Cordlife to assess ‘going concern’ viability amidst potential suspension

The company said it cannot determine the financial impact for FY2025.

Cordlife Group is assessing whether it can continue as a going concern, following the Ministry of Health’s (MOH) notice of intent to suspend its cord blood banking licence for one year.

In a bourse filing on 1 October, the company said it is unable to determine the impact of the regulatory action on its financial performance for the year ending 31 December 2025. It will complete its assessment by the end of this week.

Cordlife warned that a suspension would leave it incurring fixed fees and operating expenses whilst halting new business. It is also facing cash outflows from refunds tied to high-risk storage tanks, which may further strain liquidity.

The company added that its ability to receive payments from customers on deferred plans is also uncertain, with delays or defaults likely to affect its cash position.

Meanwhile, other potential financial pressures include refunds if further storage tanks are found compromised, customer claims for damaged new cord blood units (CBUs), and fines or penalties due to the suspension.

The group received MOH’s notice on 29 September, following a July inspection that found lapses in quality management, supplier management, incident reporting, corrective actions and documentation.

If implemented, the suspension will prohibit the company from collecting, testing, processing and storing new CBUs.

However, it will be allowed to maintain and release existing CBUs for clinical use under haematologist review.