Biotechnology and pharmaceutical companies—particularly in the Munich region and across the DACH market—are experiencing rapid growth. Research, development and manufacturing are becoming increasingly digitalized, while collaboration and data exchange increasingly rely on cloud platforms and global supply chains. However, this digital transformation also introduces significant cybersecurity risks. Cybercriminals have long recognized the life sciences sector as an attractive target: In 2020 alone, ransomware attacks against life sciences organizations increased by 485% compared to 2019 [1]. The widespread shift to remote work during the pandemic has further expanded the attack surface [2]. As a result, small and mid-sized biotech and pharmaceutical companies now face a new generation of cybersecurity challenges that require a strategic response.
Why Biotech and Pharmaceutical Companies Are Prime Targets
Biotechnology and pharmaceutical organizations possess highly valuable digital assets. They develop innovative drugs, therapies and active pharmaceutical ingredients—making their intellectual property (IP) extremely attractive to competitors and state-sponsored threat actors alike [3]. At the same time, research, clinical trials and manufacturing generate vast amounts of sensitive data, including patient information, clinical study results and confidential research data [4]. These datasets are heavily regulated and highly valuable on the black market, where they can be exploited for fraud, extortion or industrial espionage [5].
The industry is also deeply integrated into healthcare delivery. Pharmaceutical manufacturers and suppliers form part of complex supply chains in which a successful cyberattack can have far-reaching consequences [6]. Even a temporary disruption of pharmaceutical production or logistics can affect the availability of critical medications. One example is the cyberattack against the German pharmaceutical wholesaler AEP in October 2024, where parts of the company’s IT infrastructure were encrypted, temporarily disrupting deliveries to more than 6,000 pharmacies [7]. Incidents like this demonstrate how attractive—and potentially profitable—attacks against this critical sector have become, whether motivated by ransomware payments or the pursuit of unfair competitive advantages.
Current figures underline the severity of the threat landscape: 70% of biotech companies reported experiencing cyberattack attempts during the past three years, with ransomware and industrial espionage representing the most common threats [8]. According to a report by the U.S. government, the healthcare sector was the most targeted industry by cyberattacks in 2020, accounting for nearly one quarter of all recorded incidents—and within healthcare, experts consider biotechnology to be one of the weakest links [9]. During the COVID-19 pandemic, multiple vaccine developers became targets of sophisticated cyber campaigns [10]. Germany has not been immune either. In April 2023, the biotech company Evotec was forced to shut down its IT systems and isolate operations following a cyberattack [11]. These examples illustrate that cyberattacks have become an everyday reality across the industry—from innovative biotech startups to pharmaceutical manufacturers and contract development organizations.
In summary: Biotech and pharmaceutical companies represent highly attractive targets because of the exceptional value of their data and the potentially enormous operational impact of successful attacks. Alongside financially motivated cybercriminal groups—such as ransomware operators seeking quick profits—state-sponsored actors increasingly target research results, trade secrets and intellectual property. This threat is further amplified by the fact that many mid-sized organizations have historically invested less in cybersecurity than large multinational corporations. The result is a dangerous combination of highly valuable assets and, in many cases, security controls that have not kept pace with the evolving threat landscape.
Common Vulnerabilities and Security Gaps in SMEs
Despite the growing threat landscape, many small and medium-sized biotech and pharmaceutical companies exhibit similar cybersecurity weaknesses:
Limited security resources and expertise: SMEs often lack both the specialists and the budgets required to implement comprehensive cybersecurity measures [12]. Many organizations do not employ a dedicated Chief Information Security Officer (CISO) or security team. Instead, cybersecurity is handled alongside day-to-day IT operations by already overstretched IT staff. A recent study found that limited financial resources and the shortage of qualified professionals remain among the biggest obstacles to effective cybersecurity [12]. Nevertheless, nearly 80% of SMEs continue to manage their cybersecurity entirely or predominantly in-house, despite the ongoing skills shortage [13]. This discrepancy means that while organizations recognize the importance of cybersecurity, protective measures often remain incomplete in practice. Many small and medium-sized businesses attempt to secure their environments without the necessary expertise or sufficient resources to do so effectively [14]. As a result, security frequently becomes reactive rather than proactive: 21% of organizations implement security measures only sporadically and without a clear strategy, while another 8% only take action after experiencing a security incident [15]. This hesitation—often driven by time and budget constraints—is particularly risky considering that almost 30% of organizations mistakenly believe they are unlikely to become cyberattack targets [16].
