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Business News/ Companies / News/  Dr Reddy’s isolates data servers post cyberattack
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Dr Reddy’s isolates data servers post cyberattack

Breach comes days after drugmaker received DCGI nod to conduct trials of Sputnik V
  • A person aware of the development described it as a ransomware attack early on Thursday on its IT systems, which led to all servers being shut down
  • While the motive behind invasion on Dr Reddy’s isn’t known, it is not a solitary event for a vaccine developer. (Mint)Premium
    While the motive behind invasion on Dr Reddy’s isn’t known, it is not a solitary event for a vaccine developer. (Mint)

    Hyderabad-based drugmaker Dr Reddy’s Laboratories Ltd on Thursday said it has isolated all its data centre servers across the world for as long as a day, as a preventive action after detecting a cyberattack.

    “We are anticipating all services to be up within 24 hours and we do not foresee any major impact on our operations due to this incident," Dr Reddy’s chief information officer Mukesh Rathi said in a stock exchange filing. The cyberattack comes just days after the company received approval from Drug Controller General of India (DCGI) V.G. Somani to conduct clinical trials of Russia’s Sputnik V vaccine in the country.

    The drugmaker has an agreement with Russian Direct Investment Fund, one of the co-developers of the vaccine, for distribution of up to 100 million doses of the vaccine in India after it receives regulatory approval.

    Business news channel ETNow had earlier on Thursday reported that there was a “mega data breach" at Dr Reddy’s, which had resulted in the closure of key units across the UK, the US, Brazil, India, and Russia.

    A person aware of the development described it as a ransomware attack early on Thursday on its IT systems, which led to all servers being shut down. As a result, there was no external communication due to of lack of internet access on Thursday. The serialization process, dispatches, quality control result recordings, and approval processes through electronic systems were also put on hold, the person said. A spokesperson for the company chose to not comment.

    After reports of the cyberattack emerged, shares of Dr Reddy’s slumped as much as 4% on the National Stock Exchange. The stock recouped most of the losses later, closing 0.4% lower at 5,029.15.

    Following the cyberattack, some pharmaceutical companies in Hyderabad wrote to their employees to be more vigilant while online. At least one company in the region has sent an email to its employees detailing the dos and don’ts while opening emails and attachments.

    The motive behind the cyberattack on Dr Reddy’s is not known, but it is not a solitary event for a covid-19 vaccine developer. Globally, attacks on companies that are conducting clinical trials on covid-19 vaccines have been on the rise. According to media reports, recently, some Japanese research institutions developing coronavirus vaccines were also hit by cyberattacks.

    In July, the UK’s National Cyber Security Centre said that Russian spies are targeting organizations trying to develop a coronavirus vaccine in the UK, US and Canada. Security officials of these countries had reported activity by a Russian hacking group called APT29 for attacks on their countries’ vaccine research and development organizations. However, the Russian government has denied responsibility for it.

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    Published: 23 Oct 2020, 07:14 AM IST
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