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‘No amount of money can replace it’: Parents demand answers after Cordlife mishandles children’s cord blood

While some Cordlife customers have received emails from the company informing them of the mishap, some have yet to get clarity on whether their children’s cord blood units are among those affected.

‘No amount of money can replace it’: Parents demand answers after Cordlife mishandles children’s cord blood

A mother holding her baby's hand. (Photo: iStock)

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SINGAPORE: In 2018, Ms Dawn Cher decided to store her first child's cord blood with private cord blood bank Cordlife after considering, among other factors, the company's track record and its accreditation.

The founder of personal finance blog SG Budget Babe did the same when her second child was born three years later. 

The mother of two was "crushed" to find out on Thursday (Nov 30) that her children’s cord blood could have been compromised by Cordlife’s missteps. 

On Thursday, the Ministry of Health (MOH) announced that it was investigating Cordlife - Singapore's longest-running cord blood bank - after seven of its tanks storing cord blood units were exposed to temperatures above acceptable limits.

Cord blood, which contains stem cells, may be used in stem cell transplants to treat blood diseases and some cancers such as leukemia and lymphoma, should the baby develop such illnesses in the future.

Around 2,200 cord blood units belonging to approximately 2,150 clients have been damaged with another 17,000 clients possibly affected. 

Cordlife, which is listed on the Singapore Exchange, has since reached out to some parents via email about the blunder.

But customers have criticised the vagueness of the email, and complained about the seeming lack of transparency and accountability from the company. 

MOH conducted its first unannounced audit on the company on Aug 15 this year following a complaint from a member of the public in July. The ministry conducted another audit from Nov 16 to Nov 21. 

The audits showed that Cordlife's cryopreserved cord blood units had been exposed to temperatures above acceptable limits in seven of its 22 storage tanks at different periods, dating back to November 2020.

CLIENTS KEPT IN THE DARK

Many have taken to the company’s Facebook page to air their unhappiness, asking why Cordlife had not contacted clients before the news broke. 

One of them, a father of two, told CNA he stored his two children’s cord blood with the bank in 2006 and 2012 after learning that it had stem cells that could help with medical treatment in the future if needed. The 45-year-old business owner declined to be named in case it affected his dealings with Cordlife. 

Cordlife has since requested for the man’s information for follow-up, but has yet to confirm if his children’s cord blood were affected. He has not received any email from Cordlife yet. 

“My confidence in the company is definitely shaken. But I am concerned with the costs and potential risks involved in transferring. I am still waiting for their reply if our cord blood is affected and will decide after. I am disappointed that Cordlife had concealed the lapses for such a long period of time.”

CNA has seen two versions of emails sent by Cordlife to clients. In one, the company states: “We wish to inform you that we detected an irregular temperature reading in seven of our cryogenic storage tanks in Singapore.”

The company adds that it is still in the process of conducting a thorough investigation into what happened and is testing the donated cord blood samples stored across all tanks to determine the viability of the stem cells, and sought for clients’ patience.

The other version, which is more specific, states: "We have detected an irregular temperature reading in the cryogenic storage tank in which your child's cord blood unit is stored."

The email goes on to state that assessments by MOH have concluded that cord blood units within this tank are unlikely to be suitable for stem cell transplant at this point. 

Both emails state that if cord blood is subsequently found to be unviable for cord blood transplants or for therapeutic purposes, the company will make “every effort” to find a suitable replacement cord blood for the clients’ child. 

In its reply to CNA’s queries, Cordlife specified that this would involve working with public cord blood banks worldwide to source for a suitable match.

For homemaker Lim Sze Tein - who is among those who have received the email - the news reports and correspondence from Cordlife had left her sleepless last night, she told CNA. 

“I just want to say it is not fair. I don't know how or what to feel,” said the 46-year-old, whose elder daughter’s cord blood has been stored with Cordlife since 2009.

“They knew what happened since 2020 and they kept quiet about it. 

“It is unthinkable that something like this can happen and they seem so nonchalant about it. All that corporate speech is disgusting. There is zero empathy.” 

According to a filing on the Singapore Exchange, Cordlife Group Limited’s executive director and group chief executive officer Tan Poh Lan resigned from her positions on Oct 27.

“Ms Tan has informed that she is retiring to pursue her personal interests,” Cordlife Group Limited’s board of directors announced, adding that Ms Tan's last day of service with the company would be on Mar 31, 2024.

Ms Tan was named group chief operating officer on Apr 12, 2016 and was appointed as executive director and group chief executive officer on Feb 28, 2019. 

Asked about the resignation, a Cordlife spokesperson told CNA that Ms Tan’s decision was not related to the latest news. “Our group CEO is retiring to pursue her own interests,” a spokesperson reiterated.