Legacy systems and increasingly complex IT environments: Many biotech and pharmaceutical companies have grown rapidly over recent years. Their IT infrastructures have expanded organically but have often not been fundamentally modernized or properly documented [17]. The result is a growing number of shadow systems and legacy devices. Specialized laboratory equipment and production systems frequently continue to operate on outdated operating systems that no longer receive security updates. At the same time, lean IT departments often continue to rely on manual administrative processes where modern security solutions are lacking. For example, surveys show that more than half of SMEs still manage privileged accounts using simple tools such as Excel spreadsheets [18]. Attackers actively exploit these outdated practices. Another common issue is insufficient network segmentation. Without clear separation between network zones, malware or attackers can move laterally from office environments into highly sensitive production systems. Consider the following scenario: Without proper network segmentation, a successful phishing attack against an employee in the sales department could ultimately spread into manufacturing systems, potentially causing production outages and data breaches [19]. Such scenarios are far from theoretical—they are regularly observed in organizations whose internal networks have evolved over many years without a structured security architecture.
Insufficient security awareness: The human factor remains one of the most significant cybersecurity risks. Cybercriminals continue to target employees through phishing, social engineering and other forms of deception because these methods often represent the easiest path into an organization [20]. As Dr. Florian Skopik from the AIT Austrian Institute of Technology noted in an industry interview, “people remain the most promising target for attackers.” [20] Consequently, phishing emails and other forms of fraud continue to achieve high success rates. Low levels of security awareness significantly increase the likelihood that such attacks will succeed. Many employees still underestimate cyber risks in their daily work. In one survey, 44% of respondents stated that they considered themselves sufficiently protected against cyber threats—a potentially dangerous misconception [21]. In reality, the majority of security incidents continue to result from human error or negligence. Security professionals broadly agree that people remain “the weakest link in the security chain,” making regular security awareness training one of the most effective ways to reduce organizational risk [22]. Unfortunately, awareness programs in many SMEs are still conducted only sporadically—or not at all.
Growing complexity driven by digital transformation: Ironically, many of the industry’s success factors—rapid growth, innovation and increased connectivity—also create new cybersecurity challenges. Cloud services, remote work, IoT devices in laboratories and manufacturing environments, and extensive collaboration with external partners significantly increase the complexity of IT environments [23]. Every new technology and every additional interface introduces potential new attack vectors that must be secured. Many SMEs struggle to keep pace. Cloud adoption and the integration of third-party service providers frequently outgrow existing security concepts. Without a holistic cybersecurity strategy, maintaining visibility over an organization’s expanding digital attack surface becomes increasingly difficult. At the same time, regulatory requirements continue to increase. European legislation such as NIS2 and the upcoming Cyber Resilience Act (CRA) require many organizations—including pharmaceutical companies—to implement minimum cybersecurity standards [24]. For businesses without dedicated cybersecurity teams, meeting these requirements can be challenging without external support. As a result, many SMEs continue to navigate today’s cyber threat landscape with only limited visibility into their actual security posture.
Interim conclusion: Many small and mid-sized biotech and pharmaceutical companies operate with a fragile cybersecurity posture. Limited budgets and personnel, legacy infrastructures, insufficient employee awareness and the pace of digital transformation create a misalignment between today’s threat landscape and existing defensive capabilities. The risks are real and immediate, while security measures often lag behind. The encouraging news is that this risk can be significantly reduced through a focused, strategic approach.
