Monash IVF has been ordered to explain why it failed to raise the alarm with shareholders about an embryo mix-up that resulted in a Queensland woman giving birth to a stranger’s baby and its share price plummeting.
The fertility giant has also revealed it waited a week to inform fertility industry regulators about the error and three weeks to commission an independent investigation.
Monash IVF has blamed human error for the incident.Credit: Getty Images
The ASX wrote to Monash IVF Group (MVF) last week demanding to know why it withheld notice of the bungle to the market for two months, warning that a failure to respond to its “please explain” would probably lead to suspension in trading of its stock.
When news of the mix-up broke on April 11, Monash IVF’s share price plunged from $1.08 to 69¢.
In an official request sent to Monash IVF on April 16, ASX compliance officers cited rules requiring companies to immediately notify the market of any information expected to have a material effect on their value.
“Please explain why the information was not released to the market at an earlier time, commenting specifically on when you believe MVF was obliged to release the information,” the ASX requested.
Monash IVF Group’s share price plummeted from $1.08 to $0.69 after news of the embryo mix-up broke on April 11.Credit: asx.com.au
In a response sent on Wednesday, Monash IVF chief financial officer Malik Jainudeen said the company did not consider an “isolated incidence of human error” was something that would significantly affect the market.
“MVF understands that the incident is expected to fall within the scope of MVF’s insurance,” Jainudeen wrote.
“As noted, in the ASX release on 10 April 2025, MVF confirmed that it does not currently consider the incident as material to FY2025 financial performance, and notes that the independent investigation commissioned by MVF is ongoing.”
Monash IVF also provided the ASX with a timeline of its response to the incident, which shows it waited a week to inform fertility industry regulators about the error.
According to its response, Monash IVF became aware on February 10, 2025, that an incident at its Brisbane clinic led to a woman’s embryo being transferred to the wrong patient, who subsequently gave birth to a child.
While an initial investigation concluded on February 12 that “human error” was responsible for the mix-up, Monash IVF informed assisted reproductive technology regulators on February 17.
It then took until March 4 to commission Fiona McLeod, SC, to conduct an independent investigation, according to the timeline provided to the exchange.
News of the ASX action comes as Victoria’s fertility industry regulator confirmed to The Age that Monash IVF’s local clinics, in Clayton, Geelong, Sunshine, Sale and Cremorne had been granted one-year licence renewals that were required for them to continue operating.
The clinics’ licences were due to expire on April 30, but were renewed a fortnight after Victoria’s Health Department asked Monash IVF for an explanation of the Brisbane incident.
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