Cordlife marketing material on a paper cup at a gynaecologist clinic. (Photos: CNA reader)

UNCLEAR IF AFFECTED

Some clients also pointed out that the version of the email they received did not specifically state whether they had been affected. 

One of the recipients, Ms Cher, told CNA that the email she received only referred to the cord blood of her younger child and not the elder. 

Before her first child was born in 2018, Ms Cher and her husband had spent three to four months speaking to all the cord blood banks here, researching online and attending baby fairs before deciding on Cordlife. 

“It was a decision we mulled over for a long time before deciding on which company to store with, so we were crushed to hear the news,” the 33-year-old account director told CNA.

She took to her blog in 2018 to detail why she had settled on Cordlife, including that it had the longest track record with the most successful transplants, as well as its accreditation with MOH and Association for the Advancement of Blood and Biotherapies.

“It's good that they sent out the email, although I wish we received it before the news broke. In our case, we saw the news first, and then the email came in hours later,” Ms Cher said. 

“At this stage, there's still a lot of questions unanswered. We would like to see Cordlife investigate properly and give a full account of what happened, how the lapse occurred, why, rectification measures, and work with all affected clients on a viable solution for everyone.”

Responding to queries from CNA, the spokesperson for Cordlife Singapore said the company is currently contacting all clients, including the 1,841 who have cord blood units stored in the affected tank where testing is complete.

Cordlife clarified that the 1,841 excludes clients who have terminated their accounts with the company.

The spokesperson also reiterated that the tank contains 2.66 per cent of all cord blood units stored by Cordlife Singapore as per current records.

“This is an evolving situation, and our team is working hard to communicate with all of our affected and unaffected clients directly. 

“We seek our clients' understanding as we continue our outreach and ongoing testing.”

The company added that it will be reaching out to clients who have either not registered an email address or have an outdated email via post.

“For the other six tanks where irregular temperature readings were detected, investigations with the Ministry of Health are presently ongoing. We will provide those clients with updates as soon as possible,” said Cordlife’s spokesperson. 

For clients who are considering transferring their cord blood from Cordlife to another facility, the spokesperson said: “Moving cord blood units from one location to another is not recommended because this could potentially affect the stem cells.”

If clients continue to store with Cordlife, the company said it will be able to “continue to honour the commitments” in the service agreement signed with clients.

“However, if they insist on transferring, we will assist them in completing the transfer,” added the spokesperson. 

PARENTS PAID HIGH PRICES FOR STORAGE

Other parents pointed to the high cost of storing their children’s cord blood and demanded explanations. 

Mr Chia Hong Loon, a father of two, had placed his firstborn’s cord blood, cord lining, and cord tissue with Cordlife in August 2020. 

For these services, he estimated having paid close to S$10,000 (US$7,474) to Cordlife thus far. 

Sharing the price plan he subscribed to, the 31-year-old financial consultant pointed out that his package for cord blood and cord tissue banking was a 21-year plan with an upfront payment of S$6,800. 

“I will need an explanation and see what they are going to do about it. (I am) definitely upset because it’s something that can be used if (there is) an emergency which we won’t want to see happen.

“But now it might become something useless, (in addition) we just paid the renewal fee,” said Mr Chia, who added that he had not stored the cord blood of his second child. 

Likewise, Ms Aiza Bumacod, a mother of three, also forked about S$10,000 to store her second child’s cord blood and cord lining with Cordlife in 2019. 

“I feel deeply saddened and disappointed, thinking that I had invested a large sum of money and placed my trust in one of the best cord blood banks in Singapore,” said the 36-year-old nurse, adding that she chose the company for its high standards and integrity in promoting the safety and security of cord blood storage.

“If they believe that compensating us will resolve this issue and address their irresponsibilities, I hope they understand that the damage caused to thousands of parents here in Singapore has brought us immense sorrow, and no amount of money can replace it.”

One parent has decided to seek legal recourse and is calling on other parents for collective action.

User Kikyo Chan stated in a Facebook post that she is seeking legal advice to "better understand her rights", particularly in the areas of consumer protection and contractual obligations.

Asked if it intends to refund or compensate clients, Cordlife repeated its previous reply that it will waive off future storage fees for clients until their child turned 21 while continuing to store the cord blood. This is in view of developments in the field of cell and gene therapy. 

In its email to affected parents, Cordlife stated that those who have paid all the fees upfront will be refunded the amount they already paid for the storage of the cord blood from this year until their child reaches 21. The company will contact these parents over this issue at a later date. 

Cordlife's share price closed at 31 cents on Friday, down by about 32 per cent after closing at 45.5 cents the previous day. 

Source: CNA/wt/ng(sn)
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