The big problem with this was that the technology would never work as it was nearly impossible. One of the big problems that never was solved for Theranos was the equipment needed a specific volume, and since Holmes was set on using a blood prick they would have to dilute the blood, which would skew the data on analysis (6).
Will Theranos'Theranos revolutionize medical diagnostics?
The technology being developed by medical diagnostics startup Theranos — a novel device allowing a galaxy of blood tests to be performed on one small, finger-prick sample — had the potential to revolutionize the industry and launch CEO Elizabeth Holmes into the pantheon of billionaire Silicon Valley tech founders. The only problem?
What did Theranos do wrong?
Theranos introduced products that did not work and that could do customers a great deal of harm. As a former Theranos lab director told Carreyrou, a false positive on a blood test might cause a patient to have an unnecessary medical procedure. A false negative was worse: a patient with a serious condition that went undiagnosed could die.
Why did Theranos'Edison not work?
But the Edison straight-up didn't work, and that's putting it very broadly. Pieces of the machine would fall off, doors wouldn't close, and the device couldn't properly regulate its temperature, Tyler Shultz, a former Theranos employee and one of the first whistleblowers, told 60 Minutes in 2018.
What happened to Theranos founder Elizabeth Holmes?
Jurors are still deliberating over the fate of Elizabeth Holmes, the founder of defunct biotech company Theranos. They’re deciding if she intentionally misled investors, patients, and doctors about what her company’s blood testing technology could do.
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What was wrong with Theranos technology?
They revealed lies to board members, a culture of intimidation and secrecy, technology that repeatedly failed quality assurance and crucially, results sent to real patients that were fundamentally incorrect, upon which life-changing medical decisions were being made.
Why did the Theranos machines fail?
'” The technology didn't exist. Theranos, despite all its flashy promises, wasn't actually able to run tests accurately in its device on a single drop of blood. Two years after the company closed its labs, its charismatic founder Elizabeth Holmes and former company president Sunny Balwani were indicted for fraud.
Did the Theranos Edison ever work?
What's more, Theranos said dozens of tests could be run on one drop of blood alone, and these tests would cost a fraction of traditional lab work. But famously, Theranos's house of cards came tumbling down. The microwave-sized machine that supposedly could run these tests, dubbed the “Edison,” simply did not work.
What did Theranos do that was unethical?
She initially raised $700 million, claiming that Theranos' technology could run multiple blood tests from a mere pinprick of blood from a fingertip. Last week, a federal jury found Holmes guilty on four counts of fraud.
Did Theranos use Siemens machines?
Because of this, when Walgreens tapped Theranos to bring its seemingly miraculous blood-testing tech into clinics, the startup turned to the Siemens machines to perform the tests—even as Holmes maintained that Theranos' technology was capable of doing what the company promised.
How accurate were Theranos tests?
Between 2013 and 2016, Theranos sold more than 1.5 million blood tests that yielded 7.8 million test results for 175,940 Arizona consumers, and more than 10% of all test results were later voided or corrected.
Did Elizabeth Holmes ever have a working prototype?
Elizabeth didn't have a working prototype at the time, but she charmed the doctor by talking up how he convinced doctors to send their records electronically back in 1992 and how she wanted to revolutionize medicine the same way he did.
Did Theranos ever work in Walgreens?
Theranos ultimately opened more than 40 Wellness Centers in Arizona, Pennsylvania, and California. Most were located inside of Walgreens in the Phoenix area.
What does George Shultz say about Theranos?
“He said he could not believe that anybody could get in front of these men and women who are willing to put their lives in front of our country and lie directly to their face as convincingly as she lied,” he added. George Shultz died in February 2021.
Did Theranos dilute blood?
In March 2018, Theranos, a Silicon Valley blood test startup, came to a dramatic end with the founder and CEO, Elizabeth Holmes, being indicted on fraud charges. It turned out, Theranos labs lied about their phlebotomy technology, intimidated employees, and diluted blood samples.
Who blew the whistle on Theranos?
The Dropout, a Hulu series, portrays about Elizabeth Holmes and demise of her health-tech business, Theranos, as a consequence of two whistleblowers, Erika Cheung and Tyler Shultz. Both Cheung and Shultz were whistleblowers at Theranos, as depicted in The Dropout, a Hulu series about Holmes and her firm Theranos.
Who broke Theranos story?
(CNN) Pulitzer Prize-winning reporter John Carreyrou is responsible for breaking open the story of Theranos six years ago, prompting broader scrutiny into blood testing startup that would land its CEO and founder Elizabeth Holmes in a federal courtroom over criminal fraud charges.
Who Exposed Theranos?
The 31-year-old Shultz reportedly celebrated the news of former Theranos CEO Elizabeth Holmes' conviction on four charges of defrauding investors with champagne, joy, and a healthy dose of vindication, according to NPR.
