Theranos Restructures Board Amid Concerns About Its Technology

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Will be used in accordance with our Privacy Policy
Theranos Restructures Board Amid Concerns About Its Technology
Image credit: Shutterstock
2 min read
This story originally appeared on Fortune Magazine

Amid questions about its technology, blood testing startup Theranos said on Wednesday that it has restructured its board, shrinking it from 12 to just five members, according to the New York Times.

Founded in 2003 by Elizabeth Holmes, Theranos is now valued at more than $9 billion (soon possibly more) based on its push to create blood tests that require just a few drops of blood from a finger prick. But earlier this month, the Wall Street Journal published two scathing articles that questioned the accuracy of the privately held company’s technology and the candor of its founder.

Theranos has vehemently denied the Journal‘s claims.

As for the board restructuring, the company told the Times that it had made the change in July, long before the recent unfavorable media coverage. The new board is comprised of Holmes, Theranos Chief Operating Officer Sunny Balwani, construction executive Riley P. Bechtel, retired Marine Corps General James N. Mattis, and David Boies, who has been the startup’s outside legal advisor and is new to the board.

“We stand wholeheartedly behind the management, achievements, vision and commitment of this company,” the company’s board said in a statement to the Times.

Theranos’ board had been criticized as being short on medical expertise. William Foege, a former director for the National Centers for Disease Control and Prevention, and Bill Frist, a doctor by training and former U.S. senator, were the only two physicians.

They along with several former members of Theranos’ old board, including former cabinet members Henry A. Kissinger and George P. Shultz, will join an advisory board of counselors for the company. Theranos has also created a four-person medical board for additional advice.

The new structure “codifies the way we have been running the business for a number of years,” Holmes said in the statement.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.