Monash IVF CEO Michael Knaap resigns days after second embryo mix-up announced

The chief executive of Monash IVF has sensationally quit, days after the embattled Australian fertility company revealed it was investigating a mix-up that led to a woman being impregnated with the wrong embryo.

It was the second such bungle to engulf the $236 million ASX-listed company in recent month.

Monash confirmed on Thursday that CEO and managing director Michael Knaap would exit, with current finance boss Malik Jainudeen to take over as interim CEO.

“The board has today accepted Michael Knaap’s resignation,” a statement said.

“Mr Knaap also resigned as a director of Monash IVF. The board acknowledges and respects his decision.

“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.”

The company on Tuesday disclosed to investors that an incident had occurred involving the transfer of a patient’s own embryo to her, instead of the embryo of her same-sex partner.

The Melbourne-based woman is now being supported by the company.

“Monash IVF has extended its sincere apologies to the affected couple, and we continue to support them,” it said.

Its shares were hammered 25 per cent lower to a near five-year low of 55.5¢ after news of the bungle broke. They have since rallied and were up almost 7 per cent in early trade on Thursday to 64.5¢.

Monash said the incident was being investigated and safeguards were being introduced.

“Commencing immediately, Monash IVF will implement interim additional verification processes and patient confirmation safeguards over and above normal practice,” the company said.

Two months ago, the fertility specialist admitted it had mixed up the delivery of embryos at its Brisbane clinic and a woman had given birth to a stranger’s baby.

“Monash IVF is conducting an internal investigation into the incident. It has also extended the scope of the independent review being conducted by Fiona McLeod AO SC in relation to the Brisbane incident, noting that the different incidents occurred some years apart.,” the statement said.

“Whilst industry-leading electronic witness systems have and are being rolled out across Monash IVF, there remain instances and circumstances whereby manual witnessing is required.

“Monash IVF has disclosed the incident to the relevant assisted reproductive technology ART regulators, namely the Reproduction Technology Accreditation Committee certifying body and Victorian Health Regulator.

“In addition, Monash IVF has notified its insurers and expects the incident to fall within the scope of its insurance coverage.”