What Is Theranos’?

Theranos was an American privately-held corporation known for its groundbreaking health technology business. Theranos was started in 2003 by Elizabeth Holmes (19 years old). Theranos received over US$700 million in venture capitalists and private investor funding, leading to a $10 billion valuation in 2013 and 2014.

Theranos Inc. is a startup in healthcare technology for consumers. It was once valued at around $10 billion, and its leaders said it would revolutionize testing.

Theranos is an American privately-held corporation [2]. It was widely regarded as a leading health technology Company. [3] Theranos was established in 2003 by Elizabeth Holmes (age 19). HTML4_ Theranos received more than US$700m from private investors and venture capitalists. HTML5][6] The Company claimed its blood tests could be performed in a short time due to the small automated instruments it had created.

The 2015 case of John Ioannidis and later Eleftherios, a medical researcher, challenged Theranos’s technology.

Theranos Holmes, Holmes, and the former president of Theranos were all indicted by the S.E.C. for fraud in 2018. [13] Balwani also faced charges of wire fraud and conspiracy. [14] Holmes was found guilty on four counts in January 2020. [16] Balwani’s trial began in March 2022.

  • Theranos Inc. is a startup in healthcare technology for consumers. It was once valued at around $10 billion, and its leaders said it would revolutionize testing.
  • Theranos raised approximately $724 Million from private investors and venture capitalists, based mainly on its claims.
  • The technological breakthrough Elizabeth Holmes and Ramesh Balwani claimed to have made was never proved, and Holmes’s and Balwani’s assertions were pure deceit.
  • The S.E.C. accused Theranos’ founder and C.E.O. Elizabeth Holmes and its former President Ramesh Balwani of fraud.
  • Holmes lost control of his Company. He returned millions of shares and was prohibited from serving in any officer or director position for a public firm for ten years.
  • Theranos was closing down its clinical laboratories and wellness centers in late 2016 before finally ceasing to operate in September 2018.
  • Elizabeth Holmes’ net worth dropped to $4.5billion in June 2016 – a drop of nearly half a billion.

Understanding Theranos

Theranos was a privately-held healthcare technology Company founded in 2003 by Elizabeth Holmes, then 19.

Theranos claimed that its “container,” a small device to draw, retain and analyze blood from the fingertip of a patient, and its “Edison” testing tech, could run many tests on the patient’s physiology in a matter of minutes. It also claims it can do so at a fraction of current technology’s cost.

After more than ten years of fundraising and a peak valuation of around $10 billion at the peak, the tide turned in 2015 because of the skeptical press.

New Yorker reporter James Holmes called Holmes’s explanations for Theranos’ technology “comically unclear,” citing Holmes’s claim that “a chemical reaction occurs and produces a signal from chemical interaction with the specimen, which is then translated into results. Which are then reviewed by certified laboratory personnel.”

The Wall Street Journal also published a highly critical report regarding Theranos. The newspaper used interviews with ex-employees to make its case against Theranos’ management incompetence. It also claimed that Theranos had grossly exaggerated Theranos proprietary technology capabilities.

According to a former employee, only a tiny percentage of all tests were conducted on the Edison machines. The majority of tests were performed using competitors’ equipment, although Theranos claims to the contrary. If true, it would have violated U.S. Food and Drug Administration regulations.

The F.D.A. then released two reports on its ongoing investigation into Theranos. The reports were less than positive and claimed that Theranos could not clear medical devices and had poor records. It also said that Theranos failed to produce supplier qualifications and audits. Investigators noted that the unspecified medical device had not been validated under either actual or simulated conditions. Theranos failed “to ensure that the device meets defined user requirements and is intended for its intended uses.”

The Downfall of a Unicorn: How Theranos failed

They disclosed lies to board members. A culture of intimidation and secrecy was evident. Technology that consistently failed quality assurance was also revealed. Most importantly, actual patients received results that were fundamentally incorrect. This resulted in life-changing medical decisions.

Theranos, its C.E.O. Elizabeth Holmes, and Ramesh Balwani, former president of Theranos, were charged by the U.S. Securities and Exchange Commission. They claimed that they had “deceived investors into believing their essential product, a portable, blood analyzer, could conduct