Well, it has finally come to pass.  After months of “damage control”, hiring hotshot lawyer David Boies to be both corporate counsel and board member (a situation rife with conflict of interest), and hiring superstar communications VP Brooke Buchanan the company finally will receive a audit report from CMS .  According to the WSJ today, the report will include major sanctions against the company, including the removal of the CEO and head of Clinical Operations.

In addition to their major defensive legal and PR blitz over the last six months, the company did take some positive steps and assembled a panel of diagnostics experts – which hasn’t actually met together physically but is in the process of reviewing data.

It is conceivable that out of the rubble that some real technology could emerge that actually works but I think that you can say bu-bye to the $9B valuation and likely to the value of Elizabeth Holmes stock…

All of this is summarized quite well by Tyler Durden over at Zerohedge

As always, stay tuned….

 

Dion Madsen

Those that know me well, know that my favorite words are “Super”, “Great” and “Awesome”. The geek part of me is energized solving the complexity of biology and improving the delivery of care.  I learned patience, hard work and entrepreneurship growing up on a farm in Saskatchewan and teamwork in the rinks and ballfields of my hometown.  After working in Europe and then dealing with bare-knuckle politics in Saskatchewan, I migrated west to Alberta where I began to hang out with some crazy guys doing something called “the Internet” which led to me being the CFO of a publicly-traded company.  After selling the company, I crossed over to the VC side and during a meeting with a vaccine company I had the epiphany of “I can make money and help people at the same time? Awesome!” and I have been working for or financing healthcare companies ever since.

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