Cordlife shares jump 18% after renewal of restricted licence
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The one-year licence renewal will allow Cordlife to continue to store and transfer the cord blood still under its care.
PHOTO: ST FILE
SINGAPORE - Shares of private cord blood banking company Cordlife surged over 18 per cent on the morning of Jan 14 after it announced that its restricted licence has been renewed for another year by the Ministry of Health
Cordlife first received a six-month suspension in November 2023 after audit checks found lapses in its storage of cord blood units.
It has not been allowed to collect, test, process and store new cord blood since November 2025. However, this licence renewal will allow Cordlife to continue to store and transfer the cord blood still under its care.
It also had its human tissue banking licence renewed for two years, until January 2028.
Cordlife shares jumped from an opening price of 12.7 cents to 15 cents at 11.40am on Jan 14, as the market reacted to the announcement filed on the Singapore Exchange. The counter closed 3.2 cents higher at 15.9 cents on Jan 14.
Cordlife’s group executive director Shally Chen said: “We are committed to complying with all conditions attached to the licences, and to eventually restore the confidence of all stakeholders in the way we conduct our services.”
Ms Chen, who is also group chief executive and CEO for Singapore, said the conditions do not apply to its businesses in its five other markets in the region.
In a separate filing, Cordlife said it has applied to convert ongoing client claims into an “originating claim”. This typically happens when the material facts of a civil claim are in dispute. If granted, it could move the dispute to a full trial process.
Claims totalling at least $5.45 million had been made by parents who stored 109 cord blood units with Cordlife. It previously said the claimants had sought damages at a market value of $50,000 for each damaged unit, or any other amount determined by the court, and the reimbursement of expenses related to the damage.
The claimants now have to file an affidavit by Feb 3.
Cordlife noted that if it is ordered to pay the claims in this financial year, there would be a negative impact on its financial position. It also said some 60 per cent of affected customers had accepted refunds and an enhanced package from the company, which offers benefits such as five additional years of free storage.
