Australian woman gives birth to wrong couple's baby in IVF mix-up

An Australian woman has given birth to a stranger's baby after a fertility doctor accidentally implanted the wrong embryo, the clinic owner said in its apology letter while blaming the mix-up on "human error".

Monash IVF, which is responsible for nearly one-quarter of Australian IVF treatments, said it learned in February that a woman at its Brisbane clinic had the wrong embryo transferred, "resulting in the birth of a child".

The mistake was identified when the new parents asked for their remaining embryos to be sent to another clinic. At that time, the company said it discovered an additional embryo in storage.

It did not disclose the parents' identity nor comment on their reaction except to say the situation was distressing. The clinic also did not specify when the woman gave birth and only disclosed that she was informed of the mistake as soon as it was discovered.

"All of us at Monash IVF are devastated and we apologise to everyone involved," CEO Michael Knaap said in a statement, adding the incident had prompted extra audits which showed the incident was isolated.

The mix-up has drawn attention to an industry which was largely self-regulated until recently and raised concerns about security protocols at IVF clinics.

The facilities are regulated by a mix of Australian industry bodies and state government agencies.

Queensland Health, the government body Monash reported the incident to, said it only became the regulator in September after the erroneous transfer took place.

Monash IVF said it hired a lawyer to run an independent investigation and reported the incident to the Reproductive Technology Accreditation Committee, part of industry group the Fertility Society of Australia, as well as the state body.

"Incidents of this nature are rare," the Fertility Society said in a statement, adding that "patients place considerable trust in fertility services, and the safe handling and identification of embryos is a fundamental responsibility".

The news hammered the company's shares as investors already spooked by market turmoil weighed the reputational impact of what Australian media said was the country's first scandal of its kind involving an IVF operator.

Monash IVF stock was down 35% by late afternoon, its heaviest decline since listing more than a decade ago. The broader market was down 1%.

In a statement to the Australian Securities Exchange, the company called the incident distressing but said it did not think it would have a material impact on its financial performance.

Monash IVF also has clinics in Malaysia, Singapore and Indonesia.