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posted by janrinok on Thursday October 06 2016, @02:48PM   Printer-friendly
from the physician-heal-thyself dept.

Theranos's troubles continue with the layoffs of about half its workforce:

Theranos is closing its labs and wellness centers, CEO Elizabeth Holmes announced today in a post on the company blog. And this isn't a temporary closure: the "approximately" 340 employees running them are out of a job. [...] The company pivoted away from working on its closely held "nanotainer" technology to a "miniLab" in August. The boxy device — unveiled at the American Association for Clinical Chemistry conference — collects small samples of blood and urine and then uploads them to a centralized system for further analysis. And it's a far cry from what the company, once valued at $9 billion, set out to do. According to several experts whom TechCrunch spoke to at the unveiling, it might not be very innovative, either. Although Theranos didn't want its new device referred to as a "lab on a chip," that's essentially what these experts said the miniLab was. And that has been done.

The new device hinges largely on FDA approval — something Holmes said she'd hoped to fast-track under the emergency use authorization (EUA) for Zika detectors. That plan didn't go so well, however. The FDA denied Theranos approval after finding the company failed to use proper patient safety protocols. [...] The news Theranos is shuttering its labs and wellness centers and laying off nearly half its workforce comes after a series of shocking revelations over the past year involving faulty test results and improperly trained workers. The company is now facing numerous lawsuits, was forced to shut down it's California lab facility, lost its main partner Walgreens and was subject to a Congressional inquiry. Finally in July regulators banned Holmes from stepping foot in her own labs.

Previously: Theranos Introduces New Product to Distract from Scandal


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  • (Score: 2) by stormwyrm on Friday October 07 2016, @03:21AM

    by stormwyrm (717) on Friday October 07 2016, @03:21AM (#411320) Journal
    The summary, I think should have explained a bit about what Theranos is. Looking about I found out that it's a health technology company that developed devices that were supposed to be able to conduct blood tests using far smaller quantities of blood than are typically required. Seems though that these devices never worked as well as the company claimed, and now the company is in trouble from government regulators and faces a class action suit as well for misrepresentation of their medical tests.
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  • (Score: 0) by Anonymous Coward on Friday October 07 2016, @11:59PM

    by Anonymous Coward on Friday October 07 2016, @11:59PM (#411647)

    Sometimes the links to previous stories are worth following.

    • (Score: 0) by Anonymous Coward on Saturday October 08 2016, @09:18AM

      by Anonymous Coward on Saturday October 08 2016, @09:18AM (#411720)
      I'd have written the first sentence of the TFS as follows: "The troubles of embattled biotech firm Theranos continue with the layoffs of about half hits workforce." Something simple like that would have given the necessary initial context.