Balwani was also ‘in it to win it’ as seen in the indictment, which alleges that he and Holmes conducted fake technology demonstrations for investors in which they claimed their system was testing blood when in fact it was set on a “null protocol” to make it look like it was testing blood but wasn’t. (Curator’s note: I was late with this story because I entered the hospital for back surgery the day it ran – June 15, 2018.)
Theranos Inc., running on financial fumes, settled a suit filed by investors who had alleged they were defrauded by the blood-testing firm. The pact ends a civil case brought by Robert Colman, a former Silicon Valley investment banker, and other plaintiffs who made indirect investments in Theranos. Tap image for author story.
Something went wrong and now CEO Elizabeth Holmes is in very serious trouble.
Continue below for more on this story.
Now Theranos CEO and product evangelist Elizabeth Holmes is facing fraud charges arising from numerous deceptive practices, including her own false representations to media and investors alike.
So, what happened?
More posts below and tap Lizzy once again to access the 4/2017 WSJ article that quoted an investor as having said that “… Theranos used a shell company to buy commercial lab equipment, then pretended it was using its own technology in demonstrations for prospective partners and investors.”
The quote “Theranos didn’t do their homework” is attributed to Harvard Business School Professor and CNBC contributor Bill George who discussed the Theranos issue on CNBC’s “Power Lunch” on their April 14, 2016 broadcast. For the discussion in its entirety tap on the Theranos signage.
Timeline note: By now, Creative Biotech had been following this cancer blood test ‘saga’ for weeks and you can read some of our coverage immediately below.
Unreliable cancer blood tests are in the news again.
PALO ALTO, Calif. – Embattled blood-testing company “Theranos” is once again facing scrutiny for its technology as a new study in the “Journal of Clinical Investigation” (first published 3-28-16) raises more questions about the accuracy of the company’s single-drop blood tests. Tap test tubes for more.
The testing was conducted by the Icahn School of Medicine at Mt. Sinai, which compared privately-held Theranos’ methods to more traditional testing methods of larger companies Quest Diagnostics (DGX) and Laboratory Corporation of America Holdings (LH).
Theranos isn’t alone in avoiding regulation using an easily exploited loophole — in fact, it’s just one among many. Pathway Genomics (see story below), Admera Health, and Strand Life Sciences are diagnostics companies that offer cancer tests that impact people’s health care decisions. Each of these companies has been making use of what’s known as the “laboratory developed test” loophole — which makes avoiding pre-market verification downright easy.
Pathway Genomics raised $40 million in its last funding round and claims to have a very simple, inexpensive blood test that can tell if someone who otherwise appears normal and healthy might indeed have cancer. Here follows a piece we published earlier on this subject.
Pathway first caused a collective eyebrow to be raised at CBS last September, when they announced the launch of a test they were calling the “CancerIntercept Detect and Monitor”.
Additional notoriety came their way when Pathway and their screening tool were the subject of a discussion on an episode of “Keeping Up With the Kardashians” – Order a kit for $299 and problem solved – now back to shopping.
Pathway’s Board features some very powerful people, like Peter Pace, the former Chairman of the Joint Chiefs of Staff, Barbara Franklin, former Secretary of Commerce and Newt Gingrich, former Presidential candidate – no influential lightweights here.
The liquid biopsy market is expected to be well in excess of $22 billion by the year 2020 and in truth this product may be just as many years away from complete development. The CBS scrutiny caused the firm to pull back on its promotions and you can view the entire broadcast and story text by clicking the CBS logo above.
Blood-testing firm Theranos Inc. laid off most of its remaining workforce in a last-ditch effort to preserve cash and avert or at least delay bankruptcy for a few more months, according people familiar with the matter.