Walgreens just asked Theranos to stop using its northern California lab to test blood
The largest drug retailing chain in the United States said today that it has told the blood-testing company to stop using its Newark, California lab to run tests. It's also suspending its Theranos Wellness Center services in Palo Alto, California, "effective immediately."
The Newark lab handled blood tests from Theranos' California blood-testing locations.
The Wall Street Journal is also reporting that Walgreens is considering a broader pullback from Theranos.
The news isn't unexpected and comes right after the Centers for Medicare and Medicaid Services, one of the federal bodies that regulate laboratory blood tests, sent the company a letter released on Wednesday that accused Theranos of violating at least five clinical-laboratory regulations.
According to the letter, dated January 25, "it was determined that the deficient practices of the laboratory pose immediate jeopardy to patient health and safety."
Other violations included issues with its testing systems and three instances of laboratory-personnel problems. A Theranos spokeswoman said more than 90% of the company's tests are run in its Arizona lab, which wasn't involved in the CMS letter.
Theranos has 10 days to show the agency that it's working to fix the problems. The company said it plans to submit a correction plan to CMS "within days." If need be, CMS can sanction Theranos up to $10,000 for every day it's not compliant, the letter reads.
In October, the Wall Street Journal reported that Walgreens, which had by then opened several of the company's signature "Wellness Centers," would not open any more. Theranos lists 41 Walgreens locations in Arizona with Wellness Centers - locations where anyone can walk in and get their blood tested - as well as the Walgreens location in Palo Alto, California.
"In light of the letter dated Jan. 25 from the Centers for Medicare and Medicaid Services (CMS) to Theranos, Inc., Walgreens said today that it has informed Theranos that it must immediately cease sending any clinical laboratory tests provided through Theranos Wellness Centers at Walgreens to the Theranos lab in Newark, Calif., for analysis. In addition, Walgreens is suspending Theranos laboratory services at its Palo Alto, Calif., store, effective immediately.
Walgreens informed Theranos that tests collected at 40 Theranos Wellness Centers located at stores in Arizona must be sent only to Theranos' certified lab in the Phoenix area or to an accredited third-party lab for analysis. No patient samples will be sent to the Newark lab until all issues raised by CMS have been fully resolved."