What does George Shultz say about Theranos?
"It was clear that there was an open secret within Theranos that this technology simply didn't exist," Shultz said. This emboldened Shultz to blow the whistle. He contacted state regulators in New York using an alias.
What happened to Walgreens and Theranos?
Walgreens, which began testing in late 2013 in Palo Alto and Arizona, and had Theranos' “wellness centers” in 41 locations at one point, ended the Theranos partnership in 2016. The company sued Theranos, eventually arriving at a settlement of less than $30 million.
How much is Elizabeth Holmes Worth?
2016 Billionaires Net Worth Forbes named Holmes the world's youngest self-made woman billionaire--worth $4.5 billion--in 2014, when she was 30 years old. Starting in 2015, Theranos' technology came into question; reporting by The Wall Street Journal revealed that Theranos was using other companies' machines.
What is Theranos famous for?
Theranos would eventually become an immense biotechnology company in Silicon Valley and famous for potentially changing the medical world. However, there is a reason that did not happen, and this starts with Holmes herself. Elizabeth Holmes pictured here in 2015 (1)
Why did Holmes isolate her employees?
Holmes also isolated the majority of her employees to limit the communication about their tasks , which she defended by stating it was to keep trade secrets. However, it was more likely to ensure that other employees don’t piece together the failure of their technology. This along with Sunny Belwani also berating the employees when he himself had very little knowledge of anything Theranos was doing led to a toxic work environment. This in case gave Theranos a high-turnover rate as many employees saw their intelligent partners quit or be fired if left a lot of the employees insecure.
What was the idea of Theranos?
Theranos began based on a simple idea, Holmes wanted to create equipment that would eliminate needles from drawing blood and be replaced by a blood prick. This technology would be able to analyze over 100 tests all within minutes at a local Walmart or Walgreens (2).
When did Balwani meet Holmes?
Balwani met Holmes before she went to Stanford when he was 37 and she was 18 in 2002. By 2005 Balwani and Holmes were living together and by 2009 Balwani joined Theranos as the chief operating officer. One of the major problems with this was that Balwani did not have any training in medical or biological science.
What was Elizabeth Holmes' biggest mistake?
In the end, Elizabeth Holmes biggest mistake was her desire to be like Steve Jobs which was something she could never accomplish. Jobs knew when he was in over his head and hired CEO’s with previous experience, Holmes hired Sunny Balwani who had none (11).
When did Theranos test its technology?
This occurred when a major drug company made a deal with Theranos in 2008 to test its technology for a study on stage 3 and 4 cancer patients (7). Holmes told her employees that the results wouldn’t impact the patients but there a few who knew that it was a lie.
When was Theranos incorporated?
It didn’t take long for problems to occur after Theranos was incorporated in 2004. In 2006 Henry Mosley, the chief financial officer of Theranos noticed that employees were unhappy after a demonstration of their technology, Edison which analyzed blood samples, to the pharmaceutical company Novartis.
Why is Theranos proposing to do 150 tests on 10ul of blood?
Because at this time in technology, there simply isn’t the knowledge to overcome the basic physics and chemistry , Theranos was proposing to do. (example: run 150 tests on 10ul of blood. The blood sample would have to be so diluted that current methodologies are incapable of detection. Maybe someday, sensor technology will allow this, but not today).
How to get in the Theranos mood?
If you want to really get in the Theranos mood, just tell people you own one without actually owning one. That would be the most authentic way. You would then own an Edison device in the exact same way that Theranos invented them, by making the whole thing up.
Why would a Holmes GI3T machine have to be bigger?
Also, the machine would simply have had to be far larger physically than the design parameters, simply to accomodate the enormous amount of mechanical and electronic internals. Holmes gi3t so caught up in a Steve Jobs-like infatuation wirh looks and presentation she insisted it be small and stylish.
Was Theranos an engineer?
Fundamentally, Theranos was a hardware startup. And Holmes, like her idol Steve Jobs, was not an engineer by trade. But unlike Jobs, Holmes never found a partner that could fill the role she needed based on her lack of technical proficiency. Instead, she became intoxicated by a personality that pulled her deep into the d
What happens if blood is inconsistent?
For example, if blood is naturally inconsistent (which it is), you have to pull more of it to get a reliable sample. No fiddling with machines fixes that fact.
Why are clinical analytical tests so reliable?
With clinical analytical tests, there is an uncertainty that lead can lead to false positives and false negatives, therefore the analytical tests have to be SO ROBUST and SO RELIABLE to avoid those problems and be useful. The scientists just couldn’t achieve that kind of accuracy.
Was Theranos a fraud?
