Theranos, Inc.: Managing Risk in a High-Flying Biotech Start-Up
Theranos became one of the most exciting start-ups in Silicon Valley when it introduced a simplified blood testing method that had the potential to help countless people. However, a 2015 Wall Street Journal article changed everything. Suddenly, Theranos went from being viewed with praise to suspicion.
- To examine the responsibility of the company in a highly regulated industry that releases a technology to the public with little to no oversight.
- To provide an example in which a company issues statements at odds with the available information.
- To analyze a company’s ability or inability to control the narrative after a whistleblower speaks to a highly credible news source.
- To demonstrate the conflict between transparency and secrecy in technological innovations in terms of regulation.
- To encourage discussion regarding the interpretation of and trust in significant technological advances.