Blue Monkey is a 1987 Canadian horror film directed by William Fruet and starring Steve Railsback, Gwynyth Walsh, Susan Anspach, Don Lake, Sandy Webster, Helen Slayton-Hughes, and John Vernon.
The film centers on a group of doctors trapped in a quarantined hospital as a giant insect-like creature begins to spread a deadly infection.
On call are Doctors Rachel Carson and Judith Glass, who are astonished to see that the man has already developed gangrene where he pricked his finger.
Their attention is taken away from Fred when police detective Jim Bishop brings his partner in with a bad gunshot wound.
In the adjacent bed, Fred begins convulsing and winds up vomiting an insect pupa out of his mouth, after which he seems to stabilize.
When Jim comes back clean of any mysterious parasitic insects, Rachel decides to show him around the hospital, including their high-tech research facility, where they are testing out new and powerful surgical lasers.
He goes into cardiac arrest, and when Judith Glass attempts to revive him with shock paddles, his chest violently explodes.
Hospital director Roger Levering is resistant to quarantining the facility for fear of causing a panic, but Rachel is at least able to get him to bring in entomologist Elliot Jacobs in the hopes of identifying the mysterious insect.
It turns out the insect is in the utility tunnels underneath the hospital, where the creature kills a hapless janitor and then begins building a nest for its brood.
[3] In her 1987 review, Janet Maslin from The New York Times wrote, "BLUE MONKEY isn't much more than a standard angry-larva story, but it has been cleverly directed by William Fruet, who knows how to give it a new look.
To be sure, what happens in the film is essentially familiar, as a slimy little abomination appears, grows, hatches and goes on to terrorize everyone it meets.