Theranos Feels the Pinch as Blood Testing Business Crumbles
In January 2017, Theranos closed its last remaining blood testing laboratory after it failed a regulatory inspection by the Centers for Medicare and Medicaid Services. This is only the latest setback for Theranos. The company, once valued at US$9 billion, was poised to disrupt the blood-testing market, valued at US$52.8 billion in 2016. In October 2015, the Wall Street Journal published an article detailing that the microfluidic technology Theranos claimed to have perfected was flawed, and that the company administered most of its blood tests on competitor’s equipment. Following that article’s release, Theranos faced increased scrutiny resulting in multiple lab closures, layoffs, and lawsuits. Now, Theranos is shifting focus from its once promising blood-testing business to portable “lab on chip” devices. Theranos’ troubles will greatly impact the startup space resulting in increased scrutiny for health technology startups.
To find out more about subscribing: