The blood-testing company is downplaying today's Wall Street Journal report that CEO Elizabeth Holmes could be banned from the blood-testing business by federal regulators. In mid-March, CMS sent a letter to Theranos with a proposed threat to ban Holmes and company president Sunny Balwanifor from owning or running a lab for at least two years, reports the WSJ.
Theranos has not been sanctioned thus far, emphasized spokeswoman Brooke Buchanan in a phone interview with Fast Company, calling such threats "hypothetical." She confirmed that the company had received the aforementioned letter, which has not yet been made public. She added:
We did receive the letter and responded in 10 days, as well as engaging in conversations with CMS for about two weeks. We were asked to provide clarity and answer some questions. It is not out of the ordinary for CMS to raise the worst-possible scenarios. There are no sanctions on Theranos.
Buchanan also said that the company had "no basis" to believe that any patients were harmed on account of its technology. In the letter, according to Buchanan, the feds raised a concern about possible fatalities due to inaccurate blood-testing results. CF