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‘Completely unacceptable': Minister lashes Monash IVF after second embryo transfer bungle

‘Completely unacceptable': Minister lashes Monash IVF after second embryo transfer bungle

The Age2 days ago

The Melbourne mix-up comes just six weeks after Victoria's Health Regulator renewed the licence of several Monash IVF centres, including its Clayton clinic.
Health Minister Health Mary-Anne Thomas slammed Monash IVF and said it was required to fully co-operate with an investigation from the regulator.
'Families should have confidence that the treatment they are receiving is done to the highest standard,' Thomas said.
'It is clear Monash IVF has failed in delivering that – which is completely unacceptable.'
Last year, Monash IVF paid $56 million in compensation to settle a class action involving 700 families over a bungled genetic test, which may have cost dozens of families the chance to have children.
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President of the Fertility Society of Australia and New Zealand Dr Petra Wale moved to reassure the public that Australia's assisted reproductive technology (ART) systems were among the 'safest, most transparent, and tightly regulated in the world'.
'Although the embryo transferred was the patient's own, we acknowledge the emotional toll this has taken and extend our heartfelt sympathies to those involved,' Wale said.
'While these incidents are deeply difficult for those affected, they are exceedingly rare and must be taken seriously, without losing sight of the overwhelming positive contributions made by the sector.'
Victoria's 24 licensed ART clinics are required to report all adverse events to Victoria's Health Regulator. But while it details the number of adverse events relating to 'clinical' errors, the regulator does not provide additional details, such as whether incorrect embryos have been transferred.
IVF pioneer Professor Gab Kovacs, who was the medical director of Monash IVF before retiring more than a decade ago, said the sheer number of ART procedures taking place made it likely that mix-ups would occur on rare occasions, and it was unlucky that Monash IVF had been involved twice in such a short period.
'It is human error and it will happen again, it's just because Monash IVF is a public company that any adverse incident has to be reported to the exchange, so they become public,' Kovacs said.
'Probably, there are other mix-ups at other clinics that we don't know about.
'It is sad news for everybody, for the patients involved, for the staff who made the mistake, and for the company.
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'It is impossible to avoid human error. Unfortunately, while there are humans working things will go wrong.'
University of Melbourne Associate Professor Alex Polyakov, who is also the medical director at Genea Fertility Melbourne, said greater transparency was required to limit the chances of errors reoccurring.
'If an incident like this comes into [the] public domain for whatever reason, it would be important for the regulator to provide information to clinics as to the specifics of the incident,' he said.
'We need to know why it happened, how it happened, and how to prevent it from happening in the future. I think that's the role of the regulator.'
No.1 Fertility owner and medical director Dr Lynn Burmeister said the latest incident required deeper examination.
'Patients trust that when they are with a clinic, there are watertight procedures in place to protect them,' she said.
'With more than one such incident now identified, it is time for an independent review into how this could have occurred.'
Monash IVF's share price began trading on Tuesday at 74 cents, but dropped to 54 cents following disclosure of the Clayton embryo error.

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The collateral damage from Monash IVF's colossal embryo bungles
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The collateral damage from Monash IVF's colossal embryo bungles

The next part of the script unusually involves activists calling for enhanced regulation or better laws. Advocates are also lobbying for all those who use assisted reproductive technology to have their babies DNA tested, which, if implemented, could uncover if other mistakes have gone undetected. And no scandal is complete without a politician or two making some hay by grabbing a microphone and castigating the culprits. Victorian Health Minister Mary-Anne Thomas was the first to step up this week, calling the embryo mix-up 'completely unacceptable'. 'It's very clear to me that the board of Monash IVF needs to have a very good look at what's going on,' Thomas said. Loading 'Clearly their clinical governance standards are not what they should be.' But amid the outrage there is another group that will also sustain collateral damage – the shareholders – although sympathy for this group will be way more muted. They have seen the share price of Monash IVF plunge after the first incident was revealed in April and after the company cut its 2025 full-year profit guidance by 11 per cent. It took another dive this week when the second implant bungle was revealed, taking this calendar year's stock performance down by 50 per cent. The shares kicked up by 5.7 per cent on Thursday on the news of the departing chief, but this represents a small recovery. Enter the investment bank analysts who use their sophisticated models to provide commentary on the impacts of these types of events on a company's market share and future earnings. In the case of Monash, their opinions run the gamut of possibilities. RBC Capital markets suggests that the fallout from the original bungle in Monash's Queensland clinic would confine the loss of market share to that state, and not impact too heavily on other state operations. But given there have now been two separate embryo transfer incidents in different states, it believes there is risk of a greater impact of a spread of reputational damage and market share losses. It has a negative stance on the stock. Macquarie Equities has a somewhat different view. It acknowledges the reputational damage, but says the stock is oversold and represents a good buying opportunity. You could characterise its advice as 'don't throw the baby out with the bathwater'.

