Economics
Theranos CEO’s 2-Year Ban Leaves Few Options to Save Startup
- Holmes barred for two years from operating laboratories
- ‘It’ll be very tough’ to come back after sanctions: analyst
Does Theranos CEO's Ban Signal the End for the Company?
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Theranos Inc. Chief Executive Officer Elizabeth Holmes was banned by U.S. regulators from owning or operating laboratories for two years, a devastating blow for the blood-testing startup that’s come under scrutiny for risking harm to patients with unreliable tests.
The once high-flying Silicon Valley company was battered with sweeping sanctions from the Centers for Medicare and Medicaid Services, which regulates clinical laboratories. They include the revocation of a key lab certificate, monetary penalties and cancellation of payments from federal health insurance programs for lab services. Holmes, in a statement late Thursday, said Theranos is committed to resolving its issues.