Cordlife accepts suspension notice, ceases new sample collection for six months

Mia Pei

Published Thu, Dec 14, 2023 · 08:43 AM

Cordlife says since the investigation outcome is uncertain, it cannot assess the financial impact on its performance for the current financial year. PHOTO: BT FILE

CORDLIFE Group has accepted the Ministry of Health’s (MOH) suspension notice to stop collecting new cord blood and human tissue, among other operations, for a period of six months.

The other operations include testing, processing and storage of any new cord blood and human tissues, or providing any new types of tests to patients.

It will not make written representations to MOH on the notice, said the consumer healthcare group on Wednesday (Dec 13).

MOH issued the suspension notice on Nov 30 and gave the company 14 days to make representations to MOH in relation to the notice contents.

Cordlife noted that it has been cooperating with MOH to address the issues raised in its investigations since the suspension notice. It has also been implementing measures to resolve such issues.

Citing the uncertainty of the outcome of ongoing investigations as the reason, Cordlife said that it is unable to assess the financial impact on its performance for the financial year ending Dec 31. “In the meantime, shareholders of the company and potential investors should exercise caution when dealing in the shares of the company,” said Cordlife.

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MOH has said on Nov 30 that it had found that seven of Cordlife’s 22 cord blood units had been exposed to temperatures above the acceptable limits of below minus 150 degrees Celsius following an unannounced audit.

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Health Minister Ong Ye Kung says that investigations into the incident should take another six weeks or so.

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Seven of 22 cord-blood storage tanks at Cordlife were found to have been kept at temperatures above acceptable limits.

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Cordlife Group says it will provide all necessary information to the Foundation for the Accreditation of Cellular Therapy in order to restore its accreditation.

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Cordlife has been barred for six months from collecting, testing, processing and storing new cord-blood or tissue samples, as well as from running new test types for patients.

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The company added that it would continue to work hard to regain the trust of MOH as well as the public during and after the six months. It will also update its shareholders and the investing public on any material developments of the issue. Cordlife was aware that there were tanks exposed to temperatures beyond the acceptable limits for several days in February, March and June 2022, but had not made any announcements, according to the Singapore Exchange.

MOH had conducted unannounced audits on the company in August and November this year after receiving a complaint in July.

Responding to queries on why its board did not make any earlier announcements on the temperature irregularities or audits by MOH, the company said that the board assessed that there would be “no material impact on the financial performance of the group” for FY2022 and FY2023. Shares of Cordlife closed on Wednesday down 1.6 per cent, or S$0.005, at S$0.305, before the announcement.

cordlife Ministry of Health

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