Strategic Measures to Improve Cyber Resilience
For decision-makers in biotech and pharmaceutical companies, cybersecurity should be treated as a board-level responsibility and a long-term investment—comparable to quality management or regulatory compliance. Building a resilient security architecture requires a holistic approach that combines technology, processes and people. Proven measures for strengthening cybersecurity in these highly critical industries include the following:
Regular security assessments (Penetration Testing & Red Teaming): Proactive offensive security assessments identify vulnerabilities before attackers do. During penetration tests, ethical hackers systematically assess systems and applications for exploitable weaknesses. Red Team assessments go one step further by simulating realistic attacks, including social engineering and physical intrusion attempts, to evaluate an organization’s overall detection and response capabilities. These exercises frequently uncover critical security gaps and provide concrete recommendations for remediation. A targeted cybersecurity assessment helps organizations identify their most significant risks and derive appropriate preventive measures [25]. Industry experts recommend performing such assessments on a regular basis—typically annually—and especially after significant changes to the IT environment.
Security awareness training and a strong security culture: Since people continue to represent one of the primary entry points for cyberattacks, employees at every level of the organization should receive continuous security training. Security awareness programs should include phishing simulations, hands-on workshops and clearly defined policies covering topics such as password management and the use of removable media. The objective is to establish a culture in which every employee recognizes potential security risks and understands their own responsibility for protecting the organization. Only by strengthening what is often considered the “weakest link” can organizations effectively reduce human-related security risks [22]. Regular exercises and awareness campaigns—such as internal phishing simulations—help maintain vigilance and significantly reduce the success rate of cyberattacks. Simply put: well-informed employees remain one of the organization’s strongest lines of defense.
Incident response planning and crisis exercises: No security strategy provides absolute protection. Organizations must therefore define in advance how they will respond when an incident occurs. An incident response plan establishes clear procedures, responsibilities and communication channels for handling cyberattacks or data breaches. Equally important is ensuring that these plans are not merely documented but are regularly tested through simulations such as tabletop exercises or unannounced response drills. Effective incident response can dramatically reduce the impact of a cyber incident. Organizations with mature incident response capabilities and regularly trained response teams reduce the average cost of a security incident by approximately 61% compared to unprepared organizations [26]. Rapid and coordinated action—ideally within hours of detecting an attack—minimizes downtime, protects critical assets and can also reduce regulatory consequences such as mandatory breach notifications or financial penalties. Success requires close coordination among all stakeholders, including IT, executive management, legal, communications and public relations.
Zero Trust architecture and network segmentation: Traditional security models implicitly trust internal networks—a concept that is no longer sufficient in today’s threat landscape. The core principle of Zero Trust is simple: “Never trust, always verify.” Every user, device and request must be continuously authenticated and authorized, regardless of its location within the network. Micro-segmentation and strict access controls prevent attackers who successfully breach one system from moving freely throughout the environment. In practice, this means separating development environments from corporate office networks, restricting access to sensitive information through multi-factor authentication and least-privilege principles, and isolating critical production or laboratory environments from general business IT [19]. Network segmentation ensures that even if one environment is compromised, the resulting damage remains contained. Research shows that organizations implementing Zero Trust strategies experience significantly lower breach costs—on average approximately USD 1.76 million less per incident than organizations without Zero Trust controls [27]. For SMEs, adopting Zero Trust primarily means consistently enforcing security fundamentals: eliminating unnecessary administrator privileges, implementing strict network segmentation, encrypting sensitive information and continuously monitoring critical activities.
