Alkem Laboratories Reports Cybersecurity Breach at US Subsidiary of Enzene Biosciences

Alkem Laboratories Ltd, a leading Indian pharmaceutical company, has disclosed a cybersecurity breach at the US subsidiary of its wholly-owned arm, Enzene Biosciences Ltd. The incident, reported on May 15, involved the compromise of business email accounts of certain employees, leading to the fraudulent transfer of funds.

In a regulatory filing, Alkem stated, “Our subsidiary Enzene Biosciences Limited has detected a cybersecurity incident at its US subsidiary, where business email IDs of certain employees were compromised. The incident resulted in a fraudulent transfer of funds.”

While the exact amount lost in the cyber fraud is still under investigation, the company has confirmed that independent external agencies have been engaged to conduct a comprehensive inquiry. The findings will be presented to the boards of both Enzene and Alkem Laboratories.

Highlighting its commitment to transparency and good governance, Alkem emphasized that the breach is being reported to the stock exchanges proactively. The company is also in the process of filing the necessary complaints with relevant governmental and regulatory bodies in the US and India.

“As a matter of transparency and corporate governance, the board of directors has decided to disclose this incident. We are taking all necessary actions and have initiated the process of reporting it to concerned authorities,” the company added.

This incident brings to light the growing cyber threats targeting pharmaceutical companies and their subsidiaries, especially in the wake of increased global digital operations. Alkem has not yet disclosed the financial impact of the breach, citing the ongoing nature of the investigation.