Docs’ departure costs IVF ‘baby factory’ $90m

A GROUP of specialists is quitting Melbourne’s biggest “baby factory”, plunging Monash IVF into damage control and sending its shares into freefall.

Five fertility-specialist doctors are severing ties with the company and plan to set up their own clinic.

The revelation has intensified the pall over the group after highly regarded specialist Lynn Burmeister, dubbed Melbourne’s “fertility queen”, cut ties with the company two years ago, triggering a bitter legal battle.

Shares in the group plunged more than 25 per cent on Thursday, wiping almost $90 million from its value, after it told investors of the five specialists’ decision.

They slipped another 4.3 per cent yesterday, to 99.5c.

Monash IVF is now trying to placate fears about the hit it will suffer from the specialists’ departure.

In a statement to investors, it said the five would cut ties from next month. It has not named the specialists.

“These doctors intend to leave Monash IVF to establish their own independent IVF clinic with operational control,” the company said.

The doctors in question were not required to provide a notice period before ceasing to refer patients for IVF treatment, it said. And there were no “restraint provisions” — contract clauses that would prevent those specialists setting up their own clinics or defecting to other companies.

The patients referred by the five departing specialists went through about 400 stimulated cycles — rounds of IVF treatment — in the year to June.