US Federal health regulators have proposed banning Theranos Inc. founder Elizabeth Holmes from the blood-testing business for at least two years as it was found that the company failed to fix deficiencies at its California laboratory, the Wall Street Journal reported.
In a letter dated March 18, the Centers for Medicare and Medicaid Services (CMS) said it plans to revoke the California lab’s federal license and prohibit its owners from owning or running any other lab for at least two years, the report said.
That would include the company’s only other lab, located in Arizona.
The two labs generate most of Theranos’s revenue and are at the core of its strategy to revolutionize the blood-testing industry with new technology, user-friendliness and quick results, the report noted.
Under federal law, Theranos had 10 days to give CMS evidence of why the sanctions shouldn’t be imposed.
The company has responded, and CMS is reviewing the response, the Journal cited a source as saying.
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