Compliance-driven security governance: Regulatory compliance should not be viewed merely as an administrative obligation but rather as a structured framework for improving cybersecurity maturity. Regulations such as NIS2, together with existing industry requirements—including GMP, GLP, FDA regulations for U.S. market access and GDPR for personal data protection—already require organizations to implement minimum technical and organizational security measures [24]. Companies should use these requirements as an opportunity to establish comprehensive security governance, including regular risk assessments, security policies, audit trails and proper documentation. Beyond avoiding legal penalties, regulatory fines or production interruptions, the objective is to identify and eliminate systemic weaknesses before attackers can exploit them. Studies indicate that organizations with significant compliance deficiencies incur, on average, more than one million US dollars in additional breach-related costs compared to organizations with mature compliance programs [28]. Cybersecurity and compliance reinforce one another: strong security reduces compliance risks, while established frameworks such as ISO 27001 provide a structured methodology for continuously improving security controls.
Leveraging external cybersecurity expertise: Given the limited internal resources available to many SMEs, engaging external cybersecurity specialists can be a highly effective strategic decision. Whether through project-based engagements—such as external penetration testing—or ongoing managed security services, external expertise gives smaller organizations access to highly specialized professionals and state-of-the-art security technologies [29]. Managed Security Service Providers (MSSPs), for example, can monitor systems around the clock, detect attacks at an early stage and support incident response activities that many SMEs cannot realistically provide internally. Outsourcing selected security functions can also improve cost efficiency by eliminating the need to build and maintain specialized internal capabilities [30]. Selecting trustworthy partners and establishing clear service agreements—including response times and escalation procedures—is essential. Ultimately, internal and external security teams should work together as an integrated security function. Increasingly, small and medium-sized life sciences companies are adopting managed security services to achieve a high level of protection despite limited internal resources [30].
None of these measures should be viewed in isolation. Together, they form the building blocks of a comprehensive cybersecurity strategy. Every organization faces its own unique risks. The first step is therefore to identify the company’s most valuable assets and most significant threats. Based on this understanding, organizations can develop a layered security strategy encompassing people, processes and technology, aligned with both their cybersecurity maturity and available resources. Leadership commitment is critical. When the CEO, CIO, CISO and CFO jointly position cybersecurity as an integral part of corporate strategy, the likelihood increases substantially that security will become embedded throughout the entire organization.
Conclusion: Cybersecurity as a Success Factor for Digital Life Sciences SMEs
Small and mid-sized biotech and pharmaceutical companies find themselves in a paradoxical situation. They are driving medical innovation and experiencing rapid growth—yet these very strengths make them increasingly attractive targets for cybercriminals. The challenges outlined in this article demonstrate that cybersecurity is far more than a purely technical issue. It has become a strategic factor that directly influences long-term business success.
Organizations that understand and proactively address their most common vulnerabilities are significantly better positioned to protect themselves against severe operational and financial damage. Implementing modern security measures such as penetration testing and Zero Trust architectures requires an initial investment, but the long-term benefits are substantial: fewer security incidents, reduced downtime and better protection of valuable intellectual property. In addition, customers, business partners and regulators increasingly reward organizations with mature security practices through greater trust and stronger reputations. Cybersecurity is therefore not merely a compliance requirement—it has become a strategic differentiator that helps organizations earn the confidence of patients, partners and investors [31] while safeguarding their ability to innovate in an increasingly digital future.
Ultimately, one principle remains true: Prevention is both more effective—and significantly less expensive—than reacting to a successful cyberattack. A proactive security strategy, supported by experienced cybersecurity professionals, clearly defined processes and well-trained employees, transforms a vulnerable high-tech organization into a far more difficult target. This enables small and medium-sized biotech and pharmaceutical companies to fully capitalize on the opportunities of digital transformation without becoming victims of today’s evolving cyber threats.
References
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[3] [4] [5] [6] The Scope of Pharmaceutical Cybersecurity in 2024 | CybelAngel
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[8] [29] [30] [31] Cybersecurity trends for Biotechs in 2025
[9] [10] [11] Evotec shuts down network after cyberattack
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