Rise of Theranos Spurred by Revolutionary Idea fromFounder Elizabeth Holmes
April 19, 2016 | Emilia Varrone
Sources: "Theranos Raises $28.5 M for Device Tracking Effects of Drugs on Patients," Venture Beat, December 7, 2006; Beth Winegarner, " Corrected: Patent Theft Trial Over McDermott Docs Settles", Law 360, March 17, 2014; John Carreyrou, "At Theranos, Many Strategies and Snags" Wall Street Journal, December27, 2015; John Carreyrou, "Hot Startup Theranos Has Struggled with its Blood-Test Technology" Wall Street Journal, October 16, 2015; Roger Parloff, "Theranos Adds Startlingly Well-Qualified Medical Board", Fortune, April 7, 2016; Ron Leuty, "Theranos: The Biggest Biotech You've Never Heard Of", San FranciscoBusiness Times, August 30, 2013; John Carreyrou, "FDA Inspectors Call Theranos Blood Vial 'Uncleared Medical Device'", Wall Street Journal, October 27, 2015; Arielle Duhaime-Ross, "US Government says Theranos Lab Poses 'Immediate Jeopardy to Patient Safety'", The Verge, January 27, 2015; John Carreyrou andChristopher Weaver, "Regulators Propose Banning Theranos Founder Elizabeth Holmes for at Least Two Years," Wall Street Journal, April 13, 3016; Reed Abelson and Andrew Pollack, "Theranos Under Federal Criminal Investigation Adding to its Woes", New York Times, April 18, 2016; Michael Siconolfi et al.,"Walgreens Pulls Back from Theranos", Wall Street Journal, January 28, 2016.
Elizabeth Holmes Leaves Stanford
The idea: Holmes wanted to create a hand-held device which took a minute amount ofblood and tested for a range of diseases and health markers. She dropped out of Stanfordto start Theranos.
Elizabeth Holmes Announces Creation of Testing Device
Holmes announced on the public-radio show BioTech Nation that she created the hand-held device.
Theranos Raises 70 M in Venture Capital
Holmes Raises 70 M with investments from Larry Ellison, CEO of Oracle, and other venturecapital firms. By 2010, Theranos was valued at more than $1 billion.
Theranos Files Suit Against Former Employees
Theranos files suit against former employees for misappropriating trade secrets. Theranosasked to dismiss the case in January 2009.
Theranos Files Suit for Patent Theft
Theranos filed suit against Fuisz Pharma LLC for stealing patent files from McDermott Will& Emery LLP. The parties settled midtrial in 2014.
Theranos Enters the Public Space
Theranos begins offering tests to the public, along with a break out article in the Wall StreetJournal, which hails Theranos as a major innovator in the health care space. The articlequotes former Secretary of State George Shultz, a Theranos board member, that “Holmescould be the next Steve Jobs or Bill gates.” Walgreens and Safeway Inc. agreed to offerTheranos tests in store.
2003
2004-2010
2007
2011
Timeline of Key Events at Theranos
2013
2005
THERANOS TIMELINE
Theranos Eventually Exposed for Violating FederalLaboratory Rules and Performing Tests With Poor Accuracy
April 19, 2016 | Emilia Varrone
Sources: "Theranos Raises $28.5 M for Device Tracking Effects of Drugs on Patients," Venture Beat, December 7, 2006; Beth Winegarner, " Corrected: Patent Theft Trial Over McDermott Docs Settles", Law 360, March 17, 2014; John Carreyrou, "At Theranos,Many Strategies and Snags" Wall Street Journal, December 27, 2015; John Carreyrou, "Hot Startup Theranos Has Struggled with its Blood-Test Technology" Wall Street Journal, October 16, 2015; Roger Parloff, "Theranos Adds Startlingly Well-Qualified MedicalBoard", Fortune, April 7, 2016; Ron Leuty, "Theranos: The Biggest Biotech You've Never Heard Of", San Francisco Business Times, August 30, 2013; John Carreyrou, "FDA Inspectors Call Theranos Blood Vial 'Uncleared Medical Device'", Wall Street Journal,October 27, 2015; Arielle Duhaime-Ross, "US Government says Theranos Lab Poses 'Immediate Jeopardy to Patient Safety'", The Verge, January 27, 2015; John Carreyrou and Christopher Weaver, "Regulators Propose Banning Theranos Founder ElizabethHolmes for at Least Two Years," Wall Street Journal, April 13, 3016; Reed Abelson and Andrew Pollack, "Theranos Under Federal Criminal Investigation Adding to its Woes", New York Times, April 18, 2016; Michael Siconolfi et al., "Walgreens Pulls Back fromTheranos", Wall Street Journal, January 28, 2016.
