ibusinesslines.com November 21, 2018

Embattled Theranos Announces Company Will Dissolve: ‘We Are Now out of Time’

07 September 2018, 11:31 | Melissa Porter

Elizabeth Holmes founder and chief executive of Theranos speaks at the Fortune Global Forum in San Francisco in 2015

Blood-testing firm Theranos to formally dissolve report says

The company says it has about $5 million remaining in cash. By brokering of a deal with the investment firm, Theranos gets to consolidate its leftover money in a trust for creditors that might take between six to 12 months to process.

The Wall Street Journal is reporting that the blood-testing company is about to wind itself up after failing to find a buyer.

The company's dissolution comes months after its top two executives, ex-CEO Elizabeth Holmes, and former president Ramesh "Sunny" Balwani, were federally prosecuted for criminal wire fraud.

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.

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. Certain people like venture capitalist Tim Draper still seemed dumb enough to be willing to give her another shot.

The last working day was the 31st of August and the present CEO David Taylor and other supporting staffs shall be at the office for a few more days until the company completely dissolves.

The once-heralded blood-testing startup Theranos is now set to formally dissolve just weeks after its CEO was charged with criminal fraud. She and Balwani were slapped with multiple charges of wire fraud and conspiracy to commit wire fraud and are facing up to 20 years in prison.

She carefully crafted her image as well, wearing nearly entirely black turtleneck sweaters that earned her the moniker in Silicon Valley as "the next Steve Jobs". The pharmacy chain has said it was misled by Theranos about its technology and prospects.

Theranos did not immediately respond to Reuters' request for comment. Behind the scenes, it performed the vast majority of the tests with commercial analyzers purchased from other companies. A biochemist who worked at Theranos for eight years committed suicide in 2013 after becoming distraught by its culture of fear and secrecy and its lack of progress with its technology, according to his widow.

In April 2017, the Centers for Medicare and Medicaid Services (CMS) sanctioned Theranos and revoked its clinical laboratory testing certificate, which caused the pharmacy chain Walgreens to terminate its partnership with the start-up and sue Theranos for $140m. Each invested $100 million or more in Theranos-investments that are now worthless.

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