Published: Thu, September 06, 2018
Medicine | By Earnest Bishop

Rise and fall of Theranos puts Silicon Valley firmly in focus

Rise and fall of Theranos puts Silicon Valley firmly in focus

A search for buyers of Theranos' remaining assets resulted in no takers, Taylor says in the letter.

Theranos founder Elizabeth Holmes, who started the company when she was 19, was celebrated as a rising Silicon Valley star until it became clear that numerous claims about the company's supposedly revolutionary blood test were bogus.

In May, it was announced that a movie based on a book by Wall Street Journal writer John Carreyrou was in the works and would star Jennifer Lawrence as Holmes.

Holmes and Balwani both pleaded not guilty at their arraignment.

Theranos was unable to sell itself and is now looking to pay unsecured creditors its remaining cash of about $5 million in the upcoming months, according to an email The Wall Street Journal obtained that CEO David Taylor sent to shareholders. The company claimed it could perform a number of traditional lab tests with just a few drops of blood.

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".

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And Jurgen Klopp , who tried and failed to sign Rabiot when he was Borussia Dortmund's head coach, is allegedly determined to ensure Liverpool are at the front of the queue.

Theranos attracted more than $700m worth of backing from a glittering line-up of investors and recruited some of America's most powerful statesmen, including former secretaries of state Henry Kissinger and George Shultz and the current defence secretary James Mattis, to its board. "We are now out of time", Taylor wrote in the email, a copy of which was published by the WSJ (paywall).

Prosecutors allege Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood-testing technologies going back to at least 2013.

Holmes and Balwani are also accused of lying to investors about the company's technological abilities.

It was briefly one of the most celebrated companies in Silicon Valley - but Theranos, a company valued at $9bn (£7bn) at its peak, will soon be no more.

The Securities and Exchange Commission brought civil fraud charges against Holmes and Balwani earlier this year.

Among the charges with which they have been indicted is claiming to investors that Theranos would enjoy sales of $1bn in 2015 when, in fact, it made just a few hundred thousand dollars.

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