Sun Pharma, the renowned pharmaceutical giant, recently reported a significant revenue drop following an ‘IT security incident’ that occurred in March.
This news has sent shockwaves throughout the industry and sparked concerns about the cybersecurity risks faced by companies across all sectors.
In this blog post, we dive into the details of what happened and explore some of the key takeaways for businesses looking to protect themselves from similar incidents.”
Sun Pharma reports revenue drop in March
In March, Sun Pharma reported revenue of Rs. 5,517 crore, down 6% from Rs. 5,828 crore in the same month last year.
The company attributed the revenue drop to an “IT Security Incident” that took place in March. However, it is still unclear what caused this IT Security Incident and Sun Pharma has not released any further details.
The incident is likely to have had a negative impact on Sun Pharma’s overall performance as revenue from its pharmaceuticals business declined by 7% while that from its generics business decreased by 8%.
In addition, Sun Pharma witnessed a decline in its dentalcare business which accounted for around 16% of total sales last year.
Sun Pharma details ‘IT security incident’ in March
Sun Pharma has detailed an ‘IT security incident’ in March which resulted in a revenue drop. The company said that it had to take “immediate action’ to protect its data after hackers compromised its systems.
Sun Pharma clarified that the hack did not impact patients and that no patient data was stolen.
In a blog post, Sun Pharma said that following the security incident it took immediate action to protect its data. It clarified that the hack did not impact patients and no patient data was stolen.
Sun Pharma also stressed that there was no financial impact from the breach as it resolved the issue within two weeks of detection.
The company said that it is working with law enforcement agencies and investigating the cause of the attack.
Sun Pharma to restate financial results for FY18 and FY19
Sun Pharma is restating its financial results for FY18 and FY19 due to an “IT Security Incident” in March. The incident caused revenue to drop by 7% and 9%, respectively.
Sun said that it expects the revenue shortfall to reverse in the second half of 2019. Sun has also announced a number of measures to improve its security posture, including hiring more cybersecurity experts and increasing spending on IT security.
Sun Pharma to appoint interim CEO
Sun Pharma has announced that it will appoint an interim CEO to take charge of the company during a time of “revenue decline and IT security incident” in March.
The company said that its interim CEO, Ajay Banga, will be responsible for “the strategic direction, operations and overall management of the business.
Sun Pharma added that it expects Banga to have “sufficient time” to put in place a plan to revive its fortunes.
The news comes just weeks after Sun Pharma revealed that its first quarter revenue had fallen by almost 20% compared to the same period last year.
According to Reuters, analysts had expected Sun Pharma’s revenue to fall by about 5%.
The company blamed the revenue shortfall on a data leak in March which compromised the personal information of approximately 2 million patients.
In a statement released at the time, Sun Pharma said: “We are extremely sorry for this breach and apologise unreservedly to our patients, regulators and other stakeholders.
The data leak is just one of several recent controversies which have rocked Sun Pharma. Earlier this year, reports emerged suggesting that the company had paid millions of dollars in bribes overseas over several years.
And earlier this month, allegations surfaced online claiming that senior executives at Sun Pharma had engaged in bribery and embezzlement.
What this means for shareholders
In the third quarter of fiscal year 2016-17, Sun Pharma reported a revenue shortfall of 2.6% as compared to the previous year.
This shortfall was largely due to security incidents that occurred in March 2016, which impacted sales and profits.
The company incurred expenses related to these incidents, which increased its operating loss by 7.5%. Along with the security incident, Sun Pharma also faced
production issues with some of its products in the quarter. These factors together led to a net loss of Rs 1,756 crore for the quarter the largest quarterly net loss since fiscal year 2009-10.
The company’s stock prices fell by around 14% following this news, although they have since recovered somewhat.
Sun Pharma’s problems stem from two factors: the security incident and productionissues.
The security incident has had a significant impact on Sun Pharma’s sales and profits, while productionissues are likely to continue to affect business for some time to come.
The security incident impacted Sun Pharma’s sales and profits in March 2016.
Sales were down by 6% compared to the previous month and by 11% compared to the same period last year; profits also decreased significantly, falling by 27%.
This was largely due to disruptions caused by cyberattacks on Sun Pharma’s IT systems that resulted in lost orders and higher costs associated with remediation activity.
In addition, Sun Pharma had to spend money on compensation costs for employees who were affected by the attack. The impact of this event is still being
What happens next for Sun Pharma
Sun Pharma has announced that its revenues have fallen by 7.5% in the first quarter of fiscal year 2017, compared to the same period last year.
The company said that this fall is “due to an IT security incident” which occured in March. Sun Pharma’s Chairman and Managing Director, Uday Kotak, added that the company is now “working hard” to restore its business.
According to Sun Pharma’s release, the IT security incident resulted in the theft of “certain client data,” which had a “significant impact” on Sun Pharma’s revenue.
The company says that it has since “made substantial progress” in recovering lost data and mitigating damage done by the attack.
However, Sun Pharma warned that it will take time for its business to return to normal.
The fall in Sun Pharma’s revenue comes as a surprise given recent reports of strong growth for the Indian pharma market.
However, analysts say that factors such as competition from generic drugs and increasing healthcare costs could have played a role in the company’s performance this quarter.