The Needle and the Damage Done: A Theranos Tale
Once upon a time, there was a young maiden named Elizabeth Holmes who dreamed of changing the world. Instead, she just ended up changing her address to a minimum-security federal prison camp in Bryan, Texas. But don’t let the fairytale introduction fool you; the story of Theranos is more of a horror show with a dash of tragicomedy. So, is Elizabeth Holmes going to jail
At the tender age of 19, Holmes dropped out of Stanford University. She though, “Who needs a degree when I can just found a revolutionary healthcare technology company?” Enter Theranos, a name that sounds like a villain from a Marvel comic but was intended to be a mashup of “therapy” and “diagnosis.” And a villain it turned out to be.
Edison’s Ghost: The Rise and Fall
With a mystical machine named Edison (because who doesn’t love a good old-fashioned reference to an inventor known for electrifying the world), Theranos promised to revolutionize blood testing. They claimed their device could diagnose everything from diabetes to cancer with just a few drops of blood. As the company grew, so did its valuation, reaching a bloodcurdling $9 billion at one point. Forbes even declared Holmes the youngest self-made woman billionaire. (And you thought your sister’s essential oils business was doing well!)
All was seemingly well in the land of Silicon Valley, until one fine day in 2015 when The Wall Street Journal revealed a plot twist. Theranos’ blood tests were about as reliable as a polygraph test administered by a three-year-old. Not only did they often use other companies’ machines, but when they did use their own, patients were getting inaccurate diagnoses. Suddenly, the stakes were higher than just Holmes’ turtleneck.
By 2016, even Walgreens had had enough. They terminated their deal with Theranos, which led to the closure of 40 Theranos Wellness Centers, marking the beginning of the end. Theranos was promptly put under the microscope by every federal agency you can think of. This led to a shutdown in 2018. It seems the SEC didn’t find their version of ‘disruptive innovation’ particularly amusing.
Theranos Aftermath: is Elizabeth Holmes in jail
Ramesh “Sunny” Balwani, Holmes’ former romantic and business partner, faced fraud charges. Both were sentenced to jail, with Holmes handed an 11-year sentence and Balwani a 13 years sentence. The two also have to pay back a combined total of over $450 million to investors, which is about as likely as a successful blood test from Theranos.
Fast forward to 2023, and our ‘heroine’ Holmes is beginning her prison sentence. And guess how much Forbes values her net worth now? A whopping zero dollars! Makes you wish she’d stuck around at Stanford a little longer, right?
In the end, Holmes’ fall from grace is a stark reminder of an old saying. “If something seems too good to be true, it probably is.” Especially if that something is a tiny device promising to replace an entire clinical lab. With this fairytale ending, Holmes can add another title to her resume: the queen of Silicon Valley’s bloodcurdling biotech blunders.
