- Monash IVF Group is suffering a 26.5 per cent crash in its share price today after announcing it will cease working with five Victoria-based fertility specialists.
- The specialists left Monash IVF to form their own independent IVF clinic
- This group of doctors directly referred roughly 400 Stimulate Cycles of the 2019 financial year and accounted for almost $6 million in revenue
- Key future initiatives will focus on expanding the Monash IVF footprint through new clinics, recruiting new specialists, and expansion through the Asia Pacific region
Monash IVF suffered almost 27 per cent in its share price today after announcing it will cease working with five Victoria-based fertility specialists.
These specialists currently refer patients for IVF (in vitro fertilisation) treatment with Monash, but have announced plans to stop using Monash services to form their own independent IVF clinic.
According to Monash, this group of doctors directly referred roughly 400 Stimulate Cycles of the 2019 financial year and accounted for almost $6 million in revenue. Net profit after tax for the 2020 financial year could take a direct $1.5 million to $2.5 million hit as a result of today’s news, according to company management.
Monash has outlined the next steps for the company as it transitions these doctors out of its services. Key initiatives will focus on expanding the Monash IVF footprint through new clinics, recruiting new specialists, and expansion through the Asia Pacific region.
In the past 24 months alone, Monash has recruited 16 fertility specialists.
Monash IVF provides a range of fertility treatments across the country. Among these include IVF services, donor and surrogacy services, fertility preservation, and genetic testing.
Despite the consideration that the exit of these specialists to form a new IVF clinic could be the IVF market is performing particularly well, shareholders didn’t take well to the news of the lost revenue and profits.
Monash IVF shares closed 26.5 per cent down today, with $1.04 each in a $245.22 million market cap. Today, shares traded for their lowest price since February this year.