Elizabeth Holmes is the 32 year old founder of Theranos Inc, a venture capital darling that was once valued at $9 billion:
Her wealth and fame rest almost entirely on a simple but nonetheless “revolutionary” and “disruptive” technology: Theranos’s ability to run a wide range of lab tests from a tiny sample of blood from a finger prick, in that way eliminating the need for intravenous blood draws.
Time named her one of the 100 most influential people in the world and she received a number of awards and lots of positive media coverage. Then, back in October:
This week the Food and Drug Administration released reports based on inspections of Theranos facilities this summer. It concluded that the company’s miniature blood containers — called “nanotainers”— were “unapproved” medical devices for tests beyond herpes.
The FDA review was prompted by a WSJ investigation which found the company may have been using procedures that resulted in erroneous results. The board was revamped after these events. Negative publicity surrounding the politically-connected board might have played a role. At its height, Theranos counted three former cabinet secretaries, two former senators, and retired senior military personnel as board members. Oh, btw, Henry Kissinger was among them.
New York Magazine reported on the findings:
In recent days, the Centers for Medicare and Medicaid Services found that the company’s lab in Newark, California, was in violation of five federal regulations, thereby posing “immediate jeopardy to patient health and safety." Last week, the release of that investigation’s full report revealed that “quality control issues” may have compromised the blood-test results of 81 patients
The company operates a number of centers at Walgreens locations, but Walgreens is reported to be looking for a way out of the alliance after the finding by federal regulators
It seems like none of that has dented Theranos’ appetite for cozying up to high-level politicians. Ms. Holmes is hosting a fundraiser next week for the Clinton campaign. The invite reads:
CONVERSATION WITH CHELSEA CLINTON
Hosted by Elizabeth Holmes
Participation Levels:
+ Co-host: $2,700 – contribute or raise $2,700 includes host reception with Chelsea Clinton
+ Friend: $1,000
+ Supporter: $500
+ Friend: $250
+ Student: $100
The fundraiser was reported by Fortune, Politico and Re/Code.