There are documented examples of tests the company did under controlled conditions using conventional technology and then Holmes and/or Balwani ordering staff to report those results as if it was coming from the Theranos diagnostic machine. It was a clear fraud.
How many conspiracy and wire fraud charges did Holmes have?
To win a conviction on the dozen conspiracy and wire fraud counts brought against Ms. Holmes, prosecutors must do more than show she led a startup that failed in its mission to create a new type of blood test. They must prove Ms. Holmes intentionally lied to investors to raise hundreds of millions of dollars, and deliberately misled the public to attract patients to its blood-testing centers.
What was Sunny's estimate used for?
Holmes showed an email that "Sunny’s estimate" was used to give overly rosy financial projections used to value the company . The controller testified that Theranos lost more than $585 million over roughly a dozen years.
Who is Elizabeth Holmes?
Former Theranos founder and CEO Elizabeth Holmes arrives at the Robert F. Peckham U.S. Federal Court in June 2019 in San Jose, California. Recently, Holmes has been going through a criminal fraud trial over Theranos and one patient claims the blood t (Justin Sullivan/Getty Images / Getty Images)
Did the defense try to discredit witnesses?
The defense has tried at times to discredit witnesses, in particular during its four-day cross-examination of former lab director Adam Rosendorff. Attorney Lance Wade began by nearly shouting at the witness, attempting to show the lab director had been coached in his responses and had shifted his answers from earlier sworn statements.
What did the Theranos Edison machine test for?
Standard immunoassay tests can measure things like drug levels, hormone levels, and certain cancer markers. Theranos' testing "menu" offered more than 240 tests, and only a handful were done on the Edison. While the Theranos website has been wiped, an archived copy of their testing menu shows the various options and their prices — including everything from celiac to cocaine.
Why was it called the "Edison" machine?
The "Edison" device was named after Thomas Edison, the American inventor who was famously quoted saying, "I have not failed. I've just found 10,000 ways that won't work." Ominous, no? According to the book Bad Blood, Holmes said, "We tried everything else and it failed, so let’s call it the Edison," when naming the prototype in 2007. In a now foreboding 2015 commencement address at Pepperdine University, Holmes cited Edison's quote, saying, "We code-named our product the Edison, because we assumed we’d have to fail 10,000 times to get it to work the ten-thousandth-and-first. And we did."
Who should be self-testing their blood, anyways?
Nowadays, when you can order a home genetic test and view results online, the thought of having a home blood-testing machine might sound kind of clutch for those who have health conditions but can't regularly get to a doctor (like HIV, for example). But even when a testing device is 100% accurate and reliable, some experts are iffy on the benefits of self-testing. Due to human error taking samples, mistakes transferring the blood to the device, or trouble reading the results, the bottom line is self-testing has its cons.
Why is Theranos called the gluebot?
Before the Edison was dubbed "the Edison," some Theranos employees affectionately called it the "gluebot," because it was based on a robot that dispensed glue. Inside the device (which, honestly looked like an old school PC tower, ironic given Holmes' obsession with making it look like an Apple product) a robotic arm was supposed to mimic what a chemist did in an IRL lab: take samples, dilute them, add antibodies and a reagent, and reveal a result.
Why did Holmes lie to investors?
Despite the fact that tests weren't working with the machine, Holmes repeatedly lied to investors — including Walgreens, which had Edison systems in stores — or made up excuses as to why it wasn't working in the moment. In 2016, Theranos "voided" two years of blood tests because federal regulators said they were putting patients' health ...
What is the Edison test?
To get technical, the Edison was designed to perform " immunoassays ," which look for the presence of an antibody or antigen in blood or fluid. Standard immunoassay tests can measure things like drug levels, hormone levels, and certain cancer markers.
How many tests did Theranos do?
Theranos' testing "menu" offered more than 240 tests, and only a handful were done on the Edison. While the Theranos website has been wiped, an archived copy of their testing menu shows the various options and their prices — including everything from celiac to cocaine.
What did Fiorito say about Balwani?
As Balwani’s main Chiat/Day contact, Fiorito said that whenever the team pressed Balwani for more information about Theranos’ product and technology, “he became almost angry that we'd even ask the question and that's what was really bizarre to us.”
How many blood tests does Theranos offer?
The article also stated that Theranos offered “more than 200 of the most commonly ordered blood diagnostic tests, all without the need for a syringe,” but that “precisely how Theranos accomplishes all these amazing feats is a trade secret.”
What was the background of the Theranos ads?
The advertisements were simple: Theranos customers were set against a stark white background, facing the camera, staring straight into the lens. Morris’ voice could be heard off-camera asking the customers questions about their experiences with blood tests and needles.
What episode does Elizabeth Holmes talk about Theranos?
