The Issues Facing Pharmaceutical Companies Essay

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It wasn’t too long ago that the main security issue facing pharmaceutical companies was protecting their intellectual property from competitors who might be so unscrupulous as to try and steal information about new products. As computers became more entrenched in the pharmaceutical industry, for example, a clinical trial means having to store patient information, security became an issue as the pharmaceutical companies began storing patient data on their servers – they must comply with HIPAA, so patient privacy became an important cyber security issue. Always a priority, cyber security is at the top of the list for pharmaceutical organizations as threats from terrorist groups on pharmaceutical firms is real and increasing.

Terrorist groups use stolen information by selling it and using the proceeds for recruitment and criminal terrorist activities. Patient information with social security numbers is also highly sought as it can be used for stealing patient identities, opening credit lines so they are used as sources for funding these criminal groups.

In 2015, data breaches caused great pain and expense to the pharmaceutical segment. In 2015 $5.7 billion. In 2016 it is expected that the cost of a data breach will average $221 for every record containing confidential information. That is a 2% increase over 2015 with the average company enduring a 7% increase; from $6.53 million per data breach to just over $7 million.

Why Pharmaceutical Companies Need Ongoing Cyber

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