The collateral damage from Monash IVF's colossal embryo bungles
The collateral damage from Monash IVF's colossal embryo bungles

Sydney Morning Herald

time2 hours ago

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The collateral damage from Monash IVF's colossal embryo bungles

The next part of the script unusually involves activists calling for enhanced regulation or better laws. Advocates are also lobbying for all those who use assisted reproductive technology to have their babies DNA tested, which, if implemented, could uncover if other mistakes have gone undetected. And no scandal is complete without a politician or two making some hay by grabbing a microphone and castigating the culprits. Victorian Health Minister Mary-Anne Thomas was the first to step up this week, calling the embryo mix-up 'completely unacceptable'. 'It's very clear to me that the board of Monash IVF needs to have a very good look at what's going on,' Thomas said. Loading 'Clearly their clinical governance standards are not what they should be.' But amid the outrage there is another group that will also sustain collateral damage – the shareholders – although sympathy for this group will be way more muted. They have seen the share price of Monash IVF plunge after the first incident was revealed in April and after the company cut its 2025 full-year profit guidance by 11 per cent. It took another dive this week when the second implant bungle was revealed, taking this calendar year's stock performance down by 50 per cent. The shares kicked up by 5.7 per cent on Thursday on the news of the departing chief, but this represents a small recovery. Enter the investment bank analysts who use their sophisticated models to provide commentary on the impacts of these types of events on a company's market share and future earnings. In the case of Monash, their opinions run the gamut of possibilities. RBC Capital markets suggests that the fallout from the original bungle in Monash's Queensland clinic would confine the loss of market share to that state, and not impact too heavily on other state operations. But given there have now been two separate embryo transfer incidents in different states, it believes there is risk of a greater impact of a spread of reputational damage and market share losses. It has a negative stance on the stock. Macquarie Equities has a somewhat different view. It acknowledges the reputational damage, but says the stock is oversold and represents a good buying opportunity. You could characterise its advice as 'don't throw the baby out with the bathwater'.

ASX 200 see-saws on Thursday as Monash IVF rises following second embryo mix-up, CEO departing
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ASX 200 see-saws on Thursday as Monash IVF rises following second embryo mix-up, CEO departing

The ASX 200 has see-sawed on Thursday with an embattled health company jumping and a luxury fashion brand nosediving. The index is up flat after the first hour of trading after jumping 0.2 per cent in the first 20 minutes. Qantas has soared 4.8 per cent, Beach Energy jumped four per cent and gold miner West African Resources added 3.8 per cent. Luxury fashion brand Cettire is down 21.5 per cent after its CEO warned of weaker US demand, despite revealing sales revenue was up 1.7 per cent year-on-year. Embattled healthcare company Monash IVF has jumped again on Thursday after the company dropped 26 per cent when it informed the public of a second embryo mix-up at a clinic. The company informed shareholders on Thursday its chief executive Michael Knaap was resigning, leading to a four per cent bump in the share price, and its CFO Malik Jainudeen was appointed acting CEO. '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,' Monash IVF's statement read. The bourse hit a new high on Wednesday as it shot up more than half a per cent before sinking throughout the day. The Dow Jones fell flat on Wednesday while the S&P 500 sank 0.3 per cent and the Nasdaq dropped 0.5 per cent. London's FTSE 250 Index added 0.2 per cent, Germany's DAX fell 0.2 per cent and the STOXX Europe 600 dropped 0.3 per cent on Wednesday. New Zealand's NZX 50 Index is down 0.2 per cent on Thursday and Japan's Nikkei 225 has dropped 0.6 per cent.

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