regulators aim to ban founder of blood-testing firm
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[April 14, 2016]
(Reuters) - U.S. federal health
regulators have proposed banning Theranos Inc founder Elizabeth Holmes
from the blood-testing business for at least two years after determining
that the company failed to fix deficiencies at its California
laboratory, the Wall Street Journal reported on Wednesday.
The Centers for Medicare and Medicaid (CMS) said in letter dated
March 18 that it planned to revoke the lab's federal license and ban
Holmes and Theranos's president, Sunny Balwani, from owning other
labs for at least two years, the WSJ said.
The proposed ban would include Theranos's only other lab, located in
Arizona, which along with the California lab generates most of the
company's revenue, the Journal said.
The Journal said CMS gave Theranos about 10 days to provide adequate
evidence of why the sanctions should not be imposed. Theranos had
responded and the CMS was reviewing the response, the WSJ said,
citing a person familiar with the matter.
A Theranos spokeswoman told Reuters that the CMS had not imposed any
sanctions on the company as yet.
Theranos had promised to shake up medical testing by conducting a
wide range of tests with just one drop of blood in a user-friendly
manner with quick results.
The company has been in the spotlight after reports in the WSJ
suggested that the blood-testing devices were flawed and had
problems with accuracy.
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The CMS in January had said that deficient practices at the
California lab posed an "immediate jeopardy to patient health and
Around that time, Walgreens Boots Alliance Inc, the largest U.S.
drugstore chain, said it would stop using the services of the lab
until all issues raised by the CMS were addressed.
(Reporting by Rosmi Shaji in Bengaluru; Editing by Savio D'Souza)
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