Monash IVF has responded to a "please explain" from the Australian Securities Exchange over its recent baby bungle in Brisbane, saying it didn't expect the "isolated incidence of human error" to affect the share price.
A woman unknowingly gave birth to a stranger's baby after the wrong embryo was transferred in 2023.
The major fertility company became aware of the mix-up in February after the birth parents asked to transfer their remaining frozen embryos to another provider.
It reported the incident to regulators including Queensland Health — the state's assisted reproductive technology regulator under new laws passed last year.
After the bungle made news headlines earlier this month, Monash IVF's share price dropped from $1.08 to a low of 69 cents.
In an email to the company last week, the ASX noted a publicly-listed entity was required to immediately give the share market "any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities".
It listed a series of questions which left unanswered by the deadline may have resulted in a trading halt.
In response, Monash's chief financial officer Malik Jainudeen, said the company did not expect the bungle would affect its share price, as it was an "isolated incidence of human 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."
The ASX queried why the release was marked as "market sensitive".
Mr Jainudeen responded that it included commentary on Monash's financial performance.
"As the announcement was lodged in the context of media reporting, MVF also considered it appropriate to mark the announcement as market sensitive so that investors were able to more easily identify it."
'Highly personal, private, and sensitive' information
Mr Jainudeen noted a reasonable person would not have been expected to notify the market, in part due to patient confidentiality.
"The incident includes confidential information of the most highly personal, private and sensitive kind. Any disclosure of the incident would inevitably result in speculation and questions directed to the persons concerned," he said.
"The information remained confidential until the media report referred to in the announcement meant that confidentiality had been lost."
Monash has commissioned barrister Fiona McLeod SC to conduct the independent review into the incident.
The ASX asked if it expected the investigation to affect the company's valuation.
"No. MVF does not yet have the findings of the independent investigation," Mr Jainudeen responded.
"The independent investigation, which is ongoing, is a prudent and responsible step in the response to the incident."
Queensland Health has visited every Monash IVF clinic in the state since news of the bungle broke to check its policies and procedures.
The fertility company apologised in the wake of the incident, and Mr Jainudeen noted it was continuing "to support the affected patients through this distressing time".
He noted the company had assisted with more than 50,000 births and more than 20,000 patient treatments in the last financial year.
