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Theranos Will Close Its Testing Labs And Fire 340 Workers

Theranos Will Close Its Testing Labs And Fire 340 Workers

Theranos, the controversial blood-testing company, said in a blog post it will close its testing labs, fire around 340 workers and now focus on its next-generation testing device called miniLab.

Theranos' blood testing device called Edison examined blood samples to identify dozens of conditions including cholesterol and cancer. However, the technology came under the scrutiny of the U.S. Food and Drug Administration (FDA), and a relationship with pharmacy retail giant Walgreens Boots Alliance Inc (NASDAQ: WBA) quickly turned sour.

Related Link: Walgreen Ends Its Shaky Relationship With Theranos

Theranos' CEO, Elizabeth Holmes, said in a blog post that it will now "return our undivided attention" to its miniLab platform with the ultimate objective of commercializing miniaturized, automated laboratories that are capable of small-volume sample testing.

The miniLab will place will an emphasis on vulnerable patient populations, including oncology, pediatrics and intensive care.

Holmes added that a new executive team will lead the company forward. The team's objectives include obtaining FDA clearances, building commercial partnerships and pursuing publications in scientific journals.

Holmes has previously been banned from the clinical lab industry by U.S. regulators who sanctioned the executive back in July. According to a Bloomberg report, by closing the old clinical labs and patient centers she may be able to continue running the company.

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