Theranos Shifts Focus from Labs to Technology

Theranos announced that it will shut down its laboratory operations in wake of the Centers for Medicare and Medicaid’s Services (CMS) sanctions resulting from the 2015 inspection of its Newark, Calif., laboratory, even though it is appealing the sanctions. On Oct. 5, the company released a statement indicating that "[a]fter many months spent assessing our strengths and addressing our weaknesses, we have moved to structure our company around the model best aligned with our core values and mission." That structure includes closing clinical labs and wellness centers affecting more than 300 employees in Arizona, California and Pennsylvania. The company will now focus on developing technology—namely the miniLab, which Holmes detailed at the AACC annual meeting in August. The miniLab is a compact device (2.5 cubic feet) containing a mini-robot that processes single-use cartridges with a Theranos Virtual Analyzer remotely dictating protocols for processing. "Our ultimate goal is to commercialize miniaturized, automated laboratories capable of small-volume sample testing, with an emphasis on vulnerable patient populations, including oncology, pediatrics, and intensive care," according to the company’s Oct. 5 statement. In late July, the company brought in some heavy hitters with experience at major technology companies in-house, including attorney David Guggenheim as chief […]