Theranos CEO Elizabeth Holmes: Firing Back At Doubters | Mad Money | CNBC

Summary

In a revealing interview, Elizabeth Holmes, CEO of Theranos, addresses allegations of deceptive practices regarding her company's blood testing technology. The Wall Street Journal reports that Theranos conducts most tests on traditional lab equipment rather than its proprietary devices. Holmes counters these claims, emphasizing the validity of their technology and the extensive documentation provided to the Journal. She highlights ongoing partnerships with respected healthcare institutions and defends Theranos' commitment to FDA regulation. As the scrutiny intensifies, Holmes remains steadfast in her belief that their innovative approach will transform healthcare, despite the challenges faced by disruptors in the industry.

Takeaways

• 😀 Theranos, a diagnostic company, aims to revolutionize healthcare with ultra-fast finger prick blood testing technology.
• 🤔 The company has faced significant scrutiny, with allegations of inaccuracies in its proprietary testing devices and deceptive practices.
• 📰 The Wall Street Journal published a critical article, citing a former employee who claimed that only 15 of 240 tests were performed using Theranos's proprietary machine.
• 📈 Theranos has been valued at up to $9 billion, indicating strong investor interest and belief in its technology despite controversies.
• 💼 Elizabeth Holmes argues that the negative attention is a common reaction when trying to disrupt established industries.
• 📄 Holmes claims the company provided over a thousand pages of documentation to the Wall Street Journal, contesting the article's assertions.
• 💪 Partnerships with respected institutions like Walgreens and the Cleveland Clinic remain intact, reflecting confidence in Theranos's technology.
• 🧪 Holmes states that the company has submitted over 130 tests for FDA approval and emphasizes commitment to regulatory standards.
• 🔍 The interview reveals that Holmes offered to demonstrate Theranos's technology to the Wall Street Journal, but the request was denied.
• 📊 Holmes highlights past studies that have shown the effectiveness of their tests, asserting that they have conducted extensive patient testing.

Q & A

What is Thonos known for?

Thonos is known for its ultra-fast finger-prick blood testing technology, which aims to make healthcare testing easier, less expensive, and more comfortable.

How has Thonos been perceived in the market?

Thonos has been viewed as a revolutionary company in the healthcare sector, with its valuation reaching as much as $9 billion in recent fundraising rounds.

What allegations did the Wall Street Journal make against Thonos?

The Wall Street Journal alleged that Thonos's testing devices may be inaccurate and accused the company of deceptive practices, stating that only a small number of tests were performed on its proprietary equipment.

What did Elizabeth Holmes say about the Journal's article?

Elizabeth Holmes expressed disappointment in the Journal's article, claiming they had provided over a thousand pages of documentation to counter the allegations, which she felt were based on false or misleading information.

What is Thonos's stance on the testing methods it employs?

Thonos maintains that while they initially offered a wide range of tests, many of them are now conducted using traditional lab equipment, and they have communicated this transition openly on their website since 2013.

How did Holmes respond to the criticism regarding the number of tests run on proprietary devices?

Holmes clarified that they have submitted over 130 tests for FDA approval that can run on their proprietary devices and emphasized their commitment to making tests available at lower costs.

What partnerships does Thonos have, and how do they support the company's credibility?

Thonos has partnerships with reputable organizations such as Walgreens and Cleveland Clinic, which have reportedly seen and validated Thonos's technology, reinforcing the company's credibility.

What opportunity did Thonos offer to the Wall Street Journal regarding their technology?

Thonos offered to bring their testing technology to the Journal's offices for a demonstration, which the Journal declined.

How has Thonos addressed concerns about FDA regulations?

Thonos has advocated for FDA regulation of lab-developed tests and has been actively submitting its tests for FDA clearance to ensure they meet regulatory standards.

Did Thonos conduct studies comparing their tests to traditional methods?

Yes, Holmes mentioned that Thonos has conducted numerous studies, including a recent 900-patient study, demonstrating the efficacy of their tests compared to traditional methods.