Theranos Suspends Blood-Testing Technology, Awaits FDA Approval
The startup Theranos is valued at $9 billion and has 40 blood-sample centers in Valley-area Walgreens'. It claims it can run a variety of tests cheaper, faster and with less blood than usual samples.
But, Theranos has come under scrutiny after a Wall Street Journal article published last week said those claims are exaggerated, and the patented small blood sample containers are only used for a fraction of the tests.
Theranos CEO Elizabeth Holmes has challenged those statements, saying the company has been transparent in their process for FDA approval and that their testing methods are standard practice. A statement from Theranos said they will temporarily use different, already FDA-approved blood tubes.
While the statement also said Theranos will continue to expand in Arizona, according to the Wall Street Journal, Walgreens won’t open any new wellness centers until they’ve resolved questions with the company.
Earlier this year, Theranos’s CEO successfully lobbied for a law in Arizona allowing lab tests without a doctor’s orders.