Sun Pharma admits business affected due to March 2 ransomware attack

Sun Pharma has said that a ransomware group has claimed responsibility for this incident and that the company is utilising global cyber security experts and enhanced security measures to address and mitigate the impact of this incident.

"The Company is currently unable to determine other potential adverse impacts of the incident, including but not limited to additional information security incidents, increased costs to maintain insurance coverage, the diversion of management and employee time or the possibility of litigation," the exchange filing stated.

Expenses in connection with the incident and the subsequent remediation will also be borne by the company.

Sun Pharma will also be making an investment of Rs 143.3 crore to acquire 60 percent stake in animal healthcare company Vivaldis Health & Foods. The remaining 40 percent shareholding will be acquired later, without a clear timeline being specified.

Vivaldis is engaged in the business of trading, distribuing, manufacturing and marketing of drugs, food supplements, and over-the-counter products in the animal healthcare industry.

The acquisition is likely to be completed by May 2023. For the financial year 2022, Vivaldis reported revenue of Rs 29.92 crore.

Additionally, brokerage firm Credit Suisse has upgraded Sun Pharma to outperform from the earlier rating of neutral. It has also raised its price target to Rs 1,150 from Rs 950 earlier. The brokerage expects Sun Pharma's specialty sales to double over the next four years.

Credit Suisse expects Sun Pharma's revenue to grow at a Compounded Annual Growth Rate (CAGR) of 12 percent over financial year 2022-2025 and expects margin to expand to 30 percent over the same period.

Shares of Sun Pharma have given up all the gains made so far this year, and are now down 2.5 percent. The stock has corrected 9 percent from its 52-week high of Rs 1,072.