Cordlife says operations for next 12 months will continue if suspension takes effect
It is able to continue as a going concern until Sep 30, 2026, but the future beyond that is not certain, says board
[SINGAPORE] Embattled cord-blood bank Cordlife said that it will be able to continue as a going concern for at least the next year, should the potential suspension it faces take effect.
The company had conducted an assessment of its ability to continue as a going concern for the upcoming 12-month period ending Sep 30, 2026, after receiving a notice of intent for a one-year suspension of its cord-blood banking services from the Ministry of Health (MOH) on Sep 29, following the discovery of operational lapses.
In a Monday (Oct 6) bourse filing, Cordlife provided an update on the assessment, which had incorporated an analysis comprising multiple scenarios for possible outcomes and tolerance levels “in light of various key risks and uncertainties”.
“Taking into account the H1 2025 financial results and the cash flow forecasts, barring any unforeseen circumstances, the board is of the view that the company will be able to continue as a going concern for the period under review,” Cordlife said.
For its H1 2025 ended June, the company had trimmed its net loss to S$4.6 million from S$12.4 million in the year-ago period. Its revenue for the half-year surged 108.8 per cent to S$19.2 million amid the full resumption of its Singapore operations in January, after a suspension of close to nine months.
While Cordlife should be able to continue operations until Sep 30, 2026, the board cautioned that the future beyond that is not certain.
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“There can be no assurance that the company will not subsequently face challenges to its ability to continue as a going concern,” Cordlife said.
“The board will continue to closely monitor the situation, in consultation with its advisers, and evaluate the company’s financial position, and will update its shareholders if there are any material developments in relation to the above,” it added.
Potential second suspension
MOH on Sep 29 issued Cordlife a notice of intent for a one-year suspension of its cord-blood banking services. This required that the company halt collection, testing, processing and storage of new cord-blood units to focus solely on safeguarding existing inventory.
Cordlife was given 14 days to submit its written representations.
This was sparked by an audit in July that unearthed operational lapses in governance, incident reporting and management, and the company’s processes surrounding the collection, testing and processing of new cord-blood units collected since January.
MOH had renewed Cordlife’s licences for cord-blood banking and human tissue banking services for a year starting from Jan 14. Prior to the renewal, its operations were suspended for nearly nine months after lapses first came to light in November 2023.
On Oct 1, it said that it was weighing its ability to continue as a going concern in the event that the suspension takes effect, noting that it would continue to incur fixed costs and other operating expenses while business activities halt.
It said then that its liquidity could be hurt by operational and financial pressures, as well as cash outflows incurred from customer refunds. It added that its ability to continue to receive payments from unaffected customers is subject to uncertainty, and that its cash position could be affected should there be delays, shortfalls or defaults in such payments.
Shares of Cordlife ended Friday flat at S$0.178.
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