Latest news with #Cordlife
CNA
4 days ago
- Business
- CNA
Cordlife sets aside S$500,000 for enhanced compensation package to affected customers
SINGAPORE: Cordlife has set aside S$500,000 (US$389,500) for an enhanced compensation package for affected customers following its mishandling of cord blood units. In a regulatory filing on its financial results for the first half of 2025, the private cord blood bank said late on Thursday (Aug 14) that the compensation package formed part of several one-off costs recorded for the first six months of the year. Cordlife added that it had also incurred S$200,000 in costs related to the testing of more than 200 samples of cord blood units (CBU) from five storage tanks deemed by the Ministry of Health (MOH) to be at "low risk" of being adversely affected. The company agreed to the testing in April 2024, which it said would take approximately a year to complete, before reviewing the results with MOH experts. In an update on Thursday, Cordlife said the "comprehensive and independent" review is expected to be completed in or around the later part of 2025. As part of the enhanced package, announced on Jul 10, affected customers will have their existing cord blood storage period extended - at no additional cost - until their child turns 26. The package was announced after Cordlife held a series of online and in-person townhalls in late June to engage with affected customers. It has since expanded the warranty clause to cover more situations. If the stored cord blood unit is needed by the donor or a biological sibling (and it is a suitable match) but cannot be used for an approved stem cell transplant because it does not meet the required quality standards - and if the company also cannot find a suitable replacement cord blood unit - it will pay the affected customer S$50,000. In June, Cordlife said in a regulatory filing that around 56 per cent of affected Cordlife customers had accepted refund offers made by the company. The offers comprised a refund of the annual fees paid by affected clients from the onset of the "temperature excursion". Its mishandling of cord blood units was first made public on Nov 30, 2023, when MOH revealed that investigations were ongoing. Seven tanks storing cord blood units were exposed to temperatures above acceptable limits. About 2,200 cord blood units were found damaged in one of the tanks, affecting at least 2,150 clients. In April last year, it was announced that another 5,300 cord blood units in a second tank and dry shipper were deemed "non-viable". LETTERS OF DEMAND Some affected customers have decided to take legal action against the company. In a separate bourse update on the matter on Thursday, Cordlife said it had received on Jul 31 a letter of demand from a law firm acting for a group of affected clients. This group is claiming damages for breach of contract and negligence. The company added that total customer claims amount to about S$8.7 million, representing less than 10 per cent of its net asset value as of Jun 30. Cordlife previously said it had received on Mar 28 two letters of demand from lawyers acting for two groups of affected clients. One of the groups is claiming damages for breach of contract and negligence, while the other group is requesting compensation for costs, among other warranties and undertakings from Cordlife. The company received its first letter of demand in May last year, while two other announcements were made on Aug 15, 2024 and Mar 1 on the same matter. ACCREDITATION, IMPROVED FINANCIALS Cordlife also said on Thursday it is working closely with the Association for the Advancement of Blood & Biotherapies (AABB) and the Foundation for the Accreditation of Cellular Therapy (FACT) to restore its accreditations for its Singapore operations. In December 2023, it lost its cellular therapy accreditation with FACT. The suspension will last indefinitely, "at a minimum until FACT's investigations are completed and issues are resolved", Cordlife then said. AABB followed suit in August last year, with the international blood bank body withdrawing Cordlife's accreditation for the collection, processing, storage and distribution of cord blood. On its financial results for the first half of this year, the company reported revenue of S$19.4 million - more than double the S$9.2 million it earned in the same period last year. Cordlife mainly attributed the increase in revenue to the full resumption of Singapore operations in January, after being suspended for almost nine months. The company's gross profit also rose to S$10.9 million in the first half of 2025, up from S$1.4 million in the corresponding period a year ago. Cordlife said it remains "cautiously optimistic" that financial performance will improve, driven by the resumption of Singapore operations, ongoing efforts at actively addressing outstanding issues and the "long-term growth potential" of the cord blood banking industry. Said Cordlife group CEO and executive director Chen Xiaoling: 'We continue to see new business opportunities, and have been investing in our sales and marketing efforts to restore customer confidence and grow our sales pipeline back to pre-incident levels.
