In this era of digital revolution, cybersecurity has rapidly become fundamental to the pharmaceutical industry. As facilities adopt new advanced technologies, the need to safeguard sensitive data, patients' privacy and intellectual property is more and more crucial. Pharma companies face serious financial and productive damages every year due to the increasing frequency of cyber attacks. In this article we will explore the threats that the industry is encountering and the solutions that it’s been implementing to help secure the future of pharma.
Digital transformation:
insights from the executives
The future of pharmaceutical manufacturing foresees a digital revolution, one that most industry executives prospect for the immediate future. According to a Bain survey exploring the five digital trends expected to have the greatest impact on businesses over the next five years, 61% of pharma executives pointed to big data and analytics as the most transformative forces. These technologies are expected to reshape areas like predictive diagnostics and supply chain tracking. However, for a digital revolution to happen comes the pressing need for a stronger digital defence: that’s where cybersecurity becomes crucial.
Nearly half of the surveyed executives (48%) identified cloud services and cybersecurity as essential to safeguard sensitive health data while managing costs. For these emerging trends there are others with less significant impact: virtual reality, voice-enabled platforms and advanced manufacturing are expected to play supporting roles, with an impact on the industry ranging between 18% and 23%.
The message is clear: as pharma steps into the digital age, its success will rely not just on innovation, but on the strength of the systems that protect and support it.
Reference: Bain Digital Insights Survey
The concerning consequences of cyberattacks
As digital innovation accelerates in the pharmaceutical industry, so do the risks that come with it. Due to the highly sensitive nature of the data they collect, pharmaceutical companies have become prime targets for cyberattacks. The consequences of a breach can be severe and far-reaching. The immediate impact is often operational disruption. Facilities are forced to interrupt manufacturing processes, experience delayed production, increased costs and risk to compromise product quality. These disruptions can also result in regulatory non-compliance, exposing companies to penalties and reputational damage.
Even more concerning are the privacy issues. If patient data and drug formulas are stolen, their misuse can harm patients, violate privacy laws and damage valuable intellectual property.
Reference: Pharmaceutical Industry Cybersecurity report by RiskXChange
From sourcing to planning: integrating AI in pharma production
Not only cyberattacks, the pharmaceutical industry is exposed to many different threats.
One of the main risks in terms of financial loss is related to third-party vendors. Companies rely on these partners for services to carry out their daily operations, yet a single data breach can compromise the entire supply chain. Other persistent dangers come from ransomware and phishing attacks, which cause disruption in business operations and loss of valuable information. The industry has also embraced the Internet of Things, a system of interrelated computing devices that can communicate and transfer data across the network, creating an expanded surface potentially exposed to cyberattacks.
And lastly comes human negligence. By mishandling credentials or falling for social engineering tactics, employees are a major driver of data breaches. According to the 2023 Data Breach Investigations Report by Verizon, 74% of all breaches involve some form of human element.
Navigating successfully in the digitalization process means securing not just systems and data, but also people, partners and every digital doorway in between.
References:
IBM's Cost of a Data Breach Report 2024,
The Ransomware Risk Pulse: Pharmaceutical Manufacturing
Data breaches: pharma’s biggest financial burden
In recent years the pharmaceutical industry has become one of the main targets for costly cyberattacks. According to IBM’s 2024 report, the average cost of a data breach reached a staggering $4,88 million. While this marks a slight decline from 2021, when the average was $5,04 million, the financial impact remains among the highest across all industries (just after healthcare and financial services).
Phishing continues to be a leading threat: it was the most common attack vector in 2023 and ranked as the second most expensive, costing companies an average of $4,76 million. The massive cost of breaches highlights the need for robust cybersecurity in the pharmaceutical sector, especially as Industry 4.0 connectivity increases risks.
Smart defenses for a smarter pharma industry
To stay one step ahead of cyber threats, pharmaceutical companies are adopting innovative strategies and technologies. Rather than treating cybersecurity as an afterthought, many are now embedding protective measures directly into machinery during the design phase.
AI is also leveraged to detect anomalies, predict potential threats and respond faster to cyber attacks. Companies are even implementing zero-trust architectures for their systems, a security model that treats every user and device as untrusted until verified. This ensures the safety of every connection and data transfer across interconnected systems. With the rise of remote monitoring and maintenance, ensuring secure communication channels for external devices has become essential. And in a move to further enhance data integrity, some manufacturers are adopting blockchain technology to ensure transparency, immutability and security of critical data, offering a powerful layer of protection in pharmaceutical supply chains.
From regulation to implementation: the concept of security by design
Evolving regulations are playing a pivotal role in shaping how cybersecurity is implemented across the pharmaceutical industry.
Regulation (EU) 2023/1230, outlines specific cybersecurity requirements for control systems. According to Annex III, Section 1.1.9, these systems must be protected against corruption, while Section 1.2.1 emphasizes the need for their reliability under stress or malicious interference. Control systems must be able to secure connections, protect hardware and crucial data from unauthorized manipulation. They must be equipped with mechanisms that can log interventions and detect anomalies while also withstanding malicious attempts. By designing control systems with resilience at their core, companies ensure high levels of safety, reliability and operational security in pharmaceutical manufacturing.
References:
Regulation (EU) 2023/1230: Official Journal of the European Union
Regulation (EU) 2019/881: EU Cybersecurity Act
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Cybersecurity: pharma’s new business imperative
To guarantee the security of an evolving digitalized pharmaceutical industry, companies must invest in cybersecurity, no longer just for compliance, but for actual necessity. Focusing on innovative solutions and advanced features is the key to protect clients’ operations and reputation.