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Theranos shutters clinical labs and Theranos Wellness Centers


PALO ALTO, Calif. - Theranos on Wednesday shuttered its clinical labs and Theranos Wellness Centers across Arizona, California and Pennsylvania, company founder and CEO Elizabeth Holmes shared in an open letter to stakeholders.

"After many months spent assessing our strengths and addressing our weaknesses, we have moved to structure our company around the model best aligned with our core values and mission," she wrote. "We will return our undivided attention to our miniLab platform. Our ultimate goal is to commercialize miniaturized, automated laboratories capable of small-volume sample testing, with an emphasis on vulnerable patient populations, including oncology, pediatrics and intensive care."

Under new leadership, Theranos is working toward obtaining FDA clearances, building commercial partnerships and pursuing publications in scientific journals, Holmes added.

The move comes following a tumultuous year for the company.

In July, the Centers for Medicare & Medicaid Services had revoked the company's CLIA certificate, among other sanctions. The revocation of Theranos' CLIA certificate precludes the owners and operators of Theranos from owning, operating or directing a lab until at least July 2018 and was expected to go into effect 60 days following the CMS announcement.

In August, Theranos stated it planned to appeal the CMS ruling.

Earlier in the year, Theranos lost its retail partner in Walgreens. “In light of the voiding of a number of test results, and as the Centers for Medicare and Medicaid Services has rejected Theranos’ plan of correction and considers sanctions, we have carefully considered our relationship with Theranos and believe it is in our customers’ best interests to terminate our partnership,” stated Brad Fluegel, Walgreens SVP and chief health care commercial market development officer, at the time of the decision.

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