Monash IVF Tells ASX Embryo Mix-Up Was Isolated, Calls Market Drop Surprising

Monash IVF has issued a response to the Australian Securities Exchange (ASX) following a high-profile embryo mix-up that saw a woman in Brisbane give birth to a stranger's child.

The company described the incident as an "isolated incidence of human error" and said it did not anticipate the event would materially affect its share price. Earlier this month, Monash IVF's share price dropped sharply -- from AU$1.08 to a low of 69 cents -- after news of the error became public, reported ABC.

The mistake, which occurred in 2023, only came to light in February 2024 when the biological parents of the child requested to transfer their remaining frozen embryos to another provider, triggering an internal review.

Monash IVF reported the incident to Queensland Health, which now oversees assisted reproductive technology under laws passed last year.

After the public disclosure, the ASX sent a formal inquiry asking why the company had not immediately disclosed the error, as is required when an event could be expected to affect the price or value of a listed company's securities.

Monash IVF's Chief Financial Officer, Malik Jainudeen, responded by stating the company did not believe the mix-up would impact its valuation due to the isolated nature of the error.

"As noted, in the ASX release on 10 April 2025, MVF (Monash IVF Group) 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."

Queried why Monash had marked its public release as "market sensitive," Jainudeen explained it was due to the inclusion of commentary on the company's financial performance.

Jainudeen added the company didn't think it needed to tell the market right away because of patient privacy, as sharing the news could have led to rumors and questions directed at the people affected.

"The information remained confidential until the media report referred to in the announcement meant that confidentiality had been lost," Jainudeen said.

Independent review underway

Monash IVF has publicly apologized for the incident and commissioned an independent investigation led by barrister Fiona McLeod SC. The ASX has asked whether the findings of this review are expected to affect the company's valuation.

After the incident was reported, Queensland Health has visited every Monash IVF clinic across the state to assess compliance with policies and procedures.

The company has supported over 50,000 births and more than 20,000 patient treatments during the last financial year.

Last August, Monash had agreed to settle a AU$56 million class action involving over 700 patients, after faulty genetic testing led to the destruction of embryos -- about 35% of which were later found to be potentially viable.