“The grocer spent more than 100 hours on the Theranos deal,” said the former CEO. More than $360 million before the agreement was terminated p>
Read More Safeway spent $367 million to prepare for Theranos tests, which were never taken "I think every time you start a new job, you're going to have hard points, but we still are," he said. "We had missing examples. We had irrational results." Holmes is on trial for 10 counts of electronic fraud and 2 counts of conspiracy to commit fraud.
The Court also heard more Board members about Holmes' "test" when selecting members of the Safeway Board of Directors. Council Director Michael Shannon bit his finger and assessed his blood for prostate-specific antigen, a prostate cancer screening test. The board said Theranos "made a lot of noise" but never succeeded. "He said something that made us think we'd get it later," Holmes added. They don't. The CEO knew what he was doing - he'd been meeting the 26-year-old Holmes for nearly two decades.Advertising
"Did you know at the time that he was a very small businessman?" Downey asked. The council replied: "That's right." Downey asked. "At least 100," the council said.
The deal called for Safeway to pay $85 million to Tranos as well as rebuild its stores to house small blood-testing laboratories. According to a biotech executive, Ars spoke to, for a transaction of this size, 100+ hours is a significant amount of time, which costs a huge consideration. The number cited by the board in court was so high that the CEO questioned whether the board was relying on the efforts of other investors to fully save Safeway, which is sometimes the case for smaller companies. As part of that effort, Board said he's spoken with doctors and lab managers at Johns Hopkins and the University of California, San Francisco. But Johns Hopkins experts said they didn't spend enough time approving the Theranos.
READ MORE Tranos spent $2 million a week because investors gave rosy forecasts. Holmes promised Safeway executives that his company's diagnostic device could return results to patients within 20 to 30 minutes. However, during Safeway's hardware testing, it took 3-5 days for Theranos to send results to patients.
The deal had no set timetable, though the Safeway board gave speeches in 2010 setting out a pilot program in the first quarter of 2011 and an official launch in grocery stores mid-year. Expand testing to more than 900 stores in 22 states.
Safeway had several ways to opt out of the transaction. If they don't like the way the pilot program has been going, or if the FDA wants to take legal action against the startup, they can rescind the 30-day notice. In the end, Tranos never went that far. By the time the deal was finally resolved in 2015, Safeway had spent more than $300 million building its stores.
Theranos made 'a lot of noise' but didn't do anything else on Safeway
There is a saying in the startup world that many companies are trying to sh...
Last month, Intel CEO Pat Gelsinger took to the podium on a foggy and win...
The Environmental Protection Agency on Monday announced what it called a "co...