Monash IVF Group Ltd (ASX:MVF) on Thursday announced the resignation of CEO and managing director Michael Knaap, following two significant embryo transfer errors at its Brisbane and Clayton clinics.
Knaap, who led the company since 2019, stepped down two days after the company revealed the latest incident, in which a patient at the Clayton, Melbourne, laboratory received her own embryo instead of her partner's, contrary to the prescribed treatment plan. This followed a similar error in Brisbane that Monash IVF reported in April, where a woman unknowingly gave birth to another couple's child due to an embryo mix-up.
“Since his appointment in 2019, Michael has led the organisation through a period of significant growth and transformation, and we thank him for his years of dedicated service,” Monash IVF’s board of directors said.
Malik Jainudeen, the Chief Financial Officer and Company Secretary, has been appointed as Acting CEO. Jainudeen, who has been with Monash IVF since 2014, brings extensive experience to the role, having overseen the company’s finances since 2019.
The incidents have sparked widespread concern and renewed calls for national regulation of the IVF sector, which is currently governed by individual state and territory laws. Experts have highlighted a shortage of experienced embryologists and the need for national registration and stricter compliance. Health ministers are set to meet on Friday to discuss the question of regulation.
Monash IVF has launched internal reviews and pledged stronger verification and patient safety measures. Despite the turmoil, the company has maintained that its financial outlook for the 2025 financial year remains unchanged.
The announcement prompted further recovery in Monash IVF’s share price, which was up nearly 7% at midday in Thursday trading. However, the shares remain down nearly 16% since the latest incident was announced on Tuesday.