Theranos, Inc., is again in the news. On April 17, the company disclosed a global settlement with the federal Centers for Medicare & Medicaid Services (CMS) to resolve “all outstanding legal and regulatory proceedings between CMS and Theranos.” The company said, pursuant to terms of the settlement, CMS withdrew revocation of the company’s CLIA operating certificates and reduced its civil monetary penalty against the company to $30,000. Theranos agreed that it “will not own or operate a clinical laboratory within the next two years.” The following day, on April 18, Theranos disclosed an agreement with the Arizona Attorney General’s office. Theranos will reimburse Arizona residents for all amounts they paid for Theranos blood testing services between 2013 and 2016, an amount which totals $4.65 million.
MORE ON: Theranos
In its settlement with the Arizona AG, Theranos “also affirmed that it will not own or operate a CLIA-licensed laboratory in Arizona for two years, commencing March 28, 2017, and will pay the attorney general’s office $200,000 in civil penalties and $25,000 in attorneys’ fees and other legal costs.”
NANTOMICS ACQUIRES GENOS
Genos, a small gene sequencing company in San Francisco, was acquired by NantOmics, a subsidiary of NantWorks of Culver City, Calif. Nantworks is owned by Patrick Soon-Shiong, MD. Nantworks offers a diagnostic test called GPS Cancer. Soon-Shiong is a high- profile physician and entrepreneur who is regularly in the headlines. Sales reps from his company have been calling on academic center labs and hospital labs across the nation to solicit case referrals for the GPS Cancer test, which news reports say costs about $11,000.
• Bill Bonello is the new Vice President, Treasurer, and Director of Corporation Development for Neogenomics of Fort Myers, Fla. He has held positions with Piper Jaffray, Wachovia, RBC Capital Markets, and Laboratory Corporation of America.
• Alister W. (Al) Reynolds was appointed CEO of SomaLogic of Boulder, Colo. Reynolds has been on SomaLogic’s board since 2003 and previously held executive positions at Quest Diagnostics Incorporated and Corning Inc.
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That’s all the insider intelligence for this report.
Look for the next briefing on Monday, May 15, 2017.