Support our non-partisan non-profit newsroom 💜 Donate now

Theranos to close down California lab following inspection

Lewis Wallace Jul 8, 2016
HTML EMBED:
COPY
Theranos Founder and CEO Elizabeth Holmes speaks at Forbes' Under 30 Summit in October of last year. Lisa Lake/Getty Images

Theranos to close down California lab following inspection

Lewis Wallace Jul 8, 2016
Theranos Founder and CEO Elizabeth Holmes speaks at Forbes' Under 30 Summit in October of last year. Lisa Lake/Getty Images
HTML EMBED:
COPY

Another unicorn falls flat: This time it’s Theranos, the Silicon Valley startup that a few years ago held the promise of changing the way we get blood tests.

It’s been in an ugly tailspin for about eight months since a Wall Street Journal investigation led to a variety of inspections into how effective its blood testing actually is.

Now, founder and CEO Elizabeth Holmes is being forced to shut down her lab, and is banned from running a blood-testing lab for two years following an inspection by the Centers for Medicare and Medicaid. A Theranos press release posted to its website Thursday also said the company will face fines.

To recap, Theranos was started on this happy idea that you could make various blood tests easier and cheaper by drawing less blood, and having them done at your local drugstore instead of pricey trips to the doctor.

But since October 2015, a series of federal inspections have revealed serious quality control problems, including some that could have posed a danger to patients. Now it’s under criminal investigation from the U.S. Justice Department, and its major partner, Walgreens, broke off their relationship last month.

Holmes said they are disappointed, but taking the problems very seriously. Theranos’ Arizona lab will stay open.

 

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.