Image credit:artnexusdesign
Singapore’s private cord blood bank, Cordlife, has lost its accreditation from the prestigious Association for the Advancement of Blood and Biotherapies (AABB), following recent operational issues and a significant financial downturn. The revocation of accreditation was revealed in a filing with the Singapore Exchange on August 15, 2024.
Cordlife’s AABB accreditation, held for 18 years, was a cornerstone of its reputation for high standards in cord blood banking. The loss of this status comes as the company grapples with financial difficulties, having posted a net loss of S$12.4 million for the first half of 2024. This sharp reversal from a previous profit of S$2.2 million was largely driven by a dramatic 67.5% fall in revenue to S$9.2 million. The steep decline was partly attributed to the suspension of Cordlife’s operations in Singapore earlier this year.
The company had also been under scrutiny after Singapore’s Ministry of Health (MOH) raised concerns over mishandled cord blood units, affecting over 2,000 stored samples. Investigations by the Foundation for the Accreditation of Cellular Therapy (FACT) and MOH revealed that some storage tanks had been exposed to suboptimal temperatures, further undermining Cordlife’s operational integrity.
Health Minister Ong Ye Kung has advised parents to refrain from transferring their stored cord blood units to other facilities until further clarity on the breaches is available. While Cordlife has assured clients that the suspension will not impact the safety or viability of the stored samples, confidence in the company’s management has been significantly shaken.
In response to the crisis, Cordlife stated it is working to regain its accreditation by addressing the issues flagged by AABB and enhancing its operational protocols. However, the path to recovery remains challenging, as the company faces growing concerns from clients and investors alike.
Cordlife’s stock has taken a hit in the wake of these developments, with uncertainty looming over its future in the competitive cord blood banking sector. The company’s leadership is under pressure to restore trust and financial stability while navigating regulatory challenges.