Can Theranos Make It Through 2017?

Health and Healthcare

Published: January 7, 2017 9:05 am

Last Updated: January 12, 2020 4:05 pm

Troubled drug test start-up Theranos announced it had “re-engineered” its operations, another way to say it cut 40% of its workers and would have 221 left. The company’s last capital raise was in March 2015, for $349 million. Nearly two years later, the balance sheet cash line has to have dwindled significantly, and legal fees may be the largest portion of the cash attrition.

Theranos barely has a business left. Management says it continues to work on a product called miniLab. However, after all the company’s trouble, what are the odds that any distributors or medical industry partners would take a partnership seriously? Zero.

Theranos has to overcome the shuttering of lab facilities, the ban of its founder Elizabeth Holmes from some of its most critical businesses and a torrent of suits, led by former supporter and investor Walgreens, which put in $50 million in September 2013.

Theranos has moved quickly into the column its venture capital investments keep for companies in which they will invest no more money, almost certainly. No other source of capital will put money into something so risky. The company’s woes are a nearly perfect storm of loss of faith in its products, loss of faith in management, soured partnerships, angry investors and lawsuits.

There is no reason for Theranos to be in business any longer. It lacks a single element of its business that will allow it to become a viable company, even if it does create a product. There will be no buyers, just as there are no investors.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps