ibusinesslines.com
ibusinesslines.com September 19, 2018


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

07 September 2018, 11:31 | Melissa Porter

Theranos is finally dead, company to wind down

Blood-testing startup Theranos reportedly to dissolve

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.



Other News

Trending Now

'Rat fever' outbreak hits Kerala after worst floods in a century
The Minister advised people in the flood-hit areas to take precautions and a course of doxycycline. "We are keeping utmost vigil". Communicable diseases in the state have killed 84 people since the beginning of August, including 20 people in the past two days.

$400K Raised By Couple For Homeless Good Samaritan 'Gone'
They didn't buy Bobbitt's dream vehicle , they bought him different used auto , also registered under McClure's name. Last week , a Burlington County , New Jersey , judge ordered McClure and D'Amico to turn over the donation money.

Mom charged with murder in case of missing son
An altercation took place once they were inside the vehicle, and Stinson was knocked unconscious, according to initial reports. When she woke up around 1:30 a.m.in a wooded area of Largo Central Park, Jordan was nowhere to be found, she told officials.

Judge Kavanaugh Says His Loyalty Is to the Constitution, Not Trump
Kavanaugh told Klobuchar that was merely a proposal to be considered and not a declaration of his stance on executive privilege. After expressing her doubts on Brett Kavanaugh's ability to protect the privacy rights of all Americans, Sen.

In a First, US to Charge North Korean Spy
The complaint also alleges that Park was in China in 2014, but returned to North Korea shortly before the Sony attack. The hackers stole a cache of emails, which were later publicly released to the embarrassment of studio executives.

Samsung’s CEO said they might introduce the first foldable smartphone in November
The screen will reportedly fold in half like a wallet, with the exterior of the device displaying a small bar of information. After hearing from customers that they want the device, he said that "it's time to deliver ".

It's a baby boy for Shahid Kapoor and Mira Rajput
During her second pregnancy, Mira Rajput also made her acting debut as she starred in an advert for a cosmetic brand. Shahid Kapoor has become father for the second time and the happiness on his face is for everyone to see.