Published: Thu, September 06, 2018
Medicine | By Rogelio Lindsey

Blood-testing startup Theranos said to be closing

Blood-testing startup Theranos said to be closing

"We are now out of time", Taylor wrote, according to a copy of the email published on The Journal's website.

The most damaging revelation in the article was that the nanotainers themselves were so flawed that Theranos had been using equipment made by other companies to carry out blood tests in its laboratories.

Blood-testing company Theranos plans to go out of business in the wake of one of the tech community's biggest frauds, the Wall Street Journal reported Tuesday night.

Theranos did not immediately respond to Reuters' request for comment.

The biotech company, which was once valued at $9 billion, built its reputation on the claim that it had come up with a cheaper, more efficient alternative to traditional medical tests.

There are many outstanding questions surrounding Theranos, not least the outcome of Ms Holmes and Mr Balwani's forthcoming fraud trial, as well as whether the remaining patents being acquired by Fortress will turn out to have any lasting value.

Holmes was seen for a time as a rising star in Silicon Valley, appearing at events like the Women In Technology and Politics dinner hosted by Glamour and Facebook, the Vanity Fair New Establishment Summit and events hosted by the Wall Street Journal and TechCrunch. But her net worth was later revised down to nothing.

Its founder, Elizabeth Holmes, and her second-in-command are facing criminal charges on accusations that they defrauded investors, doctors and patients.

Holmes and Balwani both pleaded not guilty at their arraignment.

In June, the US Justice Department said a federal grand jury in California indicted Holmes, 34, and Ramesh "Sunny" Balwani, 53, who had been president and chief operating officer.

Mr Taylor, who also serves as general counsel to the firm, said that Theranos had engaged the services of investment bank Jeffries to try to "maximise the value of the company" for shareholders.

"Because the Company's cash is not almost sufficient to pay all of its creditors in full, there will be no distributions to shareholders", the letter states.

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