Granules India (GRAN.NS) issued a warning on Thursday regarding a huge loss in revenue and profitability as a result of a cyber security incident the pharmaceutical firm experienced in the latter part of May.
The IT security breach caused a considerable disruption in its business operations because of extensive adjustments to its IT infrastructure, the manufacturer of paracetamol claimed in an exchange filing.
Granules India disclosed the information security incident on May 25 and added that the affected IT assets have been contained.
The company reported that it has now been able to get production up to levels that were close to normal, but it also noted backlogs and delays in getting materials cleared for quality system approvals before shipping the goods.
LockBit, a ransomware gang linked to Russia, has claimed responsibility for a hack on Indian pharmaceutical giant Granules India and uploaded some of the data it allegedly stole.
A leading maker of pharmaceuticals in India since its founding in 1984 is Granules India. Many generic medications, including paracetamol, ibuprofen, and metformin, are produced by the Hyderabad-based firm. Moreover, according to information on the company's website, it has more than 300 clients in more than 80 different nations.
The quarterly earnings for the quarter ended March 31 increased 7.8% to $14.6 million, according to a report released by Granules India in May. Shares of the business finished Thursday at $3.50, down marginally from the previous trading day's closing price of $3.48.
Lockbit spreading wings
According to a recently published joint advisory from the U.S. federal cybersecurity organisation CISA and its international counterparts in Australia, Canada, France, Germany, New Zealand, and the United Kingdom, LockBit emerged as the most frequently utilised ransomware version worldwide in 2022 and 2023. In January 2020, Russian-language cybercrime forums were the first place where the ransomware gang was identified.
The ransomware group has recently made attacks on a number of well-known tech firms, including IT services provider Accenture, electronics producer Foxconn, U.K. health service provider Advanced, and British postal agency Royal Mail. Other victims of the ransomware group include the financial software company Ion Group, the Los Angeles Housing Authority, and the state of California's finance department.
LockBit threat actors have extorted about $91 million in ransoms through nearly 1,700 attacks targeting U.S. victims since 2020, according to a recent U.S. and foreign joint advisory.