Theranos shutters labs, blood-testing centers
Founder Elizabeth Holmes said the company has decided to close its clinical labs and Theranos Wellness Centers, eliminating about 340 jobs.
Theranos, the embattled blood-testing startup company, said it will shut down its Scottsdale laboratory and five metro Phoenix wellness centers to focus on developing its laboratory technology.
In a statement posted to the company's website Wednesday afternoon, founder Elizabeth Holmes said the company has decided to close its clinical labs and Theranos Wellness Centers. The company's Valley clinical lab is located at Arizona State University's SkySong office complex in Scottsdale.
Holmes said the closings will eliminate about 340 positions in Arizona, California and Pennsylvania. The Silicon Valley company's largest retail presence has been in Arizona, where it operates five testing centers as well as the clinical lab.
Wednesday evening's announcement represents a major reversal for the Silicon Valley company, which was once touted by Arizona Gov. Doug Ducey and was the driving force behind legislation allowing consumers to purchase any test from a laboratory company without a doctor's orders.
Its Arizona expansion began in 2013 when the company began opening testing centers inside Walgreens stores. But the pharmacy chain grew wary of the relationship after Theranos voided test results and clashed with federal lab regulators. In June, Walgreens closed 40 Theranos Wellness Center locations in metro Phoenix.
Theranos labs in Arizona and California face closure
Earlier this year, Centers for Medicare and Medicaid Services lab inspectors moved to revoke Theranos' lab certificate after finding multiple deficiencies at the company's Newark, Calif., lab. The certificate revocation also would force the shutdown of its Scottsdale lab, but the company previously said it planned to appeal the certificate revocation.
Holmes' statement did not address whether the company still plans to appeal the certificate revocation.
"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," Holmes said in the statement.
"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."
Competitors already are moving in on Theranos’ turf on direct-access testing. Sonora Quest, the largest lab in Phoenix, said it plans to open a half dozen new locations inside Arizona Safeway stores. Sonora Quest opened its first two locations inside Safeway locations last year.
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