US drugstore chain Walgreens cuts ties with Theranos

NEW YORK, United States – US drugstore chain Walgreens has cut ties with blood-testing company Theranos, the California startup under criminal investigation over the reliability of its technology.

Walgreens, in a statement late Sunday, June 12, said it would immediately close operations at all 40 Theranos Wellness Centers at its drugstores in Arizona.

It is the latest blow to Theranos, once a startup darling as it touted new technology which it said delivered quicker blood-test results and cost less than traditional laboratory methods.

The company has been under investigation by civil and criminal authorities for months since a Wall Street Journal series of articles launched last October questioned the reliability of its tests.

Federal health regulators have rejected Theranos’s plan to rectify deficiencies found at its lab in Newark, California, and Walgreens finally pulled the plug.

“In light of the voiding of a number of test results, and as the Centers for Medicare and Medicaid Services has rejected Theranos’ plan of correction and considers sanctions, we have carefully considered our relationship with Theranos and believe it is in our customers’ best interests to terminate our partnership,” said Brad Fluegel, a Walgreens senior vice president, in the statement.

Walgreens in January had halted Theranos lab testing services at a California location and warned the startup must send blood tests collected at Walgreens stores only to Theranos’s certified lab in the Phoenix, Arizona, area or to an accredited third-party lab for analysis.

The 40 Theranos blood-draw sites in the Walgreens Arizona stores are the primary source of revenue for the startup, according to The Wall Street Journal.

Theranos said it was “disappointed” that Walgreens ended the relationship.

“Quality and safety are our top priorities and we are working closely with government officials to ensure that we not only comply with all federal regulations but exceed them,” said spokeswoman Brooke Buchanan in a statement.

Shares in Walgreens Boots Alliance were flat in opening trade Monday. – Rappler.com