Thursday, April 14, 2016

There Goes Theranos

I guess a 31 year old with a company valued at a billion that would revolutionize the blood testing industry was all hype.
Then in October 2015 came the massive Wall Street Journal investigation. Carreyrou eventually discovered and reported that it appears Theranos rarely even used its much-hyped Edison technology in its tests. Instead, the startup allegedly relies mostly on older technology by companies like Siemens for the bulk of its testing. (This was in contrast to the company's claims that it used older machines only for "certain esoteric and less commonly ordered tests.")

What's more, there are real concerns that the company's signature Edison machines — the ones that have garnered all the hype — aren't nearly as accurate as claimed. On this point, Carreyrou cited former employees, internal emails, and doctors. One Theranos employee even complained to regulators that Theranos had been gaming the system, "failing to report test results that raised questions about the precision of the Edison system."
I remember seeing her on Squawk Box a few years ago and she did promise something that was supposed to change the world. Instead they might have just been faking it the whole time. I wonder how this woman lived with the deception for so long? It must have been eating her up to lie to Walgreens, Board members Henry Kissinger and George P. Shultz, and regulators day after day.

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