Alkem Labs US arm hit by cyber fraud; financial loss under probe

Pharmaceutical company Alkem Laboratories Ltd on Thursday (May 15) disclosed a cybersecurity breach at a US subsidiary of Enzene Biosciences Ltd, a wholly-owned subsidiary of the company. The incident involved the compromise of business email accounts belonging to certain employees, resulting in the fraudulent transfer of funds.

"We wish to inform you that our subsidiary Enzene Biosciences Limited (Enzene) has detected a cybersecurity incident at its US subsidiary, where business email IDs of certain employees at the US subsidiary were compromised. The incident resulted in a fraudulent transfer of funds," Alkem said in a regulatory filing.

The company stated that the total amount affected by the fraud is currently under investigation. The company has engaged independent external agencies to carry out a thorough inquiry into the breach. The findings will be reported to the boards of both Enzene and Alkem Laboratories.

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Alkem clarified that the disclosure was made in the spirit of transparency and good governance. It also confirmed that necessary complaints are being filed with the relevant governmental and regulatory authorities. The company did not disclose specific financial impact figures at this stage, citing the ongoing investigation.

"The board of directors of the company has decided that in the interest of transparency and as a matter of good governance, this incident should be reported to the stock exchanges. Further, the company is taking all necessary steps and in the process of filing necessary complaints with concerned governmental and regulatory authorities in this matter," it added.

Shares of Alkem Laboratories Ltd ended at ₹5,290.35, up by ₹163.20, or 3.18%, on the BSE.

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