recognition, Appreciation, Competitive Pay, Competitive Benefits, Flexible Benefits
Initiatives
‘You Excel We Applaud’
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‘Navigators’
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I Feel Connected Authentic Relationship with Manager/s, Trust amongst Peers, Good Team Chemistry, Camaraderie at Work, Respect for Others’ Capabilities, Constructive Conflict Management
Initiatives
‘RPGLS Happiness Forums – Month & Quarter’
‘24X7 Support’
Signature Initiatives aligned to Happiness Factors
I Love My Work Outperforming, Industry leading, Impactful, Energizing, Autonomy, Flexibility, Clear and Prioritized Goals, Committed, Support to bring out the Best
Initiatives
‘RPGLS Heroes’
‘You Excel We Applaud’
I cherish our Culture Integrity, Openness, Transparency, Respect, Encourage Risk Taking, Diversity & Inclusiveness, Freedom to voice opinion and be Oneself, Caring Organization
Initiatives
‘RPGLS Parivar Tyohar- Utsav Shrankhla’
I am Growing Self-directed Learning, Personal Growth, Regular Guidance, Constructive Feedback, Progressive Career Prospects, Learning & Development Opportunities
Initiatives
‘We Skill You Grow’
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‘Akanksha’
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Initiatives for building a Performance Driven Culture: Glimpses (9M FY23)
Skilling
Rewards & Recognition
Employee engagement: Parivar Tyohar Utsav
Employee Connect
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FY23 Priorities
Maintain growth momentum in top-line and bottom-line across the business segments
Continue to grow our presence in chronic and specialty therapies in DF through new product launches and new customer segments
Continue to build iconic/legacy brands into strategic assets
Continue to enhance salesforce productivity through targeted measures
Build product pipeline for IF and API businesses while creating state-of-art manufacturing infrastructure
New customer acquisitions in IF and APIs businesses
Accelerate digital transformation initiatives across frontend and backend to transform business
Continue to implement all initiatives pertaining to strategic priorities identified in our transformation agenda across all three business segments
Building a Happy and Performance driven culture
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Awards & Recognitions
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RPG Life Sciences Awarded with ‘Jamnalal Bajaj Award for Fair Business Practices’
Jamnalal Bajaj Award for Fair Business Practices (2021-22)
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RPG Life Sciences Bagged Top Awards from IDMA
Industry Recognition to RPG Life Sciences
Best Patent Award
Best Corporate Citizen Award
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RPG Life Sciences is one of India’s Best Workplace in 2020 – Amongst Top 100
• Ranked 85 amongst India's 100 Best Companies to Work For 2020 •
One of India's Best Workplaces in Biotechnology & Pharmaceuticals by Great Place to Work® Institute
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IND IA'S BEST COMPA NIES TO WORK FOR 2020
RPG Li fe Sciences Ltd.
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FQr inipiring fnllf among yaur people, instil!ing prid1 in them, creating en environment that promotes c:amat1de rie. and deliw1in9 a great wo,kplac11 o~perianco fota'1 your employees that mike you, organization one of l ndi•'s 8 e1t CompaniH to Work for.
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Best W o rkplaces""
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RPG Life Sc iences Ltd .
Recognition for b6in9 among th e best in the industry For inspiring tru, t among your people, instming prid• in them, cNJ11tmg1m envi,onm1mt thatpromotas e11m1raderie, and delivering • grNt workplace •"Pf!"ence for all rot'' empfoyees thar maka your organiution one of lrod/1 'r. 8 111 I Wo,kplacer In Biotechnolog)I & Ph1rm1eeutlc1J,
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T H A N K
••••• •••
Y O U
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