After failing a regulatory inspection, Theranos closed its last blood testing facility. Once valued at $9 billion, Theranos is shifting its focus to a portable virus detection box after its once revolutionary blood testing business came under scrutiny for unreliable results, inadequately trained staff and questionable methodology.
Theranos testing lab in Scottsdale Arizona was found to be inadequate and deficient after representatives from the Centers for Medicare and Medicaid Services conducted an inspection. Investors were not informed by Theranos of the inspection and assessment. Last year in California, the company had shut down its lab after failing a similar test. Last October and January many employees were laid off leaving only 220 employees. The company is also facing lawsuit from past patients and its former partner Walgreens.
David Taylor, Theranos general counsel, stated that after months of careful consideration and prior to the surprise inspection by CMS in Arizona, Theranos has decided to close its laboratories. According to Taylor, Theranos will be responding to the inaccurate patient tests and will continue the process of revising or voiding test results until the company is satisfied that all necessary remedial action has been done according to an article by Tech Crunch.
Theranos closed laboratories in three states and had invested its remaining resources to the development of the miniLab project. This is a scaled down version of its laboratories. Reportedly, the miniLab is capable of screening for specific blood borne viruses such as the Zika virus. However, the detection kit has many flaws according to the FDA.
Theranos is aiming to push their product to doctors and other healthcare professionals to aid in the detection and diagnosis of diseases. However, industry experts stated that products similar to miniLab are already available on the market and that there is nothing to differentiate miniLab from the other products that are already available as reported by San Francisco Business Times.
