Walgreens puts expansion of Theranos presence on hold
- After last week's explosive article about blood testling lab Theranos in The Wall Street Journal, Walgreens executives requested a meeting with the lab's executives.
- Not only is Walgreens concerned that Theranos was only collecting tiny vials of blood for one of its 240-plus tests, but also surprise inspections from the FDA in August and September.
- Walgreens has 41 Theranos Wellness Centers in stores in Arizona and California, but the Journal reports that no more will be added until Theranos resolves questions concerning its blood testing technology.
Theranos is in fully fledged damage-control mode, continuing to assert that the Journal article had factual errors and mischaracterized the company's technology. For Theranos, damage control of the Walgreens situation is critical. Walgreens has a total of 8,240 stores in the U.S., and represents an excellent way for Theranos to distribute its testing services.
Theranos has characterized its latest meeting with Walgreens as part of a long string of meetings, like the meetings it has with all of its business partners. Walgreens has formed a team to address this issue, but until there is a resolution, expansion is on hold.