CORDLIFE Group : P8A 0% 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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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.