Cordlife faces claims of more than S$5 million over improper storage of cord blood

Alternatively, the claimants sought reimbursement of expenses rendered futile by Cordlife’s negligence and/or breach of contract, or for the court to order an assessment of damages.

The Ministry of Health (MOH) announced on Nov 26 that the group had been suspended from collecting, testing, processing or storing new cord blood. 

Cordlife will not be able to collect new CBUs and will only be permitted to maintain the storage of existing units and perform limited actions with relation to them, MOH said. 

The firm’s mishandling of CBUs first emerged in November 2023, when MOH announced it was investigating the company for storing CBU tanks at sub-optimal temperatures.

In the bourse filing on Tuesday, Cordlife said it is seeking advice on the next steps and will provide an update in due course. 

The company noted that the claims relate only to its operations in Singapore, and that the group remains fully operational in other markets. 

Cordlife’s board is assessing the impact on the group’s financial performance for the financial year 2025, which ends on Dec 31. 

The group’s financial position for FY2025 will be negatively impacted if the company is ordered to pay the claims, Cordlife added. 

Cordlife also made two other announcements on Tuesday, including the appointment of Mr Wu Gang as its non-independent non-executive chairman with immediate effect. He was also appointed as a member of the company’s nominating committee. 

According to Cordlife, Mr Wu holds eight positions across several industries, including vice chairman and executive president of Sanpower Group and board chairman of Dendreon Pharmaceuticals. 

Cordlife said its board recognised the company is “navigating operational challenges and effective and steady leadership is essential at this juncture”. 

“As such, taking into account that Mr Wu has held multiple chairmanships and directorships across various sectors … the board believes his appointment can steward the company towards stability and future growth,” Cordlife said.