Alkem Laboratories confirmed a cybersecurity incident that led to a fraudulent transfer of Rs 52 crore from one of its subsidiaries affecting the brand value and reveling serious vulnerabilities at several level.
The disclosure raises concerns about vulnerabilities in India’s pharmaceutical sector to cyberattacks and led to price fall in their share prices.
Alkem stated that fraudulent actors compromised the business email IDs of some employees at its subsidiary.
Question that crops up is what kind of vulnerabilities allowed such an attack? Its impact on the pharmaceutical sector?
- The impact of such an attack on entire Pharma industry and what led to vulnerabilities?
- What steps are being taken to ensure better protection of sensitive data?
- Will this incident act a discussion pointer on broader scale and conversations that can focus on proactive measures to safeguard India’s pharmaceutical sector from the growing menace of cybercrime.
Though the amount stolen wouldn’t trigger mandatory reporting thresholds as per company policy, the Board of Directors chose transparency, disclosing the incident to the stock exchanges.
Alkem appointed an independent external agency to investigate the incident and filed complaints with relevant authorities. They emphasized that the fraud wasn’t linked to any internal misconduct by promoters, directors, or employees.
While Alkem emphasizes the limited impact of the incident, the episode shines a light on the cybersecurity landscape of India’s pharmaceutical sector. These companies hold invaluable intellectual property and sensitive patient data, making them prime targets for cybercriminals.
Alkem’s case serves as a cautionary tale, highlighting the need for robust cybersecurity measures and increased vigilance within the industry.
In November 2023, the company had tied up with a Nasdaq-listed cybersecurity solutions company Check Point Software Technologies to protect various facilities of the pharma company from cyber attack.
“As a responsible corporate entity, Alkem Labs fully disclosed this minor breach to the Securities and Exchange Board of India.
Following this breach, Alkem Labs quickly resumed normal business operations with minimal impact to the entire organization,” the statement further added.
(Image Courtesy: www.pharmaceutical-technology.com)
