Australia is seeing ‘lower activity’ in the IVF space
Australia’s second-largest fertility services provider has cut its full-year earnings outlook as the number of expectant parents seeking help declines.
Monash IVF, which has an assisted reproduction market share of around 20 per cent, now expects to report underlying net profits of between $17 million and $18 million for the 2025/26 financial year.
“The key driver for revising the FY26 earnings outlook was that Australian ART (assisted reproductive technology) market activity was lower than expected in the second half,” he told the stock exchange on Friday.
A result of approximately $20 million was previously expected.
Stimulated menstrual cycle volumes in Australia fell 4.7 per cent in the three months to April compared to the same period last year, according to Medicare data cited by the company.
“The impact of adverse market conditions continued throughout May and June,” Monash said.
A stimulated cycle is a phase of IVF treatment that involves the use of medications to stimulate the ovaries to produce more than one egg.
But the Melbourne-based company said its international operations were growing and volumes in the second half were expected to be higher than last year.
The company is in the midst of a cost-cutting drive ahead of reporting its annual results on August 24.
In April, Monash rejected an unsolicited takeover offer of 90 cents per share from WHSP Holdings and private equity group Genesis Capita.
Target said the offer was a “significant” discount to similar IVF procedures in the Australian market and undervalued the company.
This wasn’t the first investment vehicle that WHSP Holdings and private equity group Genesis Capital had their eye on Monash IVF.
They first pursued the target in November, when Monash IVF was under pressure due to the embryo implant scandal.
On June 5, a patient at a laboratory in Melbourne’s southeast was implanted with her own embryo rather than her partner’s embryo as requested.
Monash later blamed the incident on human error and IT limitations.
WHSP and Genesis then offered 80 cents a share for all shares in Monash IVF, which had struggled to trade above 90 cents for more than 12 months.
It closed yesterday at 67 cents, increasing its market value to $261.1 million.
According to the latest figures from the Australia and New Zealand Assisted Reproduction database, approximately 20,200 babies are born through IVF in Australia each year.
This represents approximately one in 18 children, rising to one in 10 children born to mothers aged 35 and over.
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