Investors Pump $633 Million into Theranos
A Theranos investing frenzy increases its valuation to about $9 billion.
Wall Street Journal Exposé
Former employees disclose that Theranos was using the revolutionary blood testingdevice, “Edison” for only 15 tests in Dec 2014. The employees also brought theaccuracy of those tests into question. They also accused Theranos of failing to reportnegative results for the Edison which is a violation of federal rules for laboratories. Thevast majority of tests that Theranos ran were on traditional machines - tests run ontraditional machines have to be diluted, which introduces increased chance of error.
FDA orders Theranos to stop using Edison
FDA declared the nano-vial that Theranos used to collect blood an “uncleared medicaldevice” and ordered Theranos to stop using Edison for all but one approved test(herpes).
CMS inspection results in reports of poor accuracy. Holmes Threatened withInjunction
CMS inspected the Newark, California laboratory and found 45 deficiencies. In January2016, CMS threatened to pull certification of the lab, as officials found that Theranosfailed to adequately correct 43 out of 45 deficiencies. After what federal health regulatorshave called an inadequate response, they proposed banning Holmes and Theranos’president, Sunny Balwani, from the blood-testing business for at least two years.Theranos is no longer eligible to receive Medicare or Medicaid payments. Walgreenssuspends partnership with Theranos
2014
Oct 2015
Fall 2015-March 2016
Timeline of Key Events at Theranos (c0nt.)
Oct 2015
THERANOS TIMELINE
Theranos Currently Faces Criminal Investigation
THERANOS TIMELINE
April 19, 2016 | Emilia Varrone
Sources: "Theranos Raises $28.5 M for Device Tracking Effects of Drugs on Patients," Venture Beat, December 7, 2006; Beth Winegarner, " Corrected: Patent Theft Trial Over McDermott Docs Settles", Law 360, March 17, 2014; John Carreyrou, "At Theranos, Many Strategies and Snags" Wall Street Journal, December27, 2015; John Carreyrou, "Hot Startup Theranos Has Struggled with its Blood-Test Technology" Wall Street Journal, October 16, 2015; Roger Parloff, "Theranos Adds Startlingly Well-Qualified Medical Board", Fortune, April 7, 2016; Ron Leuty, "Theranos: The Biggest Biotech You've Never Heard Of", San FranciscoBusiness Times, August 30, 2013; John Carreyrou, "FDA Inspectors Call Theranos Blood Vial 'Uncleared Medical Device'", Wall Street Journal, October 27, 2015; Arielle Duhaime-Ross, "US Government says Theranos Lab Poses 'Immediate Jeopardy to Patient Safety'", The Verge, January 27, 2015; John Carreyrou andChristopher Weaver, "Regulators Propose Banning Theranos Founder Elizabeth Holmes for at Least Two Years," Wall Street Journal, April 13, 3016; Reed Abelson and Andrew Pollack, "Theranos Under Federal Criminal Investigation Adding to its Woes", New York Times, April 18, 2016; Michael Siconolfi et al.,"Walgreens Pulls Back from Theranos", Wall Street Journal, January 28, 2016.
Theranos Adds Qualified Medical Board *April 2016*
Theranos formed a medical advisory board of highly-qualified members, including pastpresidents and board members of the American Association for Clinical Chemistry, aformer director of the CDC, as well as numerous professors in clinical chemistry andpathology.
Theranos Faces Criminal Investigation by Federal Officials
The Justice Department requested documents from Theranos and have launched aninvestigation. The SEC is also investigating the company. Theranos has stated that theywill cooperate fully with all investigations.
Sunny Balwani Leaves Theranos
Theranos president and chief operating officer Sunny Balwani leaves Theranos amidregulatory problems. Theranos expands its board with three members to increase itsscientific and medical expertise. Balwani has been with Theranos since 2009.
April 2016
Timeline of Key Events at Theranos (contd.)
April 2016
May 2016