Everybody should know Theranos by now as Palo Alto-based blood-testing company is a perfect example of a company falling from grace, which Sentifi has captured with the help of 12,136 relevant voices in the financial market in the last 30 days.
The Wall Street Journal unveiled the company had dumped two years of blood-testing results from its Edison devices due to deficiencies on a mass scale. Tens of thousands of results were retracted, corrected, and resent. The company whose original purpose was to bring disruption to Laboratory Corporation of American and Quest Diagnostics found its own progress being disrupted by its own deed.
The innovation-driven company quickly became a lawsuit-ridden one. An Arizona resident filed a consumer fraud class action lawsuit against the company and accused its technology of failing to work and producing inaccurate results. It was a huge blow to the company’s pride, a proprietary technology which were claimed to be able to conduct hundreds of blood tests with only a few drops of blood.
In 2015, Forbes deemed Elizabeth Holmes, the CEO and founder of Theranos, to be the number one self-made woman in the United States. It valued her at $4.5 billion based on her 50% stake in the company, which was valued at $9 billion at the time. A year later, that very Forbes estimated her net worth to be nothing. Zero. And it provided a transparent list of its decision. First was the questionable business practices. Second was the failure to deliver data on its tests and machines. And third was the unlikeliness of its ability to outdo its competitors.
Walgreens decided to terminate its three-year partnership with Theranos. That means Theranos’ 40 clinics in Walgreens’ stores in Arizona will be closed.
And the worst thing is, this might not be the worst thing that has happened to Theranos.
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