Theranos announced it was exiting the consumer blood testing business last October. But the government, which had warned the company that closing the lab would not stop the penalty process, informed Theranos of the Arizona-related sanctions in a Jan. 27 letter. That was obtained by the Journal in a public records request.
Theranos can still appeal the ruling, as it has appealed the CMS penalties related to its California lab. But whatever happens with these cases may be moot as far as the company's ultimate fate is concerned. Last week, the Journal reported Theranos had just $200 million left at the end of 2016, with no money set aside for potential liability in the many lawsuits that have been filed against it. Those suits are all related in one form or another to Theranos' inability to accurately perform the blood tests it said it could.
Theranos and its founder and CEO, Elizabeth Holmes, have pinned hopes for a comeback on a portable blood-testing device called the miniLab. But there's no telling when and if the machine will gain FDA approval.
Update Thursday, Feb. 16 Citing "people familiar with the matter," The Wall Street Journal is reporting Theranos had $200 million left at the end of 2016, less than a quarter of what it raised from investors.
The number was disclosed in a conference call with investors last month. Investors also were told the firm didn’t generate any material revenue in 2015 and 2016 and hasn’t set aside funds for any potential liability that could arise from its pending legal challenges.
Theranos, once a high-flying blood-testing startup, is being sued by a lot of different parties--patients, investors and its former business partner Walgreens--for hundreds of millions of dollars.
The company's never-ending woes began with a Wall Street Journal investigation published in October 2015. The paper found, among other improprieties, that Theranos failed to report data showing its vaunted technology, supposedly capable of performing dozens of tests from a few drops of blood, may not be accurate.
Penalties stemming from a disastrous federal inspection report of Theranos' California lab eventually forced the company to withdraw from the consumer blood-testing business and to lay off hundreds of workers.
More recently Theranos and its founder and CEO, Elizabeth Holmes, had pinned hopes for a comeback on a portable blood-testing device called the miniLab. But there's no telling when and if the machine will gain the FDA's approval.