Alkem Laboratories, a prominent pharmaceutical company, is grappling with a cybersecurity issue involving a Rs 52 crore fraudulent transfer. The company had taken steps to protect itself by teaming up with Check Point Software Technologies in November 2023 to prevent cyber attacks.
The recent breach allowed unauthorised access to email accounts of some employees in one of Alkem's subsidiaries. Although the company is investigating, specific details about the incident are not disclosed.
Despite the breach, Alkem Laboratories assured that the amount involved didn't surpass certain predefined limits. In the financial realm, the company reported a strong performance with an operating revenue of Rs 2,634.6 crore and a net profit of Rs 646.5 crore for the quarter ending September 2023.
This incident highlights the ongoing challenges businesses face in the digital age. Even a well-established company like Alkem is not immune to cyber threats, emphasising the need for increased awareness and security measures in today's interconnected world.
Following the cybersecurity incident at Alkem Laboratories, the company took proactive steps by enlisting an external agency to investigate the matter. The investigating agency submitted a detailed report to the Board of Directors, emphasising that the impact of the incident was confined to the previously mentioned amounts.
In a move towards transparency and good governance, the Board of Directors, during their meeting on January 12, 2024, decided to disclose the cybersecurity incident to the stock exchanges. The decision, rooted in the principles of openness and accountability, aims to keep stakeholders informed about the situation.
While the investigation's conclusion indicated that the impact was limited, the company recognizes the importance of sharing such incidents for the sake of transparency. This move aligns with industry best practices and demonstrates Alkem Laboratories' commitment to keeping shareholders and the public well-informed about developments that could affect the company's operations and reputation.
Addressing the cybersecurity incident, Alkem Laboratories clarified that it did not stem from any fraudulent activities involving promoters, directors, key managerial personnel, or any staff within the company or its subsidiary. The company affirmed its commitment to ethical practices and reported taking necessary steps, including filing complaints with relevant governmental and regulatory authorities.
In November 2023, Alkem Laboratories strategically partnered with Check Point Software Technologies, a Nasdaq-listed cybersecurity solutions company, to strengthen defences against cyber threats. This collaboration aimed to shield the pharmaceutical company's facilities from potential cyber attacks.
As the company works out the aftermath of the cybersecurity breach, it remains dedicated to transparency and accountability. The assurance that the incident was not internally driven, coupled with proactive measures taken alongside Check Point Software Technologies, underscores Alkem Laboratories' commitment to prioritising cybersecurity and maintaining stakeholder trust.
In an era where cybersecurity threats are on the rise, such actions not only serve to address the immediate situation but also contribute to the broader conversation around the need for robust cybersecurity measures in the corporate landscape. The disclosure to stock exchanges stresses upon the company's dedication to ethical business practices and maintaining trust with its stakeholders.