Theranos reportedly didn’t mention a second failed inspection of one of its labs.
Unnamed sources close to the matter claim that Theranos’ second lab located in Scottsdale, Ariz. didn’t pass an inspection by the Centers for Medicare and Medicaid Services. The inspection finished on Sept. 29, 2016 and the company closed all of its labs on Oct. 5, 2016.
This report claims that Theranos neglected to disclose the failed inspection to investors and patients. This news could cause more problems for the company, which is trying to get back on its feet after a failed inspection at its other lab in 2015, reports Fox News.
Theranos’ David Taylor acknowledged that the Centers for Medicare and Medicaid Services did investigate the Arizona lab. However, he says the company was planning to close it down before the investigation started. Reports from the Centers for Medicare and Medicaid Services usually go public after 90 days. It’s unknown why this one hasn’t.
Theranos just announced on Tuesday that it has created a new technology advisory board. This group will help it with future technology efforts and with publishing reports in peer-reviewed papers. It will also decide what technologies the blood-testing company should further develop, reports Business Insider.
Theranos has been facing nothing but trouble since the 2015 investigation of one of its labs. The results of that investigation led to Walgreens Boots Alliance Inc (NASDAQ:WBA) cutting all ties with the company. Elizabeth Holmes, the company’s CEO, has also been banned from operating blood-testing facilities for two years. It also announced 340 job cuts in October of last year with the closing of its labs.
