Walgreens just killed its Theranos partnership, effective immediately

Theranos fired by Walgreens

Walgreens has terminated its partnership with Theranos — effective immediately.

All 40 of Theranos’ wellness centers at Walgreens stores in Arizona will shut down, according to a statement on Walgreens’ website.

Walgreens killed its partnership with the company in Palo Alto, California in January.

The company says the move is effective immediately.

The Arizona wellness centers were Theranos’ primary source of revenue, The Wall Street Journal reported.

The move to kill the partnership arrives just one month after the company voided two years’ worth of blood tests from its Edison machines. The company was forced to issue “tens of thousands” of corrected tests.

Walgreens officials had apparently become “frustrated at not getting more details and documentation from Theranos” after that, according to sources cited by The Journal.

Walgreen issued the following statement.

“In light of the voiding of a number of test results, and as the Centers for Medicare and Medicaid Services (CMS) has rejected Theranos’ plan of correction and considers sanctions, we have carefully considered our relationship with Theranos and believe it is in our customers’ best interests to terminate our partnership.”

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Theranos issued a statement of its own.

“Quality and safety are our top priorities and we are working closely with government officials to ensure that we not only comply with all federal regulations but exceed them. We are disappointed that Walgreens has chosen to terminate our relationship and remain fully committed to our mission to provide patients access to affordable health information and look forward to continuing to serve customers in Arizona and California through our retail locations.”

Founder and CEO Elizabeth Holmes recently saw her $4.6 billion fortune wiped out because of the company’s performance. Her net worth is now believed to be $0.

The company is currently facing investigations from various state and federal agencies. It has been suggested that Holmes could be banned from the company for upwards of two years.

Written by Tammy Johnson

Tammy Johnson

Tammy Johnson is the Retail Editor at BusinessPundit. She focuses on Fortune 500 retail company's and disruptive brick-and-mortar and e-commerce companies that are changing the retail landscape.