Sun Pharma updates on IT security incident, stock ends in green

Indian drugmaker Sun Pharmaceutical Industries Ltd has shared an update on its IT security incident that was first reported by the company on March 2. The company has taken steps to contain and remediate the impact of the IT security incident, it informed today, 27 March, in an exchange filing.

The containment measures implemented by Sun Pharma negatively impacted its business operations as the company is expected to see a decline in its revenues.

"The company promptly took steps to contain and remediate the impact of the IT security incident, including employing containment and eradication protocols to mitigate the threat and additional measures to ensure the integrity of its systems infrastructure and data. These measures are underway as the company utilises global cyber security experts and enhanced security measures to address and mitigate the impact of the incident," according to a statement by Sun Pharma.

Post this update, Sun Pharma's shares opened in the red in Mumbai trading. However, it recovered losses later and at 1.07 PM IST, the company's shares were spotted trading at Rs 985.10 each, up 12.30 points or 1.26 per cent on BSE today.

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A ransomware group has claimed responsibility for the 'IT security incident' at Sun Pharma whose effect included a breach of certain file systems and the theft of certain company data and personal data, the drugmaker said.

At the time of the IT security incident on March 2, the company had informed that there is no impact on Sun Pharma's core systems and operations. However, it stated today that the company is presently unable to identify any more possible negative effects of the occurrence.

The healthcare sector is a common target for cybercriminals. A recent analysis by Check Point Research found that among all industries in India, the healthcare sector saw the most attacks, with healthcare organisations reporting 1,426 attacks each week in 2022. This is a 60per cent increase over the prior year.

Cyberattacks on healthcare institutions have resulted in large costs for the companies involved; in fact, over the previous two years, the cost of a data breach has increased by 42 per cent. Healthcare continues to have the highest average cost per incident of any industry for a data breach, averaging $10.10 million per incident. 

Meanwhile, Sun Pharma's shares last exchanged hands at Rs 983.95 each, up 1.15 per cent from its previous close on Monday, 27 March in a strong Mumbai market.

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