Business Times
10-07-2025
- Business
- Business Times
Cordlife offers enhanced support to clients affected by damaged tanks in Singapore
[SINGAPORE] Private cord-blood bank Cordlife will offer enhanced support to its customers who were affected by the November 2023 discovery of its damaged storage tanks. This includes a five-year extension to their cord-blood storage – until their children turn 26 years old – at no additional cost, the company said in a bourse filing on Thursday (Jul 10). The extension begins when the customer's existing contract expires. In addition, in the event that a cord-blood unit (CBU) is required, but a transplant physician deems the unit to be non-viable for an approved transplant due to Cordlife's negligence, wilful default or fraud, the company will find a suitable replacement. If it cannot find an appropriate match, Cordlife will pay damages ranging from US$25,000 to S$50,000 to enable its customers to seek alternative medical treatment. The company will also provide global coverage for all medical conditions requiring stem-cell transplants, up to S$50,000. Uncertain outlook In November 2023, the Ministry of Health (MOH) found that cryopreserved CBUs in seven of Cordlife's 22 storage tanks were exposed to temperatures above acceptable limits at different periods. As a result, thousands of CBUs were damaged and rendered unsuitable for stem-cell transplants. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The lapses led MOH to suspend Cordlife from collecting, testing, processing and storing new cord-blood or tissue samples. Four company directors and its former group chief executive were also arrested in March 2024. Cordlife began offering affected customers refunds on annual storage fees, as well as a waiver on all subsequent fees for active customers until their children turn 21, in February 2024. In its latest filing, the company said about 57 per cent of its clients had accepted this offer as at Jun 30, 2025. It also noted that its outlook for the year remains 'uncertain', considering its cost estimates for the enhanced support package as well as the pace of its business recovery since resuming full operations on Jan 14, 2025. It added that there is 'no assurance that the company can resume profitability for the financial year ending Dec 31'. Cordlife shares closed S$0.005 or 1.9 per cent lower at S$0.26, before the announcement.
Straits Times
26-06-2025
- Business
- Straits Times
Partial offer for Cordlife lapses with Thai-listed Medeze securing a less than 1% stake
An independent financial adviser had earlier deemed the offer for a 10 per cent stake in Cordlife unfair and unreasonable. PHOTO: BT FILE Partial offer for Cordlife lapses with Thai-listed Medeze securing a less than 1% stake SINGAPORE - A partial offer for a 10 per cent stake in Cordlife Group has lapsed, with the offerer, a subsidiary of Thai-listed Medeze Group, having secured less than a 10th of the shares it needed to. As at the close of the offer at 5.30 pm on June 25, the total number of shares owned, controlled or agreed to be acquired by Medeze Treasury amounted to 2.4 million, representing a 0.95 per cent stake. This comprises the 1.8 million shares (0.68 per cent) that Medeze Treasury had already owned pre-offer, as well as the valid acceptances of 694,591 shares (0.27 per cent), according to a bourse filing on June 25. Medeze Treasury would have needed 25.6 million shares for the offer to succeed. Through the partial offer, Medeze Group had eyed an entry into the Singapore market. The company had hoped to provide Cordlife's customers with services such as the analysis and storage of the natural killer cell, which is known for its ability to kill cancer cells. However, the offer was deemed unfair and unreasonable by an independent financial adviser, which recommended that shareholders reject it. Cordlife has been battling a fallout from lapses discovered in the storage of its cord-blood units two years ago. The company this week held in-person and online town halls with customers affected by the damaged and high-risk tanks. Its purpose was to present and get feedback on possible ways to enhance support and expand coverage for affected customers. Cordlife said on June 23 a potential enhanced proposal under review may include added support for cord blood storage, broader coverage beyond what was in the original contracts, and medical support if a transplant is needed. Any improved offer will apply to all affected customers, including those who accepted earlier offers from Cordlife made in February and April 2024. The company's shares ended unchanged at 33 cents on June 25. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
25-06-2025
- Business
- Business Times
Partial offer for Cordlife lapses with Thai-listed Medeze obtaining less than 1% stake
