Founded in 2003 by Elizabeth Holmes, Theranos is a health technology company. Headquartered in Palo Alto, its proprietary platform miniLab is designed to enable earlier disease detection and intervention by facilitating small-sample collection, testing and rapid communication of diagnostic information and test reports in distributed settings.
In November 2016, the pharmacy chain Walgreens filed a $140 million lawsuit against the California based company, with accusations of a breach of contract. It operated in Theranos Wellness Centers, where people could go and have their blood tested in the company’s stores.
Reports suggest that up until October 2016, Theranos’ business model was based around the idea that it ran blood tests using proprietary technology that requires only a small amount of blood. Since then, the company has pivoted to focus solely on the company’s miniLab technology and is considering renting out its headquarters.
The settlement with Walgreens is the last in a series of major settlements that Theranos has had to make with investors as well as the state of Arizona.
Theranos has been plundered with lawsuits since October 2015 after the Journal published a report that questioned the accuracy of its blood test. After investigation, one of Theranos’ lab-testing locations was shut down and Elizabeth Holmes was banned for two years from running a clinical lab.
The company however entered into a settled with CMS, the government agency responsible for regulating blood-testing labs, by agreeing to not own or operate a clinical lab within the next two years.
“Over the past 16 months, the Company has built a new senior management team, changed the composition and structure of its Board of Directors, installed an expert technology and scientific advisory board, and implemented a new quality and compliance program,” writes Theranos in a statement.
As the company struggles to gain momentum and goodwill, it will still be a while until its operation scale gets back to where it was.