How Data Breaches Impact Drug Development Pipelines

Data breaches occur in every industry, no matter the size. In particular, the pharmaceutical industry faces daily threats to cybersecurity. One of its most vulnerable parts — drug development — holds confidential, high-value data cybercriminals target.

What Is a Data Breach?

A data breach occurs when a company’s personal or corporate information is accessed, disclosed or released without consent. Individuals responsible for data breaches are referred to as cybercriminals.  

Cybercriminals access data from the drug development process like in any other sector. Typical ways they do so include phishing scams, denial of service attacks and malware. Although malicious attacks are the most common cause of data breaches, human error and IT failure also cause them.

How Can a Data Breach Affect Drug Development?

When a pharmaceutical brand develops a new drug, it goes through five phases to become official — discovery and development, preclinical research, clinical research, FDA review, and safety monitoring. If a breach occurs, the entire process is affected, causing problems across the industry. Data breaches in the pharmaceutical sector cause the following.

Extensive Financial Burdens 

Pharmaceutical data breaches are the second most expensive, after health care. In 2024, the global average cost was $4.88 million for data breaches — a frightening statistic. With so much money devoted to recovery, businesses are forced to take financial resources from the drug development process.

Loss of Consumer Trust

Data breaches release confidential information, including private consumer records. In 2019, First American Financial Corp. was hacked, compromising 885 million personal customer accounts. When a data breach of this size occurs, millions of people lose trust in a company, making it nearly impossible for an organization to maintain a positive reputation. 

Delayed or Canceled Trials

A data breach can set back the entire development process, delay or even cancel the release of the drug. This negatively impacts development timelines, financial schedules, yearly reports and — most importantly — the development of helpful drugs.

How to Prevent Data Breaches in the Pharmaceutical Industry

Today’s advanced technology makes it easier for cybercriminals to attack pharmaceutical companies, but don’t forget — it can also be used to protect against cybercrime. No matter the sector, security should be a priority. These five steps can help prevent a data breach from impacting drug development.

1. Implement a Cybersecurity System 

If looking to adopt a technology platform for cybersecurity, the options are endless. Automation and generative AI analyze data to find abnormalities and hackers, continuously searching for suspicious activity that could harm a company. 

Firms should have a standard password policy and multi-factor authentication to make it difficult for intruders to break in. Even better, use a double virtual private network to ensure data security.

2. Conduct Regular Cybersecurity Staff Training

One of the most important things drug developers can do is educate their staff properly. Data breaches can occur simply because a company failed to keep employees updated, so make sure to have a set plan to keep them informed on cybercrime.

Implement an onboarding and offboarding security process so data is safe when workers enter and leave the company. Security training should be a mandatory onboarding process, ensuring they can recognize suspicious activity like phishing scams in their inboxes.

3. Update Company Software — Regularly

Technology is constantly evolving to fit new trends and changes, meaning new software comes with fantastic security features. Having the newest programs isn't cheap, but it could save companies from multi-million dollar data breaches.

Prioritize regular updates to company software and ensure all team members participate. Outdated software is much easier to hack, so make sure technical and assessment management controls are reliable.

4. Know Exactly Where Everything Is

When data breaches occur, many brands waste time trying to find exactly where the released information was stolen from. To prevent this chaos, professionals must enter the minds of cybercriminals.

What is the company’s most important data? Where is it? Who would want to steal it? Having clear answers to these questions could save time and money and protect businesses from further attacks.

Document all reviews and changes that take place during the drug development process. Businesses should already be doing this for the sake of compliance, but it is also crucial to understand operations inside and out. Know what cybercriminals are looking for and keep it somewhere safe.

5. Stay Up to Date With Cybercrime

Cybercrime continues to advance and won’t stop anytime soon. Every day, hackers are working on new ways to attack systems and gain unauthorized access to data. Protect the company’s security by knowing what to look for before it’s too late.

Attend cyber security conferences, read articles from the industry and speak with experts in cybercrime whenever possible to stay updated. If the decision-makers are well-informed, employees should be, too. Practice company transparency and share knowledge with them.

Prevent Data Breaches With Cybersecurity

Protect valuable company data throughout the drug development process by taking proper safety measures, investing in cybersecurity and updating employees. Making security a top priority can save enterprises from data breaches.