Company going to focus on miniLab platform
Health-technology service provider Theranos, on Wednesday, announced that it has decided to close its clinical labs and wellness centers. In an open letter written by Theranos CEO Elizabeth Holmes, the company declared it is going to focus on its miniLab platform.
“We have decided to close our clinical labs and Theranos Wellness Centers, which will impact approximately 340 employees in Arizona, California, and Pennsylvania,” read the letter written by Elizabeth Holmes.
“We will return our undivided attention to our miniLab platform,” added the letter.
Holmes, who once dreamed of changing the world with its inexpensive and simple blood test, became one of the biggest drop-offs in recent times, when the Forbes magazine published the list of 400 wealthiest people on Tuesday.
Hailed as the youngest self-made billionaire woman in America, Holmes had appeared on the Forbes 400 list with an estimated net worth of $4.5 billion in 2014. Forbes reduced the value of Theranos, which was once valued at $9 billion, to $800 million recently.
Holmes had claimed that the company’s technology will revolutionize the world by giving the users the chance to know important information about their health without consulting a doctor.
But, in October 2015, the Wall Street Journal started publishing reports questioning the accuracy of the test results of Theranos. The reports even claimed that some employees of the company had been suspicious about its results. Some scientists had also raised criticisms.
As the allegations mounted up, the Federal agencies intervened and started an investigation into the suspected activities of Theranos. Though the company rejected all the allegations initially, it admitted major flaws later on.
In a serious blow to the company, Walgreens terminated its partnership with Theranos in June. In July, the Centers for Medicare & Medicaid Services imposed sanctions against the company making it not possible for Holmes to run the startup at least for a few years.
After spending months for assessing the strengths and weaknesses, the company finally decided to close down its clinical labs and wellness centers and “structure the company around the model best aligned with the core values and mission.”
Holmes, in her letter, acknowledged the service of her employees who stood by the company. “We are profoundly grateful to these team members, many of whom have devoted years to Theranos and our mission, for their commitment to our company and our guests,” she said.