Sun Pharma shares update on recent IT security incident, says ‘prompt steps taken’

Drug major Sun Pharmaceuticals on 26 March said that the company has taken prompt steps to contain and remediate the impact of the IT security incident, including employing containment and eradication protocols to mitigate the threat. It added that an additional measures to ensure the integrity of its systems infrastructure and data has also been taken.

In a BSE filing, the company also said a ransomware group has claimed responsibility for the incident. 

On 2 March, the drug major had reported an "information security incident" at the company and said it is investigating the matter. The Mumbai-based company said the impacted IT assets have been isolated. "This is to inform that an information security incident has occurred at the company and the impacted IT assets have been isolated," the company had informed in a regulatory filing. It had also added that the incident did not impact the company's core systems and operations.

Sharing an update on the incident, the company added that the incident affected a breach of certain file systems and the theft of certain company data and personal data.

As part of its containment measures, it said, “we proactively isolated our network and initiated the recovery process. As a result of these measures, the business operations have been impacted.”

Consequently, revenues are expected to be reduced in some of our businesses. The Company would incur expenses in connection with the incident and the remediation, it said.

It further added that they are currently unable to determine other potential adverse impacts of the incident, including but not limited to additional information security incidents, increased costs to maintain insurance coverage, the diversion of management and employee time or the possibility of litigation.

Meanwhile, on 24 March, the company announced that it is set to acquire 60 percent shareholding in Vivaldis Health & Foods for ₹143.30 crore from its existing shareholders while the remaining 40 percent shareholding will be acquired in future as per certain terms and conditions.

Recently, Sun Pharma's acquisition of Concert adds a complementary derma product to the existing specialty portfolio. The drug major has completed the acquisition of US-based Concert Pharmaceuticals. In January, the Mumbai-based company inked a pact to acquire Concert in a $ 576 million deal.

In a recent report, Jefferies has maintained BUY rating on Sun Pharma shares with a target price of ₹1,200 apiece and has recommended as top pick. Though, its sees ongoing litigation with Incyte on patents as a key hurdle.