Stemlife: Stem-cell storage company goes into liquidation, leaving families worried

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ABC News AU
By Alina Eacott
4-8-16

Hundreds of families across Australia are facing uncertainty after a company that stores umbilical cord blood went into liquidation.

Brisbane-based Stemlife had more than 2,000 samples stored in its facility when it appointed liquidators BRI Ferrier early last month.

Cord blood contains stem cells that can be used in the treatment of some diseases.

Adelaide parents David and Nicci Farrugia paid almost $3,000 to store their son's blood at Stemlife for the next 25 years.

It was a decision they reached after hours of research.

"We chose them after looking at the three companies that provided the service and in the end it was partially a decision on costs but likewise from the information provided, they assured us they would be able to adequately store the blood," Mr Farrugia said.

"It's still a bit experimental but at the time we understood that there were a number of ailments that could be fixed by stem-cell technology including some cancers, leukaemia, blood disorders.

"I'm a type 1 diabetic so our son's chance of getting type 1 diabetes is slightly increased by that. So that was another reason why we decided to outlay that investment as an insurance policy."

Mr and Mrs Farrugia received a letter this week notifying them the Stemlife had gone under.

"Then there was a mad scramble to find out what was happening," he said.

Company's demise a shock to staff

Liquidator Ian Currie said it was unlikely customers would receive any refunds, and he predicted a substantial shortfall.

"The deficiency between the estimated realisable value of assets and the estimated value of creditors is approximately $2.4 million," he said.

Stemlife chief executive Peter Darcy said he felt for the affected families.

"We're doing the best we can ... to ensure that the stem cells continue to be safely stored," he said.

"It's a difficult situation, and certainly no one likes to be in the position certainly least of all to see families with their stem cells, that are important for their family and their children."

Former Stemlife employee Kerrie Forman said the company's sudden demise was a shock.

"We don't hold out much hope of getting any moneys returned to us," she said.

Creditor Robert Mellor is owed about $5,000.

"We provided print material to them on a regular basis, and they started to fall behind on payments," he said. "I don't think I'll see any of it."

Storage concerns raised for samples

Families have been left worried about the safety of their stored material. Ms Forman suggested they have the samples checked.

"They might want to have their samples tested for viability, before they decide to store with another stem cell bank," she said.

Sydney-based company Cryosite has stepped in to help, and is providing electricity at the Brisbane facility to ensure the matter is maintained.

Cryosite is planning to relocate the material to Sydney and continue storing it free of charge.
 
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