As the Theranos and Holmes trial finally comes to a close, what has been the effect of the CEO’s 15 years of fraudulent tenure on the diagnostics industry?
Federal prosecutors called 29 witnesses over the course of four months to outline Holmes' incompetence and suspected fraud during her time as CEO. She now faces up to 20 years of prison time, though a date is yet to be set for her sentence.
Although the true cost of Theranos to the diagnostic market will never be known, I spoke to some industry leaders to gauge their reaction to this sentence, and what it means for the wider industry.
Prospective customers of innovative, leapfrog technology are more dubious. I’ve heard references to Theranos more than once when describing Sense’s innovations that have enabled instrument-free, ultra-rapid single-use molecular diagnostics. For Companies raising funds or commercializing game-changing innovations, the burden of proof is likely higher now.”
It was great to see justice be served with regard to the EH and Theranos case. The lack of transparency and deception from Elizabeth and the Theranos team was a black mark for the diagnostics industry where there are so many great things going on. Exciting advancements in diagnostics are happening and one small group with no data to prove their claims should not be a reflection of the great people in this industry.”
Since the revelation of fraudulent behaviour by Theranos in 2018, the tale has had a significant impact on belief in new businesses in the diagnostic sector. However, as the pandemic proved, the degree of excitement for the many and varied Point of Care & Rapid Testing firms seeking funding doesn’t show any signs of slowing down.
In the wake of the unveiling of Theranos’ iniquity, VC funding has continued to do wonders for many new businesses in the diagnostics market through the backing of several life-changing innovations. Meaning, despite the significance of this disastrous tale, the true impact of Elizabeth Holmes’ fall from grace has only highlighted the brilliant innovation in the wider diagnostics market.
Want to discuss the impact of Theranos, or any other trends in the diagnostics market, in some more detail? Drop me a message at Nathan.Sharpe@lifesci-cm.com.
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Charlton Morris is a Talent Solutions business who offer search, contract, volume and employer branding solutions to the life science markets.
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