[SINGAPORE] A partial offer for a 10 per cent stake in Cordlife Group has lapsed, with the offerer, a subsidiary of Thai-listed Medeze Group, having secured less than a 10th of the shares it needed to. As at the close of the offer at 5.30 pm on Wednesday (Jun 25), the total number of shares owned, controlled or agreed to be acquired by Medeze Treasury amounted to 2.4 million, representing a 0.95 per cent stake. This comprises the 1.8 million shares (0.68 per cent) that Medeze Treasury had already owned pre-offer, as well as the valid acceptances of 694,591 shares (0.27 per cent), according to a bourse filing on Wednesday. Medeze Treasury would have needed 25.6 million shares for the offer to succeed. Through the partial offer, Medeze Group had eyed an entry into the Singapore market. The company had hoped to provide Cordlife's customers with services such as the analysis and storage of the natural killer cell, which is known for its ability to kill cancer cells. However, the offer was deemed unfair and unreasonable by an independent financial adviser, which recommended that shareholders reject it. Cordlife has been battling a fallout from lapses discovered in the storage of its cord-blood units two years ago. The company announced on Monday that it will hold in-person and online town halls with customers affected by the damaged and high-risk tanks. The company's shares ended Wednesday flat at S$0.33.
Business Times
06-06-2025
- Business
- Business Times
Cordlife collection rates still under pre-incident levels, but resumed Singapore operations are ‘encouraging'
[SINGAPORE] Cordlife said that the full resumption of its Singapore operations is an 'encouraging step' in restoring client confidence and regaining operational momentum, even though collection rates have not recovered to average levels from before a storage lapse in December 2023. The cord blood bank resumed operations earlier this year after the Ministry of Health (MOH) renewed its licences for cord blood banking and human tissue banking services with effect from Jan 14. The ministry had suspended it from carrying out operations after uncovering lapses in the storage of its cord-blood tanks. In a Friday (Jun 6) business update, the embattled private cord blood bank said that it is continuing to engage customers affected by the incident. As at May 30, 2025, 56 per cent of affected customers have accepted Cordlife's offers to refund annual fees they paid from the start of the temperature lapse, as well as its offers to waive all subsequent fees for active customers whose children's cord blood units (CBU) are stored in the damaged, high-risk tanks, and to continue storing the CBU of affected customer's children until their child turns 21. It added that it has received correspondence from clients, assessing the losses resulting from alleged breaches of contract, negligence and misrepresentation, and that it is 'actively monitoring' these matters in consultation with legal advisers and taking steps at appropriate junctures. To return to pre-incident levels of performance, Cordlife said, it will continue to expand its outreach initiatives in order to maintain a strong sales pipeline. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It sank into the red with a S$6.3 million net loss for its second half ended Dec 31, 2024, reversing from a S$1.3 million net profit in the previous corresponding period, as a result of the fallout from the lapses. Loss per share for the half-year stood at S$0.0247, from earnings per share of S$0.0051 previously. Its revenue plunged 32 per cent to S$18.7 million, from S$27.4 million, due to the suspension of its Singapore operations until Sep 14, 2024, after the lapses were discovered. In May this year, the group received a voluntary conditional cash partial offer from Medeze Treasury, a wholly owned subsidiary of Thai-listed stem cell company Medeze Group. The offer was for a 10 per cent stake in the group as Medeze is seeking to explore business opportunities with Cordlife. The group added that it has been taking 'active steps' to raise public awareness on the importance of cord blood banking and its role in safeguarding future health outcomes by ramping up marketing efforts. These measures include participating in baby fairs and engaging with the medical community to strengthen its ecosystem of doctors and hospitals. The group said it has strengthened and renewed relationships with the medical community in Singapore by engaging stakeholders in the community to inform them of its rectification efforts and improved procedures. It added that it is working closely with the Association for the Advancement of Blood and Biotherapies and the Foundation for the Accreditation of Cellular Therapy to restore its accreditations for Singapore. Shares of Cordlife ended Thursday 1.9 per cent or S$0.005 higher at S$0.275, before the announcement.
