Told Ya So, Part 2

I always knew the over-hyped Elizabeth Holmes and her equally over-valued company Theranos were too good to be true:

United States regulators have banned Elizabeth Holmes, the chief executive of Theranos, from owning or operating a medical laboratory for at least two years, in a major setback for the embattled blood-testing start-up and its once widely lauded founder.

In a statement late Thursday, Theranos said the regulators revoked the certification of its Newark, Calif., laboratory and prohibited the laboratory from taking Medicare and Medicaid payments for its services. Regulators also levied a monetary penalty that Theranos did not specify. The sanctions take effect in 60 days, Theranos said.

I mean geez, when Henry Kissinger and Bill Frist are on the board of directors, you know there’s a rat somewhere. And I never bought Homes’ founding story, which read like something Aaron Sorkin would have dreamed up:

Theranos and its young founder in particular offered a compelling narrative in the crowded start-up universe: a brilliant college dropout with an audacious idea that would upend the medical testing business. Ms. Holmes invited comparisons to the Apple co-founder Steve Jobs because of her youth, her tight control of the company she founded and even her customary black turtleneck sweaters.

Ms. Holmes began the company in 2003 after dropping out of Stanford University at the age of 19. Her goal was to create a new way to perform blood tests that relied on a few drops of blood rather than the larger amounts medical testing often requires. Tests would be cheaper, the argument went, and more people would be inclined to get them. In interviews focused on Theranos’s success, she said the idea came from her fear of needles.

Yeah, turns out it was all bullshit.

(For background, see here and here.)

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