Monash IVF CEO Michael Knaap resigns days after second embryo mix-up announced
Days after Australian fertility company Monash IVF disclosed they were investigating a mix-up that led to a woman being impregnated with the wrong embryo, their embattled CEO has resigned.
The company confirmed in Thursday that their chief executive officer and managing director Michael Knaap, will depart following fallout from the second such bungle announced in recent months, and on the back of the company's share price plummeting.
Monash IVF announced that the current company finance boss, Malik Jainudeen, will take over as interim CEO.
'The Board has today accepted Michael Knaap's resignation as Chief Executive Officer and Managing Director of Monash IVF Group,' a Monash IVF statement said.
'Mr. Knaap also resigned as a director of Monash IVF Group Limited.
'The Board acknowledges and respects his decision.
'Since his appointment in 2019, Michael has led the organisation through a period of significant growth and transformation, and we thank him for his years of dedicated service.'
Earlier this week, the company released a statement to the ASX, advising that an incident had occurred involving transferring a patient's own embryo to her, instead of inserting the embryo of her same-sex partner.
The Melbourne-based woman is now being supported by the reproductive giant.
'Monash IVF has extended its sincere apologies to the affected couple, and we continue to support them,' it said in a statement.
In a statement to the ASX, Monash IVF said the incident is being investigated and safeguards are being introduced.
Its shares were hammered 25 per cent lower to a near five-year low of 55.5¢ after news of the bungle broke.
'Commencing immediately, Monash IVF will implement interim additional verification processes and patient confirmation safeguards over and above normal practice,' Monash IVF Group said in their statement.
Two months ago, the fertility specialists were forced to admit they had mixed up the delivery of embryos at their Brisbane centre and a woman had given birth to a stranger's baby.
'Monash IVF is conducting an internal investigation into the incident. It has also extended the scope of the independent review being conducted by Fiona McLeod AO SC in relation to the Brisbane incident, noting that the different incidents occurred some years apart.,' the statement added.
'Whilst industry-leading electronic witness systems have and are being rolled out across Monash IVF, there remain instances and circumstances whereby manual witnessing is required.
'Monash IVF has disclosed the incident to the relevant assisted reproductive technology ART regulators, namely the Reproduction Technology Accreditation Committee certifying body and Victorian Health Regulator.
'In addition, Monash IVF has notified it's insurers and expects the incident to fall within the scope of its insurance coverage,' the company noted.
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