SINGAPORE – Embattled private cord blood bank Cordlife is rolling out initiatives to enhance its operational standards in order to have its suspension order lifted, said the company’s recently appointed group chief executive Ivan Yiu Pang Fai in a letter to shareholders on March 22.

Earlier in the day, the company announced in a bourse filing that its former group CEO Tan Poh Lan and four senior executives had been arrested for potential breaches of the company’s disclosure obligations in relation to its mishandling of cord blood units.

In another bourse filing at 5.11pm addressing shareholders, Mr Yiu detailed efforts aimed at strengthening Cordlife’s procedures and operations and rebuilding trust with its stakeholders.

Mr Yiu, who was appointed group chief executive on Feb 19, said there are a number of challenges facing Cordlife, particularly its six-month suspension, and the loss of trust that has come thereafter.

He added that with the ongoing investigation by the Commercial Affairs Department, Cordlife faces further uncertainty.

Mr Yiu said that his immediate goal is to focus on a rectification plan, which the company is closely working with the Ministry of Health (MOH) on, in order to have its suspension lifted, so it can resume collecting new cord blood and human tissue for the Singapore business.

Under the MOH order – which started on Dec 15 – Cordlife has to stop the collection, testing, processing and/or storage of any new cord blood and human tissues, or providing any new types of tests to patients.

Mr Yiu said the company is working to institute stringent measures to enhance its operational standards with assistance from experts.

He said that some of the initiatives to strengthen Cordlife’s standard operating procedures (SOPs) and equipment operating procedures (EOPs) are:

• Enlisting the expertise of the Foundation for the Accreditation of Cellular Therapy to provide guidance and reinforce Cordlife’s procedures and organisational structure;
• Implementing a more advanced digitalised lab monitoring system to enhance real-time monitoring of the company’s Singapore laboratory facility, both remotely and on-site;
• Fortifying Cordlife’s fail-safe measures to ensure uninterrupted operations even under adverse conditions;
• Providing extensive training for staff to explain the rationale and importance of every SOP and EOP while also cultivating a stronger sense of accountability and responsibility;
• Increasing the number of experienced technical personnel to improve laboratory expertise and processing capabilities.

“I deeply understand the importance of our services and the urgency of resolving the situation in Singapore as soon as possible. We are working in full compliance with MOH and all related authorities to understand the problems at hand and take the appropriate remedial steps thereafter. As we address this, we will ensure that all corrective actions taken are sustainable, and that these good practices continue beyond the rectification exercise,” said Mr Yiu.

He added that as a client of Cordlife himself, he is “deeply disappointed that such lapses occurred in an organisation of such high esteem”.

“I feel a huge responsibility to understand the situation more deeply and make amends while also meeting our existing client commitments. Having handled large-scale infrastructure projects across the region, I am acutely aware of the importance of robust SOPs and EOPs.” he said, adding that he had visited some of the company’s offices and laboratories to better understand the business operations and issues at hand.

Mr Yiu said that suspension and ongoing investigations are isolated to the company’s operations in Singapore and do not impact the operations of the subsidiaries located outside Singapore.

The entities in the other markets operate independently, with their own dedicated team, and adhere to their respective local laws and regulations, he added.

“While I am confident that we can make enhancements to our operational procedures in the foreseeable future, rebuilding trust within our community will require sustained efforts over a longer term. Together with the team, we are determined to achieve that.”

He added that the company will provide regular updates on its progress.