We just got a better picture of Theranos’ financial situation.
The Wall Street Journal is reporting that the blood-testing company had $US200 million left in the bank at the end of 2016 and that the company did not have any material revenue in 2015 or 2016.
That’s roughly a quarter of the more than $US725 million the company raised since it was founded in 2003. It’s notable because the company is facing major lawsuits totaling about $US240 million.
Theranos declined to comment to Business Insider.
Theranos’ saga came into the spotlight in October 2015 after The Wall Street Journal published an investigation that questioned the accuracy of Theranos’ blood test. In 2016, Theranos’ northern California location was shut down, and CEO Elizabeth Holmes was barred for two years from running a clinical lab. Theranos has since appealed.
Now the company is facing lawsuits from investors, patients, and its once-partner Walgreens, which ended its relationship with Theranos in June 2016 and is accusing Theranos of breaching its contract. Theranos has said the suits against it are without merit, and that it will “respond vigorously to Walgreens’ unfounded allegations.”
Walgreens is seeking $US140 million in damages, while one of its investors, Partner Fund, is suing after investing almost $US100 million in the company.
Theranos has been pivoting into focusing solely on developing its technology instead of simultaneously operating clinical laboratories. The goal is to get its miniLab machine, which only requires a small amount of blood to function, in places that have difficulties sending full blood samples to a traditional, full-blown clinical lab operation. The technology debuted in August as part of Theranos’ attempt to be what Holmes called a “decentralized” lab, meaning the test could be processed without needing to be shipped back to a brick-and-mortar lab.
In January, Theranos laid off 41% of its staff, cutting another 155 people in addition to the 340 people the company let go in October after it closed its clinical labs. The remaining employees are working on the company’s miniLab technology.
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