Elizabeth Holmes on Theranos devices not working: 'I know that we made mistakes': 'The Dropout' episode 3. This is episode 3 of "The Dropout," a podcast about the fall of Theranos. By Taylor Dunn, Victoria Thompson, and Rebecca Jarvis. March 13, 2019, 9:55 AM.
Why did Chiat Day meet with Holmes?
He remembered a time that they went to Palo Alto to meet with Holmes in order to get website script copy and retail materials approved.
When did Theranos start buying machines?
According to a Holmes' COO and partner Ramesh “Sunny” Balwani's 2017 SEC deposition, obtained by ABC News and featured on “ The Dropout ” podcast, Theranos first started buying machines from third-party manufacturers like Siemens in 2010 -- a few years before they launched their Wellness Centers inside of Walgreens.
How old was Elizabeth Holmes when she started Theranos?
By 2013, just 10 years after Elizabeth Holmes had founded her blood-testing startup Theranos as a 19-year-old Stanford dropout, she had landed a major client and was well on her way to being a star of the biotech world.
How many tests did Theranos get?
According to news reports, at one time Theranos was seeking FDA clearances for as many as 120 tests. Even if its technology actually works, hundreds of FDA clearances would have required hundreds of clinical trials, a process that would have taken years to complete. Theranos has gotten only one test cleared by the FDA.
How does the Edison device work?
Basically, the idea was this. A few drops of blood from a fingertip are collected into a “nanotainer” collection tube and analyzed on the company’s proprietary machine, named after famed inventor Thomas Edison. How exactly the Edison devices work is unknown. But the claim was that many—possibly dozens—of tests could be run on those few drops of blood.
Why did Theranos operate in stealth mode?
Theranos always asserted that it had to operate in “stealth mode” to protect its lead in breakthrough technology , which means that there was literally no peer-reviewed information out there about its technology.
How many tests can a handheld blood analyzer do?
For instance, in my laboratory, we have a small handheld analyzer called an I-STAT. It can do 25 different tests on very small amounts of blood. It was developed more than 20 years ago and is commonplace today.
What was Theranos' revolutionary claim that won over investors?
Theranos' revolutionary claim that won over investors was that it could accurately run tests using a small amount of blood taken from a poke in the patient’s finger, instead of a syringe full from a needle stuck in a vein. The idea was that dozens of tests, such as cholesterol and thyroid hormone levels, could be run on a single, tiny blood sample.
What happens when you lance a fingertip?
When you lance a fingertip, you get both blood and tissue fluid, and this means that the concentration of molecules may be different than if the blood sample comes from a vein.
What is the body's compartment?
The human body can be considered a series of compartments; the concentration of any given molecule in blood or tissue fluid may vary from one compartment to the next. A small molecule, such as glucose, can move easily between these compartments, and any bodily fluid can generally be used to test its concentration.
Why did Steve Jobs know that it was possible to create the Apple II?
Jobs knew that it was possible to create the Apple II because Wozniak already had a working prototype. Jobs also knew that it was possible to fashion a plastic case for the machine because plastic cases existed for other electronic devices.
Why did Steve Jobs keep Apple projects secret?
Jobs understood that secrecy was necessary in the ultra-competitive world of consumer electronics—lots of money could be made each month a hit product was on the market without copycats. So he kept the existence of projects at Apple secret from anyone not directly involved in them. But everyone working on a secret project knew everyone else on it and the leaders of each of the independent groups contributing to its success regularly briefed each other.
Did Carreyrou adopt a black turtleneck?
While we already knew that she adopted Jobs’ trademark black turtleneck, we learn from Carreyrou that she referred to her company’s blood testing product as the “iPod of healthcare.” She moved about in a black car without license plates, as Jobs had. She hired Apple veterans. She even engaged Apple’s advertising agency. After Jobs died, she aped things she learned about him from the Walter Isaacson biography.
What did Steve Jobs say about focus groups?
Steve Jobs famously said that “it's really hard to design products by focus groups; a lot of times, people don't know what they want until you show it to them.”. But that doesn’t mean that he didn’t want to please his customers.
Who is Channing Robertson?
The highly respected Channing Robertson, Holmes’ Stanford professor and Theranos board member , does not appear to have spent time with the development team to help overcome stumbling blocks or to debate the rationale of the technology.
Who was Steve Jobs' cofounder?
From the start, Steve Jobs teamed with a technical wizard and respected his expertise. Apple’s cofounder Steve Wozniak was a gifted electronics engineer with whom Jobs vigorously debated design decisions. Both men held strong opinions but were willing to concede in the face of a better argument.
Who backed Wozniak?
Jobs backed Wozniak. By contrast, Holmes chose an unqualified cofounder and refused to listen to employees who were technically proficient. The co-founder was a recently minted Ph.D. who had biomedical research experience but lacked the skills or experience to develop biomedical analytic devices.