CORDLIFE : P8A 0% has begun hiring more specialists to lead its laboratory teams as part of a major strategic overhaul, after lapses were found in the private cord blood bank’s storage processes.
On Tuesday (May 7), Cordlife said: “The company has commenced extensive training aimed at cultivating a stronger sense of accountability and responsibility among its staff.”
Cordlife has recruited two lab directors to enhance in-house technical expertise and improve clinical governance standards. The group is also reaching out to former staff from its processing and storage facilities in other markets to support laboratory operations in Singapore.
In November 2023, the Ministry of Health (MOH) said Cordlife would be suspended for six months from collecting, testing, processing or storing new cord blood and human tissues. This was after seven of 22 cord-blood storage tanks at Cordlife were found to have been exposed to temperatures above acceptable limits at different periods from November 2020.
Apologising to Cordlife’s clients, group chief executive officer Ivan Yiu said: “We are diligently working on ways to minimise the impact on our clients.”
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The Business Times reported in April that at least two groups of Cordlife customers are seeking advice over class-action lawsuits, after more than 7,000 cord-blood units were found to be damaged or at risk of being adversely affected.
In response to media queries on the letter of demand from solicitors acting on behalf of one of its clients as well as the notice of a claim lodged against the company in the Small Claims Tribunals by another client, Yiu said: “Although we have sought legal advice on the claims and allegations, we want to address the issues amicably and hope that the affected clients will work with us to achieve resolution.”
As at Apr 30, a “significant” number of affected clients have accepted Cordlife’s offer of a refund of annual fees from the year of the temperature excursion, the group said.
It added: “The company will continue to store cord blood units for these clients until the maturity of their service agreements when their children turn 21, without charge.
“In the event a transplant physician determines that the cord blood unit cannot be successfully used for an approved cord blood transplant solely because it does not meet the viability criteria, Cordlife will make every effort to find a suitable replacement.”
Since December, Cordlife has enlisted a consultant from the Foundation for the Accreditation of Cellular Therapy for guidance. The US-based expert, who has been guiding Cordlife’s technical team, will be on-site in mid-May to help Cordlife reinforce processes.
Addressing the financial impact of the MOH suspension, Yiu said Cordlife’s FY2023 performance has been affected.
Cordlife’s shares have tumbled since November 2023. On Nov 30, 2023, they closed at S$0.46. The share price is now down 74 per cent to S$0.12 as at May 7.
Yiu said: “FY2024 will be dedicated to rebuilding Cordlife’s foundation, with a focus not just on growth but also on long-term sustainability. The implementation of enhanced processes and boosting staff expertise and experience will make us stronger so we can expand to new markets and capture adjacent opportunities.”
Despite the suspension, Cordlife has continued to incur fixed running costs in Singapore to meet its contractual obligations with clients, the group said.
Cordlife added that it will not dispose of any cord blood units belonging to clients whose service agreements are nearing maturity while the group works towards finding resolution.
Yiu said: “We kindly ask for their patience as we carefully assess our next steps, and we will contact these clients as soon as we have determined the most appropriate course of action.”
